Doug and Xena are both highly successful medical practitioners with a mind to growing a diverse property portfolio with future value add prospects.
We represent many medicos and understand that they can attain debt finance with 90% LVR, and are usually appreciative of investments that limit their tax exposure during their high income professional years (e.g. negatively geared properties are attractive).
D & X loved the central location of this property. They have friends who live in the suburb, and appreciate its vibrant nature and widespread gentrification. And, they were really enthused about the clear future development prospects on a flat block with dual street frontages.
After running some initial analyses on this property, we felt it was being seriously underquoted at $1.80m to $1.90m. We considered market value to be about $2.1m. The agent is a genuine bloke, and over the course of a couple inspections he explained that the vendors are realistic and motivated beneficiaries of a deceased estate. They weren’t particularly looking forward to an auction. What did he think would buy it? Give me a clean offer of $2.0m on a standard settlement and he’d work to get it done.
We did just that after it being on the market for less than 2 weeks, and managed to secure it before many interested parties even inspected it. Good opportunities like this don’t last long on the market, and D & X appreciated this fact. They’re very happy with their purchase.
Vibrant suburb with gentrifying High Street close to CBD
Flat rectangular 925m2 with dual frontage
Tired with character, needing a bit of work to rent
up to $2.100m
Bought Prior to Auction
House $1.160mm | Unit $0.590m
7.1% p.a. over last 10 years
Vibrant commercial strip, proximity to transport and CBD, demand from young, affluent professionals
Stone's throw to High Street, dual frontage, clear development precedent, widespread gentrification
Up to 8 triple story townhouses utilising dual street frontages
holding, yet to progress planning and design
$6.045m if commenced
$7.115m if commenced
$1.070m if commenced
42% if commenced
18% if commenced
4.5% if commenced
Harvey is a big earner, building a portfolio of negatively geared properties with value-add
Price : $1.850m
Location : Blue chip, affluent, close to hospitals, transport, shops and parks
Scope : 3 large, quality, detached houses
Profit : $0.900m
Return on Cash : 48%
Jim semi-retired from finance young and is building an impressive portfolio
Price : $0.950m
Location : Urban, gentrifying, with good transport and access to CBD
Scope : 4 attached street-facing townhouses
Profit : $0.475m
Return on Cash : 45%
Jack asked us to JV with him on a bigger site, and this made sense for us both.
Price : $2.125m
Location : Quiet, leafy, family-oriented with top schools and shops
Scope : 8 townhouse with dual access
Profit : $0.675m
Return on Cash : 58%