Invest, Hold, Maybe Build 4

David is a highly regarded barrister at the peak of his earnings. His accountant periodically advises him to purchase an investment property (we’ve purchased him multiple) for negative gearing purposes. He endorses our investment philosophy: purchase for capital appreciation with value-add potential down the track.

We brought him a few over the course of a month, and eventually recognised that he wants land and he doesn’t mind a ‘dump of a joint’.

This property had been on our radar for a while. They wanted close to $1m which was way too much, and it took COVID to scare the vendors into reality. We negotiated over the course of a couple weeks and ultimately paid just under market value.

David doesn’t have a mind towards developing now. He may never really. But, he appreciates the feasibility analyses we provide, and understands that properties with value-add potential tend to appreciate in value over time more than those without.

Whenever he pops into our Ivanhoe office, we know he’s looking for a block.