Invest, Hold, Maybe Build 4

A smart way to build a portfolio with profits

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.

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  • Property
  • Investment
  • Development

Affordable 10km of CBD; gentrifying; close to shops, transport, parklands


756m2 flat block, progressive zoning


Tired, original 2bed weatherboard

Purchase Price


Market Value

up to $0.950m

Sale Method

Private Sale, on market for 6+ months


3 months

Rental Income

$400 /week

Rental Yield

2.4% gross

Suburb Median $ Prices

House $0.665m | Unit $0.580m

Suburb Capital Growth

4.7% p.a. over last 10 years

Growth Drivers

Widespread gentrification; pretty tree-lined street; close to shops and transport; expensive neighbouring suburbs

Why we rate it

Good value at bottom of cycle; works for negative gear and capital growth objectives

Development Scope

4 adjoining 2-3bed townhouses with single drive, affordable build

Project Duration

Holding, yet to progress planning and design

Project Costs

$2.600m turnkey completion

Project End Value

$3.080m if commenced

Project Profit

$0.480m if commenced

Return on Cash

48% if commenced

Return on Capital

19% if commenced

End Rental Yield

4.5% if commenced

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    Based on 56 reviews