A brief with 5.5% growth and 5% yield

Now, let’s take a look at one of our Buyers Agents story. This one we’re going to focus in on one of Christa’s clients. Christa Batt works out of our Melbourne office, is one of our Buyers Agents down here. How’s this for a story. A couple are in their early 30s, they’ve got two young children under five. One works in administration and the other one is a, in the “old terms” we used to call them ambulance officers, but now they’re called paramedics. Again, doing some great work in the community, to look after us all. That’s the story we’ve got. Now, they’re located in Brisbane. They’ve also done some work with Paul, in our Property Wealth Planning Team as well. They’ve done the plan. This was their second purchase in their plan.

Where did we go shopping? Well, we went investing in South Australia. We’re all steps all around the Australian east coast and moving across to South Australia for this purchase. What was the brief?

The brief was a balanced asset — 5.5% growth, 5% yield.

We found ourselves a great little villa, in the area of Mitchell Park in South Australia. How much did we buy this asset for? We paid $402,000 dollars for this great little villa, three bedroom, two bathroom, two car spots, and just a little, bit of tidy up in the paint. There were some smells in the property. The best way to get rid of some of the smells in the property is a quick bit of paint and some furnishing around the windows, to take those smells out of the property.

Now, we had a rental price guide at the time of $360. Spending that little bit of money on painting and also doing those window furnishings, cheap cosmetic renovations you can consider, meant that we’ve got $400 a week. It was a great! We had a choice of applicants. It was obviously well presented. That meant that there was a buildup of demand for tenancy in that area. We got it really, really well. What happened here? Four years earlier, a similar property sold for $414,000. We’ve been able to pick this property up four years later for $402,000 dollars in the same market. Two on the block. There was also a Body Corporate Issue, when it came to the common driveway. There were repairs that needed to be done to this driveway once Christa had inspected the property.

What were we able to do? Though Christa’s incredible negotiating skills, we actually got the vendor to pay for those repairs. Our client didn’t have to pay for them. They were negotiated as part of the deal. Here we have a time poor couple, with two young kids, who want to be borderless investors, who come to us, get a property plan. We buy them their first property. They’re second property is part of their plan, and we’ve identify a growth market, where demand is exceeding supply at the moment in. We expect immediate growth in that area over the course of the next two to three years. That’s a good news story. Time poor, but no skills to also being able to pull this off and getting all of those negotiations done around the common driveway. That’s the only thing that the body corporate holds. We’ve got a win/win outcome. Our clients, outcome for them, the transformation with them, they realized they didn’t have the skillset to do this, they couldn’t, they didn’t have the time to go and buy into state. They referred back to a professional Buyer’s Agent to get the job done!

Congratulations to them. We love this couple. We actually met them in our Sydney office. They came down for a bit of a holiday into Sydney. If they’re watching this, you know who they are. Great to obviously get to meet them. Yeah. A really good couple. It’s another good example of where we’re helping clients outside of both Melbourne and Sydney and looking after their needs and servicing in our Melbourne or Sydney offices. Congratulations guys. We know that, that one’s been a great little pickup for you.

 

See all of the Stories of The Month here

There’s obviously a lot more activity that’s happening. We bought 25 properties this month. We did 47 plans. There’s a lot more buying that’s going to go on in marketplaces when other people are fearful. If this is of interest to you, and you want to learn more about the services that we offer here, please feel free. We do an initial free consultation with no obligation at all. You can learn about our services and how we can help you get on the property ladder, but most importantly make sure that you retire wealthier tomorrow.

Thanks for watching.