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Looking at a hybrid brief!

So, Nicole had a repeat client and a bit of a challenging brief but the client, basically, is professional services. They’re based in regional Victoria and the brief was this it was a hybrid brief. Now, what we mean by hybrid is that we’re going to start it off as an investment property but then we’re going to turn it into an owner-occupied later and this particular property had to be bought in Adelaide.

So, the brief was between $1 million to $1.1 million, so that’s going to get you a good bit of property in Adelaide for that particular price point. What we wanted to get was some capital growth in there as well, so we needed to find, or Nicole needed to find, a brilliant location and what she found is one of the best beachside suburbs in Adelaide. Very high profile with high status.

Now, the property she located was only 600 meters from the beach, so a couple of streets back from the beach and what was interesting about this hybrid brief is, you know, when you’re doing something that they’re going to retire into, for this particular couple are being beachside. They’re going to need to have car access and maybe boat access and that’s what they got. So, this one had dual street access for up to four cars so, hence, the boat was going to make an appearance in this car garage at some point in time as well.

Now, the current property was neat and tidy: three bedroom, three bath, two living zones, and will rent well in its current work, so no need to do any renovation to it.

But because we had a budget of $1 million to $1.1 million, let’s think about how this rolls out. So, the acquisition strategy was it went to auction, so we had to compete at auction. Now, it was passed in to Nicole and the reserve was $1,001,000 and we weren’t going to pay that reserve. So, Nicole was able to negotiate and buy in the late 9’s.

(Recommended read: What happens when the property passes in to you?)

Now, what does that mean for the customer? Well, it’s meant that we’ve still got a little bit of money in reserve there, so we’ve got enough money to potentially renovate that property when the time comes that we’re going to move into that property. So, right now, neat and tidy set-and-forget we can rent that out comfortably throughout the course of the next few years, before we move to retire there.

So, I like the idea that there’s still money in the bank for the renovations. The location is unbelievable. So, remember the location does, you know, 80% of the heavy lifting when it comes into that. The clients, who are repeat clients who have bought investment properties before have a peace of mind, they’ve got a solid investment right now, they’ve got something to get excited about when they move for their retirement.

And I quite like this idea that you know, the wife (who’s originally from Adelaide) is going to be able to know that they are eventually going to move to this beautiful beachside area, after being living in what is Victoria, a pretty dry and hot location. So, she’s going to have a bit of water to enjoy, so I think from that point of view that tells the real story there, where a difficult hybrid brief, but I think we’ve got a great result for that particular client. So, well done, Nicole.

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