SUB $500,000 INVESTMENT WITH 4%YIELD IN METRO MELBOURNE
The Client
Louise is an experienced property investor who was looking to expand her property holdings into Victoria. She wants to hold the investment long term (10 years or more). Achieving a solid rental return as well as growth is key to Louise maintaining her property portfolio and being able to add more properties into the future.
the challenge
The biggest challenges facing Louise were
- Having no knowledge of the Melbourne property market
- A relatively small budget to buy a quality property
- Needed a rental yield of 4% which is difficult to achieve alongside growth in Melbourne property
what we did
During an intensive in person briefing session with Louise it soon became apparent that she was a savvy investor who had purchased quality properties in other states. She had the ability to think “outside the square” and be open to up and coming areas around Melbourne. Our goal was to locate an area and property type that would achieve a balance of growth and rental return. All while sticking to a mid $400’s budget.
After completing a thorough area analysis we identified 5 areas and two property types that would meet the strategy requirements.
The Outcome
- Superior property and street in Metro- Melbourne for under $460,000
- Short walk to train and shops
- Walk-in-ready investment with 4% rental yield
- Negotiated a quick purchase with a motivated vendor
Commencing the search immediately after the Christmas break meant getting ahead of the competition for this quality property in a regentrifying suburb. Having been active in this suburb, we knew this block of four villa-units well. The value this property represented was evident. Situated less than 5 minutes walk to the train station and 10 minutes to the shopping centre and in one of the best streets of the suburb, we acted swiftly to secure this property for Louise.
After two days of negotiations, with us holding fast to our offer price, the agent worked with the vendor to reduce their sale price, saving our client $7,000.
The rental agent then went on to secure a higher rent than we had anticipated and above the average for the suburb. Now a lovely local family is looking to call this quality property home for the long term.
In depth knowledge of suburbs | Negotiation skills | Money saved
Market Value – $450 – $460k | Negotiated Price $453,000 |
Money Saved = $7,000 I Rental yield 4% achieved
Saving of time – 11 months
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