The Brief

To secure a passive investment with strong cash flow from the outset but with great prospects for long term growth to enable further buying.

Our Comments

Two Bedroom Split Level Unit
Original Asking Price: $820K

This sub penthouse loft style apartment was brand new in a small block and had originally been sold off the plan to another buyer. Through our contacts we were made aware that the purchase had fallen through and that the developer was highly motivated to sell to enable them to move onto another project. Through decisive negotiation and creative terms we were able to exchange the property within hours, securing for our client a property that was cash flow positive, had instant equity from day one and in a location with strong long-term growth potential due to major infrastructure improvements.

Purchased 4 years ago for $689K the property was independently valued in October 2018 for $1,300,000 an 88% increase and reflecting an on paper equity gain of $611,000. It is currently rented to a long term tenant at $900 per week a 6.8% gross yield on purchase price and cash flow positive.

Leveraging the equity gains, our client was in position to buy two further investments also in Sydney, using the surplus cash flow to accelerate the paying down of debt to increase her overall net wealth.