Investor Case Study

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.

Suburb

Kensington

Price Guide

$820K

Sale Method

Off Market

Result

Auction Reserve

N/A

Purchased for

$689K

Discount on Guide

$131K

Gross Yield

5.3% ($700pw)

Full Testimonial

“Following a recommendation I contacted Sebastian for some help in finding a Sydney investment property. I had wanted to buy for a long time but never seemed to have the time to find the right property. Sebastian was fantastic, incredibly professional, knowledgeable and committed to finding me the right place at the right price. Despite the market challenges at the time he kept my best interests the priority, we found a great investment property and I couldn’t have asked for more.

- Kylie

Buyers Agents

Sebastian James
Founder & Managing Director / BSc, CNE & LREA
Charlotte Yong
Corporate Relations Manager

Related Posts

Insights - December 6, 2017

How to Win an Auction without Overpaying

An Expert Guide to Bidding - This is it. The moment you’ve been waiting for. “Going once …”, “Going twice …”, Up goes your hand...

News - October 21, 2016

How to find a diamond in the rough

Suffering analysis paralysis? An expert guide to finding and constructing the best property deals for you.

News - May 16, 2017

Making an offer that can’t be refused

Part II: Mastering the Art of Negotiation. A lot of people view property buying in black and white, in that they’ll look online and assume...