NATHAN IS CASHING IN ON SOME OLD PROPERTIES IN TREGEAR
Nathan picked up some of these townhouses in Tregear about ten years ago for around $140,000 each.
Now, he is looking to sell them for around $400,000 to $450,000.
BUYING IN THE RIGHT PLACE AT THE RIGHT TIME
The vendors had reportedly paid $350,000 each for the nine dwellings when they purchased them in 2003.
The properties had been renovated to look brand new.
Unfortunately, they ended up on the market just a few years later in a bank repossession sale.
Nathan managed to buy some of the townhouses for around $125,000 to $140,000 each.
THEY TICKED ALL THE RIGHT BOXES
At the time, these properties were perfect for Nathan’s foundation portfolio.
They rented for about $230 a week, had depreciation on them and were located in a good growth area in Sydney’s west.
Currently, the properties rent for around $360 to $370 a week.
THEY EXPERIENCED GREAT CAPITAL GROWTH
In the current market, two-bedroom townhouses are selling for around $400,000 and three-bedders go for around $450,000.
So, over the past decade, Nathan has made around $300,000 on each property.
WHY IS HE SELLING THEM?
Now that Nathan is graduating onto the next phase in his portfolio, he is cashing in on some capital to buy different types of properties going forward.
THE OPPORTUNITIES ARE STILL OUT THERE
Although it may be difficult to find deals like this in Sydney in the current market, there are similar properties in Brisbane that are being sold for around $170,000 to $190,000 each.
Building a foundation portfolio can enable the savvy investor to earn enough capital and passive income to take their investing to the next level – and earn even more.
Investing is not about buying properties in areas that you like, it is about looking at the numbers involved and the performance of the market in which you are buying.
Will you take the opportunities that are out there?
Have you purchased properties in good growth suburbs? Please share your experiences in the comments section below.