[THE VAULT] NSW CENTRAL COAST FOUNDATION INVESTMENT PROPERTY
This edition of the Vault shows that if the fundamentals stack up, then you’re going to make money – even if the property you buy looks like ‘Rosie the robot’ from The Jetsons.
PRIME LOCATION MEANS STRONG UPSIDE FOR GROWTH
This two-bedroom villa is located on the Central Coast of NSW. It was purchased for $208,000 in early 2014 – around $30,000 under market value.
Just 18 months later, comparable sales in the area had surged upwards of $350,000.
OUTWARD LOOKS DON’T DRIVE THIS MARKET
According to Nathan, this villa looks a bit like the head of ‘Rosie’, the cleaning robot maid from the 1960’s cartoon The Jetsons. Despite this, growth has been considerable and rent has been coming in at $320 each week.
This property has delivered for its owners because it ticks all of the boxes – it was purchased below market value, in a good growth location and with a strong cash flow. Its value had nothing to do with how it looked. Its value lay in the strength of the fundamentals – which is why you should never succumb to your emotions when it comes to property investing. If you can approach each potential purchase with a cool head and a clear insight into what makes the property either a good deal or a bad choice, then you will have a better chance at picking the winners and steering clear of the losers.
Have you ever purchased a property that has delivered excellent results despite its ugly appearance? Please share your experiences in the comments section below.