There are many investors out there who are worried about the year 2020 and what it means for their investment portfolio goals. They may think the time to get great value has passed or is currently out of reach.
Well, there is always a way to achieve value and do a great deal. If you want proof, here is a little snapshot of a Western Sydney property that has proved the gateway to a brilliant rental return on the other side of the country.
We helped a client purchase a property in the Parramatta area in late 2019.
At the time, the deal we were able to achieve was a purchase price of $360,000. It is tenanted and the rental return is $400 a week.
Now, just nine months after the purchase, similar properties currently on the market in that neighbourhood are fetching between $450,000 and $500,000.
This means with a new valuation, our client suddenly finds themselves with between $80,000 and $100,000 equity, even after the year we have had.
The client is making the most of this and will now withdraw the equity from this purchase and use it to buy a block of six units in Queensland for a total of $600,000. That block, which will be an off market purchase, will bring in a total of $1500 a week in rent for that client. That equals $78,000 of rental income each year, for a property worth $600,000. If you want to do the sums that ends up being a gross rental yield of around 13%, which you don’t hear about often in this day and age.
On top of that, most unit blocks sold as a whole entity are on a single title, which means putting the individual units on separate titles can also result in a significant equity gain, so it may not be long before our client is ready to expand even further.
Remember, it all became possible by making this deal right here in Parramatta at the end of last year.
This is just a good news story to show you all what can be achieved in this market. So, forget about the naysayers and the doomsday predictors. If you are looking to build your portfolio in 2020, you still can!
Start your journey with a free Discovery Session. This is your opportunity to ask us your questions and determine whether or not we are the right team to help you build your property portfolio.