Property Investment Success Stories of 2020
It’s been a crazy ride this year and there has been heartache for many Australians, with job losses, business uncertainty or closure, challenges around mental health and many other hurdles to overcome.
But there have also been some good news stories, triumphs across many facets of life. Many of these have taken place among our Binvested client base.
So, amid all the doom, gloom and uncertainty, we thought we’d celebrate some of our best client success stories of 2020.
What a debut!
Let’s kick it off with a first timer who invested like a pro.
Working as a line marker, this young fellow came to Binvested completely new to investing. He was keen to get involved but wasn’t overly confident his situation would lead to success.
He had $18,000 in savings and no major assets to his name. He had a couple of false starts after accepting two properties and then losing them due to the market coming over the top of him.
Eventually, we helped him buy in Queensland. He picked up a property for $140,000, with comparable sales between $180,000 and $200,000. It rents for $250 a week and has now been valued at $175,000.
He now has the investing bug and plans to pull out equity in a matter of weeks to use on his next deal.
Seeking data, found $100,000
The second client highlight was someone who was serious about property investing.
This investor had been doing his due diligence on some of the properties for sale in his preferred markets.
He visited Binvested in search of data on a particular property he was interested in purchasing. He was ready to outlay more than $500,000 on that single property.
After a MAP session, however, he had changed his tune.
Our team showed him that he could spread that capital across multiple properties and have a diversified portfolio before he knew it.
Next thing you know, he is onto his fourth purchase in two months:
- Bought for $130,000, rents for $180 a week, now worth $150,000.
- Bought for $285,000, rents for $250 a week and now valued at $300,000.
- Bought for $97,500, rents for $200 a week, now valued at $150,000.
- Bought for $130,000, rents for $250 a week, now worth $150,000.
So rather than purchasing one property for $500,000, getting a rental return of $500 to $600 a week and having little to no equity; he has outlaid $642,500, brings in $880 a week in rent and has a portfolio worth $750,000. That’s instant equity of $100,000, with far more upside for further growth and an extra few hundred bucks of cashflow in the pocket every week.
Family of super heroes
The next client was a family of four. Their permanent place of residence was all they had asset-wise and they had no equity to use on that. They did however have a healthy super balance, which they were prepared to access in order to invest and further shore up their futures.
After setting up a self-managed super fund (SMSF), they were ready to go.
Using the money in their SMSF, they were able to purchase two investment properties straight up.
One was a NSW property, which they bought for $275,000 and it rents for $260 a week. The second property was a Qld purchase, bought for the same price but returning $345 a week.
Those properties purchased outright in super will now not only add value over time, but be bringing in serious returns – already $30,000 a year – that will accumulate year after year in that nest egg.
Just for good measure, the family is also now purchasing another Qld property, but this time outside of their super fund, for $85,000. It is returning $150 a week in rent.
Six of one, half a dozen of the other
Who said it was no longer possible to make multiple property purchases in one year?
Client number 4 came to Binvested with one property and $25,000 in savings.
She has since turned that into a portfolio of six properties.
She did this by releasing equity from her existing property and purchasing a Qld apartment for $150,000, which returns $250 a week.
At the same time she bought another Qld apartment for $210,000, renting at $370 a week.
Another purchase for $130,000 was revalued at $200,000 48 hours later and has a rental income of $200 a week.
She then bought in WA for $59,000, renting at $250; in NSW for $285,000, renting at $270; and in Qld for $130,000, renting for $230.
Never a dull moment
So it just goes to show, there are always good news stories and always deals to be done. Get in touch with Binvested if you want to be part of our highlight reel for 2021!