[THE VAULT] 2 bedroom townhouse on the Central Coast.
If you have been following the Vault over the past few years, you would know that a lot of the properties we buy aren’t that good looking. They do make money however.
Here is a prime example of what we look for in a good foundation property. And as always, the proof is in the numbers.
Here’s what makes this property a winner.
This two-bedroom townhouse in the Central Coast of NSW is just one hour’s drive from Sydney. It is in a prime location near the water, in an area that has seen a lot of redevelopment in recent times.
The current zoning is for a maximum height of six storeys. This gives the property lots of potential in the eyes of developers.
It has made money in a softened market.
The townhouse was purchased in May 2017 for $360,000.
According to comparable sales in late 2018, the property would now be worth around $420,000 to $450,000.
Despite the market softening throughout 2018, the purchaser has made around $100,000 in capital growth.
In fact, thanks to the low purchase price, the owner was able to take out equity shortly after buying the property.
It ticks all the boxes.
Not only was it purchased in a prime location for a competitive price, the property has a fairly neutral cashflow, with rent coming in at $350 a week.
All in all, it is a perfect example of how you can make money in property investing during any type of market – even a softening one.
Have you made money off an ugly property? Please share your experiences in the comments section below.