You Won’t Believe How Much We Bought This Cairns Apartment For!
We purchased this Cairns apartment for an unbelievable price – in fact, the yield for this property is a whopping 50%!
Purchased waaay below previous selling price.
The vendor of the property must have been kicking themselves. They had paid $120,000 for the unit – then we bought it off them in 2015 for just $25,000.
Current comparable sales are around $80,000 to $90,000 and the property rents at around $200 a week.
Why did we buy it?
We don’t recommend this sort of property for everyone. We also aren’t saying that Cairns is the best place to invest.
The reason we purchased this unit had more to do with the position our client was in at the time. They needed to improve their cashflow in order to take their investing to the next level.
By purchasing this, they managed to add an extra $10,000 to their balance sheet.
They turned a roadblock into a building block.
It ticked all the boxes, too.
Aside from the property being dirt cheap – you could never build it for this price – it had a 50% yield and was almost $100,000 less than what the previous owner paid for it.
So, it was below market value, had a good cashflow and also had upside for growth.
Imagine buying four of these outright for $100,000. That’s a $40,000 yearly income.
While it may not be the right property for building a solid foundation for those just starting out, it certainly serves its purpose for those who need to up their cashflow.
Have you ever purchased a property for less than $50,000?