[THE VAULT] LOW RISK INVESTMENT PROPERTY WITH GOOD UPSIDE FOR GROWTH AND ONLY $159,000
This one bedroom unit on Queensland’s Gold Coast was purchased for just $159,000 – but that’s not the only thing it’s got going for it. Modern, located in the CBD and with a list of renters looking for accommodation, this property offers a low risk, good upside addition to a foundation portfolio.
THE TRUTH ABOUT THE GOLD COAST
According to Nathan, the Gold Coast has developed an unfair reputation as being a buoyant market. He says, in the late nineties and early 2000s, there was a spate of property spruikers who would fly people to the Gold Coast. They would get them in fine holiday mode, before ripping them off with a dud property.
These properties would appear cheap in comparison to Sydney prices – but they were still overpriced in the Queensland market.
In the current world of real estate, buyers have online search engines at their fingertips. This makes market value more transparent – making it harder for dodgy salespeople to rip off buyers.
(Although, it does still happen from time to time.)
PAYING LESS THAN THE PREVIOUS OWNER – OUCH!
Nathan says, a lot of the properties he has purchased in Queensland have been from $50,000 to $100,000 less than what the previous owners paid for them.
That’s gotta hurt.
On the other hand, the numbers certainly stack up for Nathan and his clients.
THIS APARTMENT WAS PURCHASED $30,000 UNDER MARKET VALUE
Comparable sales for this property were around $190,000 at the time of purchase.
Two years later, in late 2015, this flat was worth around $220,000.
To get deals like this one, says Nathan, you must be educated, have a strong understanding of the market, be able to negotiate and have a strategy that enables you to accumulate and build your portfolio.
0% VACANCY RATES = HIGH RENTER DEMAND
This property rents out for $270 to $280 per week.
There is so much demand from renters in the Gold Coast, that Blink Property (the largest and fastest growing property management firm on the Gold Coast) has a zero per cent vacancy rate. This means renters are lined up waiting for accommodation.
Have you ever purchased a property for less than what its previous owners paid? Please share your experiences in the comments section below.