[THE VAULT] THE FUNDAMENTAL FOUNDATION INVESTMENT PROPERTY
HERE IT IS!
The fundamental investment property. The building block that helps to mold your foundation portfolio into a solid structure for future growth. It’s not sexy. It doesn’t have harbour views. It’s not in the Eastern Suburbs or the lower North Shore. It’s not any of those things.
SO, WHAT IS IT THEN?
This property was affordable, has boasted excellent growth since purchase and brings in a nice rental income each week. It is another perfect example of what to look for when building a foundation portfolio.
IT HAD A LOW PRICE POINT
Purchased in 2013, this two-bedroom apartment was purchased below market value at $180,000.
IT HAS MADE $150,000 WITHIN TWO YEARS
In August 2015, comparable sales were around $330,000. The owners of this property have almost made the purchase price back on this place within just two years.
IT HAS A GOOD CASH-FLOW
As of 2015, rent has been coming in at $300 per week in this south-western Sydney unit, offering a good cash-flow for its owners.
The owners of this property didn’t waste money buying for a high price in a salubrious suburb. They didn’t go for looks, trendy location or high rent. Instead, they purchased at the lower end of the Sydney market at the right time and are now $150,000 better off for it.
Have you purchased a cheap property in Sydney within the last five years? How much is it worth now? Please share your experiences in the comments section below.