[THE VAULT] CAIRNS POSITIVE CASH FLOW PROPERTY BOUGHT 78% BELOW THE PREVIOUS PURCHASE PRICE WITH A 33% YIELD
In this edition of the Vault, we unearth a unit that went from being one person’s junk to another person’s treasure. This Cairns positive cashflow property is not a foundation portfolio property for beginners but it is an excellent purchase for advanced investors to inject more cash flow into their portfolio. Just like there are horses for courses this property also has a place, it’s cheap, it’s modern, has depreciation and it has a great rental yield.
THE HIGH PRICE OF OVERPAYING
Around six years ago, units such as this one in the Far North Queensland city of Cairns sold for between $125,000 and $140,000. A few years later, we picked this one up for $31,000. The person who sold it must have been kicking themselves.
TRIPLING VALUE THROUGH CAPITAL GROWTH
Nowadays, units in this complex are selling for around $60,000 to $90,000. Rent stands at around $180 a week, making it a 33% yield. For a $31,000 investment, this property sure has a lot to offer!
Have you ever purchased a property as cheap as this? Are you interested in buying highly positive properties like this? Please share your experiences in the comments section below.