[THE VAULT] NSW CENTRAL COAST UNITS BOUGHT FOR $45K BELOW MARKET VALUE
In this edition of the Vault, we look at a series of one bedroom units located on the Central Coast of NSW. These NSW Central Coast units were bought at different times from the same complex of 120, each purchase shows a consistent trend of growth, while at the same time raking in a nice rental return.
WHAT ARE THEY WORTH NOW?
A one-bedroom unit from this apartment block will easily sell for around $330,000, and a two-bedroom unit will go for around $400,000.
WHAT WERE THEY PURCHASED FOR?
• Two years ago – Binvested Property Investment Agents purchased a one-bedroom unit for a client for $160,000. This client has doubled their money.
• 12-18 months ago – Binvested Property Investment Agents purchased one-bedroom units for a few clients for $225,000 each. These clients have made more than $100,000 from the acquisition. Not only that, at the time of purchase, two of the same units sold for $270,000 each – making our deal $45,000 under market value.
WHAT MAKES THESE APARTMENTS WORTH BUYING?
You may be unwilling to buy an investment from a large complex such as this one, but if you remove your emotional response and look at the following factors, any distaste over its size will surely wither away. These units are:
• low maintenance,
• have depreciation,
• offer a good cash-flow,
• have shown strong capital growth over the past few years,
• are situated one hour from Sydney,
• boast ocean views from an excellent location.
NATHAN, HOW DO YOU BUY PROPERTIES SO CHEAP?
This is probably one of the most common questions asked by investors. Nathan and the team at PIA are able to buy properties so cheap for clients because they have spent over a decade building relationships with real estate agents. During this time, they have researched the market extensively and become experts in their own investing – expertise that they share in building success for each of their clients too.
IN ORDER TO BUY BELOW MARKET VALUE, AN INVESTOR MUST:
• engage in extensive networking,
• build a solid understanding of what makes a good investment,
• know the market like the back of their hand,
• have someone who knows how to negotiate on their side.
These are the qualities that have enabled PIA to make deal after outstanding deal for their clients, time and time again.
Have you been successful in negotiating a lower price with real estate agents? Please share your experience in the comments section below.