Budget with Added Bang

Budget with Added Bang

by Kate Fuller (Senior Investment Manager, South Australia)

An interstate investor contacted us searching for a budget friendly property with a goal to achieve capital growth and strong rental yield.

Based on our clients criteria, preferences and budget we got to work assessing a few properties with potential. After eliminating these first few properties, we then discovered the property that was “meant to be”.

The property ticked a lot of boxes for us, including:

  • It was located in a fantastic area of Adelaide.
  • It was on a large corner block.
  • It was an extremely solid build.

It was also in need of some cosmetic work, both inside and externally.

After carefully assessing the property, we then got stuck into the negotiation.

We successfully purchased the property for our client – well within budget.

The remainder of the budget was then used to tidy up some inside areas (included adding air-conditioning) and add some paving and lawn areas outside.

As soon as this work was finished our property management team put the property out to the rental market and have now secured some very suitable tenants.

Here is the breakdown of each step in this process:

  • Property was purchased for $304,000.
  • Renovations cost $17,000.
  • Total buy-in price = $321,000.
  • The new tenants are paying $380 per week, which provides a rental yield of 6.16%.
  • On top of this we now estimate the property to be worth $350,000-$365,000 based on recent comparable sales in the area.

What a great outcome for our client.

If you’d like to discuss your plans and goals in regard to buying property in Adelaide, we would love to hear from you and would love to assist. Simply contact us here to organise your free, no obligation consultationand we will get back to your shortly.

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