Agent network secures off-market

We met with this first-time investor in the midst of the lowest stock levels we have seen in Adelaide for a very long time.

With a budget of $350k, we had to bide our time to ensure the absolute best opportunity for him was secured. So many investors were just buying property for the sake of buying an investment despite it being low-quality. This is always a big mistake – it’s all about buying the right property, not just buying property. 👩🏽‍💻

At agent contacted us with a pre-market listing as he knew we were on the hunt and we jumped the queue and inspected the property. It was in a high growth location in Modbury Heights. A short distance to all amenities and only 20 minutes from Adelaide CBD. And it had several value add options:

• renovate the front and build equity over the initial few years due to expected capital growth
• split the block by adding one or two properties out the back, or
• knockdown and build 4. 🏘

Untouched the property would achieve $330 per week rent making a 5% yield or include a basic $15k upgrade and see your equity grow by $50k and yield/return of 5.5%. 👏🏼

We completed our due diligence, negotiated with the selling agent and secured the deal at $338,000 before the property hit the public market. We achieved our client an added bonus of rent-back to the initial owners.

Once the old owners vacated our client went in and did a basic freshen up of the property ($15,000 worth) to ensure a strong return and to attract good quality tenants. The property was then rented out to a small family for $380pw.

This result was only possible because we are local – we know the market and where it is sitting at any given time. We know what property is worth, what areas are going to be driving a high growth performance and we provide physical inspections.

What we know about the Adelaide market you can’t learn from a computer screen in another state. We know it because we are on the ground inspecting properties every single day of the week. 🏠 🗓

Our client is now receiving a healthy rent and can sit back whilst they think and explore the idea of splitting the block in the coming years.