Interstate client seeks capital growth and a healthy rental yield

The Brief 

Our interstate client wanted an investment property in Adelaide. With a healthy budget of around $750,000 we knew we could tick off all of their selection criteria: 

• Capital Growth Potential 
• High Rental Yield 
• Depreciation Benefits 
• Modern 
• Low Maintenace 
• Close to City or Beach 

The Property

 We started the search and found some great properties, We quickly honed in on one in Alberton. 

 Alberton is a great little suburb, rich in historical significance and home to the AFL team ‘Port Adelaide’. Located 11 kms northeast of the CBD and only 3.5 kms from the beach it ticked both boxes as far as location.   

The 4 bedroom, 2-bathroom home was built in 2017 and on 356m2. It had a double garage, easy care garden with an alfresco area and was close to the train station and local shops. This property looked like it ticked every box, including potential tax savings from a depreciation schedule.  

The Negotiation 

We organised a private inspection and probed the real estate agent. Listed for auction we found out the vendor was motivated to sell and would look at pre-auction offers.  

We completed our due diligence and started talking numbers to the selling agent. We submitted an email offer and stipulated that it was subject to a Building and Pest inspection. Whilst negotiating a price with the selling agent (we increased our offer once) we had a Building & Pest inspection completed. 

 The inspection revealed a plumbing problem, we negotiated that the vendor fix the $5000 problem. Contracts were signed (under auction conditions!) and the property secured for $715,00 (under our client’s budget!). 

The Management

Whilst waiting for settlement we knew there was an opportunity to lease this property off-market!  

We had recently let a property in the same street, and a group had come through that loved the location but needed an additional bedroom. We reached out to them and forwarded them the sales listing. They drove past the property and said they were definitely interested. We advised that as it was a substantially nicer property and with an extra bedroom, the rent per week would need to reflect that. 

They completed a rental application and offered a very attractive weekly rent. We presented it to the news owners (in waiting) and they were impressed with the application. We provided the applicants pre-approval but advised that needed to inspect the property before contracts could be signed. 

We organised early access to the property with the real estate agent (the vendor had to delay settlement by 3 days, so we should have had the keys but didn’t). The applicants inspected the property and loved it. 

Everything for this property happened quickly. It was mere days between inspection and signing of contracts and mere days again between settlement and the new tenants moving in.  

Our clients were so happy that left us a glowing 5 Star Review.