Taking advantage of market conditions for interstate investors

Our clients, interstate investors wanted to boost their portfolio with a low-cost but strong-performing asset. The timing of this purchase saw what could have been a highly competitive purchase reduced to 3 bidders on auction day.

Current market conditions meant many buyers were struggling to purchase under auction conditions as they couldn’t buy unconditionally as they required “subject to finance” or “subject to sale” clauses. For our clients who had pre-approval this did not present a problem though.

This property we found them was perfect for them. A low-maintenance 3-bedroom house on 360m2 in Craigmore. Craigmore is a large northern suburb approximately 40 minutes from the CBD. This particular property was near a variety of local shops, parks, schools, and public transport options. This property appealed to several different buyer types, including first-home buyers, young families, downsizers, and investors. Which is great for future growth.

However, the icing on the cake for our client is the property had an in-place tenancy at $375pw. Meaning at settlement they would receive an almost immediate income but that the interested buyer pool was reduced further. Anyone seeking to buy a property to move into straight away may be put off by an in-place tenancy.

Our interstate clients trusted us with the process completely. They never viewed the property, we sent them additional photos, videos and provided detailed suburb and property reports. We referred them to an excellent conveyancer for contract review and we provided a rental assessment to confirm whether the current rent per week was market value.

This property was ticking every box for a low-maintenance strong-performing asset.

On auction day there was a small crowd and we purchased the property under the hammer for $360,000. Our clients, have asked us to manage the property going forward and will be implementing a rental increase at the appropriate time, securing our client a 5.8% rental yield.

Amazing!