Sydney Investors, investing in Melbourne
Goal: Maximum capital growth & rental yield.
Brief: Initially our clients came to us with the intention of purchasing an inner suburbs apartment, we went over our client’s needs & wants and advised that a middle suburb purchase would yield a better return over the short and medium term which would give them multiple exit strategies.
Action: We purchased an off market property in Sunshine West (Melbourne)
Rendered brick veneer home, comprising 4 bedroom, 1 bathroom, 2 living area’s & double garage.
Located walking distance to all amenities - Purchased 2015 for $565,000.
Results: Valuation in 2017 was $750,000,
Current valuation $850,000 to $900,000
Proposed Growth Strategy: Obtain DA’s to build new 3 units.
1. Develop site with 3x Double Story 3 /4 bed, 2 bath, 1 & 2 car garages valued at $650,000 each Total GRV $1.95M
Sell down two units to pay out debt, retain one unit debt free or sell to cash out.
3. Sell with Planning Approval - Estimated value $900,000 to $950,000.
After analysing and showing both scenarios our clients decided to take our advice. Today their investment has increased nearly 60%.
On the other hand, had Rick & Sharon purchased a 2 bedroom 1 bathroom 1 car unit in the inner
suburbs their investment today would have had little to zero growth, even if they done a substantial
renovation they would lucky to have seen even a fraction of the growth they have seen in their