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.

Exit Strategy:
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
Sunshine Property.

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