They had a pre-approval of up to $750,000 but we didn’t want to use all their serviceability on the first purchase. We decided to target properties sub $500,000 which is why we decided to look around coastal towns, and areas of growth in Queensland.

The property we found was a 4 bedroom, 1 bathroom house on a large flat block of 809sqm which when we presented to the client they were happy it ticked all their boxes.
We ensured that the property was in a completely flood free zone, away from housing commission, in a good street and close to amenities.

The property is in completely liveable condition, but there is also room to add future equity value through some minor renovations to the flooring and updating the original bathroom.

The location has an extremely low rental vacancy rate of 0.54% (Queensland average is 0.82%) as well as an average 3 year house price growth rate of 20% per annum. Properties are performing very strong and transacting quickly in this market with an average time on market being only 37 days. Rents have also increased by 6.54% since last year.

The demographics have shifted in the suburb with the median age range around 42 years, and the majority of people living in the area are married couples or families.

This property we purchased was listed for sale $375,000 which was a fair market value for the property when looking at the local comparatives. But, we were able to push the Real Estate Agent down to $362,500 because we emphasised how we had serious buyers who were qualified and already pre-approved and our due diligence showed the maximum price we wanted to pay.

The property was already leased at $360 per week and we were able to get the lease renewed for our clients at $440 per week during the cooling off period resulting in an excellent yield and cash flow for our client.

The yield on this property is 6.31% and these happy clients are excited to look into their next deal.