Case Study
Cathy & Mat - SMSF Property Acquisition
Scenario:
Cathy and Mat came to EQ Property with a budget of $900K and a desire to find a property investment solution that was low risk but offered strong growth prospects coupled with a high rental yield. They knew a little about real estate investment but were not sure where to buy. Further adding to their challenge, the couple has a busy lifestyle with kids limiting their availability to view properties.
Budget:
$900K
01.
The Strategy
Giles had to consider the wants of Cathy and Mat and find a way to show them the importance of growth to see success. While he could simply have started looking for any property on the market, he knew this would perhaps see high rental yield in the short-term but not provide any benefits in the long-term. Therefore, he centered his strategy around growth potential, focusing on a location that would offer both high rental yield and increasing property values.
The property was to be purchased in a Self Managed Super Fund (SMSF) so it is imperative that the property performs well to fund Cathy & Mat’s retirement.
02.
The Approach
Giles focused on three location drivers to identify opportunities for Cathy and Mat:
Demand
Who wouldn’t want to live on Sydney’s Northern Beaches
Supply
Sydney’s Northern Beaches peninsula
Demographics
Areas with middle to high-income earners
Intelligent property investment decisions depend on numbers and precise feasibility analyses for each client.
03.
The Plan
The plan focused on finding a high-performance property that met his proven criteria for organic house price growth. However, the property also had to be available in the right price range under the $1M mark AND provide a respectable income for the couple through rent generation. Giles’ research led him to a unit as the ideal opportunity, zeroing in on the Manly Vale area.
Here residents enjoy the easy lifestyle and demand for rental units is high, with a vacancy rate of 1.94%. The suburb has 35% units to houses, with a high proportion of owner-occupiers.
04.
The Results
Giles found the perfect investment property in Manly Vale in a small block of 6 units.
It was off main streets and had the distinction of a top floor position boasting district views from the balcony, with excellent sunlight and airflow thanks to the north-south orientation and a good layout. With parking and proximity to amenities, the apartment was available just below Cathy and Mat’s budget.
EQ Property made it easy by doing everything the couple needed to accommodate their busy lifestyle. They appreciated Giles’ no-pressure approach, with a focus on sharing his knowledge, not on sales. As a buyers’ agent, he was able to meet their needs to not just find a property but consider the investment angle to improve their earning potential. From the search to outlining all the hidden costs and the final negotiations, he exceeded their expectations and improved their outcome.
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