15% Gross Yield Buy-Hold

WHAAAT...ANOTHER ONE...Purchase #37 by Easy Buyer's Agent. Asking: $135,000, Purchase: $90,000. This is our 7th purchase for our repeat investor client. Property was previously tenanted for $260/week = 15% gross yield. Read on.

Our client is a repeat investor of ours. He has had a lot of successes with the investment properties we had the opportunity to present to him with in the past. His goal is to keep adding into his property investment portfolio.

Don't try this at home. This is a property located in regional WA. While most property buyers are only keeping themselves busy with the potential "capital growth" of metro area, Easy Buyer's Agent sees property investing differently. After all, property investing, in our opinion, is all about the Return-of-Investment of the invested money. Whether you are buying a property that shows 8-10% long term capital growth, or a property that shows annual 8-10% return through rentals, it should show similar rate of growth of the invested capital.

Therefore, whether it is regional vs metro, high-end vs low-socio suburbs, to us it does not matter. As long as the bottom line ie. the ROI makes sense, we're good.

And this is what this property is all about. When we came across this property, at asking price of $135,000 with tenant paying $260/week, it was already showing 10% gross yield. Suburb data shows 0.4% vacancy rate! Through negotiation tactic, we ended up buying it for $90,000, 33.3% down from asking. It means, its rental return is bumped up to 15%! Imagine that...

At 15% gross yield, safe to say that it arguably performs way better than the "metro area capital growth" counterparts.

Nonetheless, regional purchases are still very much high risk, and we will not recommend our clients doing it unless their risk appetite is high. However, if you are up for it, you shall receive the returns!

Looking to buy property in WA? You know who to call. At Easy Buyer's Agent, our passion is to see our clients succeed and go to the next level through their property purchases. Give us a call, consultancy is free. And let's just chat property!

Until the next purchase. Peace.