6.5% Gross Yield Below Market Purchase with Potential Value Add
YEEEHAW ANOTHER ONE...Purchase #60 by Easy Buyer's Agent. This is for our repeat local investor. Asking: $249,000. Purchase: $230,000. This is a property sitting on 700+sqm land already tenanted at $290/week. Suburb has shown 18.8% growth over the past 12 months with median price sitting on $285,000. Read on.
Our buyer is a repeat customer of ours and looking to add more into his portfolio.
When we saw this property, we were immediately interested. The location was great with bus stop located only few houses away which would take us straight into the train station. It would take only a total of 45 minute trip to Perth CBD. Amenities and schools were all close by.
More importantly, the property was already tenanted at $290/week. At the purchase price of $230,000, this shows 6.5% gross yield. Yes, while the property can benefit from cosmetic renovation, with similar properties have sold for at least $270,000 our buyer has the opportunity to value-add in the future. In the meantime, it's already tenanted and the tenant is happy to live in the property as is. Our buyer can just leave it as is.
Suburb vacancy rate is 0.5% and has shown 18.8% growth over the past 12 months. With median price sitting at $285,000 we are confident our buyer would have ample opportunity to create equity.
Looking to buy property in WA? You know who to call. Don't buy property only in the areas you are familiar with. Values are found everywhere. We have more than 20 strategies that we apply within our property research to ensure our Buyers are getting the best deal possible. Let's chat property, consultancy is free. Until the next purchase. Peace.