7% Gross Yield Buy-Hold Below Market Purchase
GOOD NEWS SUNDAY...Purchase #38 by Easy Buyer's Agent. This is a purchase for our local investor who signed with us about 2 weeks ago. Asking $249,000, Purchase $237,500. This property is already tenanted at $320/week making it a 7% gross yield. Read on
Our client is a finance specialist who is already an experienced investor. She wants to add more into her portfolio with buy-hold strategy.
When we spotted this property, we were immediately interested. Looking at the asking price alone was already below market price for the area. Similar property right across the street has sold for $315,000 in 2019, and here we are looking at a property which asking price is $249,000.
What is even more interesting is, this property is already tenanted to a long term tenant who has stayed there for more than 6 years paying $320/week. Even at asking price, it already returns 6.68% gross yield. But Easy Buyer's Agent did not stop there.
There were multiple offers on the table which one of them was an investor from the Eastern State. We must pick a purchase price that gave our client the edge while at the same time, buying it below asking price.
Long story short, we got it at $237,500. That's $11,500 less than asking. Suburb median price is $370,000 and has shown 2.8% growth over the past 12 months. Sometimes I wonder...why am I not buying this myself?
Looking to buy property in WA? You know who to call. We found deals like this. Whether you're looking to do buy-hold, buy-flip and other strategies, do give us a call.
Until the next purchase. Peace.