Case Study - Growth or Yield? Can you get both?


 Capital Growth or Yield Real Estate Buyer Services


This is our most asked question on Property Investors minds. How can my property increase in value while I have the funds to cover the cost of holding the property. In this case study we show you how we guided one of our clients to do exactly this.


Sharon is a single lady in a very big career, she wants to make the most of her income earning potential to set herself up for future wealth. Whilst she can afford to have a negative cash flow she wishes to purchase a number of properties over the next few years and neutral cash flow is best for her at this stage.


We worked with Sharon on strategy, her tailored solution was for a long term purchase looking for growth and yield with the potential to increase equity down the track with a small renovation.


The property that we found for her had previously been on the market a year before for a period of 4 months without any contracts. This property was overpriced and was withdrawn from sale. When it was placed back on the market, the owners circumstances had changed, they now had a sense of urgency and decided to go to Auction.


Our appraisal placed the purchase price at the $650,000 mark. With a great number of attendees at the Auction and other competitive bidders we secured the property for $636,000 and negotiated to release the property back to the sellers at a rental price of $560 per week. Our client was very pleased not only to buying the property undervalue and therefore having equity straight away but also to be gaining income immediately.