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BUYERS AGENCY PURCHASE OF THE MONTH

Buy of the month - Purchased in February 2020 below list price with scope to convert into $1m family home based on comparable sales

 

Highlights*

  • 4% Gross rental yield
  • 10-year equity growth forecast on this property calculated from 20-year historical suburb growth shows $508,655 with average net annual equity creation of $50,865
  • Conservative growth forecast based on 60% of 20-year historical suburb growth, shows 10-year equity growth of $305,193, with average net annual equity creation of $30,500 per year
  • Property holding cost for client $81 per week with 10% deposit plus purchase costs based on $100,000 single income and interest only loan of 4%
  • Purchase costs with 90% LVR $113,492 including deposit, legal fees, stamp duty and LMI

How the deal happened:

Listed at offers over 700k. Providence inspected off market before first open home. Purchased in Feb 2020 for $687k at a $13k discount paying for the cost of the service.

Property highlights:

  • 700m to nearest train station
  • 700m walk to nearest shopping centre
  • Walking distance to multiple schools, parks and sporting facilities
  • 10km to CBD and serviced by direct bus and train routes
  • Beautiful post war character home in family friendly street
  • Ability to add huge amount of value in the future to the level of similar high end properties in the street i.e. lift the house, build in underneath and extend out at the front

*Calculations based on the following assumptions:

  • Forecast growth based on historical 20-year suburb median price growth via PriceFinder
  • Weekly holding cost calculated using PIA Professional Software based on $100k income with 90% of purchase price financed at 4% interest only
  • It is important to note that past performance is no guarantee of future performance
  • We recommend readers take the projection number based on real historical growth and multiply this by 60% as a conservative guide for 10-year expectations

To source a similar property please contact …

Happy and Safe Investing,

The Providence Property Team