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BUYERS AGENCY PURCHASE OF THE MONTH

Bondi Beach Pad $196k & 14.9% under $1.310m pre COVID-19 Nov 2019 market value, $1.114m

 

Highlights*

  • We bought the Property for $196k below its Nov 2019 market value for $1.114m
  • Weekly holding cost of $55 per week after tax (see calculation below)
  • 3.54% Gross rental yield
  • CONSERVATIVE 10 year growth forecast based on 60% of 20-year historical suburb growth, shows 10-year equity growth of $598,200, with average net annual equity generation of $59,200 per year
  • ACTUAL 10 year equity growth forecast on this property calculated from 6.5%, 20-year historical suburb growth shows $997,000 with average net annual equity generation of $99,700

How the deal happened:

This client had been trying to buy for 11 months. They had their mortgage broker renew their pre-approval 3 times. Their broker referred them to Providence. We bought the property for them in 39 days. It was bought via off market sale. The property was never listed on realestate.com.au or domain. Due to personal circumstances, the vendor wanted a short campaign, without weeks of inspections, nor dozens of parties moving in and out of their home. They wanted a quick sale and to move on. The sale was negotiated within a few days of first seeing the property.

Property highlights:

  • Very tightly held small block
  • No lift, no pool, low maintenance, low cost block
  • Flawless strata report and very solid construction
  • Quiet street and location
  • Facing East
  • Situated on top floor of block with potential to force value via expansion of additional bedroom and bathroom into roof cavity attic based on many precedents within council area
  • Expansive 180 degree ocean views across South Bondi, and to the North and South
  • Short 400m walk to both Bondi Beach and Tamarama
  • 200m walk to East Bondi Road shopping village

*Calculations based on the following assumptions:

  • Forecast growth based on historical 20-year suburb median price growth via API PriceFinder
  • Weekly holding cost of $55 after tax calculated using PIA Professional Software based on a combined household income of $100k plus $80k with 100% plus all costs finance (deposit and costs taken from equity in owner occupied home), 80% LVR loan financed at 3.50% 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

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Wishing you happy and prosperous buying,

The Providence Property Team