$410K Buy with 6.09% Yield & Subdivision Potential – A Smart Play

Celebration Time!!!! *PURCHASE OF THE WEEK* showcasing what our client achieved once we STRIKE even in this Hot Market!!

The property acquired in Metro Adelaide from our Direct to Vendor Network

*$410k purchase price. 659sqm land with an opportunity to convert it into co-living or subdivide into 2 lots

*The rental on the property is $430 per week keeping the yield at 5.45% but a rental review coming in soon, which will push the yield to $480 per week taking the yield to 6.09%

*20km from Adelaide CBD

*The property has been renovated recently which means the value was great. Bank valuation came in at $440k and suburb median value of similar houses presently sits at $485k.

*Walking distance to Lake, playground, primary and secondary school, parks and two shopping centres

*5 mins drive to the train station

*Easy access to city via direct access through 2 major roads which is 5 mins drive from the place.

*In the growth corridor 100%

My client (my family) is a young couple who loves reading and knowing about property. Their knowledge when it comes to property buying was great but their biggest problem was finding the right suburb. All of the research they did took them to wrong directions and properties with significantly lower yields. Once we did the strategy, they were clear as how to add value to properties. They were keen to transition into being renovators as well which will assist them in putting their property portfolio on steroids and that is exactly how we setup their strategy. The first property came in through our Direct to Vendor network. A property that ticked all the boxes. The client’s refinance on existing principal place of residence was still going through and we ended up paying their deposit ourselves (that’s what family does right). The property came with all the bells and whistles and we can manufacture growth and add a lot of yields while assisting them to buy property number 2 very soon.

Now lets try to understand why do we think this is a growth corridor, lets see some high level data 

*Demand supply ratio of 76. That means demand is significantly higher than supply i.e. there are more people looking for properties than the available supply

*Days on market under 46. Coming off from 86 days previously

*Stock on market less than 0.52%

*Renters proportion 32%

*Online search interest over 795 and growing

*Vacancy rate under 0.32%

If you are a passionate property investor, then let’s chat property. Until the next purchase. Peace out!!