Metro Adelaide Off-Market Win: $180K Below Market with Massive Development Potential

Celebration Time!!!! PURCHASE OF THE WEEK celebrating what our client has again in this Hot Market!!

The property acquired Off-market Direct to Vendor, is in Metro Adelaide is in the pocket that is controlled by homeowner occupiers

*$720k purchase price, 1020 sqm land size. Multiple exit strategy site,

> Full scale development site, building 3 x 21sq single storey houses each selling at around $750k.
> Another exit strategy is to hold the front and build 1 at the back.
> Last exit strategy would be to build 1 at the back and rent the front and later drop the front and still build 2 on the side as a detached side by side due to wide frontage.

*Suburb median for similar property on the same street on a smaller land sold for $900k for similar sized properties. Another one on the main rd with similar land size sold for $1.15m at the peak of the market
*The area is around 11km from Adelaide CBD
*5mins walk to school, hospital, childcare, church
*Around the corner from major shopping centre

The client is a small, cute family. They have been trying to enter developments as they have equity on hand but have never been successful. They tried Duplex before but created value at completion but couldn’t sell them as GST impacts made the property not worth while selling.

This property that was an off-market property that was below market price, offered significant growth opportunity, yield and return. The property was secured at least $180k below the market value because of the sudden market cool down and the Owner was desperate to sell. The owner’s expectation to sell price was at $850k when they first brough the property to us but we negotiated it down.

Now let’s try to understand why we think this is a growth corridor, let’s see some high-level data 

*Demand supply ratio of 69. 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 40. Coming off from 79 days previously
*Stock on market less than 0.66%
*Renters proportion 12%
*Online search interest over 1400 and growing
*Vacancy rate under 0.59% and falling

If you are a passionate property investor, then let’s chat property.

Until the next purchase. Peace out!!