Case Study - John & Grace

John & Grace first came to us in 2009 and were looking to build a property portfolio over the next 10 to 15 years. They had already established themselves with the ownership of a beautiful home in Sydney and had managed to pay off their mortgage, whilst also having previously purchased an investment property.

While they had already been through the process of buying an established property, they wanted further guidance regarding buying off the plan. Through our initial educational discussions they soon realised how much more beneficial buying off the plan would be for them and their strategy of looking to stagger their purchases over the next few years. Like many people, they were also unsure where to buy having bought their first investment based on no research at all. (This resulted in a low growth investment with a low rental yield).

In 2009 we helped them buy a one bedroom apartment with parking in Surry Hills for $465,000. Today this property is worth $600k + creating an equity gain of over $150,000. They also achieved a phenomenal rental return of 5.5% from day one after settlement and this has increased substantially over the years. The clients continue to hold this property today with no more than 7 days of total vacancy since the time of purchase.

The clients shortly after settlement of their property in Surry Hills decided to buy another property in Sydney. This time we strategised to use their Self-Managed Super Fund (SMSF). In 2011, they bought a one bedroom apartment with parking in a mixed use development in Cammeray, on Sydney’s exclusive lower north shore. They paid $600,000 and on settlement rented it out for $600/week. Resales occurred in the building shortly after settlement showing signs of a $40,000 equity gain over the construction period!

More recently in 2013 the clients were ready to buy another property. Now owning three investment properties in Sydney, we recommended to them it was important to diversify their portfolio and buy in another state. Based on the research we had reviewed, we identified inner Brisbane as a location showing signs of strong growth while still offering very affordable apartments.

While the clients were initially very hesitant to buy interstate due to being unfamiliar with the area, their trust that they had already gained in their Property Consultant allowed them to take action based on the recommendations we put forward. This resulted in a purchase of a two bedroom, two bathroom, one car space apartment in Newstead located 2km from Brisbane CBD for $580,000.

Within 6 months of exchange, nearby projects were selling similar apartments for $50,000 more. With this project due to complete in 2015, John and Grace will look to buy another property with us after settlement and are well on their way creating a successful property portfolio.
Published on 17th of September 2015 by Michelle Leftwich
Michelle Leftwich
Michelle Leftwich


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