Where Are Real Estate Agents Investing – Get An Insight Here

Where Are Real Estate Agents Investing – Get An Insight Here March 3, 2021Leave a comment

I wanted to share with you an actual live investment purchase that one of our clients have made recently to show you what is possible. So we take you 2 hours down the Hume Highway south-west of Sydney to the city of Goulburn.

Goulburn is claimed to be Australia’s first inland city and enjoys a population of approx 24,000 people. Positioned between Sydney (190 kms) and Canberra (90 kms) residents either work locally or commute to Canberra in the main.

The Investment

This low maintenance duplex sits in the heart of Goulburn’s centre and was built in 2009 by a local reputable builder. It features everything a discerning tenant would want in their new home, so from our clients perspective – happy tenant contributes towards a sound investment. Check it out here https://www.realestate.com.au/sold/property-villa-nsw-goulburn-134048046

The Client

Our client is a young and forward thinking real estate agent who was looking to add to his existing property portfolio. One of his criteria for this next investment was to be close to neutrally geared as possible which would allow him to accelerate the repayment of this investment loan and ‘have a life’ whilst actively investing. He’s confident he’s achieved this with this Goulburn purchase.

Key Data

Purchased  15 Sept 2020  /  Purchase Price $325,000  /  Rent $340 per week (11 Applications received upon advertisement) /  Gross Yield   5.44%

Why We Like 2/38 Cowper St Goulburn

  • This style of property is increasingly in demand for young people and down-sizers.
  • It is a light filled ‘easy living’ home that is in walking distance to the centre of town – highly sought after by tenants.
  • Having two bedrooms and being ‘open plan’ flowing out to a modest courtyard, it appeals to different tenant profiles
  • Priced in the low $300k’s and leasing for $340 pw our clients risk is greatly reduced which is a pre-requisite for many investors

Investment Strategy 

This type of investment fits nicely into a Cash-Flow investment strategy (which is the intention of our client). The modest price point, the strong rental returns coupled with our clients ability to accelerate the repayment of this loan, will see the client create an income stream into the future. This then gives him options to either go again into another ‘cash-flow’ favourable investment or jump into a negatively geared property whereby the Goulburn income can help subsidise the heavier repayments.

If you’ve been thinking of something similar and would like to investigate your options reach out to me and we can quickly see if this is viable for you and within your comfort levels.

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