Emily, 30, is single and onto her third investment property.
We recently provided advice to an active savvy investor wanting to buy an investment property at a wholesale price, to renovate then live in and either sell or borrow against.
Emily had been looking for quite a while, almost 2 years. After just 3 weeks working with us, we found a suitable property and negotiated a successful sale.
Our service provided Emily with advice for potential upside value, an estimate of outgoing renovation costs, tips on the how to save money and what to do to add real value without overcapitalisation.
Here are the margins made and estimates on the investment.
Purchase Price $315,000 2 Bedroom, 1 Bath Unit with large Balcony near beach
|Stamp Duty Approx.||$ 3,500|
|Solicitors Fees||$ 1,500|
|Bank Fees Approx.||$ 1,500|
|No Building Report required|
Renovation on a tight budget with friends and beer
|Bathroom vanity and sinks|
|Paint work throughout|
|New Whitegoods in kitchen|
|SUB TOTAL APPROX.||$20,000|
New appraisal price with some rise in the market $400,000 – $430,000.
That’s $88,500 in equity upswing within 12 months of purchase.
Emily’s options depending on finance approval and advice from her team of advisors in conjunction with Horizon Property Alliance
- – Sell and Buy again.
- – Sell and buy 2, live in one and rent out the other.
- – Retain and rent out for $420 to $430 per week.
- – Buy another investment to live in and renovate to grow equity and do again.
- – Buy another investment, rent it out, and live with friends and renovate to sell.
- – Build a duplex or dual dwelling, live in one, and rent the other.
Emily on working with Michael Knights:
“I cannot express enough about Mike’s professionalism, extensive knowledge, experience and support throughout the entire investment property buying process. I’d been looking for a new home for two years, so I knew what I wanted, and Mike was open and honest , guiding me the whole way through. He even answered his phone early on a Sunday morning to answer some of my questions. That was a clear indication of the level of commitment Mike has to service and his clients.
Throughout the property buying process, Mike was extremely responsive and thoughtful in his recommendations. With this property being my third home purchase, I’ve dealt with a lot of realtors; Mike is the most service-oriented realtor I have worked with. He even went so far as to welcome me to the area with a gift voucher to the best restaurant in town.
Mike doesn’t forget you once the deal is done. He has always come through with excellent, timely recommendations. To this day, he always makes me feel like helping me is his highest priority. The entire Horizon Property Alliance team are wonderful, providing excellent, personalised service as well. I highly recommend Michael Knights and Horizon Property Alliance if you are looking to buy any kind of property and make it a great investment. This is the team you need to talk to – outstanding.”