Trent was referred to me from one of our Preferred Finance Brokers. Trent is from NSW, didn’t know the Sunshine Coast market and needed guidance in property investment about a property he was about to purchase.
Trent was considering buying a small 3-bedroom townhouse which he had inspected. He wanted expert advice, so I showed him how to compare properties. We looked at returns and time on the market, growth and considered all options.
The unit Trent wanted to buy didn’t stack up well at all!
We compared new property over old and at the end of our due diligence, Trent decided to build a brand-new house and land package at wholesale price with a 5% plus return.
He chose a high growth suburb in regional Victoria – not on the Sunshine Coast after all. The townhouse Trent nearly bought finally sold for far less than expected and is still today several years later worth the same as when it sold, with high outgoings and with minimum capital growth.
The lesson here is when buying an investment, slow down! Spend your time undertaking thorough research, talk to independent advisors who truly know what they are doing and buy with your head, not your heart.
Treat your property investment purchase as a small business opportunity.
Every buyer buys for different reasons. And every region has good property investment buys and bad property investment buys. At the end of the day, “cash is king” and long term growth with good returns will always withstand a Boom or a Bust.
Trent on working with Michael Knights:
“Just wanted to say a big thank you to Mike for all your ongoing expertise and outstanding service while helping build my investment property.
I was referred to HPA by Steve my Finance Broker, who said that Mike had a thorough knowledge of the market.
He was right! Mike know’s what he’s doing. I am looking forward to buying another high yielding investment from him in the near future, and working with him again as soon as I am ready for the next one.
The home he helped me build has an upside equity of $60,000 and it has only just been completed. Not bad – $370,000 to build and now worth approximately $430,000 on completion.
I LOVE your work Mike – thanks again for your help, so glad I met you.”