This client was seeking a high yielding property investment in an area with good Capital Growth prospects.
We were able to use our network contacts to source a block of land found close to several key amenities such as rail transport, shopping, medical and schooling.
We undertook a town-planning assessment that enabled us to conclude that a Rooming House / multiple-occupancy dwelling could be built on the block of land, we negotiated for a reduce purchase price on the land on our clients behalf.
We organised our designers to produce a plan and had one of our specialist Rooming House builders supply an exact quotation for the build and negotiated for a lump-sum fixed price build contract. We then had our specialist property management agency supply a rental assessment based on current rental demand for one-bedroom self-contained spaces.
The package enables the client to receive an income of $1,500 per week on a purchase price of $870,000, or a yield of 9 percent. The final after-tax cash-flow will enable the client to receive a weekly income of $500 per week when borrowing for the total property purchase.