The most compelling stories in property investment are when they are about actual results achieved. This is a case study of an ASPIRE Property Advisor Network Accredited Advisor’s investor. The case study below discusses their new investment property asset, which was handed over on Thursday, 14th Dec 2023.
The results achieved, a staggering 369% return on investment, robust 30% capital growth (yielding approximately $200,000+ in equity), and an annual rental income of $35,000, constituting a 5.4% gross rental yield. These are not just numbers; they represent the actual outcome of a well-executed property investment strategy, with an impressive average of 12% capital growth per annum.
Navigating the Property Investment Journey with a Professional Advisor
This success story began in July 2021, with a client trusting the expertise of ASPIRE’s seasoned Accredited QPIA Advisors. By adopting a conservative modelling approach and thoroughly understanding potential outcomes, the client embarked on a journey aligned with their financial goals and surpassed expectations.
The Strategic Selection of New Residential Property
A key element in this journey was investing in new residential property. Contrary to common hesitations about new properties, this decision was underpinned by extensive due diligence in financial numbers and location analysis. New properties often entail lower purchase costs, higher quality assets compliant with current standards, and a strong appeal in the market. This strategic choice ensured long-term returns that far exceeded initial projections.
Journey to Success: Detailed Breakdown of Investment Returns and Timeline
Let’s delve into the specifics of how this success was achieved:
- July 2021: The journey commenced with an initial investment of $32,888, encompassing a $10,000 land deposit and a $22,888 building deposit.
- February 2023: The land settlement occurred. Additional costs over the land purchase price included $5,250 for stamp duty and $2,000 for legal expenses & miscellaneous expenses.
- July 2021 – December 2023: An estimated $14,000 in holding interest was accrued over this period.
- Total Investment: The overall investment amounted to $54,138, leading to an estimated 369% ROI, thanks to a significant equity increase to $200,000.
In contrast, had a completed property been purchased for $652,000, the stamp duty alone would have been a whopping $22,399, surpassing this strategic investment’s combined holding and purchase expenses.
Recap of the Investment Journey: From Decision to Reward
The timeline of this journey is as follows:
- July 2021: The investment decision was made, with an initial rent forecast of $525 per week and a total purchase price of $585,644 ($195k for land and $391k for the build).
- December 2021: The initial builder went into administration, but the total deposit was successfully refunded by insurance by March 2022.
- March 2022: A new builder was contracted at $437,474.
- October 2022: Adjustments due to trade and supply increases elevated the cost to $487,961.
- November 2022: A switch to a new builder set a fixed price at $457,750 for a comparable build.
- February 2023: The land, initially purchased at $195,000, appreciated remarkably to approximately $310,000, marking a 158% increase.
- May – December 2023: The construction process smoothly transitioned through various stages, culminating in the final handover on the 14th of December 2023.
- 15th December 2023: The property was leased for $680 per week, significantly surpassing the initial rent projection ($525 PW). The current market value is estimated between $850,000 – $900,000, reflecting an astonishing 30.7%+ capital growth over the last 2 ½ years.
This case exemplifies a remarkable surpassing of initial projections, which would have been an acceptable outcome. The 2021 Property Investment Analysis (PIA) had anticipated the property’s value to reach $850,000 by 2031. Astonishingly, this milestone was achieved in just 2 ½ years, eclipsing the assumed 4.0% per annum capital growth in forecasting, with an actual growth rate of 12.5% per annum.
The Power of Professional Guidance and Research
This case study underscores the importance of professional advice in property investment. Working with a team like ASPIRE Property Advisor Network, which provides in-depth research and location analysis, can significantly mitigate risks and maximise returns. The expertise and support offered throughout this journey were instrumental in turning potential challenges into successful outcomes.
Conclusion: A Testament to Strategic Planning and Expert Guidance
This investor’s journey from a conservative beginning to a resounding success is a testament to the power of strategic planning, professional guidance, and resilience in the face of uncertainty. It exemplifies how informed decisions, backed by expert advice, can transform property investment into a highly rewarding endeavour.
For those inspired by this story and looking to embark on their property investment journey, remember that the right advisor can be your compass in navigating this complex landscape, turning challenges into opportunities for exceptional growth.
Always review any property investment strategy, location research, and investment analysis data with a professional, QPIA® (PIPA Member) qualified & accredited ASPIRE Property Advisor Network™ Advisor. Never rely on glossy sales brochures or property marketing information, ensuring a property suits your unique strategy. Property Investing is about BUYING a property asset that matches your goals and aligns with your investment strategy. Never be SOLD an investment. Know your numbers to make strategic and informed decisions.
Visit www.aspirenetwork.com.au or call our office to be connected with an accredited and independent ASPIRE Network Property Investment Advisor at 1300 710 933.
Visit www.aspirenetwork.com.au or call our office to be connected with an accredited and independent ASPIRE Network Property Investment Advisor at 1300 710 933.
