WA Case Study 226% ROI ($135k Equity) | 25% Capital Growth | 6.5% Rental Yield April 22 – Dec 23

From the moment of handover, the strategic property investment journey unfolded with remarkable actual results. The investor achieved a staggering 226% Return on Investment (ROI) in 19 months, accumulated $135,000 in equity, witnessed a 25% capital growth, and secured a 6.5% rental yield, translating to a gross income of $35,000+PA in the first year. These figures are not just statistics; they represent the culmination of strategic planning, expert guidance, and a well-executed investment decision.

Strategic Foundations with Professional Advisors

The investment journey began in March 2022, with the investor partnering with an ASPIRE Property Advisor Network ™ Accredited, QPIA® Advisor. This collaboration thoroughly reviewed the investor’s financial status, goals, and expectations. A conservative modelling approach was adopted, meticulously outlining potential outcomes and strategies aligned with the investor’s long-term financial objectives.

Investing in New Residential Property: A Strategic Choice

A key decision in this journey was the investment in new residential property. This decision, backed by extensive due diligence in financial numbers and location analysis, defied common hesitations about new properties. 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.

Beyond Expectations: Delving into ROI, Costs, and Returns

• Return on Investment (ROI): The strategic allocation of all costs and cash invested led to a substantial ROI. The investor’s meticulously planned and executed investment reaped significant financial rewards.
• Costs and Expenses: The investor faced various costs throughout the process. Stamp duty amounted to $5,795, legal and miscellaneous expenses totalled $2,000. These costs were significantly lower than the potential stamp duty of $19,629 for a direct purchase of a property worth $540,000, reflecting the strategic management of expenses and its role in maximising returns.
• Interest Accrued: From April 2022 to December 2023, the interest accrued was $29,582, representing the cost of financing the property during its development phase.
• Cash Deposits: Cash deposits of $2,000 for the land and $20,751 for the building construction were carefully planned, underlining the importance of strategic financial management in property investment.
• Equity and Capital Growth: The property’s value soared to an estimated range of $675,000 – $700,000 in just 20 months, representing a 25% capital growth. This led to an equity increase of approximately $135,000 since the property was purchased in April 2022.

• Market Analysis: Drawing insights from the latest CoreLogic data as of December 2023, we can see a vivid snapshot of the market trends for the location in question. The median property value stands at $742,000, reflecting a robust growth of 21.5% over the last 12 months and an even more impressive 53.1% over the past five years. The area’s vitality is evident, with 195 properties sold, a median asking rent of $650 per week, and an average of just 16 days on the market. The tenure period averages 9.7 years, indicating a stable community, while the number of new listings at 204 suggests a lively market. Observations of the rental rate over 162 instances indicate a consistent rental demand. These statistics underscore the value of leveraging historical data and forecasting models in property investment, not to predict the future with certainty but to make informed decisions that can lead to real, tangible results.

• Comparing Projections and Actual Growth: Initially, the investment was based on a conservative estimate of 4% capital growth and a rent of $565 per week. However, the actual performance exceeded these projections, achieving a 15% annual capital growth and securing a higher rent of $690 weekly. The initial modelling predicted the property value would reach $656,000 by 2029; this goal was met and exceeded in a significantly shorter period at handover in Dec 2023.

Conclusion: The Power of Strategic Planning and Expert Guidance

This case study highlights the transformative power of strategic planning and professional guidance in property investment. The journey from a carefully planned investment to achieving exceptional results in a relatively short period is a testament to the efficacy of strategic decision-making and expert advice.

For those inspired by this story and considering property investment, this case study is a compelling example of how strategic choices, backed by professional guidance, can lead to extraordinary success in the property market.

Interested in exploring your property investment opportunities? Connect with ASPIRE Property Advisor Network for expert guidance and insights into strategic property investment.

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.