Michael: Interstate Seasoned Investor
With five properties in Perth already in his portfolio, seasoned investor Michael came to Property Navigation to diversify his investment portfolio. Seeing what was happening in the eastern Australian property markets, we wanted to capitalise on this growth as his current property portfolio was not producing the results he wanted.
After educating Michael on the different local government areas and suburbs around South East Queensland, we agreed to target the Redland City region due to solid yields and strong short-term and long-term capital growth potential. Michael’s brief also specified the requirement for a property that offered future development potential.
Within one week, we presented an exclusive off-market property in Birkdale, Queensland, that met all of Michael’s requirements. Property Navigation was the only agent to be notified of the property once the current owners made the decision to sell.
The rental yield was high, and the property was on a square, 800m2 block with future sub-division potential. Evidence to support future sub-division potential of the property was right next door. They had knocked down the existing home, split the block in half and built two new homes.
Comparable properties were selling for $830,000+, but we secured the property for $800,000, an incredible result in a hot market. We negotiated a 60-day settlement, and by that time, comparable properties were valued at $850,000+. This was a fantastic short-term gain for Michael.