We are proud to be able to talk to our owners with confidence when discussing any individual potential purchase or just market trends generally.
Recently, one of our clients came to us to discuss a potential purchase of a duplex at Banora Point. On its current returns, it didn't represent great value. But given the areas extreme shortage of quality rental properties available, we identified that it was significantly below market rent, particularly if some minor improvements were undertaken.
We are happy to report that 45 days later, our clients came to us with a duplex presented with new paint, new carpet and new blinds at a cost of less than $5000 for the improvements. InvestRent advertised the property for lease and in under two days had 15 potential groups view and 5 applications. The best part for our owners - it was leased at $140 per week more than what the previous real estate was achieving for their owner.
Coupled with a depreciation schedule which maximises the allowable expenses to claim against taxable income, the owners will have paid off their improvements in under 6 months and will be at least nett $10000 per year better off. This is the difference between a property that puts money in their pocket (positively geared) and one that takes money out (negatively geared).If you would like to discuss different property investment options and the market, drop in and see InvestRent at Wharf St. We don't sell property, but we certainly know property.
|Tags: Wealth Creation|
a Property Manager