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Many of our clients hold existing property in Australia and are unsure how much it may be worth, if the rent being received is market value or if they should renovate the property to keep up with the suburb gentrification or changing rental demographic.
When purchasing property, some of our clients are also unsure if they should use their funds to purchase a larger investment property or multiple properties at a lower price.
Below are two fictional examples detailing how we help our clients in these situations:
Tim has an established property in Brisbane, which he has owned for 15 years, for eight of which the property has been tenanted whilst Tim has been working overseas. In the eight years, Tim has been away the suburb has seen significant gentrification, he knows the market has moved, however, is unsure what this means for his investment. Tim has questions like:
- What would be the current value of my property?
- Am I receiving market rent?
- Should I renovate the property? If so, what should I spend?
- What will my property be worth after renovating?
- What will my rental income be post renovations?
Tim wasn’t sure where to start and here’s where we come in:
- We gave Tim a full analysis of the suburb and surrounding suburbs to his property. He now has a good handle on how the area has changed, the infrastructure, lifestyle and demographics
- We detail the most recent sales and rents for unrenovated through to renovated properties in the area and how those properties compared to Tim's.
- Based on the data we made a recommendation on what the current value of Tim's house was and what the valuation would be post varying degrees of renovation, we also provided the same information for the rent
- We provided a full cost of works to renovate the property in varying degrees that matched the forecast price and rental valuations
- All of this information was presented on Tim’s bespoke property portal.
Tim had all the facts to make an informed decision on how he should progress with his existing property.
Through savings and financing, Sarah can purchase an investment property in Australia to the value of $1,000,000. Sarah is unsure if she should purchase a single house for $1,000,000 or purchase two properties for $500,000.
We helped Sarah in the following way:
- We worked with Sarah’s accountant (an Australian expat tax specialist) to identify the best structure for Sarah to purchase her property(s) and what the tax implications would be
- We then worked with Sarah’s mortgage broker (an Australian expat lending specialist) to get a full understanding of her loan structure and its particulars
- Based on the above information we then completed a full purchasing feasibility for Sarah on her two above scenarios of purchasing one property at $1,000,000 or purchasing two properties at $500,000, breaking down the purchasing and holding costs, the forecasted capital growth and rental yields over the next five years
- All of this information was presented on Sarah’s bespoke property portal.
Sarah now has all the information to make an informed decision on what was going to be best for her needs.
If you’re thinking of renovating or purchasing in Australia and simply unsure how to progress please get in contact to see if we can help.
Milk Chocolate was founded seven years ago by Richie Ragel and Michael Cleary, to purchase residential and commercial property in Australia on behalf of our clients, looking for a home or investment property. To see how we can help you get in touch here.
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