We’re pretty proud of our ability to pick rock-solid assets that safeguard our clients’ investments. Typically, these properties have increased by 8% year-on-year, with an average rental yield of 4%. In total, this means a year-on-year gross return of 12%.
These figures don’t just come to us by chance, though. Each purchase is the result of unparalleled real estate expertise within our Purchasing team combined with thorough research and data-driven insight from our Data experts.
This month, we’re looking at an investment property that we purchased off-market back in February. Located in Holt, a suburb in Canberra’s Belconnen district, the purchase is an especially exceptional one for us thanks to its astounding growth in value.
As soon as we came across the property, we knew it was an excellent pick.
For one, it’s located in an area that will see substantial capital growth in the short, medium and long term. (And, indeed, has already experienced strong growth in a mere six months.) We hand-picked this region for our clients utilising our on-the-ground knowledge of the suburb and historical performance data.
The home itself also meets our requirements for a ‘Milk Chocolate property’ and has the potential for further value-adds. There are plenty of cosmetic and structural renovation opportunities, as well as space for a granny flat (thus allowing for dual rental income) or subdivision. We were keenly aware of the home’s potential and wanted to help our clients capitalise on their investment.
It seems, though, that the market has already done a lot of the work for us. When we purchased the home In February, the sale price was $760,000. In the past six months, its value has grown an incredible 14.47%, with a revised appraisal of $870,000. Compared to the Holt median growth of 5.35% between February and July, this is a truly excellent result. And, as the home is being rented out, it will see a healthy rental yield of 3.74% on the new appraisal.
Naturally, our clients are more than happy to leave the home as is and simply enjoy the yield and capital growth appreciation. We can’t wait to see where its value lands in the years to come.
Ready to purchase a Milk Chocolate property of your very own? Contact us today.
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