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High Growth & High Cashflow Investment

State: Western Australia

Property Type: 4-2-2

Investment Objective: High Growth & High Cashflow

Land Size: 660 m2

Building Area: 220 m2

Purchase Price: $560,000

Rental Yield: 6.1%

Value-Add Potential: Yes

When you imagine a 660 m2 land parcel with a generous 220 m2 building, featuring four expansive bedrooms, a double garage, and two modern bathrooms in a prime suburb, what price tag comes to mind? $1m-$1.5m? Think again. You can secure such an asset in Perth for only $450,000- $600,000.

But the real gem here isn't just the acquisition price. The rental market in Perth is showcasing robust figures. Investors are looking at a remarkable 5-7% yield, significantly outperforming the typical 2.5-3% found in other regions. And with the right strategy, pushing this to 7.5% isn't far-fetched.

As for capital growth? Imagine spots showcasing a staggering 11% surge in just 6 months. Tempting, isn't it?

Expert Insights from CoreLogic's Director:

Tim Lawless, the director at CoreLogic, recently highlighted intriguing investment opportunities. The data clearly underscores that savvy investors are moving beyond traditional hotspots, recognising the potential in areas previously overlooked.

Western Australia, Queensland, and South Australia are rising as top investment destinations. These regions provide impressive rental yields and growth potential, all at notably lower entry prices. This blend of affordability, strong rental returns, population growth, employment opportunities, and overall growth potential makes them compelling investment options.

Word of Caution: However, investors should steer clear of high-risk suburbs with stagnant population growth and limited job diversification. Such areas can depreciate rapidly, as seen in many mining towns previously. A holistic analysis of both the suburb and property is pivotal for investment success.

Key Takeaway:

Investment success hinges on recognising value and growth potential. While it's easy to follow the crowd, understanding market nuances and market dynamics can lead to superior returns. Keeping growth, affordability and rental yield at the forefront, coupled with data-backed insights, can help investors identify regions poised for significant capital appreciation.

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