Here is a recent case study showing how we helped one of our clients buy an Investment Property in Victoria Park with hidden development potential!
1. Client brief:
As a young family looking to increase their equity through property development, our clients sought both property investment and development advice to begin their search for the right property with Capital Property Advisory. New to developments, our clients were looking for a potential subdivision site with the ability to retain the existing dwelling, in an area local to the Perth CBD, with an approximate purchase price of around $650,000 – $700,000.
2. Property sourced & negotiation:
Within the month, our acquisitions team sourced and secured a fantastic subdivision site perfectly meeting the clients’ brief. Through our understanding of planning, we were able to secure a site with potential subdivision, where the agent and seller were unaware of the potential in the site. The property was a beautiful character cottage in a sought after area requiring minimal renovation and update with potential for a new street facing lot at the rear. Continued negotiations saw the initial advertised price from offers between $665,000 to $685,000 expertly negotiated down to an agreed price of $650,000. After the due diligence period and relevant inspection reports reviewed, a further $5,000 was negotiated from the asking price, bringing the final purchase price down to $645,000. A saving of $30,000 off the median advertised price for this house.
As part of the negotiations, the seller agreed to sign approved subdivision forms to expedite the subdivision and reduce holding costs for our client, with subdivision applications submitted prior to final settlement (after all due diligence checks were reviewed).
4. Development outcome:
The clients are likely to have an excellent outcome of over 17.5% return on their initial investment in 12 months. This purchase has not only planted the seed for future development, but will provide our clients with the increased equity they are looking for to continue their property journey.
Can we help you buy?…
If you are looking to buy a development site or investment property in Perth, we at Capital Property Advisory can help you find, negotiate and secure a great buy that meets your needs.