$190k equity gained in 7-months whilst sleeping
Location: Sydney Region, NSW
Purchase Price: $1,275,000
Strategy: Buy & hold
In just 7-months, our client has achieved a staggering $190,000 in equity growth. This success story is a testament to the power of collaboration, knowledge, and innovative strategies. It proves that with the right team by your side, anything is possible.
Client's Story
Dan & Mel* were on the hunt for a new family home with their little girl, upgrading from the current apartment they were living in, but there's a twist! Even though this purchase was going to be their family home, the strategy behind this search was to find something that had future development potential - this would ensure stronger than average growth and/or resale value in the future.
With a budget of around $1.3mil and specific areas to focus on in Sydney's south west, it was getting somewhat challenging to find properties that ticked all the boxes (liveable family home, future development potential, quiet residential area etc) but we were up for the challenge!
The Search
We started reaching out to selling agents in our target areas, to see if there were any pre-market or off-market opportunities that ticked the boxes and viewed multiple properties along the way. We even attended an auction for a property that looked promising, however price expectations just blew out of the water during a heated auction against multiple developers (given its development potential), with an end-result above $1.6mil which eliminated us from the race.
It took approximately 14 weeks to find the right property for our clients and I can tell you, it was definitely worth it. Patience is one of the key ingredients to buying well and we always encourage you to make decisions with your brain, not your heart. As buyer's agents, we can eliminate the emotional buying pressures one faces when going at it alone. It can be somewhat tiring and discouraging when you're searching for months without success, or constantly missing out on the ones that you did like, but keep your head up and don't give up!
We narrowed the search down to a suburb that had everything our clients were chasing - being close to family, quiet residential street, family friendly, not in a flood or bushfire zone, walking distance to shops, parks and schools and a short 10-minute drive to Liverpool CBD and train station - tick, tick and tick!
But, I haven't even shared the best part of the story yet...sitting on a large 648m2 corner block, this property already had a DA approval in place to build two detached double-storey houses on the block, meaning we knew that the development potential was true and not 'subject to council approval' as most misleading listings say online (see below).
The Purchase
We were able to secure the property for $1,275,000 after back and forth negotiations with the vendor who was holding firm at $1,300,000, but with some incentive, they came down another $25,000 off the asking price...yay!
The property itself was a nice 3-bedroom,1-bathroom, 2-car garage freestanding brick house. It's surrounded by other quality homes in a family friendly neighbourhood, with many of the surrounding homes going through major renovations and new developments which showed good prospects for future gains and profits (when our clients are ready to do the development).
Not only is the development potential a bonus for the future, but a recent valuation from ANZ has come back at an astounding $1,465,000. That's an equity gain of $190,000 (15% growth) in a short 7-months for our client's future without lifting a finger!
*Our client's real names have not been used for privacy reasons.
