6 months ago, the PROPERTYOLOGY team identified the need to add a new investment location. This exciting interstate location with its diverse and different mix of industries drivers which include manufacturing, tourism, education and agriculture is extremely affordable for all, with typical properties currently selling between $200,000 and $250,000.
Some of our clients with bigger property portfolios were risking an unhealthy reliance on particular markets. This new location’s economic profile and different location means that we are able to minimise their risk of a broader downturn due to existing property exposures and will also assist some clients in reducing potential land tax liabilities.
After months of research and planning, but before giving this location the green light for our clients, our Managing Director Simon Pressley and Senior Buyers Agent Bryan Loughnan took an entire week out of their schedules to physically visit this location.
The week included meeting with the local federal Member of Parliament, chamber of commerce, key business owners and the mayor. These meetings gave us (and subsequently our clients) a much greater appreciation for how the region operates from an economic perspective. The extensive information they obtained is simply not something a ‘DIY’ purchaser would ever have access to.
In addition to these meetings, Bryan met with several real estate agents for general relationship building purposes. He also interviewed a number of local property managers, building inspectors and pest inspectors which have helped to further enhance our business’s quality assurance processes.
To mitigate risk even further, Simon studied council maps for flood records and also identified unfavourable pockets of town due to their well-known higher unemployment rate and higher petty crime.
Finally, before jumping on the plane back to Brisbane, Simon and Bryan spent nearly two full days driving up and down every single street in this particular location. It’s one thing to look at ‘Google Maps’ from a desk top computer, but they can never give you the full picture. By driving up and down streets and classifying them as either ‘acceptable’ or ‘unacceptable’ we are protecting our client’s best interests just as if they lived in that location.
It’s fair to say that Simon and Bryan have done more checks and balances to help our clients maximise opportunity and minimise risk in this particular location, than most ‘DIY’ investors would do in their own home town.
This particular property which we recently assisted first time PROPERTYOLOGY client Nicole purchase, is currently rented at $270 per week and Bryan was able to secure the purchase for ONLY $222,000. Whilst a rental yield of 6.3% is amazing in itself, it’s the medium-long term economic outlook for this particular location and in turn, capital growth prospects for this particular property which are most exciting.
Congratulations again Nicole! We are so glad you are as happy and excited about your investment as we are!