This case study is from Real Estate Investar subscriber Tess Bins, and how she used Real Estate Investar to apply the capital growth strategy.
I joined Real Estate Investar almost a year ago and have since gone on to buy four buy and hold properties which my partner and I are very happy about.
Research and Due Diligence
Until I joined Real Estate Investar, I had been suffering from analysis paralysis, and found it difficult to commit to purchase, as I knew that there were so many things I didn't know about the interstate property markets.
With the help of Real Estate Investar, I was able to know the history of each property sale, which I used in one instance to negotiate a greatly reduced purchase price.
Keeping the Lenders Saying Yes
I was also able to convince our bank that I was a serious investor with a solid investment plan, and could talk knowledgeably about the areas I wanted to invest in.
When researching this property, we saw that it had already been on the market for more than 12 months.
Knowing that the property had been listed for a long time allowed us to be more confident in our negotiations.
Initial asking price: $549,000
Purchase price: $430,000
Rental return: $580 per week
Rental yield: 7%
Purchase price: $430,000
Rental return: $700 per
Week Rental yield: 8%
My Property Investment Goals
I am half-way into my portfolio and our goal is to buy $3 million worth of property, and hold it for as long as it takes for the value of them to double.
Then we will either look at ways to improve the rent, or draw down on the equity at a rate of 5% per year (down to 50% of the value of the properties), as a way of getting retirement income.
This information was provided voluntarily by Real Estate Investar subscribers and has not been checked and verified by Real Estate Investar for accuracy or completeness. The examples illustrate what a subscriber claims to have achieved using Real Estate Investar's tools. This information was supplied on the dates shown above and its possible changes in the market, mean the financial performance of this property investment may be different today.
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About Real Estate Investar
Founded in 2006, Real Estate Investar (REI) is a publicly-listed company and leading provider of products and services to assist in the identification, analysis, acquisition, tracking and accounting of investment property.