Client Portfolio | Perth, WA
Family accelerates retirement savings with third investment property for Self-managed Super Fund (SMSF) in Perth, WA. Cash flow neutral with high rental return in major growth area and close to quality schools, shopping, medical facilities and diverse employment hubs.
Property Snapshot
This property is a freestanding house with 4 bedrooms and 2 bathroom on a generous, 524m2 block.
Location Snapshot
Capital city location with a strong and diverse economy that offers affordability and lifestyle.
Strategy Overview
The following strategies applied to the purchase: High Cash Flow, Buy & Hold, SMSF, Low Risk.
Investment Numbers
Purchase price in 2023: $515,000
Estimated value in 2024: $680,000
Weekly rent: $610
Cash flow: $342/year
Situation
Our client, a family with two young children that had already built an impressive portfolio of two investment properties next to their principle place of residence (PPOR), encountered a dilemma that many ambitious investors face during their investing journey. They aspired to continue investing in a property for their Self-Managed Superannuation Fund (SMSF), but their busy lives left them with insufficient time to tackle the intricate process. Juggling their careers and the responsibilities of parenting, they found it challenging to allocate the required time and effort towards acquiring an investment property for their SMSF. Frustrated by their lack of progress in achieving their financial goals, they opted to seek professional guidance and approached start2invest.
Goals & Strategies
The family's primary goal was to leverage their SMSF to purchase their next investment property. They recognised the potential benefits of using their SMSF to invest in property, particularly the advantage of leveraging their available funds to gain additional exposure to the property market. By using their SMSF to secure a property, they aimed to access the power of borrowing funds within their SMSF, which could amplify their investment potential. This leverage strategy allowed them to increase their property holdings without needing to rely solely on their personal cash reserves.
To fulfil their objectives, start2invest recommended a thriving capital city location with a robust economy and high demand from potential tenants. Understanding the significance of location, they sought an area with convenient access to various amenities crucial for attracting long-term tenants. Their ideal property location would include proximity to reputable schools, medical facilities, shopping centers, and recreational spaces, ensuring a desirable living environment for potential renters.
The overall strategy for our client revolved around balancing cash flow and future capital growth. They agreed with start2invest to focus on properties with high rental demand to secure a steady cash flow that would cover expenses and reduce holding costs. Simultaneously, they focused on selecting a property in an area with a strong potential for future capital growth, aiming to enhance the long-term value of their SMSF and create opportunities for profit or future investments. This approach allowed them to achieve both short-term financial security and long-term wealth growth.
Solution
Outcomes
In just five weeks, start2invest efficiently identified an ideal investment property, capitalising on our deep local market insights and robust connections with key real estate professionals. Comprehensive due diligence was carried out to ensure the property aligned with our client's requirements and our stringent investment standards. This included factors such as desirable property attributes for tenant appeal, proximity to major employment centers, and access to quality educational institutions, shopping centers, and healthcare facilities. In a highly competitive property market with a limited supply of quality assets and strong interest from both investors and owner-occupiers, start2invest secured the property through strategic negotiation and well-established rapport with the selling agent.
Our client successfully realised their property investment objectives and obtained a valuable long-term asset for their SMSF, all while channeling their valuable time and resources towards their family's well-being.
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