Instant Equity Gain of $37K & $250pw Positive Cashflow in Western Sydney

Sep 26, 2011 by

Instant Equity Gain of $37K & $250pw Positive Cashflow in Western Sydney

Virgin Australian Pilot Finds Fantastic Deal in Kellyville Ridge, Sydney

As a Property Coach here at Positive, I’m always excited when my clients meet the goals they’ve set for themselves. Everyone loves a good success story and highlighting their hard work and accomplishments serves to inspire other investors, both new and seasoned!

Recently, Peter MacGill, a pilot with Virgin Australian, purchased a fantastic unit in the North Western Suburb of Kellyville Ridge, Sydney. After only 12 months membership in the Mentoring Program, Peter is now the proud owner of a fantastic unit in the North Western Suburb of Kellyville Ridge, Sydney.


The Facts in a Nutshell

Peter purchased in Kellyville Sydney for $413K and received a bank valuation prior to settlement of $450K – meaning an instant equity gain of around $37K! It is also renting at $460pw. (The tenant signed-up 12 month lease 3 hours after settlement – so no vacancy period). He submitted his PAYG variation with his accountant and as got his tax down to 27% and with the extra cash back in his paypacket his property is now positive cashflow $250 per week. He has booked in his next appointment with me to review his strategy and move onto to the next deal. This is just an example of one fantastic deal from our National Buyers Agency.

 

This amazing unit consists of 3 bedrooms and 2 baths and lies within a 34 unit complex which has 2 buildings, each 3 levels high. The open floor plan of the spacious apartment offers great appeal and the development is in a high demand area, close to numerous amenities.

Peter is an amazingly inspiring man and he’s easy to work with. He is a very detail oriented person so he needs to go through the numbers – he does a lot of research and I simply support him in his efforts. When choosing the right investment for Peter, we sat down and decided on his next purchase and what it had to entail, so we were pretty specific about what it had to be.

Peter does what I would love for all of my clients to do. He chooses to do his own due diligence – he talks to real estate agents, he reads up on the area, he goes through the numbers in detail. He uses software called Property Investment Calculator and he puts all the numbers in. Then he sends the numbers to me and we go through those and we look at best case and worst case scenarios so he really understands what it is that he’s taking on.

When I sit down with a mentoring client, what I do is I’ll take a look at his financial situation and what money he has – what his profile is.  I look to see if he can afford to take on something that’s going to get big growth, but that the rent might not cover the shortfall.

In Peter’s case, I wanted to keep his rental income relatively strong because I didn’t want to leave him what we call “big buffers” – I didn’t want to leave him amounts of cash set aside to cover a shortfall because we want to utilise every little bit of cash he’s got to buy property. After we went through all of the financials, there were only 2 or 3 properties which suited what he was looking for. I think it was the second or third property that he took.

In the case of the Kilbenny purchase, the timing was perfect. The buyer’s agency did very well at pinpointing where it was and the growth drivers there; they negotiated it for a good price, Peter came along at the right time and it all just came together! The buyer’s agency spends a great deal on research, subscribing to all of the economists, government reporting and other information, so there is a real science behind their recommendations.

Before signing up with Positive, an individual who might be thinking about investing in real estate needs to sort some things out first to make their experience a fruitful one. They need to have worked out what it is that they want their portfolio to do for them. If I understand what their investment goals are, I can help them establish a detailed plan designed to help them reach those goals.

Everybody’s different – for example I have one young man that came to see me, and all he needed was $20,000 a year to live on. He goes and helps construct buildings over in Cambodia for charities, so his requirements were actually relatively simple and basic, whereas other people might be looking to replace a $100,000 salary, or they’re looking to provide a legacy for their children. Each of those types of outcomes will require purchasing different property and different time frames to achieve the desired results.

What do you want your money to do for you?  That, in a nutshell, is the question to ask yourself. Dream big and plan well – you just might surprise yourself!

Tabitha Bright VIC and TAS Head Coach P: 0407 281 828 E: tabitha.bright@positiverealestate.com.au

Tabitha has been passionately investing in property for the last 8 years. Originally from NZ, she has now lived in Melbourne for 12 years and together with her partner Vin, has built a multi-million dollar property portfolio utilising various strategies including positive cash-flow, discount deals, no-money down and strata subdividing blocks of units. Tabitha Bright is also the Head Property Coach for VIC & TAS Mentoring Program and has recently featured in the Millionaire Mentor book by Fiona Jones. If you wish to meet Tabitha and discuss investing in property, book in for one of her next Property Investor Nights in Melbourne or Tasmania – CLICK HERE

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