This would have to be one of my favourite parts of my job as a property advisor – sharing success stories where my clients have found incredible success by using our services across Buyers Agency, Property Management, Renovation Consulting and Vendor Advocacy.
Back in 2014, Michael’s Hot Property Journey started with the team at Hot Property, securing this great investment property on Brisbane’s Northside in a suburb called Geebung. The team at Hot Property identified this location as a strong capital growth area with local public transport, amenities and only 10 km from Brisbane CBD.
After securing the property under contract and settling, the Hot Property Management team took over with securing a tenant and managing the property for around 6 years.
In mid-2020, Michael and his partner decided to evolve their investment strategy and considered selling the Geebung property we had purchased for them.
After sitting down and reviewing the current market conditions and potential sale price, the decision was made that we were going to sell this property. Step one was considering renovations and improvements, not only to maximise a sale price but also reduce our contract fall over risk.
We identified the key market who were buying this type of property was the first homebuyer demographic, which meant vacant possession and vacant marketing was going to be essential in order to achieve a premium price. This unfortunately meant vacating the current tenant and starting to prepare the property for market.
After meeting with the owner on site, Liz (Director), Barry (in-house handyman) and myself came up with a list of works as a part of our Renovation Consulting Service in order to maximise the sale result. This included cosmetic refurbishment such as painting, re-grouting, re-siliconing and landscaping.
Fortunately, in this situation our client was local and also had a trade background being an electrician. This benefited him in the renovation but ultimately he couldn’t do it all and needed to outsource several items on the renovation list. This is where our in-house handyman really came in handy (pardon the pun!).
After around three weeks of downtime undertaking the repairs, maintenance and renovation works, it was time to hit the market! This is where the Hot Property Buyers Agency Vendor Advocacy Service came into play. After shortlisting and interviewing several local agents and arranging several to inspect the property to provide their market feedback, we ultimately selected an agent and committed to the sale process. Immediately, there was strong interest in the property pre-market, and once the property hit the open market, several offers were presented on the first weekend.
This multiple offer scenario resulted in a premium price that we were excited to accept, subject to building, pest and finance. There were only minor issues found at building and pest, which we were more than happy to rectify for the buyers.
Having originally purchased a property for low $500,000s back in 2014, the property recently sold for the mid $600s, resulting in an average annual capital growth rate of around 4.49%.
When compared to the area average annual growth rate, which sits in the mid 2% range, there was approximately a 60% variance from the average growth achieved by this property. Well outperforming the average!
When speaking with Michael about his expectations around selling the property and what he was hoping to net financially out of this process, his goal was potentially to be able to pull out around $60-$70,000 in order for them to move onto the next project.
After asking Michael to share with us the end result, he revealed that due to the efforts of the renovation and strategic agent selection, he was able to clear approximately $150,000, over double the amount he originally anticipated! This is a dramatic change and a significant benefit to the future opportunities these clients now have to reinvest in other projects and potentially purchase again and expand their portfolio.
The next step for these clients is to look at renovations or perhaps a knock-down rebuild in Mount Gravatt, which is another property we purchased for these clients many years ago. We’re excited to see how this progresses!
Want to join the Hot Property family? Contact us today.