Often our clients come to Capital 360 seeking quality investment properties with a relatively small budget. While we pride ourselves in purchasing properties that outperform the market, plus negotiating and securing the best possible discount to market value for our client, these properties can often be difficult to come by.
Our ability to leverage off our market knowledge, agent contacts and investor client base has resulted in enabling our clients to purchase these quality properties but with a purchase price below market value. How do we manage this? By using the Capital 360 unit block strategy.
We source and negotiate the simultaneous purchase of entire boutique unit blocks with renovation potential, and offer our clients individual units in the block at a discount to market. Our strategy has significant benefits for investors and can also be applied to homeowners. These benefits are:
- Access developer discounts through our bulk buying
- Acquire property at wholesale prices, at significant discount to market value
- Our renovations team project manage the renovation internally and externally, we co-ordinate and do all the hard work for you
- Create instant equity through purchasing at a discount and adding value
- For investors, rental returns are increased post renovation
- Purchase due diligence costs are discounted as split between all purchasers
- Use body corporate funds to assist with renovation costs due to Capital 360’s clients controlling the entire block.
Our unit block strategy is so popular that we usually have waiting lists of clients wanting to be part of the next block. Please go to http://www.capital360.com.au/ if you would like to register your interest.
Here is a recent case study:
Units were priced around $320,000 each. We were able to successfully negotiate and purchase this block of 6 strata titled apartments for 6 clients at a discount to market value of approximately 12%! This created instant equity of between $30,000 - $45,000 for each purchaser. The block is located in a quiet residential street, close to transport, cafes, parkland and 5km to Brisbane CBD.
Internally the apartments were huge at 113sqm on title, each with North facing balcony, lock-up garage, own laundries and excellent privacy and natural light. Our buyers agent identified for the purchasers the opportunity to renovate the units internally in future to increase value as well as rental yields. When the time comes, our Renovations Team can project manage the renovation for each unit and achieve bulk discounts, saving cost and hassle for the owners.
The Capital 360 buyers agent also identified the opportunity to make external improvements to the building and the potential to turn the visitor parking spots into individual strata lots – further adding value to these units. With other like-minded owners in the building, the potential to add value to the building and common areas is vastly improved.
Strong negotiation on our behalf resulted in each unit being purchased at approximately $30,000 - $45,000 below market value, with only a $1,000 deposit upon signing the conditional contract!
Purchase price (each unit): $292,000
Market value: $325,000 - $335,000
Rental (current condition): $320 - $330pw (> 5%)
Immediate equity gain: $30,000 - $45,000
Buyers Agent fee: Capital 360 fees were effectively FREE because instant equity gain was 3-4x our fees. What a deal!!!
Capital 360 are currently sourcing and negotiating on several other block and boutique development opportunities and expect to be offering these to our waiting list of purchasers shortly. Please go to http://www.capital360.com.au/ to see pictures of this case study or if you would like to register your interest. You might also like to subscribe you to our informative monthly newsletter to keep you up to date on the property market, as well as learn other strategies to create equity and outperform the market.
The above information is supplied by Capital 360.
Disclaimer: while due care is taken, the viewpoints expressed by sponsors do not necessarily reflect the opinions of Your Investment Property.
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