Article supplied by Ark Property
David & Mel have adopted a low risk & common sense approach to investing in residential property (Keep It Simple Stupid). By purchasing their second ‘Dual Dwelling’ in Greater Brisbane they are confident of achieving high capital growth while obtaining positive cash flow for the life of the property. This is their story…
Q: How did you get involved with Ark Property?
A: We were looking to invest in a positive cash flow property about 5 years ago & they found us a vacant block that was being leased back by the developer at 7% for 3 years. They then helped us to plan & build a ‘Dual Dwelling’ that cost us about $300,000 to build & we get $670 per week rent for it. It has actually been cash flow positive from day one.
Q. What is your investment philosophy?
A. We have 2 young children so we want to grow our portfolio without it being a huge drain on our cash flow. We want property that doesn't cost us money to hold and we want it to be in and around a capital city. We did a lot of research on the mining areas and decided that we wanted to be in a more stable area that was less 'boom & bust' than the regional areas.
Q. What research did you do before working with the team from Ark?
A. We had been to a lot of investment seminars and most of them didn't want to tell us anything about the properties they were recommending and who the builders were. It all felt like they were trying to control us & we didn't like that. At Ark Property it was the opposite, they were happy to tell us about the properties and the builders.
Q. What about the property management, who looks after your properties for you?
A. One of the main reasons we bought property through Ark is because they manage the property for us. We know we are looked after because they only manage the properties that they help their clients buy. Because of their relationships with their preferred builders there are some things they can offer that other property managers can't. We get double the builders maintenance period and they maintain the garden until it is rented, we couldn't find anyone else that offered that level of service.
Q. Tell us about your latest investment property?
A. It is a ‘Dual Dwelling’ which from the road looks like a traditional home, but it is actually 2 homes. It is like a house with a granny flat but it has been built to comply with council regulations so that both homes can be rented separately. For not much more than a traditional 4 bedroom home we now have 2 rental properties. The larger is 3 bedrooms, 2 bathrooms & the smaller is 2 bedrooms, 2 bathrooms.
Q. What sort of tenants do you have?
A. We have a variety of tenants, including families, professional couples and singles. We have never had a problem finding long term tenants, as quality 2 and 3 bedroom homes are hard to find.
Q. Have you thought about who will buy them if you need to sell?
A. Sell – we have no need to sell them because they are making us money by holding them. Our most recent one makes us about $100 per week after mortgage repayments. As an investment property they really are no different than a traditional property except it gets a much better return.
The above information is supplied by Ark Property.
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