Outstanding capital growth puts 3rd investment property firmly in the sights of this client
Living overseas and working in a high profile corporate job, our client is time poor when it comes to searching for good investment property opportunities in New Zealand. So they decided to enlist the help of a buyers’ agent.
We started working with this client in 2012. The first thing we did was identify their financial goals, and then map out how they could achieve these by investing in property. We looked at not only how much they should spend, but the type of property, and in which areas (suburbs) they should focus on for maximum return.
We successfully secured their first investment property in August 2012 for $410K. On a full site, we identified this property as having good capital growth potential, and our clients were “ecstatic” when the revaluation came in at $525K only a year later in August 2013. This increase of $115K in 12 months equates to a 27.7% increase, which is much higher than Auckland’s average capital growth rate that hovers around 10%-14%.
The increase gave our clients the capital they needed to invest in their second property, and we were able to secure another investment for them in January 2014. We purchased this property for $430K, and it was valued by a registered valuer at the same time for $475K. This meant that it had already achieved $45K of equity on settlement date. So already this client is tracking towards being in a position to buy a 3rd investment property in the near future.