We are thrilled to introduce the first of of three...Read More
ADF HOUSING INVESTMENT PROPERTY: SUCCESS STORY #44
Welcome to another belter of a Success Story! This is the second property with Axon for these guys. Dan is in the Army, and George is his partner that works in retail.
Dan’s first property was completed with Axon in April 2020. That has risen in value by approx $100K. During their end-of-build coaching session, it was discovered that the intent of Dan being posted to SEQLD for another year was upon us. So, we put a plan in place for them to acquire another property as their own home (PPOR). They submitted the EOI in Oct 2020.
They intended to use their $11K HPAS, $15K QLD FHOG and T3 DHOAS loan to support their finances. As is often the case, postings change, so we amended the plan to transition this property into IP#2. No problems, flexibility is a critical input to any planning process. They were fortunate being DINKs, with great money habits, that they did not ‘need’ the entitlements to make this happen.
What you see here is the outcome of that property. This is a premium ‘single contract’, townhome, not a traditional ‘2 part contract land and build project’.
They placed a 10% deposit down up-front. No interest was payable during construction. The builder completes the project under their own steam, and Dan and George settle the remaining 90% + costs, including full stamp duty (in this instance, settlement ended up being ~18m later, in July 2022).
Check out the stats:
- Purchase price: $559K (FULL turn-key package)
- Expected rent at EOI: NIL – they would pay the mortgage themselves
- Actual rent: $750pw (that is $39Kpa rental income)
- Comparable properties are now selling for approx. $725K!
That is another $160K in capital growth! The tenants and the tax man are paying the mortgage for them, as they have since posted to Darwin.
This townhome is located in a Northern suburb of Gold Coast, Southport (a few streets away from Axon HQ). It initially suited their needs, and now they have a very high-quality investment in a strong market.
It’s little wonder why Dan and George are stoked with the outcome. When I did a Facetime with them standing in the living area a few months ago, they were beaming! Watch this space for their next property move with Axon!