Success Story IP#3

Welcome to this week’s success story – it’s near and dear to our hearts as we helped Dan’s sister get started in the property sector. You have heard us talk about having skin in the game before & this really rams home how much we walk the walk when it comes to not only location selection but also strategies to enter the market.

When HomeBuilder was announced, Dan was quick to pounce and got his sister online to have a proper coaching session. While she had been diligently saving while studying full time, there was still a shortfall in the deposit funds required to acquire a property. Fortunately Dan was in a position to provide a ‘family gift’ to cover the gap – this is a VERY common way for young people to enter the current market.
With the numbers now in order – we could go shopping and secure this neat little property in a region that is experiencing phenomenal demand. It is exactly the type of property that would suit young professionals (hence the personalised touches in this property) or a small family (with its proximity to one of the best equipped parks you are likely to come across).
Here are the details:
  • Purchase price: $476,000
  • Grants & exemptions received: FHOG ($15,000), HomeBuilder ($25,000), FHLDS (LMI saving of $9,000), Stamp duty exemption ($6,500) = $55,500
  • Land Settlement: 16 December 2020
  • Build Complete: 10 August 2021
  • Holding Cost (P&I rates as an owner occupier): $1,600pm
  • Est. Value (as at September 2021): $550,000
  • Est. rent return (likely WEF August 2022): $540pw
  • Cash flow when turned into an investment property (P&I repayments): $40pw positive cash flow
So how did we stick to our methods here:
1/ Strategy and planning is critical – spend time on this and get it right before you start shopping.
2/ The modern way of getting into the market sometimes requires support from your family – accept this as the new normal.
3/ Choose the right location, then get the right property within your planning parameters.
4/ You don’t need to have a huge block of land anymore. If you have proximity to amazing community facilities, you can use them instead.
Ready to work with a team that puts into action all those things that they talk about and has some skin in the game? Complete our FREE ADF Housing Entitlements Training to find out more.