Greater diversification and cashflow out of an investor’s comfort zone
One of our clients wanted to grow their property portfolio beyond their existing three bedroom home in Sandy Bay and a two bedroom unit down the road in Taroona. They initially thought it best to buy another unit close by so they could “keep an eye on it”.
Our advice was different: what they needed was diversification into a different suburb to balance their portfolio – a classic example of Rock Property thinking outside the square in order to bring disciplined knowledge to an investor’s portfolio.
We helped the owner purchase two properties in suburbs with high capital growth potential and great rental yields. The first property was a three bedroom house in Moonah, which immediately earned them a gross rental yield of 6.5%. The second was a house in Lutana, into which we installed a new kitchen, bathroom, carpets and heat pump, resulting in a gross rental yield of 6.8% on total costs.
These new properties have added significant net cashflow to the owners and reduced their risks of concentrating in only one geographic area.