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Behind the deal – Townsville Investment

Let’s look at Gail & Andrew’s recent Townsville investment purchase and the rationale behind why we selected this low-maintenance investment in one of Townsville’s best suburbs.

When the Tropical Life team select assets, we use a combination of quantitative and qualitative data points all designed to mitigate investment downside risk and maximise the assets upside potential. These data points are a combination of macro and micro factors that ultimately determine the assets performance over the short, medium and long term.

We need to ensure every investment purchase is bought in the best suburb their money can buy, the best pocket of the suburb, the best street and best property on that street. This methodology and attention detail is what’s needed if you are looking for an investment that will outperform the market.

Our 10 critical investment principles are also a key part of our asset selection framework at Tropical Life Buyers Agency. Time and time again we see many investors make mistakes deviating away from these principles, ultimately acquiring assets that don’t perform. These principles are a combination of property investment fundamentals and our own methodology developed in house. Things such as Land to asset ratio, suburb track record, land supply, demographic etc.

It’s our robust and thorough asset selection framework that’s allowed us to separate the weeds from the roses in Townsville and located the best property Gail & Andrew’s money could buy at the time.

Let’s look at the purchase & its numbers:

Purchase Price: $392,000

Rent Per Week: $500

Yield: 6.5%

Undermarket Value: $50,000 based on true comparable sales

Data Points: Yes

Investment Principles: Yes

Image: Townsville Investment

The charming 4-bedroom 2-bathroom home is in one of Townsville’s best suburbs, which is very desirable for owner occupiers and its yield and suburb track record reflects that. We were presented this property off-market after a recent contract crash and discovered it was a mortgagee sale. Due to the distressed nature of the property, we purchased the asset in isolation of competition and ultimately got it at the significant discount well-under market value.

If you are looking for an investment property in North Queensland. Please book a call with the Tropical Life Buyers Agency team.

Cairns Buyers Agent | Townsville Buyers Agent

Troyson Bassani

Owner & Head of Research

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