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Case Example: Investment Property in Moreton Bay, QLD

Author
Written by Jarrod Wills
Product Expert, PublicSquare
Updated: Oct 10, 2023 | ⏱️ 5-min read
Updated:‏‏‎ ‎
Oct 10, 2023
|
⏱️ 5-min read

Property managed by

Raine & Horne Elite
<h2>Rent-to-Sell Property in Moreton Bay</h2><h3>The Property</h3>A primely located, 3-bedroom house, just minutes drive to the trendy Kippa Ring and beach side areas of Redcliffe. Poised for high growth especially with Retirees and Sea-Changers entering the area by the thousands each year.<br><br><h3>Introduction</h3>The Investors for this property had recently been pre-approved by their Lender for a second investment property and were looking to purchase one in Queensland for between $600k-$700k.<br><br>Concerned about the prevailing interest rates, the investors had two paths before them:<br><br>1. Do things the traditional way, covering <strong>$12-18k per year </strong> in expenses; or <br>2. Work with PublicSquare to achieve a property that <strong>pays for itself</strong> and other great benefits.<br><br><h3>The Traditional Way</h3>With typical rental yields of 4-5%, The Investors would have to incur annual out-of-pocket expenses of around $12-18k to cover their mortgage repayments and bills. And this financial burden could potentially continue for years before realizing any significant profits.<br><br>The Investors already had one negatively geared property earning the usual rental yields, which meant that adding another one would heavily strain their finances.<br><br>Their aspirations were clear: Save deposits for additional investment properties every 2-3 years and consistently grow their wealth through real estate. But they were wary of their lending serviceability, especially given their plans to upgrade their family home. They didn't want their investments to jeopardize that dream.<br><br>While exploring high cashflow opportunities, several schemes such as the National Disability Insurance Scheme (NDIS) caught their eye. But the bureaucratic red tape and their broker's hesitance when discussing mortgage feasibility made them reconsider. Moreover, they felt that the companies offering NDIS lacked clarity on how to end leases and resell the properties.<br><br><h3>The PublicSquare Way</h3>PublicSquare's 3% Instant cashback and 50% more weekly income initially raised their eyebrows. But after engaging with a PublicSquare specialist and using the PublicSquare calculator, the pieces fell into place. Yes, there were a few trade-offs, but altogether the guaranteed nature and simplicity of the product were extremely compelling. They also liked the idea of helping another family get onto the property ladder through PublicSquare's model.<br><br><h3>Several aspects that resonated with the Investors:</h3>1. 3% Instant Cashback: This heavily reduces the investors' upfront costs and risks of acquiring an investment property.<br><br>2. 50% More Weekly Income: Instead of an annual $12-$18k deficit, their cashflow would turn positive. This would bolster their serviceability in the eyes of Lenders, paving the way for ongoing portfolio expansion and a home upgrade.<br><br>3. Capital Appreciation: PublicSquare's model secures a minimum 5% annual capital growth, safeguarding property investors from market fluctuations while also ensuring they are positioned to capitalise on upswings in property values.<br><br>4. Less Work: The exhaustive property research, analysis, and negotiation process was no longer a burden for these investors. They were freed from the stress of identifying the "right" property and navigating inflated prices, with everything being handled by PublicSquare and its agency partners.<br><br>Additionally, their tenants would sign a long term lease and agree on the details of purchasing the property in advance, so that the chance of going through another expensive and time consuming transaction later, would be a lot less likely.<br><br><h2>Conclusion:</h2>Working with PublicSquare has made a world of difference for the investors of this property in Moreton Bay. What was once a potential financial burden has transformed into a lucrative and secure investment. The owners are now confident, knowing that the property is in great hands and continuing to generate secure returns.<br><br><h3>Ready to get started?</h3>Learn how PublicSquare can help you achieve your property investment goals. Download our fact sheet or book a no-cost information session today. It’s your first step towards better returns and more peace of mind.
Author
Written by Jarrod Wills
Product Expert, PublicSquare
About me: 5+ years of experience in the mortgage and lending space before joining PublicSquare. Passionate about providing excellent customer service.

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