How my clients added $350,000 to their wealth in less than 12 months…
- Jul 03, 2017
- By Dim Mastoros
- In News
- Comments Off on How my clients added $350,000 to their wealth in less than 12 months…
So here is a bit of a case study on how recent clients of mine added $350,000 to their wealth position in less than 12 months…
It is quite simple really, 2 steps in actual fact:
1. Buying well.
2. Adding value.
Buying well: this, in my opinion, is the hardest part of getting it right in the property market. Buying a property at a good price… There are many factors that determine a good price, which we will cover in another blog article.
Adding value: this is the fun part, but requires you to spend money on improvements and/or renovations. The value of a property is generally calculated through the following characteristics:
– The land (size, location, zoning, neighbourhood, access and services)
– The Building (style of building, street appeal, fixtures, fittings, internal/external condition, size, number of bedrooms/bathrooms/car)
– Sales Evidence and Recent Sales
So what did my clients do to add $350,000 to their wealth position? Here are the steps…
– Bought a home in a southside suburb for $880,000 in an area where many new build homes and improved homes sell for well over the $1m mark.
– Spent $75,000 on improvements to the home’s kitchen, bathrooms, paint, flooring, and exterior.
– Total spend = $955,000
– Valuation = $1,305,000
Added Equity = $1,305,000 – $955,000 = $350,000
The best part is that there is so much that you can do with equity (remember the old “Equity Mate!” CBA ads). Here are some examples:
– the deposit for your next property
– investing in other wealth-building opportunities
– lifestyle purchase (new car/boat/caravan or a holiday)
If you want to find out some more information or details about how you can do the same or similar, get in contact with us and start the conversation.
Dim – The Bare Broker