Nikenbah , The Springs West, QLD

Client Case Study: From First Investment in Nikenbah, QLD to Expanding Portfolio in Perth, WA

Background:

Our client, a professional couple with 2 kids was introduced to us via an existing client of ours in search of guidance on building long-term wealth through property investment. With limited prior experience but a strong desire to secure their financial future, they wanted to ensure their first property purchase set them on the right path.

The First Investment: Nikenbah, QLD

After a thorough assessment of their financial position, risk tolerance, and investment goals, we identified Nikenbah, QLD, as an ideal location for their first property investment. The decision was based on:

• Strong Market Growth: Nikenbah was experiencing steady demand due to its lifestyle appeal and regional infrastructure developments.
• Affordable Entry Price: The property was within their budget, allowing them to enter the market without overextending financially.
• High Rental Yield Potential: The area had a strong rental demand, ensuring consistent cash flow.

As a part of their strategy and to meet their desired goals we assisted the client to build a new four-bedroom house on a large block of land in Nikenbah for $695,000 . They contributed 20?posit through their savings and using some equity from their current property. The holding cost, including interest paid during construction, was $18,000, and the property construction period lasted 10 months. The property was tenanted within weeks after completion, generating a stable rental income.

The Outcome:

At completion, the property was valued at $860,000, resulting in a capital gain of $165,000. From a rental perspective, the market rent at the time of purchase was $675 per week, which had increased to $725 per week by the time of completion.

ROI Calculation:

Return on Investment (ROI) Calculation:

1. Capital Growth: $860,000 – $695,000 = $165,000
2. Rental Income Increase: $725 – $675 = $50 per week ($2,600 per year increase)
3. Initial Investment (Deposit + Holding Costs + Settlement Costs): 20% of $695,000 = $139,000 + $18,000 + $9,652 = $166,652
4. ROI Calculation: ($165,000 / $166,652) * 100 = 99.01% ROI

Expanding Their Portfolio: Perth, WA

With the success of their first investment, our clients felt confident in expanding their portfolio. After analyzing various markets, we guided them toward Perth, WA, which was showing strong capital growth potential and high rental yields.

The Result:

This strategic approach allowed our clients to:

1. Build Wealth Efficiently – By leveraging equity, they expanded their portfolio without excessive out-of-pocket expenses.
2. Maximize Cash Flow – Property is currently providing strong rental returns higher than projected.
3. Achieve Long-Term Goals – They are now on track to continue growing their investment portfolio and work toward financial freedom with discussions into their 3^rd investment property.

Conclusion:

Through strategic planning and expert guidance, our clients successfully transitioned from first-time investors to multi-property owners. Their journey from Nikenbah, QLD, to Perth, WA, highlights the power of smart property investment and leveraging market opportunities.