First Time Investor
Suburb: Mentone, Victoria
Client Type: First Time Investor
Service: Search > Assess > Negotiate
Budget: $1 Million
Purchase Price: $950,000
Property: Standalone 3 Bedroom Villa
Our clients were first-time investors who engaged us for our full service – search, assess and negotiate to secure them a property with high capital growth prospects. With an original budget of $600k we began the search and presented the clients with properties. Once the clients had reviewed the properties, they decided as long-term residents of Mordialloc they would prefer Bayside properties and increased their budget to $1 million ($1.050m absolute maximum).
With a modified brief we re-initiated the search. The clients were keen to participate and attended several inspections, our search narrowed to two properties and after a thorough assessment, we recommended both to our client.
One in Parkdale went to auction first, it sold for $1.1 million (just beyond our client’s budget). It was a near identical property to the second property located in Mentone that was going to auction the following week. This property was a standalone three-bedroom villa situated in a group of just five and was perfectly positioned to just step out and enjoy the ever-increasing attractions Mentone has to offer. Just a gentle stroll from the shopping strip and station, the property was moments to the beach and boasts sought-after dual zoning for both Beaumaris and Mentone Girls’ Secondary Colleges. The home presented well but required some minor cosmetic updates, including new carpet and tiles. These necessary improvements were factored into our client’s budget.
At auction day there was a crowd of 30 people and 3 bidders participated, we threw out the opening bid and the property eventually passed into us at $940,000. Ensuring the property passed into us gave us first right of refusal at the vendor’s reserve price of $970,000 (the vendor must disclose their reserve at this point). We successfully negotiated and only budged $10,000 to agree on $950,000. This was well below our client’s budget so they were very happy.
Post the auction we continued to facilitate the purchase. At the pre-settlement inspection, there was a party of 8! We had organised a tradesman to be present to quote for the necessary works, to ensure works could commence as soon as settlement took place.
Thus ensuring minimal vacancy time between settlement and tenancy for our clients. Our Property Manager also attended so she could meet our clients and she brought along a potential tenant. A little unusual to have a tenant at a pre-settlement inspection, but we knew someone through our network that would be a perfect tenant for this property and our client.
This is a great property that should enjoy substantial capital growth due to its location and proximity to the water and premier schools.
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