Property is a long game

A 10-Year Success Story: How Strategic Property Investment Paved the Way for Retirement

Having a clear, well-thought-out strategy is essential to long-term success. In 2014, one of our clients approached Property Pursuit with a goal: to build a retirement nest egg through property investment. They were looking to acquire two high-quality properties that would grow in value over the next decade, providing them with the funds needed to retire comfortably. With our expertise in property strategy, asset selection, and management, we helped them purchase properties in two prime Brisbane suburbs—Ashgrove and Coorparoo.

Now, ten years later, the first of these properties has sold for nearly double its purchase price, and the second is poised to hit the market in November 2024. Here’s how the journey unfolded.

1. The Strategy: A Long-Term Vision

Our client’s objective was simple: buy and hold for 10 years, then sell to fund their retirement. However, achieving this goal required a nuanced understanding of Brisbane’s property market, a carefully constructed strategy, and a keen eye for identifying the right investment-grade assets. We worked closely with our client to understand their financial position, lifestyle goals, and risk tolerance before crafting a bespoke property investment strategy.

We focused on two key principles:
– Location: We identified suburbs with strong potential for capital growth and long-term demand.
– Property type: We selected properties that would not only attract quality tenants during the hold period but also appeal to owner-occupiers at the time of sale, ensuring maximum resale value.

2. The Purchases: Ashgrove and Coorparoo

In 2014, we assisted our client in purchasing two properties in sought-after Brisbane suburbs:

– Ashgrove: A well-established, leafy suburb just 4 km from the Brisbane CBD. Known for its family-friendly atmosphere, good schools, and beautiful Queenslander homes, Ashgrove has consistently attracted strong buyer demand.
– Purchase price: $950,000
– Property type: A charming Queenslander with great potential for value growth.

– Coorparoo: Another thriving suburb, located 4 km southeast of the CBD, Coorparoo offers a mix of heritage homes and modern developments. With excellent transport links and proximity to local amenities, it has long been a favourite for families and professionals alike.
– Purchase price: $925,000
– Property type: A spacious family home with strong rental appeal and potential for capital growth.

Both properties were purchased with long-term growth in mind. Ashgrove and Coorparoo were identified as suburbs that had historically performed well and had all the key ingredients to continue appreciating in value—proximity to the city, great amenities, and strong community infrastructure.

3. Managing the Properties: Maximizing the Hold Period

After the initial acquisitions, the key focus was to ensure the properties were well-managed and continued to generate income while appreciating in value. Our property management team worked closely with the client, ensuring both homes were maintained to a high standard and tenanted with reliable occupants.

– Ashgrove: The Queenslander-style home attracted high-quality tenants, who appreciated the property’s character and proximity to the city. Over the years, the property’s value steadily increased as Ashgrove continued to thrive as a premium suburb.

– Coorparoo: The Coorparoo home was similarly well-maintained, offering strong rental returns during the hold period. With ongoing infrastructure improvements in the area, including the Coorparoo Square development and upgrades to public transport, the suburb continued to grow in demand.

We kept a close eye on market trends, ensuring that both properties were aligned with broader market movements. Regular property reviews allowed us to make small, strategic improvements that added value without overcapitalizing.

4. The Sale of Ashgrove: A Strategic Exit

In 2024, after a decade of growth, it was time to execute the final part of the strategy—selling the properties. Ashgrove was the first to go on the market, and our vendor advisory team was heavily involved in preparing the property for sale. Our approach included:

– Market analysis: We conducted a thorough review of recent sales in Ashgrove and surrounding suburbs to set a competitive, yet ambitious, listing price.
– Presentation: We worked with the agent to ensure the property was immaculately presented, engaging professional stylists and photographers to highlight its best features.
– Sales strategy: Our team worked closely with the chosen sales agent, coordinating the marketing and negotiation process to achieve the best possible result.

The outcome was outstanding. The Ashgrove property sold for $1,927,000—nearly doubling in value over the 10-year hold period. This impressive result was a testament to the power of location, thoughtful asset selection, and strategic management.

5. Coorparoo: The Next Step

With the sale of Ashgrove now complete, our attention has turned to the Coorparoo property, which will be listed for sale in November 2024. Given the ongoing strength of the Brisbane market and Coorparoo’s continued popularity, we expect this property to deliver similarly strong results.

Coorparoo has benefited from significant infrastructure investment over the past decade, making it an even more attractive option for families and professionals. With great schools, retail precincts, and transport links, it’s a suburb that continues to see strong demand from both buyers and renters.

6. Reflections on the Journey

Looking back, this success story is a perfect example of how a well-planned property investment strategy can deliver exceptional results. By focusing on high-quality, well-located properties and holding them through market cycles, our client is now set to enjoy a comfortable retirement, funded by the strategic sale of their assets.

The Ashgrove sale has already unlocked significant capital, and we’re confident the Coorparoo sale will complete this successful 10-year journey. From property selection to management and finally the sale, Property Pursuit was with them every step of the way, ensuring that their goals were met and exceeded.

Key Takeaways:
– Long-term strategy pays off: Holding high-quality properties in desirable suburbs can lead to significant capital growth.
– Location matters: Choosing investment-grade suburbs like Ashgrove and Coorparoo positioned our client for success.
– Ongoing management is crucial: Professional property management ensures that investments are well-maintained and continue to generate value throughout the hold period.

We’re proud of the role we played in helping our client achieve their financial goals and look forward to continuing to help others build a prosperous future through smart property investments.

 

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