After fighting to secure their ideal home in Sydney’s inner west, a professional couple with $200k in savings who were priced out of the market pivoted their strategy to invest in an affordable interstate location and are now achieving over 6.5% gross rental yield and are likely to achieve 19% capital growth over the next 3 years thanks to their purchase through investment property buyers agency, CH Secure.

The Back Story: A young family residing in Sydney had built up their savings and decided it was time to buy their first home. With their love of the Sydney-city lifestyle, they had their sights set on the Inner West, and had a borrowing capacity of $1.2 million.

They had been searching for some time without success.  A key concern for them during this time was that their  savings were being eroded due to increasing inflation.

Getting help:
They approached buyers agent Cohen Handler and tasked them with a difficult brief they were pointed to speak with Josh Meli, co-founder of CH Secure. Josh specialises in helping clients build their financial future through affordable investment properties Australia-wide. Josh's insights helped the couple rethink their long-term property strategy while maximising the productivity of their savings in the short-term. They realised that with a new strategy they could leverage an investment portfolio in order to secure their dream home in their ideal location.

New Strategy: Build up a portfolio and achieve financial freedom
The client's overarching goal is to acquire 3-5 properties over the next 5 years which is certainly achievable when buying in the right property in the right areas. Another key goal is to live off passive income in future, potentially reduce working hours and indulge in frequent travels to their home country, England.

The search:
Over the course of a few weeks, Josh narrowed down their search to just a few areas that would help them meet their goals, which included steady growth and a near-neutral cash flow position to cover most of the mortgage fees and holding costs.

Josh presented two properties initially, refined the client's brief, and swiftly secured the chosen property a day after it was listed.

The location: Mackay, Queensland
Their first investment was purchased in Mackay, Queensland, in the Whitsundays region which is 970 km north of Brisbane, famously known for bright blue waters, white sands and being the sugar capital of Australia.  

The Whitsunday Region, where Mackay is situated, is the area between the major towns of Rockhampton and Townsville and is one of Australia’s most highly regarded tourist destinations.  

From an economic standpoint the major industries of employment within this location is education, health, aviation, tourism, mining services and agriculture. The region’s estimated Gross Regional Product GRD, generated $2.88 billion in 2022 and is projected to continue strong growth over the long term.

The Deal:
The home is a free-standing, 3 bedroom, 1 bathroom 2-car garage property, well positioned nearby to Mackay’s lifestyle and business hubs.

Purchase price: $440,000 Deposit: 10% plus associated costs.  

Rental: $580 per week, yielding a solid 6.65%. 

Future growth: According to property research firm Select Residential Property, the Whitsundays Region has a predicted capital growth rate of 19% over the next three years. This means the property could achieve $83,600 in equity growth within the next 3 years. 

With the average Australian wage of $1399.10 according to the RBA, you would need to save more than a third of that annual income over the same time to achieve the same result. The average savings rate is in Australia currently is 3.2%. 

With the help of CH Secure, the clients are well on their way to building their property portfolio, aligning with their long-term financial goals and providing a pathway to a more flexible and enjoyable lifestyle.  

If you need any assistance in a similar way to these clients, we would more than happy to speak with you confidentially and obligation free. Get in touch with us today.