Property purchased in Brisbane
I will provide you with an example of a property which was purchased back in 2016 in Brisbane and provide a comparison to its current market value in 2022. This was a large 3 bedroom house on a large block of land. This provided the ability to instantly be divided into two blocks. Whilst also being a house built in the 1970s it also created the opportunity to allow a renovation to be carried out to increase the rental return. At the time this was a positively geared property that provided strong capital return. 
 
Below is a summary of the initial investment costs back in 2016. To purchase this property there was a total initial cost of $91,000. This was an off market deal at the time.

• Cost of the property $380,000
• Deposit of 20%  $76,000
• Stamp Duty  $12,000
• Conveyancing costs $1,000
• Additional charged (Fees and charges)  $1,500
• Building and pest report  $500
• Total initial cost  $91,000

Fast forward to 2022 this property has made substantial profits over the last 6 years.

• Cost of the property $380,000
• Current Market Value $800,000
• Growth to date $420,000
• Total Growth to day 110%
• % of growth annually between 2016-2022 18.42%

This example demonstrates there is opportunity to identify properties which offer strong capital growth whilst also being positively geared. With the importance of also finding properties where there are areas of potential such as the ability to subdivide the land and also renovating the property to attract the large amount of rent. It is important to source these types of properties to help with maximising your returns whilst also allowing you to extract the equity for future purchases without having to dip into your savings to help you build a better structure property portfolio.