Where did our senior buyers agent, purchase his second investment property?

Buyers Agent

They say help enough people get what they want in life, and your goals and dreams will come to life also. Well, that couldn’t be any truer. I recently acquired my second investment property. I wanted to thank all of our clients for allowing this to happen and also share with you WHERE, WHY and HOW.


Bonbeach – https://en.wikipedia.org/wiki/Bonbeach,_Victoria

A 30-minute drive from the Melbourne CBD, a small bayside town in the city council of Kingston. A short 850 walk to the Bonbeach train station, 1.1 km walk to Bonbeach beach (Port Phillip Bay) Close to Patterson River Country Club, Bicentennial Park and Bonbeach Sports Reserve. 

In October 2018 McGrath founder and former Shark Tank investor John McGrath, one of Australia’s top property experts said Bonbeach’s appeal lies in its beachside village feel and its value for money. Bonbeach is a small bayside village that hasn’t had the same attention as its more glamorous northern neighbours. I couldn’t agree more with John, which is one of the reasons why I jumped at the chance to buy into this bayside suburb. https://www.realestate.com.au/news/buyers-told-to-act-quick-to-bag-a-bargain-in-bonbeach/


Bayside locals understand and appreciate the lifestyle that living by the beach provides. Once you have resided near the bay, you truly understand the lifestyle this location offers. Having grown up in Seaford, I know this stretch of real estate well. The government is investing 3 BILLION dollars in upgrading the rail line upgrade. Bonbeach and several other stations will be replaced with brand new stations. This, together with new bike tracks and open space, plus improved road works the entire area will be safer for families and will offer better traffic flow for motorists. I believe this will help increase the value of property in the area. Watch this video for more details – https://levelcrossings.vic.gov.au/projects/bondi-road-bonbeach

The property I purchased has owner-occupier appeal in spades. Why is this important, you ask? When you resell a property, this target market will typically pay an emotional price, not a logical price. The 32 sqm under roofline floor plan works for a growing family. Majority of family homes in Bonbeach are weatherboard and are built in the 1950-60s. Considering this property was built in 2001 and is brick veneer (requiring very little maintenance) I feel this was AMAZING buying. 

I will add value, with a coat of paint, new floor coverings and some changes to the fittings and fixtures and this property will feel new again. I placed the land value here at $825,000 – meaning I secured the 32 sqm home for $165,000 – With luxury townhouses in Bonbeach selling between the 1.1-1.2M majority of the cost is in the land. 

TOWNHOUSE EG – BELOW https://www.realestate.com.au/sold/property-townhouse-vic-bonbeach-128477970

If Industry Insider were representing the vendor as an adviser, we would have recommended several strategic items before actually selling. 

 1 – Lay new carpets.

2 – Repaint the property throughout.

3 – Professionally stage the property with furniture.

4 – Quote the property at $900,000-$990,000.  (For transparency the selling agent suggested a different advertised price, to what was quoted to the market. However, the vendor didn’t listen to the sales agent’s professional recommendation)

From experience, the above changes are well worth doing and a different price strategy could have potentially helped maximise a better return on investment for the vendor. 


The property PASSED in at auction. When a property passes in, and you’re interested. You want to ensure that you have the highest bid. This gives you have the POWER to negotiate exclusively with the vendor at their reserve price. The best position to be in at an auction is when the property passes into you. The advertised price was $970,000 – $1,030,000 – In my professional opinion, this was a slightly higher quote than what was needed to maximise the ROI. In the current market, if you quote property to top-heavy, the buyers will not see the value and therefore not attend the inspections. 

When I was negotiating the purchase, I added a particular unique special condition to the contract that allows access to the property before settlement — allowing me to complete work before I take ownership of the title, which is two weeks later.

The plan is to lay new floor coverings, paint the property and complete some small maintenance items before settlement. We will advertise the home online for rent and target a young or growing family as tenants. I expect this property to return approximately $650 per week. This investment property will provide security and safety for the new tenants and will help with my goal of providing financial independence for my own family.  

The two main factors driving the Melbourne property market at the moment are. Low supply of properties to select from and the record low-interest-rate environment. I have been able to secure a very good rate interest-only loan rate of 3.5% which will make the mortgage repayments $2,664.78 per month. My expected rental return once I have laid new floor coverings and repainted the property will be approximately $650 per week which equates to $2,824.40 per month. Once you factor in the outgoings & holding costs this property will be slightly negatively geared.

This investment purchase is a very passive growth-orientated investment. However, in the future when the land value eventually appreciates, I will have the opportunity to knock down the property and build two townhouses as the land size is 644 sqm. 

Would you like to see what the property looks? – Click on this link https://www.realestate.com.au/sold/property-house-vic-bonbeach-132052166 Remember location does 80% of the heavy lifting when it comes to capital growth. The age of the house, plus the floorplan and internal size are attributes that will attract a young family.

If you would like help finding deals like this, I’m only a phone call away or text message away 0402 346 810

Thank you to all of the amazing people, friends and family who have trusted the process and engaged Industry Insider Property to Buy or Sell their Dream Home, without the Nightmares.

At Industry Insider we are also now managing our client’s investment properties, if you need help with your investment properties or need any advice when it comes to property, please reach out to the Industry Insider team on +61 8374 7652 or book a Zoom call here


Industry Insider Property
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+61 8374 7652
+61 402 346 810