Buyers Agent Purchase - Tamarama, Eastern Suburbs

Property Type: 3 Bedroom Garden Apartment

Property Location: Alexander St, Tamarama

Buyer’s Scenario

Our client was looking for a property that would suit a number of different purposes, but most importantly would be a safe and high yielding investment.

Living in the area, our clients were very aware of the strong rental demand for property within walking distance to the beaches, however with such high property prices, securing a property that provided the necessary yield is always a major challenge.

Buyers Agent’s Solution

A property was identified that had been on the market recently but had failed to sell.

The initial asking price was very difficult to make the numbers work, however the house-like layout and location were always in demand by a variety of different types of tenants. Well maintained Art Deco buildings always seem to have an alluring charm that draws owners and tenants in.

We made an initial offer, however this was rejected. After three weeks of persistent negotiations, we were able to finally secure for our clients at a price they were very happy with.

The purchase price represented a gross yield of 7.1%, with tenants already in place on a long term lease. Our clients were very happy with this return, especially considering these types of properties located in character buildings are usually sought after by homebuyers, which in turn is the type of property more aligned for high capital growth, but lower yields.