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Purchase case study - Kline Street

We pride ourselves on our ability to steer our clients towards making very smart investments – be it via an investment property (or multiple properties) or even a family home purchase.

To help them secure the right assets, we rely on a number of human and tech-powered tools: our property purchasers, our economics and data science teams, and, increasingly, our clever machine learning platforms. Together, these pillars of the business look at things like individual property selection, location selection, ROI through capital growth and/or rental yield, and long-term trends using vast volumes of data from multiple sources.

As they say, though, the proof is in the pudding. While tonnes of research can go into planning and purchasing, real success doesn’t really come until a property actually goes up in value. Luckily, we’ve secured numerous dwellings that have grown quite substantially, located in numerous regions around Australia.

It’s worth noting that everyone can enjoy a purchasing success story as a result of the recent and somewhat unprecedented growth cycle across Australia. But to evaluate the growth of our purchases, we assess the outcomes based on the properties’ overperformance compared to the median value trends in their relevant suburbs or regions.

To that end, here are some of this month’s highlights.

Regional Victoria

The first is a house located in one of Victoria’s fastest-growing regional cities. Originally purchased for $360,000 in October 2019, the home is now valued at $550,000. That’s an incredible increase of 52.7% since we purchased the property, or 17.6% per annum.

A number of influences caused the property’s value to rise so significantly, namely the fact that we chose a market we knew was only going to thrive in the coming years. As well, more people flocked to regional areas during the pandemic, naturally causing property prices to rise.

Canberra

The second is a three-bedroom home in the national capital, which we bought for $580,000 in September 2020. In the two years or so since we purchased it, its value has gone up by an astounding 48.2% to $860,000. In annual terms, that’s a growth rate of about 22% per annum.

Canberra has experienced strong expansion in recent years, particularly some of its outer suburbs that surround hubs like Belconnen, Gunghalin and Woden. Once again, we knew these areas would flourish and strongly encouraged our clients to invest before prices really took off – which they now have.

Brisbane

Like Canberra, Brisbane – and much of the rest of Queensland, for that matter – is seeing huge progression in the property market. As people move to the Sunshine State to take advantage of its enviable lifestyle, rapidly improving infrastructure and relatively lower property prices, it’s understandably caused the market to thrive.

In March 2021, we purchased a home in Brisbane’s northern suburbs for $661,000. Since then, the property has gone up in value by 43.7%, or 27.6% per annum, and is now worth $950,000.

To inform this purchase, we analysed market trends in Brisbane’s suburbs and settled on a location that we knew was developing rapidly and would very likely see markedly higher property prices. Fortunately, like our other purchasing successes, we were spot-on with our predictions.

Would you like to know more about these case studies or are thinking about purchasing and want some advice? Book a complimentary 30-minute session with a Milk Chocolate purchasing expert by clicking here.

Disclaimer: All data and information provided on this site are for informational purposes only. Milk Chocolate makes no representations as to accuracy, completeness, recency, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.