Prospect, SA
Entry-level villa selected for tight rental supply and a ten-year owner-occupier bias.
- Purchase price
- $965K
- Valuation uplift
- +$140K
- Gross yield
- 4.9%
- Income
- $910 pw
The brief
A first-time investor with a modest deposit and a long horizon. The brief was to protect the downside above all: an asset that would remain desirable to owner-occupiers if the plan ever needed to change.
Why we bought it
- 01
Owner-occupier appeal
Two-thirds of the street is owner-occupied, which supports both value stability and future resale depth.
- 02
No body corporate drag
Torrens-titled with no strata levies, removing an ongoing cost that erodes entry-level returns.
- 03
Within capacity, deliberately
Purchased $85K under the approved limit, preserving buffer for rate movement and vacancy.
Asset detail
- Land area
- 312 sqm
- Configuration
- 3 bed · 2 bath · 1 car
- Title
- Torrens
- Year built
- 2004
- Buffer retained
- $85K under limit
- Independent valuation
- $1.10M
The acquisition
- Step 1Borrowing capacity, buffer and worst-case serviceability modelled before any search.
- Step 2Three suburbs shortlisted on vacancy, owner-occupier ratio and median-to-income ratio.
- Step 3Two offers declined by the vendor; we advised against raising and moved on.
- Step 4Secured at $965K after a competing buyer's finance lapsed.
Outcome
First portfolio asset settled with buffer intact; revalued at $1.10M and now supporting a second purchase.