Great buying in Reservoir….

I had all of the great ingredients for a really fun client brief. $500K-ish budget, capital growth focus, up-and-coming-suburbs, and best of all, a lovely client who was engaged in the whole process and had fabulous questions along the way.

We decided to target two main catchments; Sunshine & surrounds and Reservoir/Fawkner.

Our aim was to find a three bedroom house within easy walk to local shops and stations, and one which could readily rent now and didn’t require too much improving or renovating.

Our client’s challenge was comparing properties within his budget between the two specific locales. Obviously with differing land values and characteristics, no two properties were the same, and our two chosen areas were not alike at all. The only things they had in common were that they were up-and-coming for all of the right reasons, and a three bedroom house could be within budget in either pockets.

When 43 Marchant Ave came onto the market, we knew that it could meet the brief. Being just a short walk to the fantastic Broadway shopping strip, and within 1km of the train station, this had to be one of Reservoir’s best streets.

This original house on a subdivided 330sqm block offered low maintenance for a tenant and boasting mid-century detail, beautifully polished floors, upgraded kitchen and bathroom and ducted heating and cooling throughout meant that the house would be a draw card for the target tenant.

So our strategic planning commenced.

We met at a nearby cafe which had taken food bloggers by storm; Lady Bower. Our pre-auction cup of tea gave me a chance to calm my lovely buyer’s nerves a little, and shed light on what tactics I would be likely to employ throughout the auction.

We arrived separately at the property and I took the opportunity to meet the auctioneer, chat with the agent, identify potential bidders, and find the best vantage position to maintain line of sight with bidders and the auctioneer.

Surprisingly the other anticipated bidders didn’t arrive.

I quickly wondered whether I’d be bidding under the hammer or negotiating inside.With a few auction calls, a referral inside and one last call for further bidding, the property was passed in to me and some time later I emerged outside to call my buyer in to sign his contracts. At $508,000 and with an anticipated rental return of $390pw, our client can look forward to some exciting growth, a good quality tenant and a lovely low-maintenance asset.

With capital growth fueled by proximity to the city, great commuter options, easy access to the freeway and most of all, spill-over from buyers who are now priced out of the Coburg, Preston, Brunswick and Thornbury markets, this area presents much upside for a smart investor.

Reservoir is a suburb to watch for 2016.