Steven Ma is about to head overseas with his wife for the next few years. Thanks to a savvy purchase on the Central Coast, and making the most of a bad situation, he’ll be returning to a diverse portfolio of investment properties.
“Most people would see a tenant defaulting on their rental payments as a bad thing. I saw it as an opportunity.
When the tenant in my property in Bateau Bay went into arrears and was subsequently evicted, I commenced around $20,000 worth of renovation work. Safe in the knowledge that my landlord’s insurance would cover the downtime in rental payments, and using equity gained from my first investment in Merrylands, I set about realising the property’s true potential.
It might seem risky, but soon after works had finished a new tenant moved in on a rate of $360 per week. It had originally been leased out at $300 per week. Better still, the property which I had purchased about two years before for $237,000 was subsequently valued at $320,000.
The central coast property taught me an important lesson in that it pays to look away from capital city markets. It also reinforced my strategy of buying properties that may be in need of work at a price under market-value, and subsequently increasing their worth through smart renovation works.