Case Studies
Foreclosure Investment Property Case Study 1
A Property on Berwyn St in the city of Redford was purchased on the 30th August 2011.
The purchase price was US$29,420 Initial renovation costs were US$ 5,738. This represented an average renovation cost. The total outlay was US$ 35,158. The property was settled 30 days after the initial purchase offer was accepted.
The exchange rate at that date was $1.07 US to the A$. This meant that the actual purchase price including closing costs was approx 7% less than the above. The property required average renovations and these were completed one week following settlement. The property was advertised at this point and a tenant was secured approx 3 weeks later.
Rent was $925 per month the gross return in US$ is 31.57%.Taking the actual A$ purchase outlay of $33,048 the gross yield is 33.58%
Foreclosure Investment Property Case Study 2
The Property on Church Street in the city of Oak Park was purchased on 28th October 2011. The purchase price was US$ 51,701. Initial renovation costs were US$ 8,404 making a total outlay of US$ 60,105. The property was settled 30days after the initial purchase offer was accepted. The exchange rate at that date was $1.02 US to the A$. This meant that the actual purchase price including closing costs was approx 2% less than the above. The property required above average renovations and these were completed 10 days following settlement.
The property was advertised at this point and a tenant was secured approx 2 weeks later.
Rent was $1,200 per month. The gross return is US$ 23.9% Taking the actual A$ purchase outlay of $58,902 the gross yield is 24.4%
Foreclosure Investment Property Case Study 3
A property on Antago street in the city of Livonia was purchased on 22nd June 2011. The purchase price was US$43, 714. Initial renovation costs were US$ 1,526 making a total outlay of US$45,240. The property was settled 30 days after the initial purchase offer was accepted.
The exchange rate at the date of settlement was $1.05 US to the A$. This meant that the actual purchase price including closing costs was approx. 5% less than the above
The property required minimal renovations. The renovation trades team were finished 2 days following settlement. The property was advertised on the day of Settlement. A tenant was secured one week after settlement. The tenant moved in 10 days following settlement and rent was $950 per month. The gross return in US$ is 25.19%.
Taking the actual A$ purchase outlay of $43,430 the gross yield is 26.24%.
