Investment planning
Why a three-bedroom resale suited his five-year plan
He was considering a two-bedroom new launch. A tenanted D19 resale cost about $300,000 less and gave him a family-sized home to sell later.
This client was in his fifties and buying his first investment property. He was considering a two-bedroom new launch, but the price would stretch his budget. He also wanted to hold the property for about five years at most.
His five-year holding period made future resale buyers an important part of the assessment. The recommendation was a tenanted three-bedroom resale in District 19. It cost about $300,000 less than the smaller new-launch option and left him more cash after buying.
Who could buy the three-bedroom home when he wanted to sell
The two-bedder could leave him facing more competition when he wanted to sell. As other projects completed, more two-bedroom units could enter the resale market around the same time. He could end up selling alongside owners with very similar units.
The three-bedroom resale had a family layout. That gave us families buying for their own use to consider as future buyers, alongside investors. For his five-year plan, that broader buyer pool gave him more households to consider when selling.
District 19 may seem less obvious if you start your search with a typical investment location in mind. The families who could use this home were relevant to his eventual resale. Their needs gave him a reason to consider a location beyond those he initially associated with investment properties.
About $300,000 less, with a tenant already in place
The resale gave him a bigger property at a lower purchase price. It was already tenanted, so rent started from the beginning of his ownership. He could make the purchase without the same financial stretch and retain a substantial cash buffer.
That left him money to diversify his investments. He could own a rental property without committing so much of his available cash to it. For his first investment purchase, that was a more comfortable position than buying the two-bedroom new launch.
How his five-year plan shaped the recommendation
If he’d wanted a home for his own use, we’d have needed to consider how he would live in it. A longer holding period could also change which competing homes mattered when he eventually sold. Either circumstance could have led to a different recommendation.
For his actual plan, the lower price, existing rent and family buyer pool suited his budget and intended holding period. The new launch would have paid me more commission. The resale recommendation reflected his goals and the cash he wanted available for other investments.
What we saw a year later
About a year after he bought, similar units in the development were being advertised at over $100,000 above his entry price. Those were asking prices; completed sales would show what buyers were willing to pay.
He already had rental income and cash available for other investments. When he’s ready to sell, the family-sized layout gives us buyers to consider beyond those looking for a small investment unit. The recommendation gave him rental income and retained cash from the start, alongside a family buyer pool for his planned resale.