top of page
nestquest-1.png
langfordave.webp

Case Study – Property Investment,  Langford WA

  • Year of Purchase 2001                         

  • 📏 Land Size: 510m² 

  • 🏠 Floor Area: 134m²

  • 🛏️ Bedrooms: 3

  • Computer Room : 1

  • 🛁 Bathrooms: 2

  • 🚗 Garage: 2

 

       Financial Details :

  • Land Purchase Price (2001): $46,000

  • Building Cost (2001): $90,000

  • Total Investment: $136,000

  • Year Built: 2001

  • Current Valuation (2025): $682,000

       

         Rental Performance (2018-2019) 💵 : 

  • Leased Period: January 2018 - July 2019

  • Rental Range: $350 - $600 per week

  • Average Weekly Rent: $475

  • Annual Rental Income: $475 × 52 = $24,700

​

       Capital Growth Analysis 📈

  • The property’s value appreciated significantly from 2001 to 2020:

  • Purchase Price (2001): $136,000

  • Capital Growth: $682,000 - $136,000 = $546,000

 

       Current Valuation (2025): $682,000

  • Capital Growth (2001-2025): $682,000 - $136,000 = $546,000

​

       Economic Context 📊

  • 2001:

    • Interest Rate: 6.37% (Approx.)

    • Consumer Price Index (CPI): 5.8% (Approx.)

  • 2025:

    • Interest Rate: 4.75% (Approx.)

    • Consumer Price Index (CPI): 2.3% (Approx.)

​

       Wealth Generation Strategy 💼

       The success of this investment is attributed to a strategic buy-and-hold approach:

  • Early Investment: Purchasing in 2001 at a low entry price provided a strong foundation for long-term capital growth.

  • Rental Income: Leasing during peak rental periods ensured consistent cash flow, covering holding costs and enhancing overall returns.

  • Market Timing: Selling in 2020 maximised capital growth before the next economic cycle shift.

  • Location Benefits: Langford’s proximity to Perth and ongoing urban development increased demand and property values over time.

  • Long-Term Growth Focus: Holding until 2025 would have yielded an even higher return, showcasing the power of patience in property investment. 

​

        Conclusion 🌟

  • The investment at the Langford Property demonstrates the potential of real estate to generate substantial wealth through strategic planning, market insights, and disciplined execution.

  • Total Capital Growth (2001-2025): $546,000

  • Consistent Rental Yield: ~6%

  • Annualised Capital Growth: 5.97% (2001-2020), 10.67% (2020-2025)

​

This case highlights the importance of timing, location, and a long-term perspective in achieving financial success through property investment.​

bottom of page