Case study: first-time investors build wealth through property


We share the experience of a couple who were new to property investing. 

Mark and Kate were first-time property investors, who owned the home they lived in. They approached Momentum Wealth seeking guidance to begin their investing journey and grow their wealth.

Our team adopted a collaborative approach, bringing together our range of experts to help Mark and Kate at every stage of the process. This included a dedicated property strategist, finance/credit advisor, buyer’s agent and property manager who all worked together to help the couple achieve the best result.


The strategy

Momentum Wealth’s finance team conducted a thorough analysis of Mark and Kate’s financial position and future financial capacity.

We identified the couple’s risk profile as ‘Active Value Add’ meaning they would benefit from targeting properties with potential for refurbishments to add value. In practical terms, this saw us recommend a target property valued between $500,000 to $600,000 that would offer a blend of rental yield plus capital growth with the potential for future development.

Our finance team developed a comprehensive strategy and also liaised with Mark and Kate’s accountant to ensure the property purchase would be effective from all aspects of their financial position.

As Mark and Kate already owned their own home, they were able to access their home equity as a means of sourcing a deposit and paying for upfront purchase costs. This allowed the couple to preserve cash savings and maximise tax deductions on their investment loan.

Importantly, the couple maintained separate loans and lenders to avoid cross collateralising the two properties. This ensured flexibility while minimising risk.

Our finance team then recommended a lender offering a competitive interest rate on an investment loan coupled with a fast turnaround time. This would allow Mark and Kate to make a strong offer when the right investment property was identified.


Engaging our buyer’s agents to source the right property

Our buyer’s agency team was able to source properties that were in alignment with the couple’s financial strategy and risk profile. Due to our team’s extensive industry networks, our buyer’s agents were able to secure a strong asset with growth potential through an off-market negotiation.

The property, located in one of Perth’s sought-after northern suburbs, was purchased for $636,000.


Maximising the investment with our property management team

Mark and Kate’s investment property was purchased with tenants already in place.

As part of the purchase, and through negotiations with the tenants, a new air-conditioning system was installed. This underpinned a rent increase from $520 to $600 per week along with a 5% rent increase every six months. This ensured the property’s rental value would remain in line with market conditions.

Our property management team also put together a maintenance plan for the property, featuring short and long term enhancements.


The result

Mark and Kate enjoyed a positive experience purchasing their first investment property and nine months later our finance team reviewed the couple’s position.

Due to the strategic planning and purchasing, coupled with effective property management the property received a new valuation of $750,000.

This is a gain of $114,000, or 17.9%, in less than 10 months.


Looking ahead

The growth achieved in the couple’s first investment property now gives Mark and Kate enough equity to buy another investment property.

As we write, Momentum is searching for a site with untapped development potential to increase value through renovations, expansion or upgrades.

This will give the couple an opportunity to diversify their portfolio, and invest a little more aggressively in line with their investor profile and overall goals.

When the right asset is identified and purchased, Momentum will support Mark and Kate through the development project and re-evaluate their broader strategy with a view to mapping out their next steps.

Suffice to say, the couple are delighted with their investment results so far, and are eager to continue their journey of wealth creation through property.


Client names were changed for privacy.