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Case Study – Apartment
Victoria Park WA
Property Overview
📏 Apartment Size: 105m²
🏠 Floor Area: 75m²
🛏 Bedrooms: 2
🛁 Bathrooms: 2
🚗 Car Spaces: 1
Financial Details :
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Purchase Price (Off the Plan - 2012): $459,000
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Year Built: 2013
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Current Valuation (2025): $555,000
Rental Performance 📈
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Leased Period: July 2013 - Present
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Rental Range: $450 - $650 per week
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Average Weekly Rent: $550
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Annual Rental Income: $550 × 52 = $28,600
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Gross Rental Yield (2025): 5.15%
Capital Growth Analysis 📈
The apartment’s value has increased significantly over time:
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Purchase Price (2012): $459,000
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Current Valuation (2025): $555,000
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Capital Growth: $555,000 - $459,000 = $96,000
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Compound Annual Growth Rate (CAGR):1.5036%
Wealth Generation Strategy 💼
The key strategies that contributed to the success of this investment include:
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Off-the-Plan Purchase: Buying at the pre-construction stage secured a competitive price and early equity growth.
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High Rental Demand: The apartment's location in Victoria Park attracted consistent rental demand, ensuring strong cash flow.
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Steady Capital Growth: Despite market fluctuations, the property maintained a stable appreciation, benefiting from infrastructure developments and urban growth.
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Prime Location: Close proximity to Perth CBD, public transport, and amenities increased long-term value and rental appeal.
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Long-Term Investment: Holding the property for over a decade allowed it to accumulate equity and maximize returns.
Economic Context 📊
2012:
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Interest Rate: ~3.00% (Approx.)
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Consumer Price Index (CPI): ~2.2% (Approx.)
2025:
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Interest Rate: ~4.50% (Approx.)
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Consumer Price Index (CPI): ~2.5% (Approx.)
Conclusion 🌟
This investment at Victoria Park showcases the power of strategic property investment through:
✔ Total Capital Growth (2012-2025): $96,000
✔ Strong Rental Yield: ~5.15%
✔ Consistent Long-Term Appreciation: ~1.45% CAGR
By leveraging an off-the-plan purchase, a high-demand rental market, and long-term holding strategies, this property has generated solid financial returns, reinforcing the benefits of real estate investment.
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