Investor makes over $100,000 during construction

Thinking about working with Opes? You're probably wondering: “How much money have your investors made?”

That’s a fair question. And an important one, too.

After all, a good property investment company should be able to pick a good investment.

Here’s an example where one of our investors made over $100,000 while their property was being built.

What’s the property?

Our investor bought 312 Worcester Street, Linwood, Christchurch. It’s one of 6 townhouses. All have 2 bedrooms and were developed by Growcott Freer.

Sally bought Unit 5 for $539,000, on May 10, 2021. The property was 77sq m – a good size for a 2-bedroom townhouse.

The property settled a little over a year later in June 2022.

How much money has the investor made?

By the time Sally settled her property, Valocity valued the property at $640k.

She made $101,000 while the property was being built.

The property increased in value by 17.2% per year during construction. Remember, this happened at a time where all property prices were increasing.

But Sally’s property beat the market.

Over the same period, Christchurch house prices rose by an average 15% per year.

That means Sally made more money than the average investor.

It’s also important to point out that this was Sally’s first investment property.

The rental assessment said the property would fetch $445 - $465 per week. But today a similar unit in the development is being advertised on Trade Me for $545 per week.

Since settling property prices have fallen. Sally hasn’t sold her property, but that high of $640k took a tumble.

Today, OneRoof says the property is worth $615k. Homes.co.nz says $655k.

Do Opes investors always get above-average returns?

After reading this article, you might wonder ... “Do Opes investors always make more money than the rest of the market?”

The answer is “not always”.

(Sadly), we are not property investment oracles. We don’t have any special magic power to predict the market. Every. Single. Time.

In this example, Sally bought just before the market soared over 30% to its peak.

So, we can’t promise to get these same results.

But we do our best to try to get it right more often than not. That’s why we use data and number-crunching to inform our investment recommendations.

We aim to help you be a more successful property investor than if you found a property on your own.

But even after that number-crunching, high investment returns aren’t 100% guaranteed. They’re not locked in.

Investing comes with risk. The question then is how you manage it.