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at the time was a dream house for them.
Since buying the property they’ve added
value through some backyard renovations,
but mostly they’ve ridden the wave of
capital growth that has happened right
across the area.
Lloyd says the Sydney market,
particularly the inner west, has performed
well over the past 12 to 18 months. A
recent appraisal has positioned their
property’s value at $1 million.
“A pretty good equity gain in less than
three years considering the purchase
price was $785,000,” he says.
“In the future we’ll either sell it to help
fund our dream home on the south coast,
or keep it as a blue-chip investment
property and use the equity plus profits
made in other areas of the portfolio to help
fund our dream home.”
Currently Lloyd and Renee are trying to
pay down the mortgage on their home
quickly as they consider it “bad debt”
because it’s non-deductible.
“I’m using profits from elsewhere in the
portfolio to do this. The current loan on it
is $500,000 so there’s quite a bit of equity
already in the property,” he says.
“Our plan is to have paid off the
mortgage entirely within the next five
to six years.” This strategy involves
manufacturing equity through Lloyd’s
In October 2013, after a two-year break
from buying to focus on renovating his
back garden and settle into his new home,
Lloyd was back in Queensland, this time
to find a property in Toowoomba.
He bought a new three-bedroom villa for
$299,000 using $45,000 of equity from the
Lloyd describes Toowoomba as a sub-
mining town, which benefits from mining
but isn’t solely reliant on it.
“Toowoomba is poised to boom from the
Surat Basin mining,” he notes.
He considered it a cash flow property in
a potential growth area, “so it should see
some good growth over the long term.”
Unfortunately this Toowoomba property
has taken off slowly and isn’t performing
as well as he’d like.
“There were a lot of new properties
that came on the market at the same
time, including all the other new ones in
this complex. So at first I was hoping to
achieve $340 to $350 per week rent, but
to attract tenants and be competitive I
actually had to lower it due to what was
on the market,” he says.
“I did end up renting out my villa in
November 2013 before any of the others
were rented, so I kind of set the trend for
the rental price at that time.”
Lloyd’s Toowoomba villa rents for $310
a week. He has a clause written into the
12-month contract to increase the rent
after six months. “It’s still paying for itself
more or less – fortunately it has low body
corporate levies – but not as good cash
flow on that one as I’d hoped,” Lloyd says.
“However, I’m confident of some
good capital growth over the years in
“Being new, the property has great
tax depreciation benefits and rents will
improve over time.”
Lloyd intends to keep the Toowoomba
property for at least five years and make
a decision then based on the capital
“I’ll hopefully recycle the equity within
¿ LLOYD’S FIRST DEVELOPMENT
Armidale, in regional New South Wales,
was where Lloyd most recently targeted
an investment property. At the time of
writing he’d exchanged contracts on a
block for his first development.
His purchase price included the land
and build of a six-bedroom duplex for
$602,000. He borrowed against the
equity in his Rockdale property and
used the funds from the sale of his
THE NUMBERS | LLOYD EDGE
Sold Jun 2013 Sold Jun 2013 Sold Jun 2013
Equity from Rockdale
2 x 3-bed
and Ingelburn sale
off the plan
Savings plus equity
in existing properties
*PPOR = principal place of residence. #Total doesn’t include sold property and includes the property value on development completion of the Armidale property. ^After completion of Armidale development and tenant in Newstead property.
Lloyd’s Blackwater investment property, Qld
Lloyd’s Lewisham home, NSW
Lloyd’s Toowoomba villa, Qld
INVESTOR PROFILE // LLOYD EDGE
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