A VERY FORTUNATE SLIDING DOORS MOMENT FOR THIS CLIENT
Looking back to an experience from 2021

There are moments in life where a split-second decision changes the course of your future. It was a concept made famous in the 1990s Gwyneth Paltrow film, where a missed train trip resulted in extraordinary ramifications for her character.

Beyond Hollywood make-believe, I’ve witnessed a real-life sliding door moment that saved an investor client from a dire financial circumstance and, in the end, added tens of thousands of dollars to their personal wealth and potential income generated.

It’s a moral tale well worth your time.

Reflecting on the start of a client’s property journey

Read PART 1 of this story

In 2017, the investor approached a local sales agent near her home and found herself signed up to buy an off-the-plan, three-bedroom townhouse in a Melbourne suburb. She was told the construction would be completed by Christmas 2018 and would deliver excellent capital gains and rental returns.

She was confident in her decision to sign up and was all set to proceed… but then decided to let me look over the property first during her cooling-off period.

This was her crucial sliding-door moment.

I checked over the plans, specs, location and comparable sales evidence, and while things might’ve looked good on the surface, my experienced eye picked up a raft of red flags.

For starters, the construction and design were entirely subpar, with a cookie-cutter layout that was identical to other townhouses in the same locality. The fit-out quality was also poor, and the builder wasn’t local and lacked a track record of construction excellence.

The townhouse also fronted a very busy road and there was no double glazing. It would be a nightmare to live in.

But that wasn’t the worst of it.

The off-the-plan contract terms were entirely in the builder’s favour. For example, once the build had reached its ‘compliance’ stage, the buyer was obligated to settle – even if there was a dispute about completion! The full amount was due regardless of a warranty on workmanship or arguments about what was or wasn’t finished.

It was also an easy $100,000 above market on both build cost and end value, and inflated commissions were being paid to the marketeer agent.

Because the client came to me, we were able to get her deposit refunded and the contract cancelled.

We then helped her find another more suitable investment option.

The 2021 update

So, what’s happened since?

Well, a visit to the original site has confirmed my worst fears.

The project is STILL unfinished. Those buyers were told it would be completed by December 2018. Here we now sit in March 2021, and the project remains severely incomplete.

In fact, I think it’s still another 12 months away from being finished, given the current rate of construction – and that’s if the builder doesn’t go bankrupt first.

The photos tell the story:

Imagine that. You put a 10% deposit down on a project, buying into the sales presentation. Then, over three years later, your money has been tied up in an investment that’s going nowhere. That’s three years of capital gains and rental income out the door – and a very real risk you’ll still have to pay the balance at some future date.

Fortunately, this didn’t happen to her; however, I feel deeply sorry for all the people who bought these!

We helped her purchase an off-the-plan three-bedroom, two-bathroom standalone terrace home on the Sunshine Coast for $449,500. The build was completed in September 2019 and rented in October 2019 at $410 per week.

Our investor has enjoyed consistent rental income since 2019. By early 2021, the property was conservatively valued at around $495,000, around $45,500 in capital growth since purchase. Rental income had also risen steadily, with the home achieving $495 per week, delivering a gross rental yield of around 5.7% with virtually no vacancy.

The Sunshine Coast market had entered a period of exceptional growth, with strong demand, tightening vacancy rates, and clear signs of further momentum ahead.

Moral of the story

The moral of this tale is simple – you must work with qualified and accredited advisors when making important decisions around property investment.

You do not want to get advice from the agent selling you the property. This is riddled with self-interest on their part. They will tell you whatever they think you need to hear to tick the boxes and finalise the deal.

An independent advisor who understands the process of investing, along with asset and location analysis, is essential. They can ensure you buy the right investment property, not be sold a dud.

Time in the market is too valuable to make bad decisions without expert guidance.

Always review any property location research and investment analysis data with a professional, QPIA (PIPA Member) qualified & accredited ASPIRE Property Advisor Network Advisor. Never rely on glossy sales brochures or property marketing information to ensure a property is right for your strategy. Property Investing is about BUYING a property that matches your goals, never be SOLD an investment.

For further insights on property investment, avoiding common pitfalls and staying informed about market conditions. reach out to John Tsoulos or Frank Pennisi at IFP Advisory on (08) 8423 6176. Your investment success depends on making informed, strategic decisions.

IFP Advisory is an Accredited ASPIRE Property Advisor Network advisor and all professionals are Qualified Property Investment Advisors (QPIA). Property investing is about purchasing a property that aligns with your goals and investment strategy. You should never be sold an investment. Know your numbers! If you invest wisely and strategically, the Australian residential property market can be a rewarding venture.