Townsville HPS SDA Investment Case Study: $200K Capital Growth & 12% Yield Success
Annual gross income
Since the last sale, the property has stabilised into a fully funded and operational SDA asset. SDA funding: $106,814 Reasonable Rent Contribution: $18,250 Total Income: $125,000 p.a. Sold at a 12% gross yield
Background
This Townsville HPS SDA property represents the second successful sale of the same asset through Topstone Property. This case study highlights the exceptional SDA investment performance possible through a strategic buy-and-hold approach in Townsville. Originally acquired in 2024 for $840,000 prior to funding approval, the strategy was to secure early, stabilise through funding and tenancy, and exit once fully operational. Following full funding approval and income stabilisation, the property was brought back to market and successfully resold at $1,040,000.
Challenges
Contract collapse due to buyer uncertainty
The property was initially under contract at a higher price, however the buyer delayed the deposit and raised concerns during due diligence.
The contract collapsed before the deposit was secured, removing momentum and creating urgency to re-secure a buyer quickly.
Solution
Rapid pivot to cash buyers to secure a same-day outcome
- Activated a network of pre-qualified cash buyers
- Repositioned the opportunity for a faster, unconditional sale
- Advised vendors on pricing required to achieve immediate certainty
- Negotiated directly to create competition and secure terms
A replacement contract was secured the same day at $1,040,000, restoring certainty without extended time on market.
Result and Impact
✔ Sale Price (2026): $1,040,000 ✔ Uplift: +$200,000 since 2024 purchase ✔ Value to Buyer: Acquisition of a fully operational, high-yield SDA asset generating immediate cash flow with stable, low-risk tenancy in place. ✔ Value to Vendor: Uplift and rapid recovery from a collapsed contract and successful resale without prolonged time on market.
Insight and Expertise
✔Successful SDA outcomes rely on timing across funding, tenancy, and exit strategy ✔Buying pre-funding and exiting post-stabilisation can unlock significant uplift ✔Stable tenancy structures (including participant living with family) can provide lower-risk, consistent income profiles ✔Access to active buyer networks is critical when speed and certainty are required ✔In SDA, execution speed and decisive action often determine who secures the deal