Upload
emily-john
View
243
Download
0
Embed Size (px)
Citation preview
Dual Income Investment Opportunities
Thanks for joining us… Audio has not yet commenced. Please ensure Your speakers are on, volume is up and not on mute.
You can test your audio in the control panel of the Go To Meeting software, under audio preferences.
Maximise audio quality
• Please ensure your speakers are on, volume is up and not on mute.
• You can test your audio in the control panel of the Go To Meeting software, under audio preferences.
• If you can’t hear us yet, please ensure your speakers are on and turned up.
• TURN OFF: Outlook, Skype, online back-ups and any music or video downloads.
• Faster internet = better quality audio.
• Heads up membership services team at Real Estate Investar
• Team of 4 Portfolio Managers
• Supporting 2,800 members
• Manages Premium memberships
Logan Horstead
We help investors build and manage
their property portfolios
• 2,800 current members
• Mix of personal users, brokers, buyers agents and accountants
• 250,000+ members use us for market information, calculators, investment news and updates
Real Estate Investar
ASX:REV
• Heavy investment in product
• Public company governance
• Strong and focused board;• Simon Baker – Former CEO of REA• Anthony Catalano – CEO of Domain
In partnership with…
1.9m Australians
1 Property
2-4 Properties5+ Properties
• Pays shortfall for 5 years+.
• Eventually sells and pays down personal debt.
• No retirement income.
• Strategy & numbers.
• Self funding portfolio.
• $100-$250k+ passive income in retirement.
• Has high income or buys every few years.
• Freehold in retirement.
• Min. retirement income.
Source ATO/ABS
3 levels of Property Investment
1.9m Australians
1 Property1.4m73%
2-4 Properties470,000
25%
5+ Properties30,000
2%
• Pays shortfall for 5 years+.
• Eventually sells and pays down personal debt.
• No retirement income.
• Strategy & numbers.
• Self funding portfolio.
• End up freehold• $100-$250k+
passive income in retirement.
• Has high income or buys every few years.
• Freehold in retirement.
• Min. retirement income.
Source ATO/ABS
What level are you aiming for?
Poll: How many properties do you want to own?
Why dual income properties?
• Increased rental income
• Generally the same price bracket as single dwelling properties
• Reduced exposure to risk of vacancy if one tenant decides to leave you still have income
• Capitalise on higher rates of depreciation
• Potential to create equity uplift on completion
• Can live in one side and rent the other
House strategy
• A purpose built single home on single lot
• Widely accepted by all Town Planning Schemes
• Building regulations are Code Assessable
• Finance up to 95% LVR
• Can be valuations issues if dwelling or lot is too small
House strategy
• Price point $350,000-$550,000
• Yields 4%+
• Some equity gain possible during construction
• Entry point for first construction deal
• Important to buy in the right area (in-fill) and estate
House example
• Price point $455,000
• 4 bed 2 bath 2 garage
• Werribee, VIC
• Yields 4.9%
• Some equity gain possible during construction
• Stamp duty $15,332
• Appraised rent at $420-$440
House example
House example
Dual living strategy
• A purpose built house with two separate dwellings internally
• Cannot strata
• Town planning limited
• Building regulations same as duplex
• Finance similar to a house but better cashflow up to 95% LVR
Dual living example
• Price point $486,900
• 4 bed 2 bath 1 garage PLUS
• 1 bed 1 bath 1 garage
• Collingwood Park, QLD
• Yields 5.8%
• Some equity gain possible during construction
• Stamp duty $16,747
• Appraised rent at $550
Dual living example
• Two separate dwellings entrances minimizes cross over with tenants
• Each dwelling has its own garage
• Main dwelling has all the bedrooms away from the common wall
• Presents like a house
• As its not detached you can build on a smaller lot
Dual living example
Dual living example
Dual living VS House
Duplex strategy
• Purpose built two dwellings on one property
• Strata title upon completion to obtain 2 dwellings
• Attached or detached
• Higher density zoning required
• Finance up to 90% LVR (half 80% half 90%)
• Potential to create equity after strata titling
• Price point $790,000
• 3 bed 2 bath 1 garage PLUS
• 3 bed 2 bath 1 garage
• Thornton, NSW
• Yields 5.5%
• Stamp duty $31,361
• Appraised rent at $840-$880
• Appraised value after titling $880,000-$940,000
Duplex example
• Separate driveways for each dwelling
• Each dwelling has its own garage
• Good layouts keeping the bedrooms away from living spaces in other dwelling
• Presents like two separate houses
• Corner block allows for more desirable design
Duplex example
Duplex example
Duplex example
Duplex VS Dual living
Real value of a duplex
Type of investor
H&L Dual Living Duplex- Low deposit looking to
get into a deal- Looking for med to long
term capital gain- First land and
construction deal
- Low income with minimal serviceability
- First home buyer to rent out secondary dwelling to an investor
- Negative geared property portfolio
- High income looking for equity
- Turbo charge portfolio with 2 strata titled properties
- High income needing deductions
- High borrowing capacity- High deposit required up
to 20%- More experienced
property investor who has done a land and construction deal
- Looking to recycle deposit and move onto another deal on completion
Poll: Would you like a free financial health check?
Financial simulation
Acquisition 1
Acquisition 1
Acquisition 1
Acquisition 2
Expected position by FY19
Buying power per property in FY19
Expected position by FY26 with only 2 deals
Position by FY26 with 2 dual living deals
Comparison
• We only work with reputable builders
• Have proven themselves to be reliable, quality builders
• Have proven in-house construction management system
• Standard pre-negotiated build contract terms • 16 to 20 weeks• Liquidated damages• Fixed price • Turnkey
Builders
Guarantees
Poll: When are you looking at making your next purchase?
Premium Membership
Finance & Professional ServicesProperty Deals Service
Investor Platform & Information
Common investing challenges
• Don’t have the time
• Don’t have the knowledge or confidence
• Can’t find the right investment property
• Not sure what to buy
Options to overcome challenges
• Engage a buyers agent
• Engage an educator / mentor
• Attempt to do it yourself anyway
• Don’t do anything
Issues to consider
• Will you get the right investment property given your circumstances and goals?
• Are you guaranteed an outcome?
• What are the risks?
• Will you be able to identify potential issues if you are not aware of the signs?
Introducing the REI Premium Service
• Full service to assist you into your next investment property
• Property acquisition plan that will tell you what you can purchase and what you should purchase based on your financial circumstances and goals
• Purchasing plan to include acquisitions across, house & land, dual living, duplex, apartments and townhouses
• 48 hour first option on all new release property deals Australia & NZ
Finance & Professional ServicesProperty Deals Service
Investor Platform & Information
Introducing the REI Premium Service
• REI Pro Membership for 12 months including setting up all of your existing properties into Portfolio Manager
• Dedicated Portfolio Manager to assist you every step of the way
• Full finance health check including pre approval for maximum lending by a specialist investment lender
• Xero subscription and set up for 12 months
• Free reports emailed to you weekly on locations, deals & hotspots
Finance & Professional ServicesProperty Deals Service
Investor Platform & Information
Introducing the REI Premium Service
An end-to-end service to help you into your next (or first) investment property right now
Finance & Professional ServicesProperty Deals ServiceInvestor Platform & Information $4,995
REI Premium Service advantages• Access to our platform gives you complete
transparency on any deals we send you
• You will have a dedicated Portfolio Manager doing the work for you
• You are dealing with a business that specialises in property matching services
• You will get early and/or exclusive access to stock which sometimes does not make it to retail market
• You can leverage our experience, professional ties and partners to stay ahead of the crowd rather than being part of it
Finance & Professional ServicesProperty Deals Service
Investor Platform & Information
REI Premium Service advantages
• 100% money back if you can’t obtain finance pre-approval
• Outcome based product, not education, not mentoring, but you will still learn along the way
• If you purchase off-the-plan or House & Land stock listed through our partners you will receive a $5,000 cash rebate on settlement
Finance & Professional ServicesProperty Deals Service
Investor Platform & Information
Recent deals clients have done:Gosford off-the-plan
• Boutique Development
• 48 x 2 Bedroom Apartments
• Capital growth has been 7.6%
• Water and District Views
• Prices from $435,000
• Real Estate Investar Clients received a further $10,000 off the listing price
• After public release pricing went up to $455,000
• Expected equity for initial purchases currently $30,000
Recent deals clients have done:Gosford off-the-plan
Recent deals clients have done:Pimpama duplex
Recent deals clients have done:Pimpama duplex
$60,000 + increase in equity on
completion
Poll: Would you like a complimentary consultation to discuss the Premium service?
Thank you & good luck on your investing journey