We are focused on helping investors achieve their goals, and above all help them acquire their next investment property. We aim to help setup a systematic approach to reducing debt and building wealth. Ultimately our goal is to help you purchase the perfect property, at the right time, at the best possible price."
PRINCIPAL – you can make additional payments but can take a very long time as you’re limited to how much money you can contribute – unless your income goes up all the time. MARKET – easy don’t need to do anything but can take a long time, can’t control the market. If you can buy at the right time you can make a lot of $$.
Relying on the market to grow your property’s value takes too long and there’s no guarantee.
COSMETIC/STRUCTURAL – easier with cosmetic, if you find the right area you don’t have to spend that much $ or time to get a big gain. Structural is time consuming, $$ & complicated. SUBDIVIDE – split a 1000m2 block into 2 x 500sqm blocks. Build another house on the new vacant block. The value of the 2 new blocks together may be worth more than the original single block. Or just sell the vacant block of land if the value of it is high. DEVELOP – knock down a house & build a duplex OR build 3 townhouses. Successful development is about finding underutilised land.
Other Costs – legal, building & pest Budget Calculator – https://info.realestateinvestar.com.au/renovation-budget-calculator
Holding Costs – insurance, loan repayments, council & water rates, electricity; Selling Costs - Real Estate Commission – 2.5%; Legal fees, advertising Most figures are assumptions/estimates – only 3 things here are 100% accurate – purchase price, sold price & timeframe of 6 months.
Renovation desirable suburb has properties in a number of price brackets
Asking – Offers over $700K; Median Listing Price - $917,000
Other Costs – legal, building & pest
House on 1518m2 sold for $520K but on 500m2 block it’s worth approx. $320K. SELLING COSTS – 2.5% commission, legal & advertising. 430K + 320K = 750K; minus $679K = 71K – 20,750 = $50,250.
4 bed 2 bath median price $990K
Does your next deal set you up for the following property? Are you planning 2-3 properties ahead? Do you have time to learn or to do the research yourself? Do you know enough about what’s involved with your chosen strategy? Renovations – DIY - minimum heights, kitchens/bathrooms - how to waterproof? Do you have time to do the renovations yourself? Might be better to pay professionals who can do it over a couple of weeks whereas you could take months – you might be able to save on labour costs from tradies but what about holding costs – interest payments, council rates, electricity, water rates, insurance, missed rental payments. DIY – not as professional & you may end up paying for a professional to fix up your work.
End-to-end solution can help you create long term growth through low risk investments. This is perfect for the hands-off investor who want an easy way to get into their next investment. Our team will create a property acquisition plan based on your goals & then do all the research & recommend properties to you.
[On-Demand Webinar] Creating Wealth Through Manufactured Growth Property
Creating Wealth through
Manufactured Growth Property
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• Property investor for the past 10
• Personal experience with
• Great amount of industry
Material contained in this presentation is an overview only to demonstrate
the Real Estate Investar platform. It should not be considered as a
comprehensive statement on any matter nor relied upon as such.
This presentation contains general information only and does not take into
account your personal objectives, financial situation or needs and you
should consider whether the information is appropriate to you before
acting on it.
Before acting on any information you should consider seeking advice from
a financial adviser and your accountant before making any financial
decision in relation to any matters discussed in this presentation.
General advice disclaimer
We help investors
build and manage
their property portfolios
• Guided and mentored thousands
of clients to plan and purchase
property since 2006
• Helped clients build wealth
• Provides superior real estate
• Assisted clients reduce debt and
• Over 260,000 members
Real Estate Investar
• Heavy investment in product
• Public company governance
• Strong and focused board;
Simon Baker – Former CEO of REA
Anthony Catalano – CEO of Domain
Poll: Does it involve
What is Manufactured Growth?
• Increasing equity in your property
• Equity is the difference between the value of
the property and the property value of the
mortgage, for example:-
- Value = $520,000
- Mortgage = $400,000
- Equity = $120,000
• Equity can increase by:
• Paying down the Principal
• Waiting for the market to grow
• Adding value via manufacturing growth
• Manufacturing equity growth is forcing equity to
increase over a shorter period of time
Why Manufactured Growth?
• To accelerate the value of your property
• Limited equity to purchase another
• Accelerate property acquisition
• Maximise your cash flow without having to
purchase additional properties
• Can be done to your own home (PPR)
How to add value?
• Add a granny flat / dual income
Renovations – Tips & Ideas
• Fresh coat of paint
• Fence the property
• New door handles
• Modernise kitchen cupboards with
new door handles & finishes
• Modernise the entry
• Replace flooring
• Upgrade showers, baths & taps
• Neat & tidy outdoor area
• New curtains & light fittings
• Add additional bedroom or
3 bedroom – median rent $510 per week
4 bedroom – median rent $690 per week
Rentals by Suburb: Comparable 4 bed & 1
or 2 bath
PriceFinder ‘Information Statement’
• Statement of Information was launched
on 1st of May 2017
• Released to coincide with Victorian
Legislation changes to the Estate Agents
Act 1980 regarding ‘underquoting
• Estimate sale price or range (+/- 10%)
• Select up to 3 comparable properties
within 2km for metro & 5km for outer
• Better valuation tool to use if you receive
a low confidence score in the Property
Report or reviewing a unique property
Equity Growth – Market vs Manufactured
• Use the manufactured equity to purchase again
• Simply rent the property for positive cash flow
• Sell and take the profit
• Grow your portfolio faster
• Reduce debt, replace your income, retire early, travel
or invest full time
FREEDOM OF CHOICE
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Things to consider – do you have?
• A well-defined strategy in place?
• An acquisition plan to find and research
your next properties?
• Knowledge to implement your chosen
• Ability to identify potential issues if you
are not aware of the signs?