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[On-Demand Webinar] Creating Wealth Through Manufactured Growth Property

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In this on-demand webinar you will learn how to create wealth through manufactured growth property

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[On-Demand Webinar] Creating Wealth Through Manufactured Growth Property

  1. 1. Creating Wealth through Manufactured Growth Property
  2. 2. 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.
  3. 3. • Property investor for the past 10 years • Personal experience with renovations • Great amount of industry experience Dennis Wong
  4. 4. 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
  5. 5. We help investors build and manage their property portfolios
  6. 6. • Guided and mentored thousands of clients to plan and purchase property since 2006 • Helped clients build wealth through properties • Provides superior real estate information • Assisted clients reduce debt and retire early • Over 260,000 members Real Estate Investar
  7. 7. ASX:REV • Heavy investment in product • Public company governance • Strong and focused board; Simon Baker – Former CEO of REA Anthony Catalano – CEO of Domain
  8. 8. In partnership with…
  9. 9. Our mission is to provide property investors around the world with the best advice, guidance, products and services to enable them to create wealth through property investment.
  10. 10. Search Analyse Acquire Track Account
  11. 11. Poll: Do you have a property strategy?
  12. 12. Poll: Does it involve Manufacturing Capital Growth?
  13. 13. 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 strategy • Manufacturing equity growth is forcing equity to increase over a shorter period of time
  14. 14. Why Manufactured Growth? • To accelerate the value of your property • Limited equity to purchase another property • Accelerate property acquisition • Maximise your cash flow without having to purchase additional properties • Can be done to your own home (PPR)
  15. 15. How to add value? • Renovate • Subdivide • Develop • Add a granny flat / dual income
  16. 16. 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 bathroom
  17. 17. Renovations – Example
  18. 18. Renovations – Example
  19. 19. Purchase Price $410,000 Stamp Duty & Other Costs $ 17,000 Total Purchase Costs $427,000 Post Reno Sold Price $595,000 Manufactured Growth $168,000 (Funds for Reno & Profit) The Figures
  20. 20. Purchase Price $410,000 Funds for Reno & Profit $168,000 Reno – 20% of Purchase Price $ 82,000 Holding Costs $ 12,000 Funds remaining $ 74,000 Selling Costs $ 16,775 Profit $ 57,225 6 months renovation - $57K profit The Figures
  21. 21. Manufactured Growth Renovation/Subdivision
  22. 22. Finding opportunities using Investar Search
  23. 23. Searching – Investar Search
  24. 24. Search Results
  25. 25. Search Results
  26. 26. Search Results
  27. 27. Search Results
  28. 28. LIVE Investar Search Renovation Examples
  29. 29. My Valuer / My Research powered by PriceFinder
  30. 30. PriceFinder Property Report
  31. 31. PriceFinder Property Report
  32. 32. PriceFinder Property Report Free Desktop Valuation Sites Propertyvalue (Corelogic) $690,000 - $869,999 (high confidence score) Onthehouse.com.au $708,954 Domain – Home Price Guide $545,000 – $715,000 (mid-estimate - $630,000; high confidence score) Paid Property Sites Pricefinder $685,000 (very low conf.) Corelogic $703,063 (+-7% FSD) CMA $545,000 - $715,000 CMA $682,000 - $780,000
  33. 33. PriceFinder Property Report
  34. 34. PriceFinder Property Report
  35. 35. PriceFinder Property Report
  36. 36. PriceFinder Property Report
  37. 37. PriceFinder Property Report
  38. 38. Sales by Suburb: Comparable 4 bed
  39. 39. Sales by Suburb: Comparable 4 bed
  40. 40. Sales by Suburb: Comparable 4 bed
  41. 41. Sales by Suburb: 4 bed & 1 bath Lower quarter median - $653,500 High quarter median - $905,000
  42. 42. Sales by Suburb: Comparable 4 bed & 1 or 2 bath
  43. 43. Rentals by Suburb: Comparable 4 bed
  44. 44. Rentals by Suburb: Comparable 4 bed
  45. 45. 3 bedroom – median rent $510 per week 4 bedroom – median rent $690 per week Rentals by Suburb: Comparable 4 bed & 1 or 2 bath
  46. 46. 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 metro • Better valuation tool to use if you receive a low confidence score in the Property Report or reviewing a unique property
  47. 47. PriceFinder ‘Information Statement’
  48. 48. PriceFinder ‘Information Statement’
  49. 49. PriceFinder ‘Information Statement’
  50. 50. PriceFinder ‘Information Statement’
  51. 51. PriceFinder ‘Information Statement’
  52. 52. Searching – Investar Search
  53. 53. Search Results
  54. 54. Search Results
  55. 55. Search Results
  56. 56. Planning & Development Applications
  57. 57. Planning & Development Applications
  58. 58. Planning & Development Applications
  59. 59. Sales by Land Size
  60. 60. Sales by Land Size
  61. 61. Sales by Land Size
  62. 62. Sales by Land Size – less than 380m2
  63. 63. Purchase Costs • Purchase Price • Stamp Duty • Legal Costs • Building & Pest • Subdivision Costs • DA preparation & lodgement • Council Assessment Fee • Review building plans pre lodgement • Building Design • Surveyor • Engineer (stormwater & water management) • Driveway • Infrastructure Charges & Development Fees • Plan Registration & Legals The Figures - Subdivisions
  64. 64. House 4 bed, 1 bath & 2 car on 1518m2 Purchase Price $520,000 Stamp Duty & Other Costs $ 19,000 Subdivision Cost $140,000 Total Purchase Costs $679,000 Example Subdivision Figures – 1 to 3 lots
  65. 65. Total Purchase Costs $679,000 House re-value $320,000 (after subdivision approx. 500m2) Land value $211K - $225K (after subdivision <=514m2) Sell 2 blocks ($215,000 each) $430,000 Sell existing house $320,000 (without reno) Selling Costs $ 20,750 Cash after Sale $ 50,250 Example Subdivision Figures – 1 to 3 lots
  66. 66. What are the financials?
  67. 67. Quick access
  68. 68. Quick 10 year forecast
  69. 69. Edit your deposit, reno costs and value
  70. 70. Edit your vacancy and costs
  71. 71. Edit your depreciation and growth
  72. 72. Updated 10 yr forecast: Equity & Buying Power
  73. 73. Updated 10 yr forecast: Cashflow
  74. 74. Equity Growth – Market vs Manufactured Market Manufactured
  75. 75. • 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 Choices
  76. 76. Special Webinar Offer Month to Month for $99 per month - save 33%! www.realestateinvestar.com.au/save50 Register for a personalised 1-on-1 demo - https://info.realestateinvestar.com.au/1-on-1-demo Pro Membership
  77. 77. Poll: Would you like to book in for a free 1-on-1 demo?
  78. 78. Things to consider – do you have? • A well-defined strategy in place? • An acquisition plan to find and research your next properties? • Time? • Knowledge to implement your chosen strategy? • Experience? • Ability to identify potential issues if you are not aware of the signs?
  79. 79. Five step, strategic approach
  80. 80. Guidance vs DIY Investing
  81. 81. Poll: Would you like some guidance?
  82. 82. Special Webinar Offer www.realestateinvestar.com.au/save50 Month to Month for $99 per month - save 33%! Expires Midnight, Friday, 9th June 2017 Questions?

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