STRATEGIC PROPERTY INVESTMENT IN 2018 SOUND SERVICE ADVISORY - - PowerPoint PPT Presentation
STRATEGIC PROPERTY INVESTMENT IN 2018 SOUND SERVICE ADVISORY - - PowerPoint PPT Presentation
STRATEGIC PROPERTY INVESTMENT IN 2018 SOUND SERVICE ADVISORY NETWORK RESEARCH SUPPORT SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au |
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
SOUND SERVICE
ADVISORY RESEARCH SUPPORT NETWORK
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
WHAT IS YOUR INVESTMENT GOAL?
INVEST WHILE RENTING REDUCE INCOME TAX POSITIVE CASHFLOW PROPERTY ADVANCED STRATEGIES DIVERSIFY OR GROW PORTFOLIO INVEST VIA SMSF
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
WHY PROPERTY?
”It’s not about how much you earn, but what you do with it that counts”
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
WHY PROPERTY?
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
RECENT NEWS
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
COMMON DISTORTIONS MADE BY MEDIA
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
INTEREST RATES – STANDARD VARIABLE RATES OVER TIME
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
CURRENT LENDING MARKET
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
WHY PROPERTY? - GOOD DEBT + THE POWER OF LEVERAGE
↸
$450k investment property, growth of 5% p.a
$328,002
- Savings account
earning interest of 3% p.a
$80,635
HOW DOES $60,000 LOOK AFTER 10 YEARS?
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
COMMON ROADBLOCKS
“How much will it cost me to purchase and hold?” “Where and what should I buy?” “Who looks after the investment?’”
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
FREE RESOURCE #1 – CASHFLOW CALCULATOR
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
Growth (Capital Appreciation) and Cashflow (Rental Yield) § Understand your strategy first § Growth + cashflow each important at different stages of life-cycle § Create more wealth from growth, but cashflow is important for future borrowing capacity and lifestyle § Types of fuel in property Investment = Equity and Borrowing capacity
WHAT MAKES A GOOD PROPERTY INVESTMENT?
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
15 Key Investment Drivers for Growth and Cashflow
WHERE TO BUY?
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
RESOURCES AND REFERENCES
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
MACRO LEVEL RESEARCH - MARKET CYCLES
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
- SUPPLY + DEMAND
Current and future relationship between people and dwellings
MACRO LEVEL RESEARCH – SUPPLY + DEMAND
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
RESIDENTIAL DWELLING PIPELINE
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
MACRO LEVEL RESEARCH – SUPPLY + DEMAND
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
- POPULATION
GROWTH Annual % change to people in an area
MACRO LEVEL RESEARCH – POPULATION GROWTH
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
MACRO LEVEL RESEARCH – POPULATION GROWTH
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
- VACANCY RATES
Available rentals ÷ Total stock
MICRO LEVEL RESEARCH – VACANCY RATES
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
Best markets for low vacancy: Hobart – 0.7% Canberra – 0.8% Sunshine Coast – 1% Melbourne – 1.6% Sydney – 2.8% Worst markets: Perth – 4% Darwin – 3.4% SOUND TIP: 3% Vacancy Rate = 1.56 weeks per year vacant (52 x 3%)
MICRO LEVEL RESEARCH – VACANCY RATES
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
- INFRASTRUCTURE
Planned and underway - Public and Private
MICRO LEVEL RESEARCH - INFRASTRUCTURE
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
MICRO LEVEL RESEARCH - INFRASTRUCTURE
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
- AFFORDABILITY
Mortgages vs Incomes
MICRO LEVEL RESEARCH - AFFORDABILITY
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
SOUND TIP: Look for markets with less than 30% of incomes going towards mortgages
MICRO LEVEL RESEARCH - AFFORDABILITY
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
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SALES DATA Speed, volume and discounting in transactions
MICRO LEVEL RESEARCH – SALES DATA
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
DAYS ON MA MARKET Australian median 61 days AU AUCTION CL CLEARANCE CE RATES Australian median 35.7% VE VENDOR DI DISCO COUNTING Australian median 6.5% ON ONLIN INE DEMA MAND State average 261 visits/property
MICRO LEVEL RESEARCH – SALES DATA
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
- PRICE + RENTAL YIELDS
Supportive comparables and higher benchmarks
PROPERTY LEVEL RESEARCH – PRICE + RENTAL YIELD
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
Best markets for rental yields: Brisbane – 4.4% Hobart – 5.1% Sunshine Coast – 5.2% Darwin – 5.0% Worst markets: Sydney – 3.0% Melbourne – 2.9% Perth – 3.8%
SOUND TIP: Comparable sale = Past 6 months, 1 km radius, ‘apples with apples’ size, inclusions, features, condition
PROPERTY LEVEL RESEARCH – PRICE + RENTAL YIELD
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
Ma Market Po Posit itio ion 2018 2018
Trough Boom Hot Opportunity Rising Correction Value Recovery
MARKET CYCLES 2018
DARWIN CANBERRA / HOBART ADELAIDE / TOWNSVILLE SUNSHINE COAST BRISBANE PERTH SYDNEY MELBOURNE
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
FREE RESOURCE #2 – SUBURB PROFILE REPORT
§ Affordability * § Population Growth (%) * § Days on the Market § Rental Yield and Growth § Ownership § Unemployment * § Median Sale Prices § 15 Year Trend * § Walk Score * § Vacancy Rates § Vendor Discounting § Online Demand * § Auction Clearance Rates § Distance to transport/CBD
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
15 Key Investment Drivers for Growth and Cashflow
PROPERTY LEVEL RESEARCH
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
STRATEGY BASED SERVICES
Investment Details:
Listed $520k, negotiated to $510k Rented – $480/w or 5% yield Low maintenance 450sqm block Short stroll to the local park, Aldi and State School Minutes to new $2b hospital
Key Investment Drivers:
Super low vacancy rates 3% population growth. Double state average Billions being spent on local infrastructure.
What we liked:
“This property fulfilled the client’s rentvesting strategy of high growth/high yield combination. It enabled them to offset their own rent with an appreciating asset, without making any major sacrifices to their lifestyle. They are now on their way to growing their wealth and securing their future”
Investment Details:
Strategy: Tax Deductions, SMSF 3 Bed | 2 Bath | 1 or 2 Car – Townhouse From $569k Rented $570/w or 5% yield Small block of 9 4km to CBD High end finishes
Key Investment Drivers:
Low vacancy rates Blue ribbon postcode High growth rates
What we liked:
“Affordable pricepoint, established suburb, walking distance to popular schools and shops. Suburb has achieved 30% growth in units and 20% in house in past 24 months”
Investment Details:
Strategy: Positive Cashflow 5 Bed | 3 Bath | 3 Car – House Negotiated Price - $670k Rented $795/w or 6.2% rental yield Dual Income
Key Investment Drivers:
Rental Yield Economy Market Cycle
What we liked:
“Positive cashflow in a capital city, transit orientated development area. Desirable long-term tenants in place”
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
CUSTOM BUILT HOUSE & LAND
Investment Details:
Package – $985,000 5 Bed | 2.5 Bath | 2 Car Rent: $870/w or 4.6% yield Comparable sales support $100k inbuilt equity or 10% instant gain Only 6km to CBD - High end finishes and inclusions High growth suburb averaging 11.02% p.a for 15 years
Key Investment Drivers:
Vacancy Rates – Low 1.4% Online demand – High Population growth – High 2% p.a
What we liked:
“Only 6km to the CBD, this blue-ribbon address in a high demand suburb has been consistently achieving 11% capital growth p.a for the past 15
- years. Clients made some solid inbuilt equity by the time the property was
complete and will prove a strong long-term buy and hold.”
Investment Details:
Strategy: Custom Built Equity 2 x 4 Bed | 2 Bath | 2 Car – Houses Package Price: $920k Appraised: $1.1m Inbuilt Equity $180,000 Rental $1,100/w Positive Cashflow
Key Investment Drivers:
Market Cycle | Rental Yield | Economy
What we liked:
“The end result not only returned a profit but also the cash-flow is
- positive. Due to the location and its strong economy we also expect good
capital growth over time.”
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
COMMERCIAL + RURAL
Investment Details:
Negotiated $3,200,000 Leased – $228,000 p.a or 7.1% net yield Generous 2,042 sqm freehold corner site Multiple tenants and modern building Near Shopping World anchored by Big W & Woolworths Short stroll to the local park, Aldi and State School
Key Investment Drivers:
Significant catchment population of over 200,000 Long-term + secure tenants High profile location on major arterial road
What we liked:
“Massive Highway freehold corner site in important inland city High quality medical and pet care investment with long secure
- leases. Thriving, long established dental tenants”
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
RESOURCE #3 - CLIENT INVESTMENT PORTFOLIO
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
Mistake #1 - Emotional buying and following the crowd
TOP 5 COMMON MISTAKES BY INVESTORS
Mistake #2 - Not having a strategy or long term view Mistake #3 - Not doing correct or holistic research Mistake #4 - Not having a team of professionals Mistake #5 - Not buying property with owner occupier demand
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
NOW Yr 2 Yr 4 Yr 6 Yr 8
$60,000
$147,814
$581,326
$931,977
$1,346,470 $323,870 Yr 10 - Equity
1 2 3 4 5
10 YEAR AUTOMATIC ACQUISITION PLAN
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
YOUR COMPLIMENTARY PROPERTY FOCUS 1:1
ü 1 hour complimentary Property Focus with the Director of Sound Property ü Education on the 15 Key Investment Drivers of Growth and Rental Yield ü Comparable Market Analysis Reports ü Comprehensive Suburb and Property Reports to support your purchase ü Cashflow estimates based on the property price and rental yield ü Walk away with a tailored Strategic Investment Plan
9 STEP SERVICE
SOUND PROPERTY GROUP A.C.N 166658760 | 1300 655 899 | Level 2, 3 Young St Neutral Bay 2095 NSW | support@soundproperty.com.au | www.soundproperty.com.au
1300 655 899
soundproperty.com.au /soundpropertygroup Sound Property Group
Q&A