STRATEGIC PROPERTY INVESTMENT IN 2018 SOUND SERVICE ADVISORY - - PowerPoint PPT Presentation

strategic property investment in 2018 sound service
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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 |


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STRATEGIC PROPERTY INVESTMENT IN 2018

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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

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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

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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”

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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?

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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

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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

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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

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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

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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?

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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?’”

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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

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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?

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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?

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

|

SALES DATA Speed, volume and discounting in transactions

MICRO LEVEL RESEARCH – SALES DATA

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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

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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

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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

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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

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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

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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

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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

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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”

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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”

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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”

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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

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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.”

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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.”

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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

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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”
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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

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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

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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

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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

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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

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