Buyers Advocates and Qualified Property Investment Advisor (PIPA)
Legal Disclaimer Information provided in this presentation is general in nature and does not constitute financial • advice. Every effort has been made to ensure that the information provided is accurate. • Individuals must not rely on this information to make a financial or investment decision. • Before making any decisions, we recommend you consult a financial planner or take into • account your particular investment objectives, financials situation and individual needs.
Cate’s Story • Ex Industrial Chemist • Experienced Investor • Worked as a Mortgage Broker • Licensed Real Estate Agent • Buyers Advocate and QPIA (PIPA) • Independent • Boutique Victorian business • Vice-President of REBAA
What we do We look for properties that: rent Offer out-performance capital growth • Meet the rental yield (cashflow) needs • Deliver tight vacancy rates • -$X per month? We always consider tenant demographic Outgoings: and client’s risk-profile mortgage • rates • insurances • maintenance • property manager •
Where we cover Specialise in: Inner & middle-ring • North and West Geelong • Ballarat •
Where are we at right now? Source (in order of appearance) CoreLogic Business Insider Macrobusiness CommSec Property Update Daniel Bowen
Challenges we face • Buyers adversely affected by APRA changes & First Home Buyer Incentives • Impact on Units • Impact on Houses • Impact on the Regions • Concerns for investors to be mindful of: • Off the Plan purchases • Tough valuations • Interest-only periods resetting to P&I (cashflow)
What we don’t select High Off density the Main plan roads Non- Hard to finance for mainstream residentially zoned buyer < 50sqm High outgoings Quirky “weird”
Case Studies Capital growth strategy $1,120,000 in Seddon @ $550pw
Case Studies Capital growth strategy – lower price point $540,000 in Newport @ $380pw
Case Studies Tree-change strategy $775,000 in Geelong’s Rippleside for a family
Case Studies Capital growth and value-add strategy $541,100 in Herne Hill @ $380pw
Case Studies Balanced Cashflow strategy $315,000 in Ballarat East @ $330pw
Property within SMSF Essential to get advice • Understand the rules • Cost of fund set up • Target the right rental yield • Have full visibility on outgoings • Don’t assume everyone should do it •
Conclusion 1. Genuine growth drivers 2. Yield must meet the client’s cash flow needs 3. Vacancy rates must be attractive for the investor 4. Quality target tenant (*or at least KNOW the area’s challenges and have a great PM!) If you are trying to build a portfolio and wish to continue borrowing, cash flow should be top of mind
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