[On-Demand Webinar] Dual Income Investment Opportunities

Dual Income Investment Opportunities

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• Heads up membership services team at Real Estate Investar

• Team of 4 Portfolio Managers

• Supporting 2,800 members

• Manages Premium memberships

Logan Horstead

We help investors build and manage

their property portfolios

• 2,800 current members

• Mix of personal users, brokers, buyers agents and accountants

• 250,000+ members use us for market information, calculators, investment news and updates

Real Estate Investar

ASX:REV

• Heavy investment in product

• Public company governance

• Strong and focused board;• Simon Baker – Former CEO of REA• Anthony Catalano – CEO of Domain

In partnership with…

1.9m Australians

1 Property

2-4 Properties5+ Properties

• Pays shortfall for 5 years+.

• Eventually sells and pays down personal debt.

• No retirement income.

• Strategy & numbers.

• Self funding portfolio.

• $100-$250k+ passive income in retirement.

• Has high income or buys every few years.

• Freehold in retirement.

• Min. retirement income.

Source ATO/ABS

3 levels of Property Investment

1.9m Australians

1 Property1.4m73%

2-4 Properties470,000

25%

5+ Properties30,000

2%

• Pays shortfall for 5 years+.

• Eventually sells and pays down personal debt.

• No retirement income.

• Strategy & numbers.

• Self funding portfolio.

• End up freehold• $100-$250k+

passive income in retirement.

• Has high income or buys every few years.

• Freehold in retirement.

• Min. retirement income.

Source ATO/ABS

What level are you aiming for?

Poll: How many properties do you want to own?

Why dual income properties?

• Increased rental income

• Generally the same price bracket as single dwelling properties

• Reduced exposure to risk of vacancy if one tenant decides to leave you still have income

• Capitalise on higher rates of depreciation

• Potential to create equity uplift on completion

• Can live in one side and rent the other

House strategy

• A purpose built single home on single lot

• Widely accepted by all Town Planning Schemes

• Building regulations are Code Assessable

• Finance up to 95% LVR

• Can be valuations issues if dwelling or lot is too small

House strategy

• Price point $350,000-$550,000

• Yields 4%+

• Some equity gain possible during construction

• Entry point for first construction deal

• Important to buy in the right area (in-fill) and estate

House example

• Price point $455,000

• 4 bed 2 bath 2 garage

• Werribee, VIC

• Yields 4.9%


• Stamp duty $15,332

• Appraised rent at $420-$440

House example

Dual living strategy

• A purpose built house with two separate dwellings internally

• Cannot strata

• Town planning limited

• Building regulations same as duplex

• Finance similar to a house but better cashflow up to 95% LVR

Dual living example


• 4 bed 2 bath 1 garage PLUS


• Collingwood Park, QLD

• Yields 5.8%



• Appraised rent at $550

Dual living example

• Two separate dwellings entrances minimizes cross over with tenants

• Each dwelling has its own garage

• Main dwelling has all the bedrooms away from the common wall

• Presents like a house

• As its not detached you can build on a smaller lot

Dual living example

Dual living VS House

Duplex strategy

• Purpose built two dwellings on one property

• Strata title upon completion to obtain 2 dwellings

• Attached or detached

• Higher density zoning required

• Finance up to 90% LVR (half 80% half 90%)

• Potential to create equity after strata titling


• 3 bed 2 bath 1 garage PLUS


• Thornton, NSW

• Yields 5.5%


• Appraised rent at $840-$880

• Appraised value after titling $880,000-$940,000

Duplex example

• Separate driveways for each dwelling

• Each dwelling has its own garage

• Good layouts keeping the bedrooms away from living spaces in other dwelling

• Presents like two separate houses

• Corner block allows for more desirable design

Duplex example

Duplex example

Duplex VS Dual living

Real value of a duplex

Type of investor

H&L Dual Living Duplex- Low deposit looking to

get into a deal- Looking for med to long

term capital gain- First land and

construction deal

- Low income with minimal serviceability

- First home buyer to rent out secondary dwelling to an investor

- Negative geared property portfolio

- High income looking for equity

- Turbo charge portfolio with 2 strata titled properties

- High income needing deductions

- High borrowing capacity- High deposit required up

to 20%- More experienced

property investor who has done a land and construction deal

- Looking to recycle deposit and move onto another deal on completion

Poll: Would you like a free financial health check?

Financial simulation

Acquisition 1

Acquisition 2

Expected position by FY19

Buying power per property in FY19

Expected position by FY26 with only 2 deals

Position by FY26 with 2 dual living deals

Comparison

• We only work with reputable builders

• Have proven themselves to be reliable, quality builders

• Have proven in-house construction management system

• Standard pre-negotiated build contract terms • 16 to 20 weeks• Liquidated damages• Fixed price • Turnkey

Builders

Guarantees

Poll: When are you looking at making your next purchase?

Premium Membership

Finance & Professional ServicesProperty Deals Service

Investor Platform & Information

Common investing challenges

• Don’t have the time

• Don’t have the knowledge or confidence

• Can’t find the right investment property

• Not sure what to buy

Options to overcome challenges

• Engage a buyers agent

• Engage an educator / mentor

• Attempt to do it yourself anyway

• Don’t do anything

Issues to consider

• Will you get the right investment property given your circumstances and goals?

• Are you guaranteed an outcome?

• What are the risks?

• Will you be able to identify potential issues if you are not aware of the signs?

Introducing the REI Premium Service

• Full service to assist you into your next investment property

• Property acquisition plan that will tell you what you can purchase and what you should purchase based on your financial circumstances and goals

• Purchasing plan to include acquisitions across, house & land, dual living, duplex, apartments and townhouses

• 48 hour first option on all new release property deals Australia & NZ




• REI Pro Membership for 12 months including setting up all of your existing properties into Portfolio Manager

• Dedicated Portfolio Manager to assist you every step of the way

• Full finance health check including pre approval for maximum lending by a specialist investment lender

• Xero subscription and set up for 12 months

• Free reports emailed to you weekly on locations, deals & hotspots




An end-to-end service to help you into your next (or first) investment property right now

Finance & Professional ServicesProperty Deals ServiceInvestor Platform & Information $4,995

REI Premium Service advantages• Access to our platform gives you complete

transparency on any deals we send you

• You will have a dedicated Portfolio Manager doing the work for you

• You are dealing with a business that specialises in property matching services

• You will get early and/or exclusive access to stock which sometimes does not make it to retail market

• You can leverage our experience, professional ties and partners to stay ahead of the crowd rather than being part of it



REI Premium Service advantages

• 100% money back if you can’t obtain finance pre-approval

• Outcome based product, not education, not mentoring, but you will still learn along the way

• If you purchase off-the-plan or House & Land stock listed through our partners you will receive a $5,000 cash rebate on settlement



Recent deals clients have done:Gosford off-the-plan

• Boutique Development

• 48 x 2 Bedroom Apartments

• Capital growth has been 7.6%

• Water and District Views

• Prices from $435,000

• Real Estate Investar Clients received a further $10,000 off the listing price

• After public release pricing went up to $455,000

• Expected equity for initial purchases currently $30,000

Recent deals clients have done:Gosford off-the-plan

Recent deals clients have done:Pimpama duplex

Recent deals clients have done:Pimpama duplex

$60,000 + increase in equity on

completion

Poll: Would you like a complimentary consultation to discuss the Premium service?

Thank you & good luck on your investing journey

[On-Demand Webinar] Dual Income Investment Opportunities

Real Estate

Transcript of [On-Demand Webinar] Dual Income Investment Opportunities