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

1. Creating Wealth through
Manufactured Growth Property

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3. • Property investor for the past 10
years
• Personal experience with
renovations
• Great amount of industry
experience
Dennis Wong

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. We help investors
build and manage
their property portfolios

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. 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. In partnership with…

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. Search
Analyse
Acquire
Track
Account

11. Poll: Do you have a
property strategy?

12. Poll: Does it involve
Manufacturing Capital
Growth?

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. 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. How to add value?
• Renovate
• Subdivide
• Develop
• Add a granny flat / dual income

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. Renovations – Example

18. Renovations – Example

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. 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. Manufactured Growth
Renovation/Subdivision

22. Finding opportunities using Investar Search

23. Searching – Investar Search

24. Search Results

25. Search Results

26. Search Results

27. Search Results

28. LIVE Investar Search
Renovation Examples

29. My Valuer / My Research powered by
PriceFinder

30. PriceFinder Property Report

31. PriceFinder Property Report

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. PriceFinder Property Report

34. PriceFinder Property Report

35. PriceFinder Property Report

36. PriceFinder Property Report

37. PriceFinder Property Report

38. Sales by Suburb: Comparable 4 bed

39. Sales by Suburb: Comparable 4 bed

40. Sales by Suburb: Comparable 4 bed

41. Sales by Suburb: 4 bed & 1 bath
Lower quarter median - $653,500
High quarter median - $905,000

42. Sales by Suburb: Comparable 4 bed & 1 or 2
bath

43. Rentals by Suburb: Comparable 4 bed

44. Rentals by Suburb: Comparable 4 bed

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. 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. PriceFinder ‘Information Statement’

48. PriceFinder ‘Information Statement’

49. PriceFinder ‘Information Statement’

50. PriceFinder ‘Information Statement’

51. PriceFinder ‘Information Statement’

52. Searching – Investar Search

53. Search Results

54. Search Results

55. Search Results

56. Planning & Development Applications

57. Planning & Development Applications

58. Planning & Development Applications

59. Sales by Land Size

60. Sales by Land Size

61. Sales by Land Size

62. Sales by Land Size – less than 380m2

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. 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. 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. What are the financials?

67. Quick access

68. Quick 10 year forecast

69. Edit your deposit, reno costs and value

70. Edit your vacancy and costs

71. Edit your depreciation and growth

72. Updated 10 yr forecast: Equity & Buying Power

73. Updated 10 yr forecast: Cashflow

74. Equity Growth – Market vs Manufactured
Market
Manufactured

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

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77. Poll: Would you like to
book in for a free 1-on-1
demo?

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. Five step, strategic approach

80. Guidance vs DIY Investing

81. Poll: Would you like
some guidance?

82. Special Webinar Offer
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Expires Midnight, Friday, 9th June 2017
Questions?