The webinar covered: > How to select the right piece of land and avoid common traps. > 7 real case studies that illustrate exactly what to look for. > How to create immediate equity through a smart construction process. > How to get 5% to 7.5% yields on new house and land developments in everyday suburbs. > The pros, cons and rules for selecting; - House and land - Dual living - Duplex or dual occupancy - Multi-unit - The critical ingredient – finding the right builder. - How to avoid oversupply locations that will flat-line capital growth for years to come. - What to check, when doing due diligence on the developer and the development. - How to get guaranteed construction timeframes and real fixed price contracts. - The add-ons that drive up rental income by $20-$100 per week. - Avoid the common pitfall: new property prices that are inflated 5-10% to cover marketer’s costs and commissions. - Rules for picking todays VIC, QLD and NSW investment hotspots.

1. Land & Construction

2. Introduction
• Positive Real Estate (PRE) has a long standing
relationship with REI
• PRE has now formed a strategic partnership with
REI combining its extensive property strategy and
acquisition experience with REI’s leading research
and analysis capabilities

3. The next 60 minutes
• Creating equity through construction
- House and land
- Dual living
- Duplex or dual occupancy
- Multi-unit
• Property Strategy
• Positive Real Estate Property Process

4. Creating Equity Through
Build
• Houses
• Dual Living Houses
• Duplex or Dual Occupancy
• Multi-unit

5. House Overview
• A purpose built single home on single lot
• Corner Stone of all Investment Property Portfolios
• Widely accepted by all Town Planning Schemes
• Building regulations are Code Assessable
• Finance up to 95% LVR
• Can be valuations issues if dwelling is too small

6. House Example Plans 1

7. House Example Plans 2

8. House Strategy
• Price point $350,000-$550,000
• Yields 5.0%+
• Some equity gain possible
• Entry point for first construction deal
• Important to buy in the right area and estate

9. House Example –
Wollongong NSW
4 bedroom, 2 bath, DLUG
Land: $259,000
Build: $259,100
Total: $518,100
Market Rent: Appraised at
$520pw
Gross Yield: 5.4%
Average yield in suburb is 5.0%
Total dwelling size 188m2

10. House Example – Melton VIC
4 bedroom, 2 bath, SLUG
153 m2
Land: $121,000
Build: $206,000
Total: $326,000
Market Rent: Appraised at $320pw
Gross Yield: 5%
Key Investment Indicators:
• Within early stage of 4,000 lot Lend
Lease master-planned community
• Within 35km of Melbourne’s CBD
• 22,000 new jobs to be created in the
suburb.
• Low vacancy rates at 2%
• New train station to be built within
estate
• Business precinct and shopping
precinct to be built

11. House Example – Greenvale
VIC
4 bedroom, 2 bath, DLUG –
203 m2
Land: $250,000
Build: $220,000
Total: $470,000
Market Rent: Appraised at
$450pw
Gross Yield: 4.9% (approx.)
Key Investment Indicators
- 95% Owner Occupier Estate
- 8 min from Melbourne Airport
- $850m Tullamarine Freeway
Upgrade

12. House Example – Wyong
NSW
4 bedroom, 2 bath, DLUG –
208 m2
Land: $229,700
Build: $278,550
Total: $508,250
Market Rent: Appraised at $470pw
Gross Yield: 4.7%
Key Investment Indicators
- 1% vacancy rate
- 90 min north of Sydney
- Wyong regional airport due 2020
- Wyong Employment Zone
- Northconnex Tunnel Project due
2019

13. Dual Living Overview
• 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
• Valuations issues if too large

14. Dual Living Example Plans 1

15. Dual Living Example Plans 1

16. Dual Living Example Plans 1

17. Dual Living Example Plans 1

18. Dual Living Strategy
• Price point $400,000-$500,000
• Price 10-20% higher than a house
• Great cashflow with yields 30-40% higher
• Some equity gain possible
• Ideal to increase serviceability in existing portfolio
• Ideal for first home buyers who can rent out secondary
dwelling as an investment property

19. Dual Living Example –
Ipswich QLD
3 bedroom house + attached
2 bedroom dwelling
Land: $154,000
Build: $266,900
Total: $420,900
Market Rent: Appraised at
$600pw
Gross Yield:7.4%
Average yield in suburb is 6.0%
Total dwelling size 200m2

20. Duplex or Dual Occupancy
Overview
• 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%)
• DA or MCU as of right

21. Duplex Strategy
• Price point $500,000 +
• Advanced strategy for a client who has already done a dual
living or house package
• Strong yields and cashflow
• Flexibility of 2 properties in 1
• Manufactured equity

22. Duplex Examples
• All of these duplex examples have between a 14% - 21%
uplift in equity based on agent’s market appraisals
• Can be completed in well under 12 months for registered
land

23. Duplex Example 1 –
Toowoomba QLD
Attached 2 x 3 bed, 2 bath
single garage
Land: $156,500
Build: $391,662
Total: $548,162
Market Rent: Appraised at $720pw
3 bed ($360pw) per side
Gross Yield: 6.8%
Market Value) Appraised at
$660,000
Total dwelling size 254m2 or approx
127m2 per side

24. Duplex Example 2 –
Townsville QLD
Attached 2 x 3 bed, 2 bath
single garage
Land: From $164,500
Build: From $458,775
Total: From $623,325
Market Rent: Appraised at $720pw
3 bed ($360pw) per side
Gross Yield: 5.9%
Market Value) Appraised at
$720,000
Total dwelling size 269m2 or approx
135m2 per side

25. Multi-unit Overview
• Purpose built multiple dwellings on one property
• Strata title on completion
• Most often attached
• Councils town plans typically allow medium density
• Plans need to be submitted as a Development Approval
through local council
• Often more profitable than duplexes albeit higher
development costs

26. Townhouse Site–
Toowoomba QLD
4 x 3 bed, 2 bath, single
garage
Land: $169,000
Build: $813,974
Total Development Costs:
$1,141,661
Market Rent: Appraised at $1,520pw
3 bed ($380pw each)
Gross Yield:7.4%
Average yield in suburb is 5.5%
Market Value: Appraised at
$1,400,000
Equity: $258,339 23% RTDC

27. Unit Site – Waterford QLD
4 x 3 bed, 2 bath, single
garage
Land: $260,000
Build: $570,000
Total Development Costs: $914,598
Market Rent: Appraised at $1,320pw
3 bed ($330pw each)
Gross Yield:7.5%
Average yield in suburb is 5.5%
Market Value: Appraised at
$1,100,000
Profit: $185,401 20% RTDC

28. Land & Construction Strategy

29. H&L Dual Living Duplex
Price $400,000 $460,000 $600,000
LVR 95% 90% 80%
Deposit $20,000 $46,000 $120,00
Rent pw $420 $600 $660
Rental Yield 5.5% 6.8% 5.7%
Equity $60,000
Approval time 7-9 weeks 7-9 weeks 12 weeks
Area Capital City
Major Regional
Capital City
Major Regional
NSW
Major Regional
Regional
Product Comparison

30. Type of Investor
H&L Dual Living Duplex/Multi unit
- 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
not cashflow
- 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

31. PRE Property Process

32. Property Process
Positive Real Estate manage the property process all the way
through from acquisitions to handover
• Acquisitions
• Contracts Management
• Construction Management

33. Property Process
Acquisitions
• Confirm Macro and Micro location of city and estate is inline with
company strategy
• Drill down on estate to confirm growth drivers and owner occupier
ratio etc (this is usually done by a personal visit)
• Confirm lot allocations with builder and developer
• Obtain all estate and lot information ie master plan, stage plan,
disclosure plans, contour plans and cut and fill reports
• Mock up tender packages inline of product type and estate covenants

34. Property Process
• Order mortgage valuation
• Obtain both rental and market appraisals from affiliate real
estate offices
• Send land contract to be checked by our solicitor
• Negotiate land contract terms
• Obtain all relevant town planning advice letters
• Confirm all tender packages, floor plans and final price

35. Property Process
Contracts Management
Our own internal contracts management team specialises in managing
all construction builds
• Confirms buyer details and sends sales advise to land developer and
builder
• Sends your finance broker the signed land and build contract
• Sends your solicitor the finance approval letter from your finance
broker
• Shadows the builder to resolve any unforeseen delays
• Our Salesforce contracts management system will send you a
number of automated reminders during throughout the property
process

36. Property Process
Construction Management
All our builders have their own professional construction management
team that will manage the construction of your dwelling
• Obtain all development and construction approvals on your behalf
• Advise you of a construction commencement date
• Each time you dwelling reaches each stage of construction you will
receive a progress draw to be sent to your bank along with photos so
you can track its progress
• Send you a handover package on completion

37. ‘Wholesale’ Builders
• 3-5 builders to cover key areas Australia wide
• Have proven themselves to be reliable, quality builders
• Standard pre-negotiated build contract terms
• Have proven in-house construction management system
• Building Contract standard for H&L, dual living and duplex
• 16 weeks, 18 weeks and 20 weeks
• Liquidated damages
• Fixed price
• Turnkey

38. Wholesale Advantage
Retail Wholesale
Build Period (House) 26 weeks 16 weeks
Build Period (Duplex) 32 weeks 20 weeks
Liquidated Damages $20 per day = appraised rent
Builder variations Often None
Turnkey Rarely Yes
Build Commencement 6-12 months 3-4 months
Contracts Mgt No Yes
Construction Mgt Sometimes Yes
Handovers.com Sometimes Yes

39. Acquisitions Checklist

40. Acquisitions Checklist

41. Acquisitions Checklist

42. Next Step…
Request a free call to discuss;
• What’s holding you back
• How to get you started
• A strategy to suit your personal situation
www.positiverealestate.com.au/webinar