Advanced Strategy – Chris Pullen Practices what he preaches!

Advanced Strategy – Chris Pullen Practices what he preaches!

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Buying an Advanced Strategy Investment Property

Where do you start if you’re looking at purchasing an Advanced Strategy Investment Property? First you need to have some goals – where you would like to be, how does your future look, what do you want for your children, do you want a particular lifestyle or simply more free time? This comes back to writing these goals down, maybe start with a vision board.

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From there you can plan on how to achieve these goals. This is very important and you may need to engage some experts to help you with the desired outcome. Experts such as an accountant, finance broker, property strategist, financial planner, insurance broker, architect or building designer, lawyer, town planner, builder and the list can go on.

What I want to talk about today is the actual property that I purchased and the numbers and the plan behind it. After starting the business I wanted to build my property portfolio as fast as I could. Firstly I had to save like buggery to form a deposit to put towards the property purchase. I am a very good saver, but as I needed about $140,000 I had to put my head down and bum up – this took about two years.

Now I had a plan to purchase two duplexes in 2016 and I did. It is the first one that I’m going to talk about today. I started by working out my goals and vision board – actually putting a picture of the proposed duplex on my vision board. Then I did my numbers…. did I have enough deposit? Could I service the loan on the property with all my other commitments? That all came back yes.

Advanced Strategy

I did my research on the area and was happy to proceed, it was located in the Parklakes development at Bli Bli, on the Sunshine Coast. I wanted to make instant equity straight away so my choice of building was a duplex. The property to be constructed was a 3 bed, 2 bath single lock up garage (SLUG) and the other side of the duplex was a 2 bed, 1 bath, SLUG. The total price of the duplex was $650,000. The expected combined rental return was going to be $790 per week. The equity uplift or profit was expected to be about $80,000. It was a two part contract the land was $320,000, which the developer had already paid all the council headwork costs associated with the block which is about $28,000 and the building was $330,000.

It took about four months for the block of land to be registered, so was in a holding pattern there, then once we settled on the land the building was built in a 16 week time frame. I did need some additional funds to cover the interest on the loan over this time – about $6,000, so you need to make sure you have a little buffer. On completion of the duplex the property manager who I had already a good relationship with was able to secure tenants within two weeks of being completed for $810 per week, so I was over the moon with that.

The strata titling takes about another 2-3 months after it is finished and then I could go back to the bank to get the now 2 separate titled properties valued. The new valuations were in and there was an $80,000 increase in the value of the building going off what the valuer put in their report.

So with a deposit of $140,000 plus $6,000 to cover the costs while building – this resulted in a rental return of $810 per week (this is a 6.4% return on the property investment) plus the big gain of $80,000 uplift on the property! I can now go back to my bank and pull this money out to top up my equity bucket and proceed with more property purchases to build my property portfolio – this is how advanced strategy portfolios work – getting me closer to my ultimate lifestyle goals every day.

You can do this too! It’s not rocket science and I can help you start your advanced strategy property portfolio. Give me a call now to have a chat and let’s see what we can do! Cheers Chris 0434 449 455 or drop us an email HERE