Are You Happy With Your Current Investment Portfolio?

Are You Happy With Your Current Investment Portfolio?

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Investment portfolio

Do you have an investment property portfolio? Don’t know where to start? What makes a good property investment and what makes a bad property investment?

When investing in property, shares or any other investment, you are investing to better yourself, create wealth and freedom. So how is your current investment property performing? Are you happy with your results? Do you even know what return you are getting on your money? It is creating more cash flow in your life? Is it creating freedom?

What is a successful Investment Portfolio? It is going to be different for everyone, however getting positive returns is always a good start. Having a plan and goals is super important – so you know what you are trying to achieve. The safest investment is a term deposits with the bank, they maybe giving you about 2% interest which is hardly a lucrative investment!Investment portfolioFor an investment property a rental return of at least 5.5% (ultimately close to 7%) and an average of 5-6% per year on the growth of the value of the property is ideal. However with property it goes in cycles so sometimes you will get 10% and other times 2%. So timing in the market is extremely important. Because if you invest at the right time and you buy a $500,000 property and the market goes up by 10% you make $50,000, which for some is an entire years salary! If you sell in the down turn then it can create a loss which of course is not the desired result.

I would tend to prefer building a property portfolio, using advance strategy techniques, where we aim for cash flow, equity uplift, profits or forcing capital growth. Some of these techniques are helping Blue Wave Property Strategies clients get returns on their capital of 50% which is amazing. Some of our clients are making over $150,000 per property investment! Now that is successful investing!! They then take some of this profit to re-invest and do it all over again, creating them real wealth through property without even having to lift  finger!Investment portfolioTalk to us for any of your investing needs……

Looking to start out? We can help!

Looking to add value to your portfolio? We can help!

Looking to change up to an advanced strategy? We can help!

Looking to consolidate debt and get ahead? We can help!

Call me today on 0434 449 455 – I can help

Change The Way You Buy Investment Property!

Change The Way You Buy Investment Property!

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property

Have you heard of people making money out of property, or building wealth through property? Ever wonder how they do it?

Most people do the buy and hold method. This is where they decide on an area (usually close to home so they can drive past it now and again) find a property that looks good and purchase their investment. Now if the market is rising then it can be easy to make capital gains, but if the market is slow then it can be 5 years before you see any of those gains and the rental market can stagnate, costing you money in the long run.

Sometimes you need to change the way you look at investing in property, make an advance strategy purchase. This is where you can force the equity growth and get greater cash flows sooner. You need to look outside the box, because this is where the real money is made.

property

An advanced strategy can be buying a duplex or a dual occupancy, adding value to an established property such as a renovation, doing research on the areas with the with the greatest potential for capital growth, doing a development or just splitting the titles. Some of these options are great ways to fast track your investing; imagine if you made $100,000 on your first investment property in the space of 12 months? This is what our clients are doing.

property

What Goals have you set for 2018? If you want this year to be better than last year, you must make a CHANGE and take action now.

“The definition of insanity is, Doing the same thing over and over again and expecting a different result.” As quoted by Albert Einstein

If you want change in your life and want help to build a property portfolio but don’t know where to start, then give Blue Wave Property Strategies a call and arrange a FREE half hour consultation. There is no fee, with no obligation to purchase, just come and see what is possible! Give us a call now on 07 5443 8773 to book a free consultation.

The 7 Steps to becoming a Successful Property Investor – Step 7 Portfolio Review

The 7 Steps to becoming a Successful Property Investor – Step 7 Portfolio Review

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portfolio

Portfolio review and management is the critical step that takes you from being a mum and dad investor of one investment property, to a true property investor with a multiple property portfolio and wealth creation.

Initially I like to do a quick check in and review within 45 days of the settlement of the property, I will check that your mortgage payments are coming out correctly, the right accounts have been set up, that you have internet banking, you have all your login in details and all your passwords. Also, I like to see that the property is tenanted and that the rental incomes are coming in and being paid to the right accounts. I know…. small things; but it is about checking and making sure that it is all working for you.

Then every 6 to 12 months you should be having a full review of your property portfolio. Knowing where your debt equity position is, have your goals changed, do you need to review your current rental of the properties and increase the rent if necessary. Have you built up some capital growth and now you are in a position to tap that and purchase another property? Have you been paying down your owner occupied debt? Do we need to sell the poorer performing properties to pay down your owner occupied debt – what are the tax implications (you will need the help and advice of an accountant for this).

portfolio

It is really great to be able to see your portfolio grow and know exactly what your personal balance sheet looks like (accountant terminology for Assets, Liabilities and equity) It is important to keep your balance sheet updated and know where you stand across the board. It’s only when you keep on top of these things that you can begin to grow your portfolio and constantly be on the look out for your next property purchase.

Keep an eye out for our coming e-book on The 7 Steps to becoming a Successful Property Investor. A downloadable guide complete with check lists and helpful hints and tips.

Are you looking to start your property investment journey? Do you need to talk to someone, crunch some numbers… bounce some ideas? Chris is here any time for an informal chat on your situation, give you some guide lines and let you know your capabilities, if your considering a future in creating wealth through property; then call Chris today! 0434 449 455

To Invest or Not to Invest?

To Invest or Not to Invest?

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To Invest or not to invest

This is the question I get asked by my clients all the time….

When is the right time to invest?

Is there going to be a property correction?

Will I lose all my hard-earned money?

We are in a property bubble!

The banks are not lending any money to investors!

The Property market is overheated!

Invest

The above are often headlines in the newspapers, scare mongering, the sky is going to fall in and we will sail right off the edge of the world……. As we all know the media loves a good headline stating the horror of what is about to take place.

What you need to do is take a step back and take an overview of the current property market. Like all investments there are times of boom and bust, or as I like to say opportunity. This is where you do your own research or taking on research that others have done, be careful as some companies do research to sway you into a property sale, so make sure you trust the person that is giving you the information.

In Australia, it is such a big place that there are many different markets. For example, there is the Sydney market and within this market there are suburbs and even streets with different market conditions and you need to understand supply and demand for each area. This market it totally different to the Queensland market and Victorian market. Like lots of the commentary around the country Sydney has been the hottest market and is coming to the top of its cycle, however there are still opportunities and advance strategy deals you can do; but you need deep pockets as the prices are so high – with the medium house price now above $1,000,000. Then you have Brisbane market where the medium house price is just above $500, so there are still opportunities to buy great properties close to the CBD or in large growth areas.

Invest

You then need to look at the market and do your research and look at your budget, which city in Australia is going to go next? Sydney traditionally goes first, then Melbourne, Brisbane and Adelaide. Western Australia, Tasmania and Northern Territory tend to move depending on external factors such as mining, tourism or some big infrastructure project. So timing is the key, if you are looking to buy an owner occupied property then a whole lot of other factors come into play, but I’m only talking about investment properties.

There is always time and opportunities to invest, and if you do an advanced strategy investment, such as a dual occupancy property, duplex, splitter block, small lot subdivision or mini development then it is always the right time to invest. If you are buying and holding for the long term then the decisions you make when you first invest are crucial to get faster equity uplift.

Do your research, use trusted parties and form a team of experts that can get you on the right track. Swim against the current and look for those opportunities, know your numbers and borrowing capacity (especially now that the banks have been changing the rules). As always – I am happy to chat about your property goals and current projects, a friendly ear to run your ideas past or to help with any finance deals or property purchases, talk soon.

Cheers Chris

The Results are IN! $1,650,000 in Profits for our Clients in the Last 2 Years!!

The Results are IN! $1,650,000 in Profits for our Clients in the Last 2 Years!!

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As many of you know – I love property and I love to practice what I preach. So I’m going to share with you a little about me and my property portfolio over the last 18 months. I have completed two duplexes and have just received approval for my third. Without blowing my own trumpet, this is pretty amazing considering I separated from my wife and later divorced in 2014; this was following a business break up back in 2013 and if anyone has been through either – you will know what I mean when I say it totally cleaned me out and I to start again.

So how did I get back into the game? Luckily, I had a strong business mind and have an excellent back ground in finance and real estate. I also had a loyal following of existing clients who I have cared for and nurtured for 10 years plus. I set up Blue Wave Property Strategies 18th February 2013 and made things move very fast. Web pages, logos, business cards and a cheap database system called Mailchimp. I was off and running and it was hard, but in the next 18 months I saved enough deposit to purchase my first duplex.

The first duplex was in Bli Bli, a suburb of the Sunshine Coast in the estate of Park Lakes 2. It is a small duplex consisting of a three bedroom, two bathroom and a single lock up garage; the second unit is two bedroom, one bathroom and a single lock up garage. The purchase price for the land and the building was $650,000, that included all the strata titling. The rental appraisals for the completed duplex was $800 per week. This is a 6.4% yield so financially it was going to take care of itself. I still own that duplex today and now that I have two titles the property is worth more than the single title. I have had valuations on the two units and they have come back at $400,000 and $330,000 giving an uplift of $80,000. No bad for 12 months! That is more than an average salary! Well in reality I don’t have the cash in the bank until I sell one or both of the units, but between you and me I’m looking at selling the smaller unit for $370,000, so I have made more than $100,000 on this deal.

The second duplex was started about 6 months after the first and was a joint venture (JV) between my mum and myself. Mum supplied the capital and I have the serviceability. The property is located at Palmwoods in the Sunshine Coast hinterland and is walking distance to the centre of town. This one was a large duplex more like two house size units, there is also no common wall (2 free standing properties) as the block is a massive (923sqm). These units are both over 200sqm each. This one cost $800,000 for the land, build and strata titling. Now originally we had rental estimates of $450 per week but now as we come to completion, the properties are being advertised for $500 per week each. That’s a whopping $1000 per week or $52,000 a year. This is also a 6.5% yield on the property….. not bad. Now we are looking to sell one of these and keep one just to add some capital to the back into the piggie bank. We are looking a listing one of the units for sale for $500,000 so this one is going to roughly have about $200,000 profit or equity uplift.

Now I have just been approved for my third duplex, doing this one again with another JV partner where we are sharing the deposit and the serviceability of the loan. This duplex is being purchased for $715,000 for the land and the build including the strata titling. We have had rental appraisals come back for $420 per week each side giving $840 per week or $43,680 per year. This gives a 6.1% yield. We have also had sales appraisals for this one at $420,000 each side – so a total sale price of $840,000 – that’s $120,000 profit or uplift! The strategy for this one is to sell it when completed so as JV partners we will both take profits. I expect this property to be finished in 6 months.

So over the period of two years the uplift or profit on my property portfolio is looking at being approximately $400k…… not too bad!! All of these properties have been purchase in company trust structures for asset protection and profit distribution, as I said I practice what I preach.

Other examples of my clients property returns are;

Duplex purchased for $680,000, new valuations 6 months after being completed came back at $430,000 each side – so now total value of property is $860,000 giving the client $180,000 uplift or profit if he was to sell the units. This was done inside 12 months.

Duplex purchased for $540,000, had a valuation done 18 months after construction which came back at $695,000. Giving $155,000 uplift or profit. I have another client also who purchased one of these so they too would be making the same uplift.

I have another 4 clients who also purchased in Bli Bli at Parklakes 2. With their duplexes all being similar to mine – they would also have about $1000,000 uplift in their duplexes, they just have not wanted to revalue them as yet and not looking to sell them any time soon as they are such a cash cow for them.

Another 3 clients joined me in purchasing duplexes in Palmwoods, the builds are coming to completion and we are expecting anywhere from $100,000 to $180,000 uplift on  each of these properties.

So tallying all these properties up; the uplift in property values for both myself and my property investors has increased by a whopping $1,650,000. Now that is creating wealth through property investing!! If you want to come and learn and play the property game give me a call 0434 449 455, I am more than happy to share my strategies and create one for you. The money is there to made, you just have to learn how.

Cheers Chris

The Smart Investor Swims Against the Current!

The Smart Investor Swims Against the Current!

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Are you a smart investor? Or do you follow the herd of sheep – or maybe you are a fish mindlessly swimming along with the current? I want you to start thinking like a shark, going against the current, being the top predator and ruling the ocean, or in this case the property market.

Smart investor

When the market changes the smart investor will look at opportunity. They see gold where the other investors see dirt. Where other investors pull out of the market, by fear, new regulations, the media, so called experts, all creating a monster. Now is the property market ever going to completely disappear? I don’t think so. But buying an off the plan unit in Sydney at this point in time might not be the best option. However buying a property in Sydney where you have the possibility to add a granny flat could be a great investment as you are adding secondary income to help pay for the high purchase price of a house in Sydney.

You still have to do your research with any property investing.

Currently we are seeing the banks and the regulator, trying to stop the fuel of investment lending in Australia by enforcing regulations in regards to investment loans. They are forcing the loans to be principle and interest repayments over interest only repayments and they are also making the loan to value ratios (LVR) higher for investment loans so you need larger deposits. They have increased serviceability so on the banks calculators you need to earn more income to purchase an investment property. What does that mean for the investor?

By slowing down investing – this provides opportunities as there are less investors in the market which in turn will see rents increase as there will be less investor supply. Remember we need about 150,000 new dwellings a year to be built to keep up with the demand and the population growth and usually they all want to live in cities. So if you are still in the position to be able to invest then the best time to do so is when everyone else is backing off. The smart investor will take advantage of this down turn by realising that not only will there be more stock available to purchase but they are going to get higher rental returns.

Other opportunities might be better terms to purchase such as longer settlements, where you could gain early access to the property to do renovations or add value even before settling on the property. Vendors might offer vendor terms such as 10% vendor finance on the property or the builder might feel the pinch and offer better prices or supply better fixtures and fittings in the house at the same cost. There are definitely some benefits offsetting these bank limitations out there if you do your research.

As always if you are looking for an advance strategy deal, which is generally what the smart investor will look for; such as a duplex or dual occupancy property, small lot subdivision, strata title of a unit block, or building of a granny flat on the property; these are all going to add either equity uplift, capital growth, rental return or all.

So, become the smart investor and swim against the current and make your property portfolio sing! If you are confused about your investing and don’t know where to start call Blue Wave Property Strategies on 07 5443 8773 or drop us an email HERE and arrange a free Property Check-up.

Photo credit: RLHyde via Visual Hunt /  CC BY-SA

 

 

Change The Way You Buy Investment Property!

What Type of Investment Property Should I Buy?

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investment property

Often when speaking with my clients, one of the first questions they ask is “what is the best investment property to buy?” This will depend on you the client and what your goals and investment strategy are. Some people are looking for cash flow as they don’t have a lot of spare money each week to top up the investment, others have surplus income and have the ability to top up the investment.

People will buy for capital growth alone and others will buy for cash flow, some of Blue Wave’s clients like to add value and force the capital growth from day one. This is one of my favorite approaches; such as building a duplex – where you start out with one property and on completion you strata title them and end up with two properties which are of course worth more than the single property.

duplex_construction

The property market and the demographics are also going to help you make the decision on what is the right investment property for you to own. If you are looking at property in the inner city then your demographic is probably not going to be a 4 person family with mum, dad and two kids, so investing in a 4 bedroom house in this area would not be the best idea. However investing just a couple of km, out from the city centre in an affluent blue chip area might be the way to go. The price might be higher and your rental return might be under 5% yield so not a great option for cash flow but excellent for long term growth.

For Rent

If fast tracking your investment is what you prefer – then doing an advanced strategy project where you build a duplex, dual occupancy or maybe a splitter block – will be a better idea, this will allow you to add value from the completion of the project. It does require a little more cash initially than the standard house & land or unit, however at the end you could be accessing the equity and be able to pull out your full deposit giving you a 100% return on your money within 12 months.

investment-propertyWhen first starting out you need to know your numbers and what your budget is, this will affect the type of property you purchase. You will need to look at the tenancy possibilities, what sort of tenant you want and what is the highest yield you can achieve. Look for employment opportunities, infrastructure projects and what your target tenant is going to want when the property is complete or when looking for an existing property.

There is no one mold that fits everyone and the type of property and area will vary depending on your goals, desires, dreams and aspirations. If you want to have a talk with someone about what type of property would suit you and knowing your numbers then don’t hesitate and give Blue Wave Property Strategies a call and let us help you Ride the Wave to Wealth