The Most Successful Property Investing System

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The Most Successful Property Investing System Explained covers how we source land, design a home to suit and complete the project with low risk and strong returns. 

The following is an actual property that we sourced, built and rented out and monitor. It is typical of the type of brand new investment properties we create for our customers. 

The system I have developed over the past 10 years has been successful 100% of the time with no exceptions and regardless of the market conditions.

The steps below follow the progress of a real-life example, including costs and outcomes.

Identify Suburbs Showing Signs of Growth

The first step in selecting a location to build a brand new investment property is to identify a suburb that is showing signs of Growth. It’s important that we can identify actual real signs of growth rather than speculating as this reduces the risk.

The only way to do this is to know the Brisbane Property Market and get out there to see for yourself what is going on.

Investment Property Advisors

Golden Rules of Property Investing

There are 2 absolute golden rules to property investing that we adhere to in order to maximise return on investment and reduce the risk associated with any type of investment. 

  1. The first golden rules covers position of the property in relation to the local capital city. Distance to CBD. When ever these is a change in the local property market, it affects property values in 2 ways. If the tend is for property values to increase then it will affect the suburbs closest to the Brisbane CBD. If property values are decreasing it will firstly affect properties further out from the CBD. 
  2. The second golden rule of property investing is, Distance to Water. Water weather it is the ocean or a river, increases the value of a property. Why ? Because there is a higher number of potential buyers and tenants who will always seek a property close to a water way system of some type, therefor increasing market pressure, which in turns increases the value and return of a property. 

Location Identified Victoria Point

Research and Physical Inspection showed that Victoria Point was showing signs of growth. There are 16 estates slightly inland with most being sold out. may people in Brisbane are choosing to live close to the water rather than close to the CBD.

Stats

  • Median 4 Bedroom House Price - $530,000.00

Why Buy New

Why invest a new property compared to an established home ? 

There are many reasons a brand new property is the preferred investment option over an established property. 

  1. A brand new investment property has greater tax deductions than an established house. The major differences between the 2 is depreciation. Depreciation is in relation to new investment properties and is a tax deduction that allows property owners to offset their investment properties reduction in value from their taxable income. Read More
  2. A new house and land package of the type described in this system can easily generate "Instant Equity", which means its value on completion is more than the cost of the house and land package.
  3. A new property will always have a higher demand from tenants which reduces the vacancy rate. 
  4. A new property generally comes with a 6 year warranty which means the builder will rectify any problems with the property and its fittings during the warranty period. 
  5. Less maintenance, a new home demands a much lower level of maintenance and repairs than an established property. 

Source Unique Land

Rather than source a block of land in one of the estates where competition for both tenants and when the time comes Buyers will be high, we look for boutique estates or infill blocks of land.

Stats

  • Land Sale Price - $289,000.00
Successful Brisbane Property Investing

Why Infill Blocks and Boutique Estates

There are two significant reasons we target infill blocks and small boutique estates. The first reason is market competition. As an example lets's say you are considering investing in the Pimpama region. The price is good but right now there is 324 homes for sale in the suburb and over 6 new estates coming on line. When your new investment property is complete and ready to rent out, your are competing with 150 homes, all less than 5 years old. This is low demand which converts to high vacancy periods and reduced returns in order to get the property rented out. 

Compare this to a property in Victoria Point where there is only 5 other new homes available to purchase and 3 similar properties to rent. 

It's all about demand. A property in a big estate is always going to have a lower lever of demand in regards to both renting it out and when the time comes, selling and is a part of our risk reduction strategy. 

It's very important to source land that is located in close proximity to more expensive properties as their average price will increase the value of the property we are creating. In this case the house to the left was valued at over $1million and the house to the right, $850,000.

Neighbouring Properties

It’s very important to source land that is located in close proximity to more expensive properties as their average price will increase the value of the property we are creating. In this case, the house to the left was valued at over $885,000 and the house to the right, $850,000.

Stats

  • Property Left - $885,000
  • Property Right - $830,000

House Design

The house design is very important, it must blend in with the houses in the street. It must appeal to a wide range of tenants and when the time comes it must also appeal to a wide range of potential buyers. 

4 bedrooms 2 bathrooms dual living areas with double lockup garage is the standard format. Air conditioning in the master bedroom and main living area with ceiling fans in all other rooms. 

Stats

  • House & Land Package Price - $495,000
Successful property investing house design

Appeal

When ever you create a new property you must design and style it to appeal to a wide range of potential tenants and buyers. 

It must also match the homes in the street and the suburb. 

By following this principle you will appeal to a wide audience which increases demand which then increases returns and decreases vacancy periods and time to sell. 

All our properties follow a very strict formula which has been refined over many years.  4 Bedrooms, 2 Bathrooms, try to have master bedroom at opposite end of house to rest of the family, dual living areas, double lockup garage that can accomodate 2 large cars and air conditioning in to master living area and main bedroom, ceiling fans through out the house. 

successful property investing return

Costs & Returns on Investment

It is very important to produce a property under the median house price for the suburb and then well under the median house price for the street whilst producing a very high-quality build. 

The return is very important as well, there is no point investing money if it is not going to give you a strong return on investment. 

Stats

  • Rental Estate range $480 - $510 per week
  • Return on Investment 5.00%

Build It

The final stages are to build the property as fast as possible to the highest standard.

For this reason, we use one builder who not only consistently produces the highest quality homes, we never have callbacks after the property is completed and they offer a 6-year warranty.  

Stats

  • Build time 12 to 16 weeks
successful property investing build
successful property investing competed

Rent It

Getting the property rented out as fast as possible is important. Its an investment property designed to pay for itself but that only works if the property is rented out as soon as possible after completion. 

Investate work with a small number of property managers who each specialise in their own region of Brisbane. 

One month before completion we are starting to advertise the property and as the property gets closer to final hand over we are providing the property managers with more information and images as well as full 3d virtual tours. 

Stats

  • Actual Rent Achieved - $490 per week
  • Cash Flow Positive
  • Tenants have just signed another 12 months

Monitor

In addition to the property managers now taking care of the property, we continue to act on your behalf and monitor the property ourselves. 

Even though you purchased the property and you own it, we still consider all these homes ours and we are proud of every one of them 

For that reason if you need anything you can always call us here and we will take care of it for you. 

Stats

  • Estimated Value $580,000.00

source corelogic Feb 2019

successful property investing monitor
Successful Brisbane Property Investing

Would'nt You Rather

Wouldn’t you rather have a unique investment property like this, nestled in between 2 very expensive house in an established street in an established suburb? 

Stats

  • Bedroom Homes for rent in Victoria Point = 15
  • 4 Bedroom Homes for Sale in Pimpama = 73

source realestate.com.au Feb 2019

Or Would You Rather

Or would you rather have an investment property in a location like Pimpama where there are hundreds of homes being built, that is being sold to you based on the commissions an agent will receive rather than the financial outcome you will receive.

Stats

  • 4 Bedroom Homes for Rent in Pimpama = 85
  • 4 Bedroom Homes for Sale in Pimpama = 275

source realestate.com.au Feb 2019

successful property investing compare

The property and the numbers in this actual case study are true and correct. Pricing and statistical information have been derived from Realestate.com.au and CoreLogic which are publicly available sources of property information.

Have a Walk Through of the Finished Home

Real Examples of the most successful Property Investing System

As a Brisbane Buyers Agent, my work takes me all over Brisbane where I often come across land in strong locations at a good price, located in either small boutique estates or infills blocks that are guaranteed to outperform the market no matter what the current conditions.

Get In Touch

If you are interested in working with us or just want to find out more, then please drop us a line, we are more than happy to dices our services with you..

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Brisbane, Queensland 4000, Australia

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