how to perform in the brisbane market by not buying brisbane cbd

Master Class:How To Outperform In The Brisbane Market By Not Buying Brisbane CBD

With David Hows - Real Estate Investar

Ian Thompson - One Agency

We help investors build and manage

their property portfolios

In partnership with…

Real Estate Investar’s tools

Master class webinars• Designed to share knowledge.

• Desire to provide extra value to our clients.

• Great for both new and experienced investors.

• Plenty of opportunity for Q&A.

• We will run these regularly throughout the year, and sometimes involve our partners to provide additional insight.

Todays webinar1. We review the Brisbane unit market and

review CBD vs. CBD Fringe

2. We review two boutique projects that offer excellent fundamentals and prospects for solid long-term returns.

3. Growth performance: These 2 suburbs have outperformed Brisbane CBD capital growth rates by 190% and 300% respectively over the past decade.

4. Location: Only 12-16km (10-15 minutes) from Brisbane CBD.

5. High market demand: These 2 suburbs have recently had 54% and 212% respectively more demand for 2-bedroom unit rental stock, than Brisbane CBD.

Todays webinar6. Large floor plans: 2 bed, 2 bath units with up

to 131 sqm of total unit/balcony/courtyard area.

7. Cashflow: 5% yields and $2,000 - $3,000 positive cashflow after tax from year 1 onwards for typical investors.

8. Boutique size: Only 24-27 units, in 3 level developments, with garage/basement car parking.

9. No off-the-plan risk: These 2 projects have recently been completed and are 30-50% sold and occupied. You can inspect and see exactly what you are getting.

General advice

Real Estate Investar provides general investing information only without taking into account any particular person's objectives, financial situation or needs.

Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs.

We recommend investors obtain financial and legal advice specific to their situation before making any financial investment or insurance decision.

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Audience poll

Which property investment category

are you in?

Introducing Ian Thompson• Specialises in working with property

investors.

• 13 years industry experience.

• Understands greater Brisbane market.

• Not employed by a franchise big-brand.

• Focused on long term customer loyalty through excellent service.

One Agency• Australia’s fastest growing real estate

group.

• One Agency Principals are all well-known and respected real estate professionals who operate their own operation, without the constraints of belonging to a big franchise.

• It’s their name on the company; this translates to far greater care and attention for clients as well as a greater incentive to achieve premium results.

“We are not a franchise operation, but rather an

innovative, cohesive real estate group which enables driven agents

to successfully establish their own agency free

from the classic constraints, costs and

complexities of a franchise system”

Big Picture:Across the nation

Solid price growth as rates fall

State of the Market Report 2015 Dr. Andrew WilsonSenior Economist for the Domain Group

Solid price growth as rates fall

• Australia’s capital city housing markets have generally commenced 2015 on the front foot despite ongoing underperformance from most local economies.

• 2014 was a year of divergent house price growth.

• Sydney remained the tear-away leader with results in that market remaining at decade-high, boom-time levels.

• House price growth in Melbourne, Perth, Hobart, Darwin and Canberra declined over 2014 to be notably less than that recorded over the previous year.

• Adelaide and Brisbane improved on their previous year growth outcomes, reflecting the relatively late entry to the growth cycle by those markets.


Investor lending still growing

Unit rental yields rising

• Australia’s


Dr. Andrew WilsonSenior Economist for the Domain Group

Vacancy rates lower in Sydney /Melbourne


Brisbane CBD warning signs


Melbourne population surging


Sydney still growing but slowing


Brisbane units vs. houses oversupply


Audience poll

Which city are you investing in next?

Big Picture:The Brisbane Market

Solid Price growth as rates fall


Solid Brisbane revival continues

• The 2015 Brisbane housing market recorded 5.9% house price growth over 2014. This compares to 5.1 percent over 2013.

• Brisbane’s housing market revival was late compared to most other capital city housing markets, which were driven by the sharp cut in interest rates in 2012-13, but it is now squarely on track.

• Prices growth has been particularly solid in the mid to upperprice ranges in inner and middle ring suburbs.

• Activity in outer suburban budget priced suburbs, however, has continued to be subdued with high listing numbers and continued concerns over unemployment and job security constraining buyer confidence.


Brisbane housing market outlook

• Lower interest rates will fuel rising buyer confidence with the prospect of increased investor activity for houses driven by relatively high yields, rising rents, low vacancy rates and rising prices.

• Buyer activity will remain robust in mid to upper price ranges with the budget market improving with recent early signs of an upturn in the local economy.

• Brisbane median house prices are set for another solid result through the balance of 2015, rising again by between 5 and 7 percent, which will likely be only behind Sydney in terms of capital city performance.

Brisbane suburban forecast 2015

Brisbane mid-market will lead

A comparison:Brisbane CBD

YerongaMt Gravatt East

Brisbane vs. Yeronga & Mt. Gravatt East

Brisbane CBD 10-year growth: 19%

Mount Gravatt East 10-year growth: 56%

Yeronga 10-year growth: 76%


• 10 yr. Growth 19%



Rental demand - Yeronga

• Supply 15

• Demand 260

• Demand excess: 17x

Rental demand – Mount Gravatt East

• Supply 11

• Demand 520


Rental demand - Brisbane

• Supply 134

• Demand 180

• Demand excess: 1.3x



• Demand excess: 1.3x





Buyer demand mirrors rental demand

Brisbane tenants are younger

Audience poll

Which suburb would you choose to invest in

next?

Project review:Yeronga

• Big picture

• Location

• Fundamentals

• Project

• Financials

Project review

• Boutique 27 unit project

• 3 levels

• 20 sold / under contract.

• 2 bed / 2 bath / 1 car units

• Construction completed

• Well located

Big picture

Well located to services• Yeronga is one of the most sought after suburbs in Brisbane’s Southside.

An inner-city suburb along the Brisbane River and less than 6km to the CBD.

• This suburb is highly sought after by families and working professionals, who desire a combination of riverside living and perfect conveniences.

• Located within walking distance to major shopping centres and public transport and the Yeronga Train Station, minutes to the Brisbane’s Corso, Metropolitan South Institute of Tafe and University of Queensland.

• It is also surrounded by multiple schools, parklands and nearby to the ever popular Brisbane Golf Course.

Surrounding area

• 94 -131 sqm

• $473k - $503k

• Rent $470-$490 p/wk

• After tax cashflow $2,000 - $3,000 p.a.

• 7 available to REI clients

• EOI with $1,000 holding deposit

The numbers

42.6% IRR (return p.a.) on 20% deposit

Solid growth and cashflow

10 year cashflow and growth

Units secured for REI clients

• 94 -131 sqm

• $473k - $503k

• Rent $470-$490 p/wk


Floor plan example Unit 2

Key investor features • Cost per sqm: $3,700-$5,000 vs.

$6,000-$9,000 in CBD

• Generous kitchen, living & balcony spaces

• Secure gated parking for all units

• Lifts to all floors

• Distance to CBD

• Transport hubs – trains/buses

• Education / dining / shopping

• Borders Fairfield and Highgate Hill – high growth/premium suburbs

Project reviewMount

Gravatt East

• Big picture

• Location

• Fundamentals

• Project

• Financials

Project review

• Boutique 24 unit project

• 3 levels

• 11 sold / 8 reserved/under contract

• 2 bed / 2 bath / 1 car units

• Construction completed

• Well located

Big picture

Mount Gravatt East

• ‘The Residences, Selborne’ have been designed and built to a meticulous standard, only after selecting the ideal location.

• Only 10 minutes to the Brisbane CBD, less than 5 minutes to Westfield Garden City shopping town or Griffith University, a walk to the famed Mount Gravatt scenic outlook with the best view on the south side of Brisbane, the exciting showgrounds that hold markets on weekends, the local shopping centre, and more.

• The bus line to the CBD is metres away and the Pacific Motorway connecting the Gold and Sunshine Coast is a mere 5 minute drive from home.

Surrounding area

• 94-111 sqm

• $474k - $486k

• Rent $480-$500 p/wk


• 7 available to REI clients

• EOI $1,000

The numbers

32.1% IRR (return p.a.) on 20% deposit

Solid growth and cashflow

10 year cashflow and growth

Key investor features

• Cost per sqm: $4,400-$5,050 vs. $6,000-$9,000 in CBD

• Generous kitchen, living & balcony spaces.

• Secure gated parking for all units.

• Lift to all floors

• Distance to CBD

• All units are top floor.

• Generous 3 metre stud height


• 94-111 sqm

• $474k - $486k

• Rent $480-$500 p/wk


Secure basements

Audience poll

Are you thinking of investing in one of

these projects?

Summary

• New stock recently constructed

• Well priced and generous sizes

• Large % sold and/or settled already

• Valuations have supported purchase prices

• Your can see what you are buying – no surprises

Purchase process

• Submit an EOI & $1,000 holding deposit.

• Buyers are welcome to do pre-inspection of properties.

• Contracts issued within 7 days.

• Minimum 5% deposit payable upon signing of contracts

• Settlement within 30-45 days.

Bonus investor pack for REI purchasers

• All buyers will receive the following $5,588 investors pack;• Depreciation report valued at $715• 2 years Real Estate Investar Membership valued at $2,376• $1,000 cash towards conveyancing costs• $500 cash towards the cost of the finance application/valuation fees• $997 Tax structure review and property portfolio analysis strategy

session at Lee & Lee Accountants.• Total $5,588

Tax structure review valued at $997

• Review & discuss your current property & tax situation

• Your asset protection strategy. What is your risk profile? High ..medium ..low

• Structuring your next investment property. In whose name should it be?

• Planning to legally minimise your tax position or just to explore the possibilities

• Is your Self-Managed Super Fund ready to acquire a property with limited recourse loans from lending institutions or yourself

Next steps to secure an opportunity

• Download information pack;• Project information• Floor plans• Stock/price list• EOI – expression of interest form.

• Fill in with details preferred unit # and scan/email.

• $1,000 holding deposit.

http://info.realestateinvestar.com.au/oneagency



Q&A Session

• Download information pack;• Project information• Floor plans• Stock/price list• EOI – expression of interest form.

• Fill in with details preferred unit # and scan/email.

• $1,000 holding deposit.


