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

Download How To Perform In The Brisbane Market By Not Buying Brisbane CBD

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

With David Hows - Real Estate InvestarIan Thompson - One Agency

We help investors build and manage their property portfolios

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In partnership with

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Real Estate Investars tools

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Master class webinarsDesigned 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.

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Todays webinarWe review the Brisbane unit market and review CBD vs. CBD Fringe We review two boutique projects that offer excellent fundamentals and prospects for solid long-term returns.Growth performance: These 2 suburbs have outperformed Brisbane CBD capital growth rates by 190% and 300% respectively over the past decade.Location: Only 12-16km (10-15 minutes) from Brisbane CBD.High market demand: These 2 suburbs have recently had 54% and 212% respectively more demand for 2-bedroom unit rental stock, than Brisbane CBD.

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Todays webinarLarge floor plans: 2 bed, 2 bath units with up to 131sqm of total unit/balcony/courtyard area.Cashflow: 5% yields and $2,000 - $3,000 positive cashflow after tax from year 1 onwards for typical investors.Boutique size: Only 24-27 units, in 3level developments, with garage/basement car parking.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.

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General adviceReal 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.

Maximise audio qualityPlease ensure your speakers are on, volume is up and not on mute.You can test your audio in the control panel of the Go To Meeting software, under audio preferences.If you cant hear us yet, please ensure your speakers are on and turned up.TURN OFF: Outlook, Skype, online back-ups and any music or video downloads.Faster internet = better quality audio.

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Audience pollWhich property investment category are you in?

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Introducing Ian ThompsonSpecialises 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.

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One AgencyAustralias 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. Its 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

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Big Picture:Across the nation

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

Investor lending still growing

Unit rental yields risingAustraliasState of the Market Report 2015 Dr. Andrew WilsonSenior Economist for the Domain Group

Dr. Andrew WilsonSenior Economist for the Domain Group

Vacancy rates lower in Sydney /Melbourne

Dr. Andrew WilsonSenior Economist for the Domain Group

Brisbane CBD warning signs

Dr. Andrew WilsonSenior Economist for the Domain Group

Melbourne population surging

Dr. Andrew WilsonSenior Economist for the Domain Group

Sydney still growing but slowing

Dr. Andrew WilsonSenior Economist for the Domain Group

Brisbane units vs. houses oversupply

Dr. Andrew WilsonSenior Economist for the Domain Group

Audience pollWhich city are you investing in next?

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Big Picture:The Brisbane Market

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Solid Price growth as rates fall State of the Market Report 2015 Dr. Andrew WilsonSenior Economist for the Domain Group

Solid Brisbane revival continuesThe 2015 Brisbane housing market recorded 5.9% house price growth over 2014. This compares to 5.1 percent over 2013. Brisbanes 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. State of the Market Report 2015 Dr. Andrew WilsonSenior Economist for the Domain Group

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

Brisbane suburban forecast 2015

A comparison:Brisbane CBDYerongaMt Gravatt East

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Brisbane suburban forecast 2015

Brisbane vs. Yeronga & Mt. Gravatt East

Brisbane CBD 10-year growth: 19%

Mount Gravatt East 10-year growth: 56%

Yeronga 10-year growth: 76%

Brisbane vs. Yeronga & Mt. Gravatt East

10 yr. Growth 19%10 yr. Growth 76%10 yr. Growth 56%

Rental demand - Yeronga Supply 15 Demand 260Demand excess: 17x

Rental demand Mount Gravatt East

Supply 11 Demand 520Demand excess: 47x

Rental demand - Brisbane

Supply 134 Demand 180Demand excess: 1.3x

Brisbane vs. Yeronga & Mt. Gravatt East

10 yr. Growth 19%Demand excess: 1.3x 10 yr. Growth 76%Demand excess: 17x 10 yr. Growth 56%Demand excess: 47x

Buyer demand mirrors rental demand

Brisbane tenants are younger

Audience pollWhich suburb would you choose to invest in next?

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Project review:Yeronga

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Big pictureLocationFundamentalsProjectFinancials

Project review

Boutique 27 unit project3 levels20 sold / under contract.2 bed / 2 bath / 1 car unitsConstruction completedWell locatedBig picture

Well located to servicesYeronga is one of the most sought after suburbs in Brisbanes 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 Brisbanes 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 - $503kRent $470-$490 p/wk After tax cashflow $2,000 - $3,000 p.a.7 available to REI clientsEOI with $1,000 holding depositThe 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 - $503kRent $470-$490 p/wk After tax cashflow $2,000 - $3,000 p.a.

Floor plan example Unit 2

Floor plan example Unit 6

Floor plan example Unit 10

Key investor features Cost per sqm: $3,700-$5,000 vs. $6,000-$9,000 in CBD Generous kitchen, living & balcony spacesSecure gated parking for all unitsLifts to all floorsDistance to CBDTransport hubs trains/busesEducation / dining / shoppingBorders Fairfield and Highgate Hill high growth/premium suburbs

Project reviewMount Gravatt East

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Big pictureLocationFundamentalsProjectFinancials

Project review

Boutique 24 unit project3 levels11 sold / 8 reserved/under contract2 bed / 2 bath / 1 car unitsConstruction completedWell locatedBig picture

Mount Grava