[On-Demand Webinar] Dual Income Investment Opportunities
1. Dual Income
Investment
Opportunities
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3. • Heads up membership services
team at Real Estate Investar
• Team of 4 Portfolio Managers
• Supporting 2,800 members
• Manages Premium memberships
Logan Horstead
5. • 2,800 current members
• Mix of personal users, brokers,
buyers agents and accountants
• 250,000+ members use us for
market information, calculators,
investment news and updates
Real Estate Investar
6. ASX:REV
• Heavy investment in product
• Public company governance
• Strong and focused board;
• Simon Baker – Former CEO of REA
• Anthony Catalano – CEO of Domain
8. 1.9m
Australians
1 Property
2-4 Properties
5+ Properties
• Pays shortfall for
5 years+.
• Eventually sells
and pays down
personal debt.
• No retirement
income.
• Strategy &
numbers.
• Self funding
portfolio.
• $100-$250k+
passive income in
retirement.
• Has high income
or buys every few
years.
• Freehold in
retirement.
• Min. retirement
income.
Source ATO/ABS
3 levels of Property Investment
9. 1.9m
Australians
1 Property
1.4m
73%
2-4 Properties
470,000
25%
5+ Properties
30,000
2%
• Pays shortfall for
5 years+.
• Eventually sells
and pays down
personal debt.
• No retirement
income.
• Strategy &
numbers.
• Self funding
portfolio.
• End up freehold
• $100-$250k+
passive income in
retirement.
• Has high income
or buys every few
years.
• Freehold in
retirement.
• Min. retirement
income.
Source ATO/ABS
What level are you aiming for?
11. Why dual income properties?
• Increased rental income
• Generally the same price bracket as
single dwelling properties
• Reduced exposure to risk of vacancy if
one tenant decides to leave you still
have income
• Capitalise on higher rates of
depreciation
• Potential to create equity uplift on
completion
• Can live in one side and rent the other
12. House strategy
• A purpose built single home on single
lot
• Widely accepted by all Town Planning
Schemes
• Building regulations are Code
Assessable
• Finance up to 95% LVR
• Can be valuations issues if dwelling or
lot is too small
13. House strategy
• Price point $350,000-$550,000
• Yields 4%+
• Some equity gain possible during
construction
• Entry point for first construction deal
• Important to buy in the right area (in-fill)
and estate
14. House example
• Price point $455,000
• 4 bed 2 bath 2 garage
• Werribee, VIC
• Yields 4.9%
• Some equity gain possible during
construction
• Stamp duty $15,332
• Appraised rent at $420-$440
17. Dual living strategy
• A purpose built house with two separate
dwellings internally
• Cannot strata
• Town planning limited
• Building regulations same as duplex
• Finance similar to a house but better
cashflow up to 95% LVR
18. Dual living example
• Price point $486,900
• 4 bed 2 bath 1 garage PLUS
• 1 bed 1 bath 1 garage
• Collingwood Park, QLD
• Yields 5.8%
• Some equity gain possible during
construction
• Stamp duty $16,747
• Appraised rent at $550
19. Dual living example
• Two separate dwellings entrances
minimizes cross over with tenants
• Each dwelling has its own garage
• Main dwelling has all the bedrooms
away from the common wall
• Presents like a house
• As its not detached you can build on a
smaller lot
23. Duplex strategy
• Purpose built two dwellings on one
property
• Strata title upon completion to obtain
2 dwellings
• Attached or detached
• Higher density zoning required
• Finance up to 90% LVR (half 80%
half 90%)
• Potential to create equity after strata
titling
24. • Price point $790,000
• 3 bed 2 bath 1 garage PLUS
• 3 bed 2 bath 1 garage
• Thornton, NSW
• Yields 5.5%
• Stamp duty $31,361
• Appraised rent at $840-$880
• Appraised value after titling $880,000-
$940,000
Duplex example
25. • Separate driveways for each dwelling
• Each dwelling has its own garage
• Good layouts keeping the bedrooms
away from living spaces in other
dwelling
• Presents like two separate houses
• Corner block allows for more desirable
design
Duplex example
30. Type of investor
H&L Dual Living Duplex
- Low deposit looking to get
into a deal
- Looking for med to long
term capital gain
- First land and construction
deal
- Low income with minimal
serviceability
- First home buyer to rent out
secondary dwelling to an
investor
- Negative geared property
portfolio
- High income looking for
equity
- Turbo charge portfolio with 2
strata titled properties
- High income needing
deductions
- High borrowing capacity
- High deposit required up to
20%
- More experienced property
investor who has done a land
and construction deal
- Looking to recycle deposit
and move onto another deal
on completion
42. • We only work with reputable builders
• Have proven themselves to be
reliable, quality builders
• Have proven in-house construction
management system
• Standard pre-negotiated build contract
terms
• 16 to 20 weeks
• Liquidated damages
• Fixed price
• Turnkey
Builders
46. Common investing challenges
• Don’t have the time
• Don’t have the knowledge or
confidence
• Can’t find the right investment
property
• Not sure what to buy
47. Options to overcome challenges
• Engage a buyers agent
• Engage an educator / mentor
• Attempt to do it yourself anyway
• Don’t do anything
48. Issues to consider
• Will you get the right investment
property given your
circumstances and goals?
• Are you guaranteed an
outcome?
• What are the risks?
• Will you be able to identify
potential issues if you are not
aware of the signs?
49. Introducing the REI Premium Service
• Full service to assist you into your next
investment property
• Property acquisition plan that will tell you
what you can purchase and what you
should purchase based on your financial
circumstances and goals
• Purchasing plan to include acquisitions
across, house & land, dual living, duplex,
apartments and townhouses
• 48 hour first option on all new release
property deals Australia & NZ
Finance &
Professional
Services
Property Deals
Service
Investor
Platform &
Information
50. Introducing the REI Premium Service
• REI Pro Membership for 12 months
including setting up all of your existing
properties into Portfolio Manager
• Dedicated Portfolio Manager to assist you
every step of the way
• Full finance health check including pre
approval for maximum lending by a
specialist investment lender
• Xero subscription and set up for 12 months
• Free reports emailed to you weekly on
locations, deals & hotspots
Finance &
Professional
Services
Property Deals
Service
Investor
Platform &
Information
51. Introducing the REI Premium Service
An end-to-end service to help you into your
next (or first) investment property right now
Finance &
Professional
Services
Property Deals
Service
Investor
Platform &
Information
$4,995
52. REI Premium Service advantages
• Access to our platform gives you complete
transparency on any deals we send you
• You will have a dedicated Portfolio
Manager doing the work for you
• You are dealing with a business that
specialises in property matching services
• You will get early and/or exclusive access
to stock which sometimes does not make it
to retail market
• You can leverage our experience,
professional ties and partners to stay
ahead of the crowd rather than being part
of it
Finance &
Professional
Services
Property Deals
Service
Investor
Platform &
Information
53. REI Premium Service advantages
• 100% money back if you can’t obtain
finance pre-approval
• Outcome based product, not education, not
mentoring, but you will still learn along the
way
• If you purchase off-the-plan or House &
Land stock listed through our partners you
will receive a $5,000 cash rebate on
settlement
Finance &
Professional
Services
Property Deals
Service
Investor
Platform &
Information
54. Recent deals clients have done:
Gosford off-the-plan
• Boutique Development
• 48 x 2 Bedroom Apartments
• Capital growth has been 7.6%
• Water and District Views
• Prices from $435,000
• Real Estate Investar Clients received a
further $10,000 off the listing price
• After public release pricing went up to
$455,000
• Expected equity for initial purchases
currently $30,000