2. Introduction
• builderbuilder provides House and Land and Dual
Occupancy packages
• builderbuilder uses REI online tools to develop
individually researched property deals
• REI members have the opportunity to opt in to
receive the pre-release of our deals via a Property
Investment Brief
3. House Overview
• 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
4. House Strategy
• Price point $350,000-$550,000
• Yields 4.75%+
• Some equity gain possible during construction
• Entry point for first construction deal
• Important to buy in the right area (in-fill) and estate
5. House Example – Rochedale
QLD
4 bed + Study, 2 bath, DLUG
Package Price:
$949,000
Land Settlement: 06/05/2015
Construction Complete: 04/12/2015
Appraised Value on Completion
$1,200,000 - $1,300,000
(03/2016)
= 26% - 37% Gain
Market Rent: $1,580/wk (8.3% Yield)
6. Dual Living Overview
• 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
• Valuations issues if too large
8. Dual Living Strategy
• Price point $475,000-$650,000
• Price 10-20% higher than a house
• Great cashflow with yields 30-40% higher
• Some equity gain possible
• Ideal to increase serviceability in existing portfolio
• Ideal for first home buyers who can rent out secondary
dwelling as an investment property
9. Dual Living Example –
Ipswich QLD
3 bedroom house + attached
2 bedroom dwelling
Land: $180,000
Build: $269,000
Total: $449,000
Market Rent: Appraised at $550-
570pw
Gross Yield: 6.4%
Total dwelling size 200m2
10. Duplex Overview
• 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%)
• DA or MCU as of right
11. Duplex Strategy
• Price point $630,000 +
• Advanced strategy for a client who has already done a dual
living or house package
• Strong yields and cashflow
• Flexibility of 2 properties in 1
• Equity release upon strata title
12. Duplex Example – Pimpama
QLD
Attached 2 x 3 bed, 2 bath
single garage
Package Price:
$640,000
Land Settlement:
07/11/2014
Construction Complete: 24/11/2015
Appraised Value on Completion
$720,000 - $760,000
(03/2016)
= 12.5%- 18.8% Gain
Market Rent: $750/wk (5.9% Yield)
14. Key Considerations
• Area
• Capital city versus Regional
• Greenfield versus Infill
• Design
• Valuation
• Builder
15. Area
• Capital City areas are more stable than regional
areas
• According to Core Logic’s Winner and Loser
Report for Dec 2015 the combined capital cities
percentage of losers for houses was 4.7%
compared to 11.3% for combined regional areas
• Due to location of infrastructure and population
18. Area – Urban Growth Zone
• Relies on affordability and development of new
infrastructure to drive median price growth
• Median price accelerates in the earlier stages
when infrastructure is being developed
• The ‘myth of over supply’ in master planned
estates
• What was once the urban fringe are now
established areas or infill regions
19. Area - Greenfield
• Relies on existing infrastructure and limited supply
to drive median price growth
• Larger lots are subdivided into smaller lots
surrounding by existing dwellings
• Median price growth varies considerably between
existing suburbs from year to year
• Price points higher than urban fringe
20. Design
• Investment design is all about facilitating
‘rentability’ and then the re-sale to an owner
occupier without over capitalising
• Functional designs with a 2nd living area
• Storage for livability
• Higher ceilings for volume
• Appealing façade
22. Valuations
• Do not overcapitalise for the area
• Why are comparable sales so important and what
do they mean for houses and dual occupancy
dwellings
• Agent market appraisals
• Mortgage valuations and what it means for you
23. Builders
• 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
27. 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
34. Expression of Interest (EOI)
• Submit EOI form at back of Property Investment Brief with
$1,000 refundable deposit
• Land and build contracts sent directly to you and your
solicitor
• Land contract subject to 21 days finance
• Build contract subject to settlement of land