Master Class:Making profits off the plan

We help investors build and manage

their property portfolios

Tonight's webinar in partnership with…

Todays key topics1. Strategy: Off-The-Plan Investment

2. Best areas to buy an OTP property lot

3. Market timing: when to buy an OTP property lot

4. What exactly is an OTP Investment?

5. OTP as a strategy; why & when to use it

6. Pros and cons of an OTP

7. OTP construction overview

8. OTP strata overview

9. Town Planning / The billion dollar OTP hotspots

10. OTP Project example

Making Profits With Off-The-Plan…

The Benefits & Pitfalls

R&W Starlight 2015

Andrew Cocks

“Profits are better than

wages”

The art of making the deal

R&W Starlight 2015

Andrew Cocks

$190,000 in9 months of ownership +14 months

off-the-plan

The Building Blocks to Get Started

Fundamentals

Relief

Hope

Optimism

Excitement

Thrill

Euphoria Anxiety

Denial

Fear

Desperation

PanicCapitulation

Sentiment and the Market

Equity Or Cash Pool

The Market Return

Market

Cash on Cash Return

Where to Invest

90/10 rule?

6 Key Drivers- Where to Invest for Growth

What is off-the-plan?

What are your limiting beliefs with property?

1960 to 1972 (12 years)

1972 to 1975 (3 years)

1975 to 1983 (8 years)

1983 to 1988 (5 years)

1988 to 2001 (13 years)

Will property double every 10 years? 

Sample Property

•2 bed, 2 bath•Purchase

$400,000 2008•Current estimated

value $720,000•Time 6 Years –

tracking at roughly 70 – price and time %

Constitution Road, Dulwich Hill

Future outlook. Note: 2 beds selling off the plan – settle 2

years for $775k

Assumption… But fair bet!

•From 2008 to 2018/21 - The Dulwich Hill property will double

• In 2016, according to sold off the plan real estate, 2 bedrooms will settle from $720,000 to $775,000

Demand and how it worksso you get the best pricing!

• Overseas investors • First home owners• Investors• SMSF buyers• Upgraders• Downsizers• Retiree market

R&W Starlight 2015

Andrew Cocks

Recent annual price growthMajor capital cities

15.4%

14.0%

10.0%

5.1%

3.4%

9.6%

4.1%

5.9%

4.6%

0.6%

Sydney Melbourne

Brisbane Adelaide Perth

2013 2014Source: marketview

R&W Starlight 2015

Andrew Cocks

Markets above previous high34.8

%

8.4%

3.6% 3.0%

7.9%

Sydney June 2011

Melbourne June 2010

Brisbane June 2010

Adelaide June 2010

PerthJune 2010

Source: marketview

R&W Starlight 2015

Andrew Cocks

Price relativitiesSydney way out in front$872,81

1

$614,479

$489,128 $469,097

$615,280

Sydney Melbourne

Brisbane

Adelaide Perth

Source: marketview

R&W Starlight 2015

Andrew Cocks

Capital city house price cycle

Counter Cycle Rising

Market

Expansion

Bottom of Market

Sydney

PerthMelbourne

Adelaide

Source: marketview

Brisbane

So let’s choose a deal

How to choose a great investment property/area

and a live deal

1. Sustainability of Area

Density and Supply - 2 Bedrooms are now $300,000 cheaper than A Gread 2 bedrooms in South Brisbane - 2 bedrooms are no $200,000 cheaper than A grade 2 bedrooms in Newstead

- Sub $495,0000

2. Brand Sensibility

Big name – Blue Sky

3. CovenantsBuilding Designs

• Height limit to 6 levels• Some heritage in area

4. Building Design

Architecture: AG Architects

• Glass balustrading

• Rooftop entertaining

• Large balconies

• Large internal spaces

• All bedrooms have

natural light

• Low-set design

• Attractive façade

• 3-bedroom skyhomes

with 100sqm terraces

5. Walk Score

• 100m to buses on Lutwyche Rd• 100-200m from varying specialty stores along Lutwyche Rd• 500m to Windsor Homezone; Supacenta styled complex• 900m to Royal Brisbane & Women’s Hospital• 300m to Windsor Train Station• 500m to Windsor State School• 200m to Windsor Park or Flynn Oval• 800m to Northey St Organic Markets

6. Current Transport Access 

• Access onto Lutwyche Rd; direct

bus and car access into city or

onto other major road networks

• Access onto M3 city by-pass

• Access to Airport Link M7 just

North of Windsor in adjacent

suburb Lutwyche

• Access to Brisbane railway; direct

access into CBD and areas in

every other direction

7. Further Transport Access

8. Benchmarking PSM

9. Owner-occupier Appeal Points of difference:

•Ducted A/C

•Rooftop area with city views

•Low-set split building, only

possible due to developer

power to secure 5 houses in a

row

•Storage cages in carparks

•City views to some units

•On-site caretaker; manages

all necessary trades, cleaning,

repairs etc to keep building

looking very tidy

10. Access to Commerce

Priced2 beds: $497,000

R&W Starlight 2015

Andrew Cocks

Hope and pray investor

• Does not understand the limitations of their situation

• Buys at the top of the market

• Pays too much

• Makes emotional decisions

• Cross securitised

R&W Starlight 2015

Andrew Cocks

Informed investor

• Clear plan and strategy

• Has a team of experts and gets support

• Knows the limitation of their resources and plans

accordingly

• Recycles their equity quickly

• Knows where to invest based on facts and figures

• Balances cash flow and equity growth

R&W Starlight 2015

Andrew Cocks

Trusted team

$20,000 equity in 6 weeks$85,000 equity in 9 months

R&W Starlight 2015

Andrew Cocks

Catching up to learn, share & teach

R&W Starlight 2015

Andrew Cocks

City discovery days

R&W Starlight 2015 Andrew Cocks

Clients sharing their stories in magazines

R&W Starlight 2015

Andrew Cocks

Values and culture

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