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Cashflow


Our cashflow acquisition strategy is primarily focussed on achieving strong rental yield over capital growth potential. The Land : Building ratio will usually range from 15-30% Land : 70-85% Building.

Key property acquisition fundamentals for a cashflow strategy include:

  • Prime location
  • Low maintenance
  • Low ongoing costs (body corporate / strata fees, etc)
  • Strong deprecation benefits

Growth


Our growth acquisition strategy is focussed on properties with the potential to achieve a higher than market rate of capital growth, properties selected may yield a lower rental return due to a higher land to building ratio. The Land : Building ratio will usually range from 70-80% Land : 20-30% Building.

Key property acquisition fundamentals for a growth strategy include:

  • Location surrounded by infrastructure growth (transport, employment, amenities)
  • Surrounding suburbs experiencing demographic shift or gentrification
  • Seek low maintenance homes with proportionately larger land sizes

Growth plus Cashflow


Our combined growth plus cashflow acquisition strategy is commonly utilised and ideally suited to many investors seeking long-term capital growth for wealth accumulation while also generating strong ongoing rental return. The Land : Building ratio will vary between property price brackets sitting within the range of 40-60% Land : 40-60% Building.

Key property acquisition fundamentals for a growth strategy include:

  • Easy access to existing amenities (transport, shopping, employment, recreation)
  • Location close to panned infrastructure growth
  • Surrounding suburbs experiencing demographic shift or gentrification
  • Seek low maintenance homes with strong owner occupier resale appeal

Land Bank

Similar to a growth strategy, our landbank acquisition strategy is focussed on capital growth, usually with a lower rental yield. The landbank strategy seeks to achieve superior capital growth by identifying properties with potential for greater future development potential than the present use. Land : Building ratio will usually range from 80 – 90% Land : 10-20% Building.

Key property acquisition fundamentals for a landbank strategy include:

  • Land characteristics (size, frontage, topography, availability of services) suited to a higher level land use
  • Location surrounded by infrastructure growth (transport, employment, amenities)
  • Surrounding suburbs experiencing demographic shift or gentrification

A preliminary feasibility study for the proposed future development use should always be completed as part of a land bank property acquisition. The feasibility study should include an analysis of site characteristics including any development opportunities and constraints.

Development


A development strategy involves acquisition of a property with potential for profit to be generated by adding value. Development may be through renovation of the existing dwelling, land subdivision or demolition of the existing dwelling and construction of single or multiple-residential dwellings, commercial premises.

Key property acquisition fundamentals for a development strategy include:

  • Land zoned for intended development strategy
  • Demand evident for product proposed to be developed
  • Planning constraint overlays allow for proposed form of development
  • Property characteristics allow for proposed development to be feasibly constructed
  • Property acquired at a price where development is financially viable

A thorough feasibility study should form part of the due diligence process for any development site acquisition. This provides the initial business plan for the development and confidence that the expected financial return can be achieved. Profitable developments (or their viability at all) are often determined by the initial acquisition price paid.