Perth Investment Seminar - to be held in Sydney

Hi ... I'm a newby to this forum.
I have been a "Buy N Hold" convert for some time now.

If anyone needs any building advice, I'd be happy to help.

I run the Dale Alcock Homes Turnkey Investment Division here in Perth. (Dale Alcock is the largest and most awarded builder in WA)

We build brand new homes on new estates ... pitching at those people who need short term rental whist they build their own homes. (Most estates we've targeted have 5 - 8 years of land sales to go - giving a constant supply of tenants and steady capital growth).

I am interested in holding a seminar in Sydney and would be interested in partnering with an investor or investment group from and Sydney, who may be interested in helping with venue and or arranging a group of investors to attend. Please contact me direct at [email protected]

I have found this forum very interesting ... especially the archives on past information. It's a real information wealth library.

Looking forward to sharing ideas...
Casper

Hi casper, welcome to the forum.

Please let us know what type of seminar you are thinking of running... what the content would be, how long it would run for, ballpark costs, intended audience, benefits in attending, etc.

Thanks for the reply... attendance to the seminar is free.
It runs for approx 1.5 hours. Seating required is 50 - 100.
We find that small groups like this are better as it gives people a chance to ask questions as we go along.

Overview...

If you would like a Brochure, you can download it at this link www.dalealcock.com.au/turnkey

In a nutshell ... We build new TURNKEY homes (air-con, alarm, landscape, retic etc etc) ready to be rented.

We arrange finance and advance the investor their holding costs, we pay the stamp duty and settlement fees. We also arrange for a Property Manager to look after your investment.

The homes come with a 10 (transferable) Structural Guarantee.

No deposit is required for the land purchase, and only $1000 deposit on the house (which we refund to you at settlement).

Equity from another property can be used or we can arrange a No Deposit 100% lend (depending on servicability)

Basically, there is no out of pocket expence until a tenant moves in.

Each investment property comes complete with a Quantity Surveyors report. (Depreciation and Loan deduction during first 3 years is around $7000)

Packages range from $195,000 - $300,000.

Target areas ... Brighton Estate (Butler) 1km from the Ocean. Australia's fastest growing suburb. 10,000 lots being developed 8 - 10 year plan... (That's one hell of a lot of short term tenants who need somewhere to live whilst they build)

Rental returns are $220 - $250 per week.

Secret Harbour (Golf Course and Ocean)
Settlers Hills (Baldivis)
Beeliar, Success, Atwell (All south suburbs along the Kwinana freeway ... near the proposed rail link).
Canningvale (South / east)

Any vacant block of land can have a Turnkey Investment Home built on it.

The reason we wanted to conduct a seminar in Sydney is that we just found out that home loan affordibility there is at 40% (Perth it's 17%) So we figured there must be not only investors but average mums and dads who can not afford to buy in Sydney... this is a great opportunity to ride the Perth Property wave we are enjoying and will continue to enjoy for some time.

The Perth Median price has increased from 13.2% last year to 13.6% at present and is tipped to hit 18% by the end of the year.
(Some areas we've targeted have had 16% - 26% growth)

Certainly not the boom of Melb and Syd but much more sustainable.

What we are looking for in Sydney is someone who can help with venue and getting the right kinds of people to attend.

We could simply run ads in th SMH but personally I'd prefer to have Buy N Hold converts attend (No point re-creating the wheel).

Thanks again for your interest... and thanks to those who have emailed me direct with enquiries... keep them coming.

Casper

Hi, Casper

"Any vacant block of land can have a Turnkey Investment Home built on it".

I have just subdivided a block in a suburb in the southern corridor, and I'm ready to build something on it. Are you saying you can help in this instance?

Cheers,

Originally posted by casper
What we are looking for in Sydney is someone who can help with venue and getting the right kinds of people to attend.

Click to expand...

Two promoters that come to mind are:

Freestyler Events http://www.freestyler.net.au/events/

and

Pow Wow Events http://www.powwowevents.com.au/

I'm sure there are others out there too.

Hi Joe

On what are you basing the rental returns for new areas such as Butler?

Do you have assumptions on vacancy rates as they are short term rentals?

What are the management fees for the property manager?

If I was to build say, the Bayview Mark II, what would the Turnkey package cost on a $75k block? (based on me providing sufficient equity as required)

Cheers

The rents are based on what we are achieving at present.
We will have a couple more homes handed over in the next two weeks. Property manager is expecting $230 - $250.

As for the property manager fees, we have negotiated a flat 15% of rental... this includes letting fees, inspections, reports, petties n postage, landlord protection insurance and all advertisisng costs. They also liaise with our lawn maintenance contractor and the Dale Alcock maintenence Department for 6 monthly inspections and any structural maintenance.

Many of our clients are first time investors and have commented on how simple it is to budget when they know exactly what the outgoings are to be.

To Turnkey a house, we add in evap air-con, concrete soakwells, TV antenna, brick letterbox with house number, QS report, border tiles, floor tiles / carpets, internal wall painting, brick paving, landscaping / retic, clothes line, light fittings, gate and fencing, (the homes already include alarm system and insulation).

As for the Bayview MKII you'd be looking at (approx) $28,000.
We have a house called the Duxton which as a Turnkey would be around $24,000 less than the Bayview MKII but similar size.

You can delete items (we credit them back at full retail) but we suggest leaving it to the builder for simplicity.

You can download a brochure on Turnkey at the following link ... www.dalealcock.com.au/turnkey

Cheers

Hi

Is it just me or are others sceptical of deals where we will sell you the house, arange finance as well and manage it for you?

sceptics-r-us

bundy

There are plenty of shonky deals out there that can meke even the most seasoned investor sceptical... we didn't invent the concept of building new homes with the plan to rent them.

Through our Turnkey Program ... you deal dirctly with the manufacturer ... there are no middle men!

We are simply facilitators of the process. We use our buying power to build quality homes at affordable prices.

We utilize our contacts and again buying power to negotiate finance with all of the major banks.

As for the property management team, that was easy... we just found the largest property manager and negotiated with them.

As I mentioned ... we are facilitators helping our investors by simplifying the whole process. If an investor wants to arrange their own finance, their own property manager and finish the home off by shopping around - no problem.

We make our money from the sale of the house ... everything else that we offer is a free add on service to our clients.

It obviously works as we've had many clients come back for a second and third investment property with us.

Scepticism is simply a tool ... it tells you to carry out due diligence, without it we'd all be the proud owners of overpriced high rise apartments on the Gold Coast.

Hi Casper,

Your organisation sounds a lot like DHA charging management fees of 15%

Do you use a standard lease for your tennants ?

Nothing to do with DHA.

I found the 15% was a simpler figure to work with when we expect a couple of tenant changes every year. (people who are building their own homes).

I looked at most property managers charges ... (here is a typical quote I received) Assuming a $220 rental income over 50 weeks...
6 month lease ... letting fee 2 weeks rent $440.
8.5% management fee, $99 property condition report, $66 final bond inspection, 4 x inspection fees @ $49.50, Postage / petties $7.70 per month, To Let sign $16.50, $33 end of year report.

Add to this advertising fees and Landlord protection insurance.
If you have two tenancies in a year... your cost (as a percentage of rent) is a whopping 22%.

Many investors told me of their frustrations with balancing their books when the property management fees were so un clear.

The property manager we are using wouldn't offer the same deal on an older home... they can only do it on brand new houses as they are hedging their bets there won't be too many maintenance issues for them to be involved with.

So I guess it's bottom line costs that interest me not the management fee %.

A management fee of 1% of rent, works out higher (using the above quote) than an all inclusive flat fee of 15%

Hope this helps...
Casper

Just wanted to clear up a side question, could someone choose to self manage, or self finance?

Also, you say ppl generally rent these properties whilst building there own. Building a house takes say 6 - 8 months? What kind of gap would an investor expect between tennants? And how do soon-to-be-home-owners in the area find out that there is the turnkey rentals available?

Yes you can self manage.
You can also arrange your own finance (we cannot advance the holding costs or pay your stamp duty etc if you arrange your own finance) You can pay these yourself via a line of credit.

The property manager lets potential purchasers know via the land sales agents. We also let our clients who are building with us know there are rentals available.

We are not expecting any gaps ... so far all properties have been let within a few days of key handover. We don't expect that to change between tenants.

Cheers

Casper