As my father said "property is one of the smartest ways to invest money". Over the years, he also advised me to leave the stock-market behind and opt for brick and mortar instead. Buying at the right time, right price and right place would allow me to retire a wealthy man, he said.
Blogger: Grant Muddle, Malyshka
Taking my father's advice, I set a goal for myself to be successful financially. This goal was to achieve success through real estate.
According to research, investors on the BRW Rich 200 list are continuously making high and safe returns by avoiding retail prices that most people pay. This piece of information is not commonly known to people. The investors I am talking about accumulate property at wholesale rates through property development as opposed to "off'-the-plan".
Off the plan property refers to that which is in its pre-construction stages. By purchasing this type of property, you can make quite a substantial amount of money in the form of capital gains. These properties that are sold before they are completed or even constructed are often called presales or pre-sale properties.
By securing properties though property development you can increase your wealth safely and also get a better return on investment. Adopting this strategy is enabling me to realize my financial goals much faster and also be successful at the same time.
An illustration is mentioned below that demonstrates the cost saving of acquiring property at the cost price. This price is usually given to developers and not to investors. The figures below are of a duplex townhouse in Toowoomba.
Market value $350,000 $350,000
Less development profit* $85,500 0
Less marketing costs $9,500 0
Purchase price $255,000 $350,000
Plus stamp duty $0 $12,500
Total cost of property $255,000 $362,500
Net equity $95,000 ($12,500)
The numbers mentioned above are based on a project that showed 28% yield on all costs. As a property developer I have even acquired a personal property at $107,500 cheaper than typical retail costs.
A standard duplex, two townhouse project would provide an equity of $190,000 in equity and would also save $215,000 for me.
Call Malyshka today to find out how you can enjoy financial success!
About Grant Muddle
Grant Muddle is the Managing Director of Malyshka Pty Ltd, a property development group with a twist. Educating investors into the ways of building financial success via property development, and acquiring properties at near developer cost, giving them instant "profit" (via equity).
Grant has a Bachelor of Accounting and an MBA in Strategic Management and brings with him development experience from Australia, India and the United Arab Emirates as well as a passion to help investors make the transition from investor to developer with ease.