Property Strategy Case Study
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GRA Blogs
Articles by Matthew Gilligan
I'd like to share with you the details of a property deal I'm currently doing in Auckland. Before I get into that, however, I invite you to watch the recording of the webinar I ran with Tony Alexander this week, if you didn't manage to catch it at the time.
During the webinar we talked about the implications of the new Labour coalition government on the property market and economy, and discussion points included:
• Tax issues (e.g. extending bright-line rule, ring-fencing of losses for property investors, capital gains tax)
• Policy changes (e.g. minimum wage, immigration, restrictions for foreign buyers, legislation affecting tenants and landlords)
• The outlook for finance and how tighter lending conditions are affecting investors
• Auckland property market compared to other cities and regions
• The possibility of another financial crisis (GFC 2)
• Subdivision case study
• Tax issues (e.g. extending bright-line rule, ring-fencing of losses for property investors, capital gains tax)
• Policy changes (e.g. minimum wage, immigration, restrictions for foreign buyers, legislation affecting tenants and landlords)
• The outlook for finance and how tighter lending conditions are affecting investors
• Auckland property market compared to other cities and regions
• The possibility of another financial crisis (GFC 2)
• Subdivision case study
Now back to the property deal I want to tell you about. I want to show you that it's possible to make real money in the post-election property market without the need for old numbers regurgitated from pre-boom activity to convince you. We refer to these tactics of false numbers as 'ninja dust' - unethical practices, where people are given false numbers, told dramatic stories of Flash Harrys making huge fortunes in property, and are lured into spending their hard-earned money on fake promises. There is a lot of smoke and mirrors out there, which leaves some people disillusioned and frustrated when they take the wrong advice and don't get the outcome they are seeking after lots and lots of work and risk.
If you want to learn about property investment strategies that work, you need good, solid advice from active investors who practice what they preach. Not so-called education from people who are trying to sell you retail property, or who need to resort to old and irrelevant examples to convince you they are walking property success stories. That's not to say all property educators are trying to hoodwink you, but there is a lot of bad advice out there disguised as sparkling promises of quick riches and easy money.
The property market has changed, and will continue to do so with our recent change in government. The old strategies aren't as effective, and you need to adapt your investing to the new environment as it unfolds. How do you know which strategies to use? Learn from people who recognise what is happening, who have been through several property cycles and understand the fundamentals, and who are prepared to share their knowledge honestly with you.
I invite you to watch the podcast I recorded with Mark Honeybone of Property Ventures Real Estate, where I discuss the importance of getting education from people who have a success record that proves they know what they are doing. I'll tell you about the property I'm subdividing in Manurewa, and how this is going to make a profit without taking unnecessary risks (or faking the numbers). I'll tell you how I negotiated the purchase, how a positive test for P contamination worked to my advantage, how I plan to develop the site and will potentially end up with a profit of approximately $650K (or more if I decide to wait and land bank the property rather than build on it immediately).
In the video you'll also hear about an exciting event coming up on 12 November where you'll learn about more strategies that you can use at this stage in the market. What would a day spent with property leaders who walk their talk be worth to you? At only $25 the Property Leaders One-Day Event at Ellerslie could be one of the best investments you make.
I hope to see you at the Property Leaders One-Day Event, where the other presenters and I will share more cases studies with you and teach you the new strategies we are using to make the most of the current market.
If you want to learn about property investment strategies that work, you need good, solid advice from active investors who practice what they preach. Not so-called education from people who are trying to sell you retail property, or who need to resort to old and irrelevant examples to convince you they are walking property success stories. That's not to say all property educators are trying to hoodwink you, but there is a lot of bad advice out there disguised as sparkling promises of quick riches and easy money.
The property market has changed, and will continue to do so with our recent change in government. The old strategies aren't as effective, and you need to adapt your investing to the new environment as it unfolds. How do you know which strategies to use? Learn from people who recognise what is happening, who have been through several property cycles and understand the fundamentals, and who are prepared to share their knowledge honestly with you.
I invite you to watch the podcast I recorded with Mark Honeybone of Property Ventures Real Estate, where I discuss the importance of getting education from people who have a success record that proves they know what they are doing. I'll tell you about the property I'm subdividing in Manurewa, and how this is going to make a profit without taking unnecessary risks (or faking the numbers). I'll tell you how I negotiated the purchase, how a positive test for P contamination worked to my advantage, how I plan to develop the site and will potentially end up with a profit of approximately $650K (or more if I decide to wait and land bank the property rather than build on it immediately).
In the video you'll also hear about an exciting event coming up on 12 November where you'll learn about more strategies that you can use at this stage in the market. What would a day spent with property leaders who walk their talk be worth to you? At only $25 the Property Leaders One-Day Event at Ellerslie could be one of the best investments you make.
I hope to see you at the Property Leaders One-Day Event, where the other presenters and I will share more cases studies with you and teach you the new strategies we are using to make the most of the current market.
Matthew Gilligan
Managing Director and Property Services Partner
© Gilligan Rowe & Associates LP
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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
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Hi Salesh, I just wanted to send you an email on behalf of GRA to say how fantastic we have found your company to date. As you know, Ben and I joined GRA a couple of months ago and have just found you so amazingly helpful in getting our new property set up correctly and sorted out. We have what I would consider a rather complicated structure as a result and it’s a fantastic feeling to know that we are getting everything done in the best way possible. We have just had approval to put a minor dwelling on the property which will make a massive difference in terms of cash flow and obviously value, something we would never have even thought of without GRA and which we are very excited about. During the buying process we attended a seminar with Matthew and from the outset thought he was fab. We therein signed up for property school and found this nothing short of fantastic. The content was relevant, up to date and comprehensive, but more importantly it was taught in a way that we could actually understand and really get value out of. I wanted to mention also, that everybody GRA have recommended to us has been just so efficient and absolute masters at what they do. A wonderful network of people that we feel very lucky to now be able to call on. From Kris Pederson and Bryan Rist who put our mortgage together to the insurance guys they then referred us to, I’m super impressed. Within GRA, Ellery has probably turned things around for us faster than I’ve ever known before, something which we appreciated so very much when it came to crunch time. She’s always a pleasure to deal with and again, we’re stoked. We’ve just settled on the property today and are about to go and get the keys. I’m pretty pumped and hence this email is probably rather excitable. So, a massive thank you to you Salesh, the partners for such a fabulous 6 weeks at property school and everyone at GRA for their help. May this be the start of our property empire. Thanks again, - A & B - July 2015
Property 101by Matthew Gilligan
Investing in residential property?
Put this at the top of your reading list.
If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.
Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.
- How to find the right property
- How to negotiate successfully
- Renovation do's & don'ts
- Property management
- Case studies and examples
- and much, much more...
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