How Dwyer manages the property investment process for you
Dwyer Property Investments works closely with partner Dwyer Quality Homes to help people build residential properties for investment purposes. While some intend on buying just one property, others will go on to successfully invest in two, three or even more – creating a property portfolio that will help set them up for a secure financial future.
Property construction is a complex process that involves a large team of people, including administration staff, tradespeople, building supervisors and property managers, among many others. But when clients choose to invest through Dwyer, we seamlessly manage the whole project on their behalf.
The process starts with a thorough financial consultation, either in person or via a Zoom call. Before committing to anything, the first – and most important – step is talking through all the figures to make sure property is the right wealth creation strategy for interested investors. We then discuss investment goals and choose a property that’s going to help achieve those objectives.
We also look after the purchase of the land, if that’s applicable, and the construction of the property through Dwyer Quality Homes. Once the build is complete, we find tenants and can take on the rental management, too. Every Dwyer investment property comes with a 3-Year Rental Guarantee, which means we pay the agreed rental income for a full three years, even if the property is vacant.
In short, we take care of everything for investors, including answering questions and dealing with any issues that may arise. We personally guide clients through the entire process – from our initial contact right up until tenants have moved in and even beyond. Our aim is to get people into good-growth, high-rental-yield investment properties quickly, easily and without any hassles.
With all the different investment-type businesses around, it can be pretty confusing knowing who to approach or where to start if you’re interested in becoming a property investor.
What differentiates Dwyer from other operators is that we’re builders first and foremost. Dwyer Property Investments is actually a division of Dwyer Quality Homes – a local, family-owned company that’s been building residential dwellings for homeowners and investors for 35 years.
We offer clients security and peace of mind, because they deal directly with us and know exactly who will be building their property.
They also benefit from a business that has a solid construction record. With the many display homes we have throughout South-East Queensland, people can check the quality and craftsmanship of our projects before engaging us.
In addition, we provide a 30-year structural warranty on all our builds, not just the standard seven years. We believe it’s why Dwyer has one of the highest repeat business records of any builder on the Sunshine Coast.
We also don’t charge our clients any upfront costs. All they pay is the basic cost of the build. We’re constantly approached by “middlemen” looking for a $30,000-$50,000 cut for a sale. But we don’t agree with those tactics; it’s wrong for genuine investors to pay more than they should for property through these third parties – and often without knowing it.
Dwyer, on the other hand, earns its money purely by building houses. There are no hidden fees, because we cut out the middleman and clients deal directly with us – a longstanding and reputable company with a name they can trust.
In the residential housing market, investors can buy standalone homes, as well as single-level villas, multi-level townhouses and units. Properties (such as apartments) purchased under strata titles usually incur body corporate fees for maintenance. These fees are out of the owner’s control and can often be so high that they seriously impact investment returns.
“Return on investment”, or ROI, is a combination of rental income and the property’s capital growth. And in our experience, off-the-plan house and land packages in high-growth areas make excellent investments, because they represent some of the highest returns.
Dwyer’s high-end terraces at Harmony estate have proven particularly popular among savvy investors. All 14 built last year have been sold and there are 14 more in the pipeline. With their excellent rental yield and potential capital growth, we believe these high-demand properties offer the best ROI on the Sunshine Coast.
This is in line with current market trends. Rental demand is growing for detached, lower-density and larger houses, especially in the more affordable regional areas that have seen a surge in population growth – like the Coast.
Traditionally, units underperform in rental yield and price growth when compared with houses. We’ve seen this happen during the pandemic, too. New home sales, however, have risen significantly since June last year, probably helped along by government incentives such as the HomeBuilder scheme.
Choosing locations that will provide consistently high rental income as well as strong capital growth (“hotspots”) will also help maximise investor returns. How popular or desirable an area is depends greatly on its proximity to services like transport, schools, shopping, medical facilities and job hubs. So, the level of infrastructure development is another key factor that determines the best places to invest in.
For more information, contact Jason Dwyerfrom Dwyer Property Investments on 1800 088 437.
Why infrastructure development on the Sunshine Coast is critical to investors
In recent years, the Sunshine Coast has transformed from a small, little-known tourist town to one of the most popular coastal areas in Australia – not just for holidaying but also for living. In fact, the population is growing so quickly – in part due to COVID – that the Coast is now experiencing a severe housing shortage that is impacting the real estate market.
Property prices are directly linked to housing demand, and the current undersupply of homes is pushing up prices. This is good news if you’re a homeowner or investor, obviously, because the value of your property is going up. But it’s not so good if you’re looking to buy or rent on the Sunny Coast, as there’s very little available at the moment. These people are simply being priced out of the market.
Urban growth affects value, too. Properties that are close to key amenities and services like public transport, schools, shopping, recreation areas and hospitals will always attract more people and higher prices. Good infrastructure is particularly important for property investors because it brings long-term capital growth and strong rental demand. The more quality services there are, the more desirable the area becomes. And this means the rental yield and resale value of your investment property will be higher.
The Coast is in major growth mode right now – and has been for a number of years. About $20 billion has been put into building new and upgrading existing infrastructure to help support the region’s development. The Bruce Highway Upgrade, for instance, will greatly improve access to the Coast from major centres such as Brisbane and make it easier to get around, due to better road connections, reduced traffic and more transport.
The ongoing expansion of residential communities is another big project. Lifestyle-focused housing estates such as Aura and Harmony will provide much-needed housing, as well as create new jobs and inject money into the local economy.
Education is also getting a major boost, with the recent opening of two schools in Palmview and one in Baringa. Then there’s the construction of Australia’s largest health and medical precinct in Birtinya, the revitalisation of Mooloolaba’s foreshore and the $2.5 billion development of Maroochydore City Centre, which is a game changer for the region.
If you’ve been following the latest property news, you’ll know how scarce land is on the Sunshine Coast right now.
That's why this offer – to secure a lot before it hits the market – is too good for interested investors to miss out on.
VIDEO: Jason explains the time-limited offer.
As a Display World builder and wholesale partner of Avid Property Group’s Harmony estate in Palmview, we’ve been offered TWO – yes, only two (2) – lots in the upcoming Stage 19 release.
The last release sold out in 24 hours and, as builders, we didn’t even get a look-in. This time, the developer is giving us just ONE WEEK to snap up these two lots.
This prerelease means you have the opportunity to buy land not yet available to the public. It will be registered around December 2021 or January 2022, so it’s not ready to build on yet, but you do get to lock it in at today’s price.
If you’re looking to invest in a high-growth area with a guaranteed rental return this year, this is going to be your best chance.
Here’s what the developer has said…
“We have imminent plans to launch Stage 19 to market. However, before we do, as a loyal Harmony Display World builder, you will have exclusive access to lots within the Release 19A in our Tranquillity neighbourhood.
“Each builder will initially receive access to two lots only. This means that from 10am Thursday 18th March, you will have seven (7) days to submit an Expression of Interest on two specific lots on behalf of your customers. It’s first in, best dressed…”
Rest assured, this isn’t a marketing ploy. It’s a genuine way to secure an investment property in one of the fastest-growing, most exclusive new housing estates on the Sunshine Coast – and at a lower price than future land releases.
Dwyer is offering three house-and-land packages, starting from $528,750 (see brochures attached). Apart from an initial $4000 deposit, you won’t be required to pay anything until the land is ready to settle in late 2021 or early 2022.
If you’re interested and want to know more, call me direct on 0400 110 315. We only have a week to submit an EOI, so we need to move quickly.
Invest smarter, not harder: using equity to buy investment property
A lot of people mistakenly think they have to be debt-free before they can invest. What many homeowners don’t know is that they can buy an investment property before paying off their mortgage, simply by accessing the “usable equity” in their residential home – that is, the money that’s gone into paying off their home loan over the years.
Equity is the difference between what your home is worth and what you owe on the property; that money belongs to you, not the bank. This means you can pull it out and put it towards a tax-deductible, cash-positive investment to help fund your retirement. The upside is that your equity is working harder to make you money, rather than just sitting idle.
There are many opinions about how much equity you need exactly, and lenders all have slightly different criteria, but a minimum of 20 per cent of your home’s value is a comfortable amount to leave untouched. Anything over that amount becomes usable equity – or, in other words, money you can then use as a deposit for an investment property.
If your home is worth $750,000, for example, and your loan is $450,000, you have $300,000 worth of equity. To be safe, you should keep at least $150,000 of equity in your home loan, leaving $150,000 of usable equity you can access. So, you still have that 20 per cent equity buffer on the home you live in, but you now also own a second property that is paying for itself with the rental return from your investment property. This, of course, means you have two properties going up in value instead of just the one – which is compounding your capital growth.
For more information, contact Jason Dwyerfrom Dwyer Property Investments on 1800 088 437.
What does the Sunshine Coast’s housing future look like?
Last week, Housing Industry Association (HIA) chief economist Tim Reardon predicted that the surging demand for property on the Sunshine Coast would not fall to a “sustainable” level until 2025.
This means the region’s current land scarcity and dwelling shortage – driven by factors such as COVID-fuelled record home-building and interstate migration, government stimulus grants and low interest rates – could continue to push prices up and cause more “housing stress”.
Naturally, there’s been a lot of talk around planning and development; in particular, how to provide affordable housing to accommodate the Coast’s rapidly growing population.
One solution being put forward is infill development, which involves increasing living density on existing urban land (for example, duplexes, townhouses and secondary dwellings such as granny flats).
This type of housing will no doubt be a focus of the Sunshine Coast Council’s new planning scheme, due to be completed by 2024 – especially given that there’s not enough building land in the area to meet the projected population growth.
So, what might future housing development look like on the Sunshine Coast and what does it mean for prospective investors?
According to local town planners, more people are embracing the townhouse and terrace lifestyle – what they call housing’s “missing middle” (between low-density single homes and high-density apartments).
Over the 35 years that Dwyer has been in business, we’ve seen the Coast slowly emerge into the property hotspot it is today. We also foresaw many of the development challenges – and opportunities – brought about by this growth.
So, last year we decided to add medium-density terraces to our product offering – and they’ve proved incredibly popular with both renters and owner-occupiers. These modern freehold dwellings are built in a line of seven but, unlike duplexes, they don’t share any common walls and they also don’t have body corporate fees.
Our first batch of 14 upmarket terrace homes sold out in 2020. This year, Dwyer is bringing another 14 to the market – some of which have already been snapped up by savvy investors who stand to benefit from the high-yield rental returns and strong capital growth potential of these properties.
Priced from $595,000, I believe they’re one of the best-value investment products in South-East Queensland, with a guaranteed gross rental income of $530 a week and an annual equity gain of around $36,000.
You can preview our popular Calore parkfront terraces here. If you like what you see, contact me to arrange a 20-minute Zoom call and I can talk you through the financials and your property investment options.
Maybe the first iteration of terraces alongside the Calore terraces. Or that shot of Harmony with the Dwyer terraces on the corner.
Demand for investment property soars amid rental crisis
The Sunshine Coast property boom has led to a severe shortage of rental property, with fewer houses on the market creating more intense competition and rising rents. Vacancy rates are at record lows across the state; official figures are now around 0.5 per cent or lower, but it has hit zero per cent in some areas of the Coast – forcing prospective tenants to go on waiting lists.
Supply is simply not keeping up with demand. Why? Between about March and October last year, investors stopped entering the market due to the uncertainty caused by COVID. This led to a slowdown in the construction of investment property destined for the rental market and the scarcity is catching up with us.
Now that the economic outlook is more positive, however, investors are buying in and building again. When these properties come onto the market, the supply will increase and rents should stabilise. Until then, market forces will continue to push rental prices higher. The unknown factor, of course, is how much more demand there will be for housing on the Sunshine Coast, given it’s the most popular destination for interstate migration.
To help meet the unprecedented demand, some developers are releasing land in the new housing estates years ahead of schedule. Stockland, for instance, recently opened 56 new blocks in its Aura development, located in Caloundra South. Despite the current shortage, Dwyer Property Investments has been able to secure some excellent land for our investors in 2021.
For more information, contact Jason Dwyerfrom Dwyer Property Investments on 1800 088 437.
Cash-positive properties for Sunshine Coast investors
Property investments that put money in your pocket from day one are an investor’s dream. With interest rates at record lows and demand for rental houses surging, that’s exactly the kind of investment scenario investors are looking at in the current market.
Dwyer currently has three rent-ready Dwyer properties that represent the best-value investments on the Sunshine Coast right now. You don’t have to wait years to start seeing real returns. Invest in one of these incredible houses and you could be earning cash with your very first rental payment, backed by our 3-Year Rental Guarantee.
✓ Cash positive – $112 per week*
Located in the sought-after Harmony estate in Palmview, our brand-new Calore terraces make a great long-term investment. They have panoramic parkland views and a contemporary two-level layout with multiple generous indoor and outdoor living spaces.
Why tenants will love the Calore terraces: These parkfront terraces will never be built out and are free of vehicular traffic. Perfect for families, young children can safely access the park without crossing a road, while adults will enjoy watching their kids play from the front upper and lower decks.
4 bedrooms including master with his and hers walk-in robe and ensuite • Open-plan kitchen, dining, living • Media room • Double garage with rear lane access • 2.5 bathrooms • Ducted air conditioning • Stone kitchen benchtops • Private courtyard, alfresco area and first-floor verandah
✓ Cash positive – $112 per week*
Perfect for the first-time investor, this stylish single-level dwelling – in the world-class Aura development in Caloundra South – boasts quality construction and design features that will appeal to the most discerning occupants.
Why tenants will love The Meeka: Located only 50 metres from the local recreational park, this stylish modern home comes with a host of deluxe inclusions rarely found in rental properties, including plush carpeted bedrooms, built-in robes, window furnishings and stainless-steel kitchen appliances.
3 bedrooms • 2 bathrooms • High 2.55-metre ceiling height throughout • Split-system air conditioning to master bedroom and living area • LED light fittings • Safety screen fitted to front entrance • Enlarged entry porch • Fully fenced and landscaped • Single lock-up garage with remote
✓ Cash positive – $101 per week*
Part of the Brookhaven estate, this low-maintenance brick house is set amid the rolling green hills of Bahrs Scrub in Logan. A great little earner, its appeal lies in the easy-flow open floor plan and luxury additions.
Why tenants will love The Zephyr: Conveniently located 40 kilometres south of Brisbane but surrounded by nature, this masterplanned community offers plenty of recreational activities, such as fitness nodes, walking trails, mountain-bike trails, community gardens and local parks.
• 4 bedrooms • 2 bathrooms (ensuite with double vanity) • Huge media room/study • Butler’s pantry • Stone benchtops in kitchen • Extended rear alfresco area • Ducted air conditioning • Raised 2.55-metre ceilings • Double lock-up garage • Land size 375m2 / house size 224m2
Built to the highest standard and featuring a generous inclusions package, Dwyer Quality Homes consistently attract happy, reliable long-term tenants – resulting in a secure investment with high rental yields and low vacancy rates.
Call 1800 088 437 to find out more about properties like the Calore terraces, The Meeka and The Zephyr, or to talk about how a cash-positive investment strategy can help you achieve your financial goals faster.
* These figures are based on:
100% loan to include full purchase price and purchase costs – so no cash investment
Interest-only loan at 2.5% pa
Combined household income of $70,000-plus
Average 5% capital growth over 10 years
A full customised report on each property is available on request.
Investment loans explained
With all the different lenders, loan products and options available, setting up an investment loan for the first time can be confusing. But it’s important that investors structure their loan correctly, right from the start. And while many people typically approach the bank they’ve been with for years, this may not be the best choice.
Instead, engaging an independent licensed mortgage broker or property investment adviser – before beginningyour property investmentjourney – will ensure you maximise the return on your investment and avoid any of the common mistakes investors make.
A good broker will provide free advice, explain the various aspects of borrowing and help you secure the best deal for a loan product that suits your specific needs and financial circumstances.
Although loans are not a one-size-fits-all proposition, there are two main kinds of loans. Principal and Interest, or “P&I” loan, are encouraged by lenders, as the repayments cover both the interest and a proportion of the actual amount borrowed. But only the interest component of the repayments are tax deductible – and that’s important for investors to know.
The second type of loan is the Interest Only, or “IO” loan. Its repayments are much lower, as you’re only paying off the interest. The principal, or lump sum borrowed, remains the same. This loan suits the investor who wants to build a portfolio, buyingmultiple properties over a number of years.
A mortgage broker will explain all this and more, simplify the process and help you secure the right loan – usually at no cost. It’s one of the best investments you’ll ever make.