A strategy of success Hard work and a clear vision for their property investment strategy have paid off handsomely for friends and business partners Trevor Holland and Wes Harper.
About 30 years ago they joined forces to build a property portfolio and after buying and selling dozens of properties they have established a road to success which their families can enjoy. The pair have fine-tuned methods for buying old houses on large blocks of land, building new houses in the back yard, subdividing and selling some to cash flow their next investment or holding the best properties for their future. “We get luckier if we work hard,” said Mr Holland, 67, a retired school teacher. “Luck has a direct relationship to the work you put in. “You have to go through a little bit of pain to get the gain. But don’t go through so much pain that you overextend yourself.” Mr Harper, 52, a self-employed builder, got started by buying old houses in which he and his wife, Deb, an interior designer, lived in while they renovated before selling. “Our tenants were living in better places than we were at the beginning,” Mr Harper said. “My wife’s mum cried when she saw one of the houses we moved into, comparing it with the beautiful home we’d just left.” Mr Harper and Mr Holland have completed dozens of dual occupancy projects in suburbs around Heathmont, Vermont, Boronia and Mooroolbark. Together they own four properties, but Mr Harper owns another five and
Homes for life
Doncaster 03 9842 1477 989 Doncaster Road Doncaster East VIC 3109
Property partners: Trevor Holland (left) and Wes Harper have built a solid portfolio by having a goal and a plan to reach it.
Mr Holland and his wife Christine own nine houses in Victoria, plus some other investments interstate, putting both couples in the top 1 per cent of Australian property investors. During a three-decade property journey, Mr Holland had his ear to the ground before Ipswich, outside Brisbane, kicked off. He bought seven properties there in the late 1990s and within 21 months they had doubled in value. The investors believe in making use of the equity their portfolio has developed by gaining lines of credit on their properties so that they can buy when they see a good opportunity. They say that having a diligent and proactive property manager is vital. So when property manager Lynda Green transferred to PhilipWebb from another company, they followed her and switched their portfolio at the same time. “If you get bad tenants, it’s probably because you had a less diligent property manager,” Mr Holland said. How many investment properties is enough? – Next page
Most investors don’t create a nest egg More than 72 per cent of property investors in Australia own only one investment property.
And less than 2 per cent of the nation’s 1.76 million property investors own five or more properties. Data from the Australian Tax Office shows that most investors fail to build a property portfolio. Less than 10 per cent of investors own three or more properties.
How’s your portfolio?
Number of Number of properties investors
1 2 3 4 5 6 or more Total
Ringwood 03 8870 2888 Mitcham 03 9874 3355 facebook.com/philipwebbre philipwebbrealestateblog.com.au 139 Maroondah Highway 483 Whitehorse Road Ringwood VIC 3134 Mitcham VIC 3132
1,284,852 318,295 96,991 34,967 14,555 15,264 1,764,924
72.79 18.03 5.49 1.98 0.82 0.86
Source: Australian Tax Office, 2010-11 data
How many investment properties is enough?
Selling season kicks a goal Now that the federal election is behind us, the property market will jump into action as the spring selling season kicks up a gear.
National elections traditionally have a slowing effect on the market as buyers become more cautious, so the end of campaigning paves the way for the market to catch up on lost opportunities. Reductions in interest rates to historically low levels will also stimulate the market as it enters the year’s busiest selling season. These factors indicate the next few months will be busy for property vendors, especially since there has been a shortage of properties for sale in the past few months. Vendors should be realistic in setting their selling prices to make sure they gain the maximum benefit of presenting new listings to the market. Right now is a great time to have an update on the value of your property. I am sure you will be pleasantly surprised by how well your property has performed this year. Call your nearest PhilipWebb office for a no-obligation, accurate market appraisal. Best regards,
Philip Webb, Director
More than 80 per cent of retirees live on an income of less than $21,000 a year. That’s why a growing number of Australians are looking to property to provide them with a satisfying retirement. But how many properties do you need to ease your money worries after finishing work? If you want to retire on $60,000 a year, you will need three unencumbered properties each providing a net income of $20,000 a year. Often the best way to achieve this is to buy more than three and sell some at retirement to pay off the loans on the properties which form your retirement nest egg. Other retirement experts suggest that you will need assets equal in value to your retirement income multiplied by 20, plus the value of your house and car. So, if you want to retire on $50,000 a year in a house worth $700,000 and with a car valued at $40,000, you will need $50,000 x 20 = $1 million, plus $700,000 for the house and $40,000 for the car, or a total of $1,740,000 in net assets. If you already own your house and car without debt, you need $1 million in net assets to cover your annual retirement income of $50,000. So how do you achieve it and how long will it take? With a disciplined approach to property investing, most average investors can buy a property every few years and set up their retirement plans over 10 years, provided they have enough years until they retire. An investor who buys five properties over 10 years, starting with a property valued at $350,000, can own net assets
valued at more than $1.3 million in a decade, assuming an annual growth rate of 7 per cent. Without buying any more properties, the value of the portfolio would be expected to double in value over the following 10 years, but the debt would remain the same.
The secret to this outcome is not how much money you have to start with, how many properties you buy or even whether you buy the best investments. And even if the calculations don’t turn out as explained due to economic or personal reasons, the real key to building wealth through property is to buy as early as possible and allow inflation and capital growth to power the value of your assets. It is a mathematical truth that even three properties bought over a 10 year period and allowed to grow naturally in value will be worth more in 30 years than several more similar properties bought over the final 10 years of that timeframe. This only goes to prove another real estate truth: Time in the market is more valuable than timing when to buy. Investors who try to pick cycles in the market usually do not do better than others who buy as soon as they can.
Box Hill Whitehorse Community Chest 50th Anniversary Dinner Thurs Sept 12 9894 4744 Box Hill Town Hall – Whitehorse Rd, Box Hill Doncaster Victoria Seniors Week Open Air Art Show Sat Oct 12, 9842 7047 Doncaster/Templestowe Historical Society Sun Oct 13 Schramm’s Cottage Museum 11am – 5pm Rieschieck’s Reserve, Victoria Street, Doncaster Doncaster East Doncaster East Baptist Church Craft and Variety Market Sat Sept 7, 9842 8466 47 Tunstall Rd, Doncaster East Sat Nov 9 Mitcham Mitcham Primary School Fete Sat Sept 14 9874 6545 294 Mitcham Rd, Mitcham 11am – 5pm Whitehorse Heritage Week Events Schwerkolt Cottage Family Day Sun Sept 15 9262 6555 Schwerkolt Cottage & Museum 12-5pm Deep Creek Rd, Mitcham Gardiners Creek Walkabout Mon Sept 16 9262 6555 10am -12 noon Mullauna College ‘Long Live Rock & Roll’ Production Tues and Wed 9874 3422 456 Springfield Rd, Mitcham 17, 18 Sept, 7.30pm
Community Notice Board
PhilipWebb: Victoria’s largest non-franchise real estate company.
Five buyers compete in three days A conventional cream brick veneer house in Doncaster East has sold for a whopping $880,000 – in three days – after five groups competed for the property.
About 80 groups of buyers viewed the property during two open for inspections and five of them made written offers within hours of stepping inside. PhilipWebb sales consultant Stuart Freeman, who sold the property with sales consultant Jason Starchenko, said the market for family homes on traditional blocks was exceptionally strong due to a shortage of similar properties for sale.
“We opened it on the Thursday and got one written offer that day,” Mr Freeman said. “Then we opened it on Saturday and got four more written offers. It was like an auction. The buyers were lined up in the office waiting to put their offers in. “There was extraordinary demand. Everybody wanted it, either as a development site, because of the local
Price mover: 8 Pine Way, Doncaster East sold way beyond expectations for $880,000 after three days on the market.
schools or because these properties are so scarce at the moment.” The four-bedroom house on an 857sqm block was advertised for $730,000-plus and the vendors would have been very happy with $800,000, Mr Freeman said. “It’s supply and demand – that’s what it boils down to. It’s going bonkers at the moment – and the press has confirmed that.” The Herald Sun in July reported that house prices in Doncaster East had jumped $125,000 in the past 12 months,
according to the Real Estate Institute of Victoria. Doncaster East recorded the third biggest median house price increase of all Melbourne suburbs last financial year, up 19.2 per cent to $775,000.
In the REIV’s list of the top 10 suburbs that had the biggest house price growth in the 12 months to June, seven of them were in the eastern suburbs. The top 10 also included Hawthorn East, Glen Iris, Kew, Lilydale, Hawthorn and Box Hill North.
Decades of down-to-earth client service In today’s changing world, it’s nice to know that when you’re dealing with a wellestablished company such as PhilipWebb, people on the end of the phone know who you are and what’s important to you. We asked clients of some of our longterm staff members about people from PhilipWebb who serve them. For senior sales consultant and auctioneer Martin Froese, who has been with PhilipWebb for 20 years: “If you’re looking for a stress-free transition, I would absolutely recommend Martin and Craig (Nowotsch) at PhilipWebb. They were easy going, down to earth and personable. No salesman talk, just good people working hard and doing the right things to give us the best possible result.” - Vendor Jen Gradon, of Box Hill South For property manager Paula O’Connor (12 years):
“In our 20 years as landlords with property rentals, Paula has been the outstanding shining light. She is the property manager of all property managers in our experience. She is kind, diplomatic, efficient, trustworthy and business-like. Her long-term property management experience makes her the perfect manager.” - Landlord Peter Weymouth, of Balwyn For property manager Sali Young (9 years): “I feel confident with Sali managing my properties and would not hesitate with recommending Sali to an investor. I have
been property investing for 20 years and I have found Sali to be the most outstanding of property managers.” - Landlord Mandy Tan, of Croydon Anthony Webb – General Manager of Sales (10 years) Virginia Sier – Departmental Manager and HR manager (10 years) Guy Iacona – Financial Controller (10 years) Denise Kurban – Administrator/ bookkeeper (11 years) Lizette Lewis – Property Management Administrator (11 years)
PhilipWebb: A trusted name in real estate for 41 years.
Strong start for Spring Sales By Anthony Webb, Partner & General Manager Sales
PhilipWebb’s first auction for Spring has kicked of the traditionally strong selling season with the team achieving yet another outstanding result. The auction at 6 Roycliff Court, Box Hill North saw the renovated three bedroom, two bathroom home on approx. 587sqm initially passed in. However it sold soon after for an impressive $810,000. Throughout the year, our auction results have been much higher than the average. With interest rates at their lowest in decades, a competitive market and strong house prices we can expect a solid season
The PhilipWebb Team was recognised with two national awards at the Real Estate Results ≥≤¥µ Network Principals’ Advance ≥≤¥µ Conference, in Bali this August, with ≥≤¥µ RER Head Coach Michael Sheargold 8 Dixon Grove, Blackburn presenting the following awards; Auction: Saturday 21 Sept, 2:00pm Charming renovated freestanding home, appealing for first home buyers and astute investors.
Jason Starchenko 0448 189 750
3 1 1
and more exceptional results to come. If you’re thinking of selling, and would like to know how our selling strategies could work for you, call the award winning team at PhilipWebb today.
The Signboard of the Year Award accepted by (L to R) Anthony Webb, General Sales Manager, Michael, and Philip Webb himself.
Lazy pest control could bite you
TERLEAS 1 WED EEK
By Sophie Lyon, Partner, General Manager Property Management
Termites are an ongoing concern throughout the metropolitan area and should termites gain entry to your property they have the potential of causing significant financial loss. Due to termites colonising beneath the ground they are very much out of sight until such time as damage appears within the property. To minimise the potential damage to your property we recommend annual termite inspections be carried out by a qualified pest management professional, which should include things like ventilation, drainage and
Spotlight on prices
The Property Management Team
≥≤¥µ of the Year Award accepted by
≥≤¥µ PhilipWebb’s Property Management
11 Albert Street, Templestowe LEASED for $1,500pw
Magnificent family home on 1.25acres of manicured gardens with swimming pool, indoor spa & tennis court
Ringwood East Nunawading Box Hill North
material debris issues in the sub-floor area, as well as a review of all internal timbers. Now is the optimum time for a termite inspection. For more information contact your Property Manager today.
$650,000 $703,000 $570,000 $602,000*
*Indicates less than 25 sales per quarter. Source: REIV quarterly median prices
Division’s GM, Sophie Lyon.
WANTED Properties to SELL
Call DonCASTER 9842 1477 mitcham 9874 3355 ringwood 8870 2888
If this property is exclusively listed with another agent, please disregard this communication.
Homes for life
Doncaster 03 9842 1477 989 Doncaster Road Doncaster East VIC 3109
Ringwood 03 8870 2888 Mitcham 03 9874 3355 139 Maroondah Highway 483 Whitehorse Road Ringwood VIC 3134 Mitcham VIC 3132