An alternative to traditional 'buy-and-hold' investing and relying on (uncertain) natural capital growth to build wealth.
The old "buy and hold" strategy has failed most property investors. It's estimated only 13,000 out of the 1.2 million property investors in Australia can expect live on passive rental income.
That's less than one percent!
Similarly, the stock market and low interest rates mean most investors have little prospect of achieving double digit returns on their equity.
72% of Investors only own
one property
Most make a $10,000
loss per property
Less than 1% can live off their property income
Source: Corelogic | ATO
Investing in Property "Armchair" Development allows you to pre-purchase a residential property at a potentially significant discount to market value, by investing in an ASIC registered fund that the developer will use as a deposit to secure finance and build the property. Once construction is complete, investors receive their capital as well as a profit distribution or a property at a targeted discount of 15-25% to market value.
Create your deposit
Most investors stop on one or two properties because they do not have enough equity for a deposit.
The problem is magnified with the current tightening of bank lending policies driven by prudential regulations. Armchair development can solve this by manufacturing a deposit through the process of passive development.
Investors in our Sapphire St Project received a development profit equal to a 21.7% deposit after their funds invested were returned.
Don't want to own more property?
Not everyone wants to own more property. Maybe they can't get another mortgage or don't want the hassle of more tenants. Armchair development is also for investors who want a share in the property development returns targeting 20%+ on cash invested.
John Morgan, Retired
"I achieved a 42% return
in 19 months."
Comparing retail investors to armchair developers.
Case study from a recent project in Elanora, QLD.
Actual results from Sapphire St Project
Armchair developer investors saved $127,715 on a property valued at $465,000 creating instant capital growth (and deposit) without relying on the property market.
Return on equity invested was 57% in 11 months.
Rent yields on cost boosted to 6.85% compared to QLD market average of 3.4%.
Original investment of $160,000 returned in full after all costs compared to retail investor who paid in an estimated $81,000.
Return on equity achieved: 57% in 11 months.
See client testimonials here
Quick summary of the benefits of
Armchair Development for
rapid wealth creation.
- Profit. Get targeted returns of 20%+ on cash invested.
- Deposit. Use your profit as a deposit to purchase a completed property.
- Capital Gain. Manufacture capital growth without relying on property market price increases.
- Rental Yield. Boost rental yields due to lower cost paid for property.
- Tax benefits. In most cases stamp duty paid and other tax benefits created.
- Priority returns. Often profits are paid in priority over the developer reducing risks significantly.
- Never pay retail. Get property at 20% below market value.
- Fast track. Paying cost means you can buy more properties sooner using the profits as a deposit.
The lifestyle benefits are harder to measure as you take comfort in building your wealth without relying on the uncertainty of the property market or bloated super fund fees.
Your journey begins in the comfort of home.
Hotspotcentral clients are busy juggling family and work commitments leaving little spare time to build their knowledge and wealth so they can live life on their terms. We get that. 93% of our investors began their journey with us by initially attending an interactive webinar which goes into detail about the "done for you" property development model. Understanding the risks and we mitigate them is crucial. And, of course, the results are what really matter. If you think you are ready to invest soon then book your seat on one of our daily online webcasts... in the comfort of home...and discover how property development combined with data drive artificial intelligence research has proven very profitable.
Research and due diligence.
How do you decide which investment will give you the best returns for your risk appetite?
Our investment selection algorithms examines over 100 factors including our property stats that help determine the suitability of the location for this kind of development. Our experienced panel developers understand our minimum criteria before submitting potential projects. We then conduct a supply and demand analysis of the location to ensure there will be sufficient demand on completion.
We look at local market data including demographics and employment and other capital growth drivers. All of this information is compiled in an easy to read property investment report to accompany an ASIC compliant product disclosure statement (PDS) so you can assess the returns, the risks and the logic behind the assumptions.
Investment Report
Let's face it, most investment reports are just not very interesting and the information provided is designed to bamboozle most investors. We've changed that.
Our mission is to make investing simple and straightforward for everyone and it begins with easily understood information so you can make an informed decision based on the facts and merits of the investment alone.
No glossy brochures designed to elicit an emotional purchase decision. No sales people with slick presentation skills. Just the data. The Facts delivered in an ASIC prescribed offer document that details the offer and the risks in a balanced manner. Yes, property development can be complex. But most of our investors tell us they like our ability to make complex analysis simple.
You don't need to know how our project analysis algorithms work. Instead you can take comfort knowing our algorithms make it possible to compare competing projects against 100+ known success criteria so we pick the ultimate winner with a high degree of objectivity and little 'gut feel'.
Time poor investors can quickly determine if this investment suits them or not and our easy to use online application process and ongoing updates make the whole process seamless.
Regular Project Updates.
Do you ever get that feeling that others have total control of your money and how it's invested? Regular updates make our investors feel involved and the peace-of-mind is comforting too. Most of our clients comment that they not only take great comfort seeing how their money is used, but it's also fun watching the buildings come out of the ground. Sure, there are always hiccups along the way and you need to know about these too. But if you want to learn about property development and high tech research, then this is a good start. The potentially large profits are nice too!
4. Profit Share
At the end of the project the profits are distributed according to your share class.
So if you are keeping a property on completion, your profit might be used to reduce the purchase price.
For Example:
Lets say you invested $160,000.
Property purchase price and market value is $400,000.
Your profit might be $80,000 or a 50% return on cash invested.
This profit is also the equivalent of a 20% discount on a $400,000 property OR a 20% deposit if you leave it behind AFTER retrieving your $160,000 investment.
You typically get a much higher return on equity (cash invested)n when retaining a property on completion
If you elect not to keep a property on completion but rather take a profit share only, then your profit might be 20% or $32,000 ($160,000 x 20%).
On completion of the project (after all properties have settled) you would get $192,000 ($160,000 + $32,000).
This is not a guaranteed return
Property development now available directly to everyone online.
26% of the 2016 BRW Rich Listers made their money developing property.
The problem is it has traditionally only been available to the wealthy because of the large minimum investment requirements and the expertise required.
Many investors have some exposure to real estate development via their super funds but the performance has been bogged down by fees and the lack of transparency. As a result everyday investors have accepted that returns will be low while they have little control or say how their funds are invested.
Hotspotcentral has changed that having fine-tuned the armchair developer model since 2009. We've learnt a lot and our risk mitigation has grown with experience, the evolution of our artificial intelligence research technology and our amazing industry partnerships. Property development success is all about the people involved.
Hotspotcentral™
Since 2010, Hotspotcentral investors get private access to highly profitable, lower risk property development opportunities backed by our market leading data-driven market research and leading industry contacts.
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