About | Diversity Property Group

Dependable
Property Investment PROFESSIONALS

Welcome to Diversity Property Group

Our priority at DPG is to deliver exceptional outcomes and exceed expectations.

With our team's vast knowledge of the real estate market, we are devoted to optimizing the value of every Investment property.

Cameron Merritt

Managing Director

Diversity Property Group

3x3
Investment Property Strategy

INCORPORATING

THE FUNDAMENTALS OF WEALTH CREATION

CAPITAL GROWTH YIELD TAX BENEFITS

1
Where to Buy

2
What to Buy

3
How to Buy

The Fundamentals of Wealth Creation

Before you start investing in property it’s essential to have a well thought out Property Investment Strategy in place.

To do that you need to have a thorough understanding of the three key Fundamentals of wealth creation through Property.

1

Capital Growth

Capital Growth Is the appreciation of your investment property overtime. It's determined by subtracting the purchase price from the current market value.

2

Yield

The Yield represents the possible income that can be generated from the property. It is calculated by dividing the estimated current value of the property by the annual gross rental income.

3

Tax Benefits

It is essential to comprehend the idea of 'gearing' and its related benefits and drawbacks while creating a Property Investment plan.

3x3 Step 1
Where to Buy

In order to succeed in property investment, it is crucial to conduct comprehensive research and acquire properties in suitable locations. Making an investment in an unfavorable area can be a costly mistake that delays your progress towards your goals.

1

Major City/Town

A property in a city or large town near schools, shops, & transportation hubs is essential for a reliable real estate investment. It's best to select a low-maintenance property in good condition, away from a main road. For a high-yield investment, consider large regional towns outside major cities with affordable property prices & high rental returns.

2

Growth Suburb

To achieve financial freedom sooner, consider purchasing a property in a high-growth suburb that is likely to increase in value. Search for areas undergoing gentrification, as well as neighboring suburbs that are likely to follow suit. Additionally, look for upcoming infrastructure upgrades in the area to ensure that the property is a good investment opportunity.

3

Affordable Price

Purchasing a reasonably priced investment property can lead to sustained demand and ultimately, higher returns.

3x3 Step 2
What to Buy

To achieve success in real estate investment, it is essential to purchase the appropriate property. Properties that include land, such as houses, typically appreciate at a faster rate but are more costly than units.

1

House

In general, houses tend to provide better long-term capital growth as the value of land increases over time. Nevertheless, they come with some difficulties such as higher entry costs and typically require more maintenance compared to units.

2

Unit

While the entry point for units is cheaper than houses, they typically don't appreciate as fast. Owning a unit means that expenses for maintenance, upkeep, and insurance are shared among all the owners in the building through a strata title. The common areas in the building are maintained and overseen by an owners' corporation (also known as a body corporate) that charges body corporate fees.

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Commercial

For some individuals, investing in commercial real estate is worth considering. Lease periods are often longer, up to 10 years, and rental yields are typically higher than those of residential properties. However, finding a tenant may take longer, and commercial properties are more sensitive to economic downturns.

3x3 Step 3
How to Buy

An understanding of the lending requirements as well as how to structure your investments correctly is essential to achieving your long-term financial goals. Making a mistake can be costly and time consuming should you need to unravel your portfolio.

1

Property Loan

Your ability to borrow is essential to building a property portfolio. It provides you with the funds needed to purchase the next property, Additionally, if you're in a high tax bracket, there may be tax advantages such as deductions on interest payments.

2

Structure

When heading down the property investment path it’s important to structure your loan portfolio correctly allowing for the separation of tax deductable debt from non-tax deductable debt with the intention of eliminating non-tax deductable debt first.

3

Life Insurance

As you grow your property portfolio it's important to review the level of Life Insurance and other risk products you have such as Income Protection regularly to ensure that your assets and your loved ones are protected should something happen to you.

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FAQs

'Gearing' is the term used for borrowing to invest by using existing investments as collateral. This tool can help you build your wealth. Regular gearing combines an investment plan with an investment lending facility, providing the benefits of regular saving and gearing. It also allows you to drip-feed money into investments, taking advantage of 'dollar cost averaging' and more when the market down and less when it is up.

Equity is the difference between the fair market value of your property and the amount you have left on your loan balance. Some investors may want to leverage the equity in their existing property for an investment home loan. Remember, the value of your property is subject to current market conditions. You may be able to release more equity in a market where house prices are rising, than in one where they’re falling.

James & Veronica VIC

Thanks to Cameron's professional guidance using his 3x3 Strategy Investment Property Program, we were able to secure our first investment property. The experience was excellent, and we highly recommend them.

Thanks Cam!

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