Low-risk approach accelerates business growth

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Low-risk approach accelerates business growth

BRW Fast Starters

OUR emphasis on research and analysis-driven investment advice, quality established property and a highly-educated management and advisory team is paying dividends. Over the past year, we have grown by 117 per cent, earning us a place among BRW’s Fast Starter companies (Top 100 under four years’ old), debuting at #79 in our first eligible period.

When we started out just over two years ago, our decision was to provide a property investment service which was highly ethical, safe and low-risk.

We wanted to set ourselves apart from project marketers who paint a picture of wealth via house and land packages and off the plan apartments, often luring first-time property investors with the promise of overnight riches and a financially-secure retirement.

Similar to the approach taken by investment banks and fund managers, our property investment advice is research driven and all the properties we recommend must pass our stringent investment criteria and be subject to a thorough due diligence process.

What this means is that we will only ever recommend blue chip residential properties which have the best potential for capital growth and solid rental returns – that is, established properties in blue-chip suburbs within a 3-15km radius of the CBD in Australia’s larger capital cities which have the benefit of solid population growth and established infrastructure.

We also focus on properties less likely to be replicated such as period and older style homes, properties in high land value locations which are close to transport, job nodes, schools, village-type shops, restaurants and recreation facilities and are located in attractive streets with architecturally consistent streetscapes.

This low risk approach excludes 95 per cent of all properties currently on the market.

So it will come as no surprise that we never source properties direct from developers and we don’t buy off the plan or in new housing developments. We also have a strict ‘no commission’ policy, preventing us from ever taking commissions from agents or referrers.

Basically, we believe in playing it safe and doing everything possible to not only grow our customers’ wealth but also to protect it!

We’re delighted to say that our low risk approach is resulting in very high levels of customer satisfaction and a subsequent high referral rate. As much as 25 per cent of all our new business comes from referrals.

Although it is still early days for clients who have purchased property with our help, those who have, have seen the capital on these purchases increase by a significant 10-15 per cent in just 12 months, with the expectation of an additional 15 per cent increase over the next two years. These growth rates are further buoyed by strong rental yields of between 4 to 5 per cent, low vacancies and good quality tenants.

For new clients who are yet to purchase but have already had the benefit of a portfolio review, we have been able to advise them which investments are the right or wrong vehicles for building their wealth and which should be held on to or sold off.

For the majority of these clients, simply knowing what is and isn’t working and having a solid strategy for moving forward, has been hugely satisfying.

What has also added to high levels of customer satisfaction is our strict policy of employing highly qualified mid and senior level staff members.

All these employees are degree qualified – typically in business or applied science (property and valuations) degrees – and have attained a Masters of Property or Certified Practising Valuer qualification. In addition to this, we encourage and fund further education and training for our staff, be it to obtain a full real estate licence or QPIA certification via PIPA, to name a few.

Our philosophy is that to effectively work in this industry you need to start from a solid foundation which would otherwise take up to 8-10 years to acquire learning on the job.

We want to give our clients the very best advice; therefore we demand our advisors have the very best possible education.

We invite all current or prospective property investors to arrange a free appointment today with one of our senior investment advisors, so we can show you how you can build a safe, low-risk wealth creation strategy based on solid research and qualified expertise.