Investment Strategy

Purchasing Strategy-Comparison

Value Adding

$700,000

$900,000

Traditional Purchase

Deposit                                $140,000

Stamp Duty                           $38,500

Conveyancing Fees                    $1500

Mortgage Payments                $18,000

Council Rates                           $2,000

Value Adding Costs                 $20,000

Agents Commission                $18,000

Total Required         $238,000

Property Option-On Sale

Deposit                                       $70,000

Stamp Duty                                $38,500

Conveyancing Fees                         $1500

Mortgage Payments                             $0

Council Rates                                      $0

Value Adding Costs                      $20,000

Agents Commission                     $18,000

Total Required              $148,000

Property Scout Strategy

Deposit                                            $0

Stamp Duty                                      $0

Conveyancing Fees                            $0

Mortgage Payments                           $0

Council Rates                                    $0

Value Adding Costs                   $12,500

Agents Commission                    $4,000

Total Required              $16,500

Traditional Purchase

Introduction

The Team at Property Scouts have developed a system that allows our clients to enter the Property market with very little capital compared with the Traditional Methods.

Traditional Property Purchase Method

Traditionally, the majority of Property Investors/Developers purchase Property in the traditional way thus paying all the Government Fees and Charges, Borrowing Fees and Charges, Holding costs and ultimately all the Real Estate agents commission. These fees and government charges amount to around 8% of the average property purchase and ultimately create a barrier to enter the property market.

Property Options

Property Option Method

Property Options are used to secure a Property within a finite time line. This strategy is the HIGH-RISK strategy where most investors lose their deposit and all the property value adding costs. The most common reason for the loss is that they can't match a buyer to their deadline set in the Property Option and the cause is usually the Property Disclosure Statement where it's obvious to a purchaser, the Property Option holder is simply a middle man flicking the property. In most cases, the Purchasers solicitor would contact the Owner of the property to clarify the situation and generally negotiate directly upon the expiry of the Property Option term. The only saving in this method are the mortgage payments and council rates as a Deposit will still be required to settle the property along with all the Government Fees and Charges, Borrowing Fees and Charges, and Real Estate agents commission.

Property Scout Strategy

Our Strategy

Our Investment Strategy involves partnering with the Property Owner where we're not required to pay a Deposit on the Property, No Stamp Duty, No Conveyancing Fees, No Mortgage Payments, No Council Rates, and only part of the Real Estate agents commission.

The Benefits of Our Strategy

The benefits of our strategy are numerous, obviously the Return On Investment that is far superior than the Traditional Property Purchase Method or the Property Option Method and the RISK is of losing money is significantly lower. 

The average Return on Investment is almost 6-8 times higher when comparing to both the Traditional Property Purchase Method or the Property Option Method. Our Strategy allows the average Property Investor to spread their RISK over more Properties in different locations instead of risking all their capital on ONE property in a location where market sentiment could change in an instant.

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