Will Watson - PropertyWiseProperty Trading at the Coal Face

Who is PropertyWise?

PropertyWise is a property trading company We have completed close to 500 deals Currently have 7 trades on the go Currently selling $3 million worth of stock Working with money partners to buy and sell 6 of our 7 deals are with Money Partners Into my 10th year of trading and still learning

The Auckand Coal Face

The market in Auckland is very buoyant due to lack of supply. No 30% drop!

Wave 1 capital growth ripple spreading out from inner city suburbs

Properties continuing to hold price and/or increase in value

Quality property should attract 20+ couples to an open home, over 100 couples in city suburbs

This year is the year for rental growth, followed by substantial capital growth in 2012

The Ripple Effect

What is the ripple effect? Where is it now? How fast does it move? What sort of growth are we seeing?

Since mid 2009 we have seen Ripple 1 capital growth. >10% increase Herne Bay 17%, Grey Lynn 19.5%, Ponsonby 21%, Western Springs

12.3%, Kingsland 12.5%, Mt Eden 13.4%, Sandringham 13.8% Remuera 11.2%, Royal Oak 10.5%, Mission Bay 15.5%, Ellersie 12.4%

It is traveling slowly, at 5 km a year which means it will hit Papakura (32 km away) in 2016

I expect Ripple 2 areas to have capital growth of 5-10% this year Quality suburbs in Auckland will increase 5-8% this year

Profit from Property

The “Three Kings” Price - Presentation - Promotion

3 Secrets to profit making in property 1. Buying Well - Military Strategy 2. Renovation -What does it cost how to get the best price 3. House dressing - Does it work?

Buying Well - OODA Loop "Time is the dominant parameter. The pilot who goes

through the OODA cycle in the shortest time prevails because his opponent is caught responding to situations that have already changed.” John Boyd

O bserve - Agents, newspaper, internet, network O rientiate - What is the house worth? D ecision - To buy or not to buy A ction - Unconditional offer

Renovation An average 3 bedroom house selling under $500k

should cost $25-$35k to completely renovate This includes, a new kitchen, bathroom, paint inside

and out, roof, new carpet, landscape, plumb and wire

Fixed contract prices do not work well for me

I hire a key renovator on hourly wages who employs people in their chosen fields

House Dressing Presentation is key in this market The house dressers say it increases value by

7%. I say “maybe”, but houses sure sell fast when dressed well

Price - Presentation - Promotion I use Anthea at Homebase

Making Profit Buy well Reduce renovation costs by having a good team Present well and up goes the Profit

Deals this Week One sold yesterday West Auckland - 2 houses on one title. Back house

unrented, 8.75% return for investor. Paid $380k Have sold contemporaneously for $415k

Methuen Pl, New Windsor

Paid $390k Renovated and tidied up Sold for $465k, settles this

Thursday

The One That Got Away… Purchased a house in 2009 in Mangere with a Money Partner (MP) Purchased for $220k We were offered $265k but we turned it down Sold for $252, 4 months after purchase After paying for renovation and commission,the MP and I lost $3700 My first and only loss in close to 500 trades. However the MP carried the

loss into the next deal. We made close to $40k on the next one Blessing in disguise. Very strict rules about buying - $40k profit per

renovation deal. Average last year was $38k. 81 days to sell. Non-contemporaneous

What is a Money Partner

Money Partners, or Equity Partners, put up the money to purchase and renovate the property.

There are 2 sorts of Money Partners. 1) Quick flick buy and sell. 2) Buy, hold then sell. Upon purchasing and renovating the house we increase the rent and cashflow the property until a 2016 sale date. I currently have space for 3 more Money Partners so

if you would like to discuss the opportunity please see me, or my wife Sarah, and get our card.

The Good News

There is plenty of demand for houses in Auckland

Good properties are in short supply Great rental growth this year Upward capital growth in Ripple 1 and 2

areas, as well as popular suburbs like Titirangi, Mangere Bridge, Howick and Milford.

Any Questions?