Just Property Management


How to Build Your Property Wealth in Bunbury WA

A Detailed Industry Guide for Experienced Investors





Chapter 1

Why Work with a Real Estate Agent?      


Chapter 2           

The 3 Great Advantages of Real Estate           


Chapter 3       

Borrowing Money for Property       


Chapter 4

How to Deal with Wholesalers             


Chapter 5            

4 Factors to Consider in Every Real Estate Deal


Chapter 6

5 Proven Ways to Sell Your Rental Property  





Starting out as an investor can bring a range of emotions. You may recall the excitement, the thrills and the anxious moments. If you can, you’ll know that investing has only become easier. Over time you’ve learnt how to be a good landlord and a wise investor.

By now, you are probably feeling more confident and skillful with the basics of property investing. But with more to invest or more properties you want to buy, things can get complicated.

At Just Property Management in Bunbury, we love working with investors who are gaining a little more experience and challenging themselves when it comes to investments and real estate. By now, you should have specific goals in place and a business plan to help you meet those goals. It’s time to think about what else you could be doing to meet those goals.

We have spent many years investing in properties, financing properties, and managing properties. We understand the big picture and the minute details involved in the real estate industry. This book is intended to share our expertise with experienced investors who are ready to make more money.

You’ll find specific chapters that address common questions and situations that you’ll have to navigate as an investor.  You’ll get the lowdown on leverage and how to handle deals that come from wholesalers.


We’ll discuss conventional lending and its limits, and we’ll talk about what makes a good deal for you. We’ll explain exit strategies and remind you why it’s a good idea to work with a professional agent

At Just Property Management, we are the local experts in real estate investing in Bunbury WA. We’re happy to provide you with this information so you can make smarter decisions with your money.

Feel free to give me a call when you’ve finished reading this book. I’d love to hear how it helped you and what else we can do to assist.



08 9721 1144


Rhys Standley
Managing Director
Just Property Management Real Estate
19 Stirling St
Bunbury WA

Why Work with a Real Estate Agent?

All investors know that real estate is a numbers game and your goal is to earn as much cash flow as possible. That might discourage you from working with a real estate agent. After all, you don’t want to lose a single dollar.


In this chapter we’ll explain the pros and cons of working with a real estate agent to build your property portfolio and your wealth.



Reason #1: Working Alone is Costly


It’s a common view that you’ll lose money working with an agent. But that’s not true. By working with an experienced agent who has selected and purchased hundreds of properties in the Bunbury area, you are benefitting from their knowledge and expertise.


This is called leverage. It would take you years to develop the expertise and contacts and know-how that an experienced agent can bring. By working with a professional agent, who is familiar with Bunbury, you save yourself a lot of time and work and – make more money.


Ask yourself how valuable your time is, and what you could be doing with it instead. Running around and putting up signs and taking applications and screening tenants are all time consuming tasks. An agency can take care of all these details for you.


Reason #2: Avoid Time Stealers


Working alone also adds the risk of wasting time when things don’t go smoothly. Sometimes you’ll be stood up by prospective tenants, and have to rearrange the appointment. Or you’ll place unqualified tenants in your property who take more time and hassle to manage.


You can quickly get frustrated with the investment of time you need to make in your rental property. An experienced real estate agent has a team of staff to manage these issues when they arise.


Reason #3: Better Support, Better Decisions


When you own a piece of real estate, you own a business; and when you own a business, there are multiple players. A vital player is the real estate agent.

They are your team member who can screen the tenants, take the calls, open up the door, and protect your time. The real estate agent can make rational decisions about your property and your applicants and tenants. They are not caught up in the emotion and that’s an advantage for you too. It means every decision will be a business decision geared for your success.


Reason #4: Stay within the Law


When you are going it alone as a property investor, it’s easy to make snap decisions. For examples, let’s say your property has been vacant too long.  A common mistake is that you’ll bend some rules or not screen as carefully because you just want a tenant in there, paying rent.

This can be seen as discriminatory, and therefore illegal. If you bend the rules for one tenant after you denied the application of another tenant, you could be breaking anti-discrimination laws.

By working with a real estate agent, you get the benefit of their legal knowledge. Plus you put the property rental in their hands. They definitely have a bigger pool of applicants to call on. This frees up your time and saves you money by getting the place rented to a good applicant. And most importantly, you avoid any sticky legal mess.


In summary, here’s what a real estate agent can do for you…

  • Save you time and money
  • Find quality tenants for your properties
  • Advise you on all aspects of your business
  • Keep you out of court


The 3 Great Advantages of Real Estate

There’s no single answer for why you should invest in real estate instead of shares or other investments. It really depends on your end game and your goal, or what you want your life to look in 20-30 years.

Real estate is a great asset and a useful tool to get the lifestyle that you want to have. It gives you flexible savings as you reach retirement and an asset that you can pass onto your children. With uncertainty about pensions and regular changes to superannuation rules, it’s comforting to build your own asset that you control.


Advantage #1: Reach Your Goals Faster with Leverage

To buy your next property, you can save a deposit which could take you 5 years and meanwhile the prices are going up. Or you can use leverage. Here’s what it means.

Let’s say you have a property that you bought for $400,000 with a deposit of $60,000. Over time the value of the property will increase and the cost of your mortgage will decrease. For instance the value may get to $460,000 and the money you owe the bank may drop to $300,000 from $340,000.

This means that the equity in the house, that is, the amount that you own is the new valuation $460,000 minus what you owe the bank $300,000. This is $160,000.

This is money that you can now leverage off. By refinancing your loan, you can free up funds to put a deposit on another property. This is a much faster way to build your portfolio than saving one deposit at a time. And it has been used by successful investors for years.



Advantage #2: Real Estate Investments Perform Better

Over time, real estate will do a lot better statistically than the share market or intellectual property because its growth is steady. It’s a reliable investment. After all, everyone always needs a roof over their heads.


Advantage #3: Appreciation in Value

When you want to buy a property, you should be looking at the long-term value. It’s a challenge for investors to remember this important fact. They look at the immediate cash flow, and sometimes that’s because our egos need to see a huge cash return on our investment. But, long term appreciation is valuable.

When you are looking at your next property, be sure to calculate in the likely appreciation in your decision-making. Immediate cash in terms of high rent is fine but long-term, the appreciation of the property is crucial.

A property that appreciates well will allow you to leverage your asset and buy your next property. Also, it will give you a financial boost when it comes time to sell.



So, here’s what a real estate agent can do for you…

  • Save you time and money
  • Find quality tenants for your properties
  • Advise you on all aspects of your business
  • Keep you out of court


Borrowing Money for Property

Borrowing money has changed. It used to be that you had one bank for life and you went cap in hand to the bank manager to get a loan. These days, it’s easier to shop around between banks and banking products. This chapter will walk you through the basics of borrowing money for property.


Point #1: Know the 3 Cs

Banks want to make sure you’re a reliable investor before they lend you money for properties. In Australia, lending is based on the 3 Cs – Credit, Character and Capacity. Let’s take a look. Credit is your credit rating. The bank or mortgage broker will examine your credit record and judge you on that. Character refers to your current income. Have you held that job for a two year period or are you struggling with 2 casual jobs?

Capacity is your capacity to pay the loan. Can you service the mortgage? Can you handle it alone if the property is untenanted for a month? These are the questions the bank staff will be thinking about. They will be interested in how you have paid other loans that you may have now or in the past.

So, keep your mortgage payments, car payments or other loans up to date. You are building a credit history that you may rely on in the future. Be sure to take your business plan to any meeting with the bank too.


Point #2: Shop Around

If you have qualified under these 3 Cs, Credit, Character and Capacity, there is nothing to stop you having a number of housing loans with a variety of banks. Technically it’s possible to have 3 loans with one bank for 3 properties, 2 loans with a mortgage broker and 5 other loans with a different bank.

It’s all about finding the loan that works for you at that time. Different banks offer different loans so shop around.


Point #3: Banks or Brokers?

Australian borrowers have benefitted from the choice that mortgage brokers have bought into the lending market. Banking is now a more competitive market and that’s good news for you the customer.

A mortgage broker has a pool of banks that they can call on. This may be 25 banks for instance. A broker can listen to your story, your needs and your long-term goals and find a loan to suit you. You do not pay them as they get a commission from the bank who gives you the loan.

Whether you stay with the banks or use a broker, the general advice is to spread your loans across different banks or lenders.


To recap, as your portfolio grows you’ll need to consider a range of lenders …

  • Talk to your regular bank about the loans they offer
  • Compare this with the rates and loans at other banks
  • Meet with mortgage lenders to find outif they have something better
  • It’s okay to use different banks and brokers if the loans meet your needs


How to Deal with Wholesalers

When you hear about a deal from a wholesaler, it can be hard to know if the deal is a good one or a bad one. It could be anything from a $2,000 lot to a $500,000 house. If you want to take advantage of the offer, you have to buy immediately, which means putting nonrefundable option money down. Be cautious when you work with wholesalers.


So what is a wholesaler? They are often the middle-man or sales agent for property developers or builders who are putting up spec houses in new areas. Here are a few tips to help you avoid the common pitfalls of using wholesalers.


Tip #1: Screen Your Wholesalers

There are some wholesalers who are fantastic and reputable. Others, however, will rip people off. So if you’re doing a deal with a wholesaler, check out their background and find out who they’ve worked with. Call their references. See if they’re on Google and LinkedIn.  A little checking will pay off.


Tip #2: Take Your Time

I’m a pretty conservative investor, and I don’t like to be rushed into any deal. It’s a big commitment to buy an investment property, so don’t let people rush you. You need to make sure you know what you’re buying. A lot of these wholesalers do not want you to take your time and they don’t want you to do your due diligence. That should be a red flag.


Tip #3: Be Selective with Opportunities

A good wholesaler will know how to help you. They should ask you the right questions regarding what kind of properties you want. You don’t want them to send you everything in the hope that you buy what you think looks like a good deal.

The point is: If you’re going to buy something, make sure it fits in your business plan and matches your goals.

Talk to people who have contacts with good, reputable wholesalers. In Bunbury, I have some great connections who I can recommend. Find out everything you can before you start working with a wholesaler to identify and acquire real estate. Always be cautious when you’re making an investment, and make sure you’re doing right investment for your goals and your strategies.


To get the best from wholesalers, you need to …

  • Investigate the wholesaler first
  • Only work with wholesalers who have a good reputation
  • Avoid the ones who push any property on you and rush you
  • Buy the properties that suits your business goals


4 Factors to Consider in Every Real Estate Deal

There are plenty of deals out there. The question is, which one is right for you at the present time? Well, that depends on two things, your goals and your investment strategy.


When you’re looking for a great deal, the first thing you need to do is figure out what you’re trying to do with your investment properties. In 20 or 30 years’ time, what do you hope these properties have helped you achieve?


Factor #1: Income vs Growth


Let’s say you buy a property in the suburb of Eaton in Bunbury for $320,000. The average rental in Eaton is $330 per week.  If your goal is to have an income you can live on right now, this property alone will not meet that goal. But, before you decide if it’s a good deal you need to consider the long-term property appreciation as well as the rental income.


Property growth is often overlooked in favour of the short term cash flow that the rent generates. Sure, you need the rent, especially if you have a mortgage to pay. But the capital appreciation of the property is where you can really build your wealth. It’s a fact - property appreciation will always outpace cash flow.


Factor #2: Balancing Cash Flow with Long Term Goals

Many people invest to earn cash flow. That’s an important component, but you don’t always want to hang your hat on that alone. Capturing equity can be far more important.

For example, if there’s a property that’s worth

$430,000, but your motivated seller is willing to take just

$400,000. So you immediately earn $30,000 on that property. It’s an unrealized capital gain. It doesn’t go into your pocket, but you’ve captured the equity.

After putting down the deposit and setting up a mortgage, it’s yours.  Experience in Australia tells us, that property appreciates in value (usually by double) every seven to nine years.  


If you keep the property for say 10 years, it will probably be worth $860,000. Keep it another 10 years and you’re looking at an asset of $1,290,000. This is the benefit of being a long-term investor. 


Factor #3: Mortgage – A Decreasing Debt

Your bank will set you up with a loan over let’s say a 30 year period. It doesn’t matter to them if the value appreciates or depreciates. They just want to get the money back that they leant you, plus their interest.

The great thing about this scenario is that you’re not paying the money back; your tenant is. Your tenant is paying down the loan. Your debt gets smaller and smaller.

There may be times where you’re going to have to put capital improvements into the property and there may be vacancies, but that’s okay. You’re still having someone paying down the debt. Less debt means the interest is smaller too.


Factor #4: Increased Rents

Over the lifetime that you own a property the rental market will change. You can expect to charge higher rentals in line with what’s happening in your neighbourhood. New developments such as schools, major hospitals and national sporting facilities all add value and increase the demand for rental accommodation.

Rental trends are upward trends. This is good news as higher rent means you can pay down any loans faster and free up equity in the property for your next purchase.

Sure, your taxes and insurance costs may go up a little, but not much. It’s safe to say that your rent will increase over 30 years and you’ll earn more cash flow.

It’s common to review the rent every 6 months or very year. Small rent increases that keep pace with the CPI are easier for the tenant to adjust to than one huge increase in 3 years. Your property manager can guide you on rent increases and what’s happening in the market.


When you are looking at a property investment, consider if it meets your financial goals such as …

  • Generating a cash income
  • Having a property that appreciates in value
  • Building equity and more buying power
  • Using the rent to pay down your mortgage debt
  • Earning higher rents over time


5 Proven Ways to Sell Your Rental Property

It is very important when you purchase a new rental property that you think about the future and how you may need to sell that property. Many investors do not think about this and get burned when they try to get out of the landlord business.

These are the top rental property exit strategies that might be of use to you when the day comes that you decide to pursue other things.


Option #1: Multi List Your Property

Multi Listing is where you have your property registered for sale with one agent and other agencies can also show the property and make the sale. This means more agents are working to sell your property and more people are seeing it. Sounds good in theory… but not all agents are equally motivated. Multi-listing was more relevant before the upsurge in internet real estate sites.


Option #2: Use an Experienced Local Agent

Now it’s preferable to stick to one qualified and experienced agent. Ask them to place your property on domain.com or realestate.com. This will give you access to an international pool of buyers.  Plus, you still get the benefit of local expertise, advertising, open houses and personal service.

They will also have their own investors who are ready to buy. For a faster sale, it’s best if your rental property is vacant, clean and ready to show. Yes, this means there will be a period when you are NOT collecting rent payments.


Option #3: Sell the Property Tenanted

There will be some other investors out there who are keen to have a tenant in place, paying the rent. This is sometimes an asset, especially if the tenant is a reliable one. A good property agent can help you find other investors who are interested in tenanted properties.

Any new buyers will be attracted by having the rent, i.e. cash flow, coming in from the day they purchase the property.


Option #4: For Sale by Owner

You can sell privately too. This may save you some fees but it is time-consuming and you’ll need time to learn the ropes. It’s essential that you follow all the legal requirements. You are on your own if things go wrong, such as paperwork not arriving for the contract or a dispute about the settlement date.

Option #5: Sell via Owner Financing

Another great tool to use when selling, which will really open up your pool of buyers, is to offer the house for sale via owner financing. This is a viable exit strategy, and you can use any of the above methods. Make sure to mention that you’re offering owner financing.

You can set your own terms and it will really open up the gates to other less-qualified buyers. This would be a good strategy to use if you are not in a seller’s market or not many people are interested in your property using conventional financing. Sometimes tenants are interested in this option. They have come to love the property and would welcome a chance to own it.


When you are ready to sell a property, there are many ways to go about it, including …

  • Multi-listing your property
  • Working with an experienced local agent
  • Selling it tenanted to another investor
  • Managing the sale privately
  • Offering owner financing to potential buyers



As you become a more knowledgeable and more confident investor, you’ll find that you have more opportunities to identify potential deals. Whether you want to invest in two properties or 20, you’ll need to know what to buy and how to buy them. This book has hopefully answered some of your questions and provided you with a roadmap.

Smart investors know that you need a team of people to help you make the right decisions and follow through on your plans. As a new investor, you may not have been sure of your goals.

Now that you are an experienced investor who has been successful with one property or several, you know that everything you buy and sell has to align with your long term plans.

You should now have a better understanding of leverage, financing, how to identify a good deal, and what to do when you’re working with wholesalers. It’s never too early to start planning an exit strategy, and we gave you some information about that as well.

If you have questions while you move through the investment process, please don’t hesitate to contact us at Just Property Management in Bunbury. We are always happy to serve as a resource for investors at any stage of their real estate careers. If you have questions, please reach out to us.


What's next for you?

If you liked the information presented here and you’d love some more “insider” investor tips for rental properties in Bunbury, you’re invited to request a FREE copy of the latest edition of the popular:


SPECIAL REPORT: Bunbury Rental Hot Spots


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  • Suburbs with the highest rental returns
  • Suburbs with the lowest vacancy rates


It’s something of a “bible” for anyone with an interest in property in the Bunbury area!


To claim yours:


Email bdo@justpropertymanagement.com.au with the subject line “Bunbury Rental Hotspots Report” and we’ll reply with your copy within 24 hours.


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