Annual Investor Report

PGA Advisory has been assisting clients to accelerate themselves towards financial success for close to 6 years. While we provide a wide range of financial services, first and foremost PGA Advisory is an investment firm. Our number one responsibility is to advise our clients on purchasing investments that are going to have a return on capital growth, high rental yields, positive tax benefits, and are cash flow positive or neutral.

All of these aspects have been achieved over the past several years of our operation, and we are proud that our clients are reaping the benefits of sound investments.

We've collated some great data for our annual investor report which sets out to provide an overview of the average return our clients have seen over the past 4 years. The following data sample is based on hundreds of properties that have been purchased in various regions of Victoria, New South Wales, and Queensland.

The average property growth for our clients at PGA Advisory is 10.3% compounding per annum. The average property growth seen within Australia is usually around 5% to 6% per annum. Some of our clients have seen returns of up to 25%, and some have seen slightly less than the national average, at 7% compounding per annum.

The stock that we acquire at PGA Advisory is very diverse; from house and land packages to townhouses, to high-end apartments all across the eastern areas of Australia. The regions where we have seen the highest growth include Geelong, Bendigo, Ballarat, metro Melbourne, and pockets of Brisbane.

Here’s some highlights we have seen so far:

• Houses in Armstrong Creek and Warralily that were purchased at $520,000 in early 2019, and are now selling for $680,000 to $700,000, based on 500m2 blocks.

• Houses in Curlewis (on the water) have increased by approximately $150,000 on average in 12 months.

• Houses purchased in Ballarat in the low $400,000 range purchased 2 years ago are now selling for approximately $550,000.

• Townhouses purchased in metro Melbourne for $550,000 to $600,000 are now selling for approximately $700,000.
• Houses purchased in Mildura for $310,000 are now selling for approximately $380,000.

• Apartments purchased in Brisbane for $500,000 to $650,000 have also seen substantial growth over the past 4 years.

We are expecting clients who purchased more recently to see similar returns over the coming years.

The following chart published by REIV, outlines the median sale price of both houses and units across regional Victoria from 2016 to 2021 Q1. Data is not inclusive of the Melbourne metropolitan region.

Overall, investments that have had 3 to 4 years of growth have seen significant gains. The majority of our clients have made approximately $100,000 returns over the past 2 years, not inclusive of tax benefits.

In addition to capital growth and rental returns, our clients have also seen a significant amount of tax benefits returned to them through depreciation schedules.

Across our client database, the average rental return is currently sitting at 4.6%,

Over the last several months, there has been decent growth within Australia's residential real estate market. The pace of capital gains has been close to record-breaking, with the national growth rate in March the fastest since 1988, according to a recent report by CoreLogic.

These exuberant conditions have been driven by a multitude of factors including record-low mortgage rates, a huge surge in consumer confidence as the economic recovery beats expectations, a range of additional stimulus measures which have incentivised home buying and building, and persistently low advertised inventory levels which have created a renewed sense of fear of missing out amongst buyers.

We are expecting housing values to continue to rise throughout 2021 and throughout 2022, just not at the unsustainable pace of growth that has been evident over recent months, due to the impact of COVID-19. In saying this, at PGA Advisory, we have seen stable growth over the past 2 to 4 years and we are expecting this steady increase to continue over the years to come.

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