The Property Factory doesn’t operate like a traditional retail real estate agency, we sell “by the numbers” to clients who have come to us for investment advice. We build strong relationships with our customers because our goal is to sell five properties over 10 years to our buyers.

Customized Investment Tools

We have developed a number of customized tools in-house we use along with our buyers to understand their financial position and the best purchase for them. Our Investment Capacity Report is our star resource; over 200 hours of work went into developing this automated tool to analyze buyer’s financial position in the same way a bank assesses a customer. This report pressure tests at a 6% interest rate a buyer’s borrowing power based on surplus equity and usable income. This ensures we’re confident buyers qualify for finance and are in a strong position to buy before we put them into contract.

 

Buyer Financial Snapshot

This element of the report generates key information our sales team uses to assess the best property for a buyer and the fit with their current position or portfolio. This helps us to reduce the number of buyers that enter into the due diligence stage for a property they cannot get lending on.

Forecasted Portfolio Growth

A key step in working with our clients is establishing the investment approach they want to take. The report gives them three possible pathways for how their portfolio could look in 10 years depending on how aggressive a strategy they adopt. This helps us match buyers with the best projects over multiple purchases

Property Matching

In 2021 80.6% of our sales so far have been to investors which is why we sell largely ‘by the numbers’ and present options based on our forecasts. As a part of this, when buyers generate this report it automatically lists the three best properties for them based on projected returns and capital growth.

 
 

80.6% of our sales so far in 2021 have been to investors. The other 19.4% of sales which were made to owner occupiers reflects the increasing number of home buyers turning to off the plan as they are forced out of the existing property market by rising prices and competition.

 

Detailed 10 Year Cashflows

For every development that we list, we run in depth 10 year cashflows for all typologies/unit types which analyze the metrics investors would usually do due diligence on before purchasing. Our cashflows forecast rental growth, capital growth, gross and net cashflows as well as weekly cost to own with a mortgage at current interest rates.

We run these cashflows for three different scenarios: Investors who are buying to rent the property out, owner occupiers who are buying to live in with flat mates and home buyers who want to live in the property without any flat mates.

 

In most real estate agencies it falls on the salesperson to go out and find their own listings and run their own marketing and admin. We believe it is more efficient to have the sales team focusing on selling, which is why we have a large team handling everything else. We have people dedicated to listings, marketing, contracts and administration. This ensures that our sales team is able to dedicate 100% of their focus to selling your developments faster and purchasers benefit from a streamlined experience. This approach has enabled us to produce fantastic results for our clients, with under 20% of conditional deals falling over during the due diligence stage.

A focus on efficiency is how our 13 person sales team produces results on par with some of the largest real estate agencies in New Zealand. This team is growing and we expect to have over 20 sales people by the start of 2022.