Yield Equity Amplifier Strategy

The strategy starts with the land.

TPW searches for established properties where the existing dwelling, land configuration and applicable planning controls provide an opportunity to add a second substantial residence.

A typical acquisition may be around $900,000, followed by approximately $400,000 for the new dwelling, although every project and market is different.

Our target is generally a new three or four-bedroom dwelling, designed specifically around investment performance, tenant appeal, rental return and individual end value.

Where a suitable project can be executed, we target approximately $300,000–$400,000 in manufactured equity/value uplift and around a 7% gross rental yield on the newly constructed dwelling.

These figures are examples and strategy targets only, based on projects we have worked on. They are not projections, forecasts or guarantees — individual property, construction, planning, valuation, rental and financial outcomes vary.

Dual occupancy rules vary considerably between states and councils, which is why we research each market individually — including Brisbane, Adelaide, Newcastle and Lake Macquarie and Sydney.

Most investors rely primarily on one of two things:

Growth — wait for the market to increase the property's value.

Yield — buy a property that already generates higher rental income.

The Yield Equity Amplifier is designed to target both while introducing a third component:

By purchasing the right underlying site and constructing the right second dwelling, the completed property can potentially be worth more than the combined acquisition and development cost.

At the same time, the additional dwelling creates another rental income stream. Where a site suits a smaller secondary dwelling instead, the Yield Amplifier Strategy applies the same thinking at a lower project scale.

A growing property portfolio can encounter two major constraints: not enough accessible equity, and not enough cash flow or borrowing capacity.

The Yield Equity Amplifier has been designed specifically around those problems.

Manufactured equity can potentially create additional capital within the portfolio, while another rental income stream can strengthen the property's cash-flow position.

The goal is to create an asset that helps provide the foundations for the next acquisition rather than one that becomes a roadblock to further growth.