We don’t take property purchases lightly. From family homes and investments to upgrades and management, each and every undertaking at Milk Chocolate is carefully scrutinised to ensure it meets the client’s exacting needs.
Many of our clients look to turn property into a comprehensive investment strategy that stretches over multiple years, and potentially several purchases and renovations.
This is where our Game Plan™ comes in.
Each one is a tailored property plan built over a specified period based on a client’s long-term requirements and goals. Whether they want to purchase a single family home, generate an income-producing property portfolio or create a diversified suite of investments that appreciates in capital, their Game Plan proposes a range of scenarios that can help achieve their objective.
What’s involved in a Game Plan™?
Within each Game Plan™, we present between two and five scenarios to illustrate varying degrees of risk and results. Usually, though, the sweet spot is three: one scenario that ticks all of our client’s boxes, one that’s a slight permutation and may result in stronger returns, one that’s more aggressive, and sometimes an additional scenario that presents the unexpected – your wild card.
The wild card is generally something they may not have ever envisioned, but one that will truly test their risk appetite. The Game Plan™ might propose making new purchases or capitalising on existing assets, or it may suggest a new build or renovation to enhance an asset’s value. It can involve one or multiple purchases, sales, renovations or builds over years or decades.
As an example, one of our Singapore-based clients came to us with the goal of using property as an investment vehicle. Within their Game Plan™, we included residential properties with smart renovations and subdivisions in areas with strong rental yields and stable capital growth.
We also modelled a few scenarios with high-yielding commercial assets, with the primary aim of underpinning their portfolio holding costs with strong yields, while also diversifying their asset selection.
How is a Game Plan™ put together?
The Game Plan™ offers incredible detail and, given the varying characteristics of each one, combines the expertise of several Milk Chocolate verticals. Compared to other businesses in the space, we’re in a fantastic position because we’re able to create a plan, complete the purchase, facilitate the build and provide ongoing property management.
Numerous team members support this end-to-end process, including Property Economists, Data Scientists, Construction Managers, Strategists and Buyers Agents.
On top of the client’s circumstances, every Game Plan™ is developed according to actual market performance that takes into account our assumptions for market trends and cycles. We ensure these assumptions are underpinned by robust data and algorithms that allow for worst-case scenarios. (To give an indication of the scale of our analysis, there are 135 assumptions built into the models.)
Our Property Economist puts the actual Game Plan™ together and assesses various investment scenarios before collating a selection of the best few. He also reviews each Game Plan™ every quarter to ensure it’s on track to meet its goals and suggests strategy pivots if required. Our Buying team uses their real estate nous to support all stages of the process and subsequently commence the active search for properties that meet the Game Plans™ targets. Depending on the requirements of the client’s brief, our Build team might get involved to advise on the feasibility, timeline and costs of a build or renovation.
Fortunately, the hard work we put into our Game Plans™ is invariably worth it. We have received overwhelmingly positive feedback from our clients on the level of detail and available data, our conservative assumptions that avoid over-promising, and the easy-to-digest way in which our Game Plans™ are presented. Needless to say, they’ve played a pivotal role in Milk Chocolate’s success – and importantly, that of our clients’ investment aspirations, too.
If you’re looking to invest in property in Australia and would like us to help you explore your options, we’d love to hear from you. Head to our Contact page to get in touch.