The Reserve Bank of Australia has cut the cash rate to a record low of 0.10 per cent and dropped the rate on its term funding
facility to supply ultra-cheap loans, also to just 0.10 per cent, while indicating
that interest rates will not be increased for at least three years (in reality, it could be much longer).
It’s become very clear to see that this
year’s pent-up housing market demand is now surging back as the
economy reopens.
However, not every household
is able to borrow or has the desire to use further leverage, and many will look
to other ways to ride the coming property wave.
Finding star businesses
Boston Consulting Group’s
renowned matrix holds that only certain businesses become stars which generate
significant wealth for owners and investors, specifically being those becoming market
leaders in a rapidly growing market.
The founders and early
investors in such businesses – famously including Richard Koch, author of The
Star Principle: how it can make you rich – have built vast wealth simply by founding or quickly
identifying star businesses, and investing accordingly.
One of the most powerful ways
star businesses can grow rapidly is to find a way to offer an existing product
or service, but at half the prevailing market price, which is sometimes
achieved by getting the customer to do some of the work.
For example, the founder of
IKEA became a billionaire by offering considerably cheaper products with no
frills or home deliveries, while requiring customers to self-assemble
furniture, which they gladly did.
Introducing
BuyersBuyers.com.au
This year BuyersBuyers.com.au
was founded to become the dominant national marketplace for buyer’s agents, and
to give every Aussie homebuyer a ‘fair go’ in the housing market.
High-cost buyer’s agency
services presently only cater for portfolio investors and the affluent, but too
often exclude first homebuyers and those of lower means.
As such over the past two
decades buyer’s agencies have failed to achieve meaningful market penetration, with under 3%
of transactions in Australia presently involving a buyer’s agent, compared to around 45% of
buyers using a buying agent in the U.S.
A simple demand curve shows that with mass marketing the availability of our cheaper entry level property buying services can potentially increase the market share to a similar level to that seen in the U.S. (although even an increase to just 5-10% market share over the coming years could generate a huge return on investment).
The online marketplace/industry aggregator model has previously been used with a stunning degree of success in the mortgage broking sector, with market share increasing from around just 5% in the mid-1990s to above 60% of home loans going through a broker today.
Join the property
buying revolution
We’re excited to announce that
we’re raising up to $10 million from sophisticated investors to become the market
leader in buyer’s agency services and significantly grow the market
share of transactions using buyer’s agent through 2021 and beyond.
Early investors can choose to buy
equity, or alternatively there’s an opportunity to significantly de-risk an early investment through a 2-year convertible note.
The note offers a generous 10%
interest per annum accrued over two years, and then a very generous 30%
discount on conversion (meaning a 73% return over two years, with the ability
to participate in all the potential upside thereafter).
The founders and founding
investors are participating in the capital raising on the same terms.
To find out more information
and receive an investor pack see here.
Please note the offer will only be available to sophisticated investors, and you should always seek independent financial advice before making investments.
