Property Investment Australia: Inner Circle | Property Development System

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The Paradigm Shift in Property Investment

“Your paradigm is so intrinsic to your mental process that you are hardly aware of its existence, until you try
to communicate with someone with a different paradigm.” - Donella Meadows

Are you scared?
…that the property market will crash because there is so much negative media about it?
…that our economy is bad?

I love bad economy and negative media. So do my clients. And after you read this page, so will you. 

I love negative media about property and bad economy—like the one we’re in today—not because of the pain they cause people. Far from it. We love them because when you move beyond the worry and fear, you discover that areas of growth are actually more plentiful than they are during boom times.

In a bad economy and declining property market, you can gain an edge over other property investors in the market. 

Warren Buffett, one of the greatest investors in the history of the world has noted that it is impossible to predict what the markets will do over the short term.

Surprisingly, though, it seems there are dozens of everyday Aussies, content writers on news sites, publications and so called “property gurus” who can! 

The main thing is that you can win easily… if you know how to benefit from the Paradigm Shift in Property Investment… and therefore benefit from tough times. Everyone else is dropping out of the race, and you’re seeing the checkered flag. You’re looking forward and everyone else is looking backwards. They’re terrified, and you’re making a fortune. You’re seeing opportunities and overlooked deals in the property market, transactions, and areas of thinking that no one else saw in good times, so they certainly won’t see them in times of financial struggle. 

This page makes a unique promise. Anyone can show you how to succeed when property markets are booming. I’m going to show you how to succeed as never before…when the nation’s and the world’s financial picture looks bleak.

As I was writing this, I was reading about the Australian Property Bubble as part of my research. Here's what I found on Wikipedia:

“The Australian property bubble is the ongoing debate in Australia as to whether the Australian property market is significantly overpriced, and due for a significant downturn. The debate has been ongoing since at least 2001, with Australian property prices continuing to rise.” - Wikipedia

If you look at it, they have been talking about the Australian Property Bubble for 15 years now, but so far nothing major has happened. Yes, there were some macro-prudential regulations put in place by APRA, which they are now in the process of repealing, but they are there to mitigate the risk to the financial system as a whole.

I would like you give some thought to the following questions:

- Why is it that even when the news is at its worst, some property investors are having their best year ever?
- And why can’t you?

My starting point is to ask, respectfully and reverentially, whether you as a property investor are stuck?

A “stuck” property investor is someone who fails to grow their property portfolio predictably every year after year, after year. If you’re being carried along by the booming property market, then the moment the property prices stall your wealth creation journey towards financial freedom will also stall, because you’re not in control of your destiny. In good times, stuck property investors are oblivious to the fact that their portfolio growth is dependent upon the booming market. 

We have all heard of many success stories during boom times in property seminars, property magazines and in various media sources. They could argue that they made a killing from their investment project in 6-12 months, but in actuality they’re only growing because of the organic growth of the property market. More often than not they are one hit wonders, who have no system, strategy or mechanism in place, just plain dumb luck. And when the market takes a turn, it takes stuck property investors down with it.

I am sure you must have heard about the investors who’ve lost their shirts in mining towns. I remember going to leading property education seminars in 2012, even paid through my nose for the incomplete education, only to find out that I have to pay more to get further information and that they wanted me to invest in mining towns. In fact, my so called mentor was apparently gutted when I declined to do a deal with his previous student in a mining town. I am so glad that I never went to any of the mining towns, because all the success stories that I saw at the time, turned into horror stories later down the track. In my experience, below are:

The top 5 reasons why property investors stagnate and get stuck:

  • Going to heavily marketed FREE seminars (aka pitch fests) - and forking out thousands of dollars on incomplete property education seminars (Just like I did a few years ago). 

    As a result, by the time they come back home, they have no idea about what to do or how to proceed? Because the information they got was half cooked. Or these seminars instil a limited belief in them that they have to start small. They say things like, “You have to learn to drive a Hyundai before you drive a Ferrari”, I know those were the exact words of my mentor and I chose to ignore them. Believe it or not but it is 100% true, my first project was $4.05m development.
  • Lack of Systems & Mechanisms – more often than not these investors have no system and mechanisms in place to execute their plan.

    They stumble from Point A to Point B without thinking through what Point C could be or should be. The rules of generating wealth and financial freedom via property have changed. There is far too much competition, far too much at risk, there are higher entry points, finance is difficult to come by and you are setting yourself up for disappointment if you don’t have the right System and Mechanisms in place. 

    The right System and Mechanism are designed to take the guess work out of the entire process. They are there to make sure that you achieve your desired result and they act as check points at every stage to minimise risk and you a higher level of certainty so you can move forward with clarity, confidence and competence.
  • Lack of Support – either these investors don’t have access to the right kind of support or they end up forking out thousands for support from someone who makes a living by selling courses, or perhaps made their fortune in the Pre-GFC era, when all you needed to get a loan was a pulse.

    In a nutshell, the so-called property mentors will never call us to check on us or even when you call them, they talk to us as if we are an inconvenience. Again, true story, the favourite line of one of my mentors was “I don’t care.” Now all I can say is you figure it out.

    Success is a lonely road. It’s one of the greatest clichés when it comes to talking about success in property. Although it is a cliché, it is still true. Most people can’t handle it and simply can’t travel alone along this journey. It’s normal to be scared because you are going to be travelling alone. However, you can, not only minimise risk by having the right kind of support system, you can also cut short your journey towards financial freedom.
  • Fear of Failure – Every day at work, I come across property investors who are paralysed by fear of failure and when it’s time to move on something, they freeze. 

    Have you heard of the phrase, “Paralysis by Analysis”? A lot of people get caught out in it, however, I don’t blame them, because inherently people who are analytical are slow decision makers. So just categorising them as PBA sufferers is incorrect. More often than not these people fail to move forward because of lack of proper support by the right people.

    I am very analytical myself, so much so that I spent 3 days analysing a valuation report submitted by one of the top valuers for a recent project and then fought with them and the bank and forced them to revise their valuation report, because they had pulled a figure out of thin air and I couldn’t emulate it in my own spreadsheet.

    So how did I move forward? Although I started off on my own, but over the years I have compiled a team of professionals, accountants, finance brokers, real estate agents, bank managers and lawyers. They have seen me in the trenches and I know I can rely on them. All I want you to realise is that Wealth Generation is a team sport. And I am glad that this dawned on me very early in my journey. You can only move forward if you recognise and acknowledge your shortcomings and surround yourself with people who fill in the skills and abilities that you either lack or are still developing.
  • Bigger is Better – Many property investors get lured in by the charm of having 10, 20, 40, 60, or even 100 properties in their portfolio.

    They take pride and boast at social gatherings about the size of their property portfolio. But the reality is that a Bigger Portfolio is not necessarily better.

    Here’s why? Building a portfolio of that size inevitably requires purchasing properties in country towns / rural areas for $150K - $200K which often attract bad tenants and takes longer to sell, should you have the need to sell them.

    Expanding such portfolio constantly requires two things:
    1) Continuous increase in wages at work. You have to keep getting an increase in your wages, year after year, to keep showing the lenders that you now have improved serviceability. How many of us do you think can achieve that on a regular basis?

    2) It requires year on year organic capital growth of these properties. Now how often does that happen in country/rural areas? As per my research, these areas are the last to enjoy capital growth every time the property clock hits boom. Here's an example below:

What happens after you manage to acquire that
many investment properties?

Take the case of one of my mentoring student, let’s call him “MF”, he has 10 such properties and they are all cash flow positive. There is nothing wrong with this as he doesn’t have to worry about paying the interest payment. But here’s his problem, he cannot move forward. He is now STUCK. His banks won’t lend him any more money and there is no sign of capital growth on the horizon for where his properties are. “MF” did everything right by the book and by what his mentor had asked him to. But he followed the wrong strategy and got STUCK. But don’t worry about MF, he will get out of it very soon as he has now found the right strategy.

All of the above problems get magnified in tough economic times or when the interest rates start climbing up and repayments switch to principal + interest. First, you’ve got the problem of serviceability because the interest rates go up and second, without support, incorrect strategy, no system or mechanism the concept of hard times in itself freezes people. They get scared. They don’t know what to do, so they tend to do nothing, or they tend to do more of things that weren’t working in the first place. Most property investors tend to sit out waiting to catch the next wave thinking it’s all over.

The purpose of this website is to show you how to make sure the same thing doesn’t happen to you. In fact, I want to take it a step further—I want to teach you to love all property cycles embrace economic downturns, to even learn how to profit handsomely in every season, year after year. 

That’s because when the going gets tough, most property investors pack up and leave. And if you know how to be strategic; if you know how to direct your investment strategy, your finance, and leverage off the right system and mechanisms intelligently; if you know how to grow and sustain high-profit property portfolio; and if you know how to capitalize on the shortcomings of other property investors, you’ll quickly find that you can enjoy even more success and make even more profit from opportunities than during so-called boom times.

If you are stuck as an investor, you’ll get unstuck. And by the time you finish reading this page, you’ll feel the same way many prosperous property investors feel about tough economic times—bring ’em on!

You may not love the bad times more than good times, but you’ll have the confidence that you’ll be able to sustain and grow your property portfolio, no matter what the economy—or the market cycle—is doing. You’ll see options, opportunities, and profitable possibilities that weren’t evident in the past. You’ll have a highly specific system and mechanisms to reach stratospheric levels of growth. All while the commentators and economists (who aren’t property investors) on the financial news networks are wringing their hands daily.

So whether you are looking…

  • … for an investment vehicle with a proven track record of returns, and exciting future growth potential and the ability to keep going in all market cycles that can help you achieve financial freedom and bring forward your retirement…
  • … to spend more time with your children and secure their future or just be able to afford a better place to live and have someone come in and clean your house on a weekly basis …
  • … to build a pathway that allows you to be your own boss, switch careers and not get pushed around… giving you self-respect, confidence and a sense of achievement and respect from your peers…
  • … to embark on your journey to create wealth and achieve freedom via property with certainty, clarity, confidence and competence…
  • … or you just want to feel successful, independent and master this industry and fix what’s broken in your life not just as a property investor but also as a successful human being…
  • … this website has the answers.

In fact, in the next few minutes, I’ll explain what I am talking about using some real-life case studies that you can follow and see for yourself, but first I wanted to reiterate what conventional property investment looks like. 

Conventional Property Investment

You would agree, that Australia’s preferred strategy for building wealth is Property Investment and it is primarily to help them through their retirement. With life expectancy exceeding beyond 83 years of age, and talks for retirement age to be pushed to 65 years +, typically it would require 5-6 unencumbered properties for individuals to retire financially free and be able to sustain their current lifestyle. 

But most property investors never get past their 2nd property.
According to data obtained from the ATO, 72.8% of individuals that owned an investment property owned just one. Meanwhile, 18.9% of individuals owned 2 properties while just 0.9% of individuals owned 6 or more.

So why do 99.1% of property investors get STUCK?

Two main reasons:
Most investors buy their second property for negative gearing. i.e. to reduce tax. However, they forget the first rule of investment is to make a profit. Negative gearing can only occur if you are making a loss on your investment i.e. your interest payments are greater than the incoming rent from that property. A majority of negatively geared investors who earn less than $180,000/year, have to spend $1 to save 0.37 cents. And the only way they can save the 37 cents is if they borrow more i.e. pile on more debt. The same applies for people earning over $180K/annum as well. Any income earned over $180,000 attracts tax at 46.5 cents in the dollar (including the Medicare levy of 1.5%), so a $1 tax deduction will give you a tax saving of 46.5 cents.  But what is the actual cost of the subscription once tax is accounted for?  The $1 for the subscription less a 46.5 cents tax saving equals an out of pocket cost of 53.5 cents.

However, these investors, once locked in can only move forward, when either they starting earning more wages i.e. their serviceability goes up or their investment property starts enjoying organic capital growth.

Both of which take a long time to come to fruition. Specially the organic growth in the market. There is nothing they can do to move forward, until their investment property goes up in value. If any of these two factors change, i.e. either they lose their serviceability or the market stalls, they can be forced to liquidate their assets, hence they end up going backwards, rather than forward.

And the second reason is that they are unaware of the Paradigm Shift in Property Investment i.e. they are still running after the conventional strategies of property investment and trying to do everything on their own.

What is this Paradigm Shift in Property Investment?

Paradigm Shift is a time when the usual and accepted way of doing or thinking about something changes completely. 

The Paradigm Shift in Property Investment, or the "Property Paradigm" is the start of a new beginning for Property Investors and a change in underlying assumptions in the way you think about property investment.

The Property Paradigm is about bringing together People, Projects and Partnerships to execute blue ocean property investment strategies. It’s about not limiting yourself to just one kind of strategy and broadening your horizons and understanding what’s POSSIBLE for you. It’s about being smarter and thinking outside the box, being creative and working in unison with like-minded and like-driven property investors and having the right support structure around you so you can achieve financial freedom faster with more certainty, clarity, confidence and competence. It’s not as straight forward as a residential development. 

The Property Paradigm is about generating unencumbered properties in well-established suburbs that give you equity, passive income, guaranteed capital growth and the ability to keep going as an investor irrespective of the market cycles.

The Property Paradigm entails creative, out of the box developments & elite investment strategies using our proprietary Property Development System and our inbuilt mechanisms like our Delta Method to minimise risk and deliver projects predictably over and over again. The Paradigm requires you to run your property portfolio like a business so all decisions are objectives based on facts, figures, numbers and market data.

It’s about making sure that you never get STUCK, so you can acquire investment properties at cost and never pay retail for them every again. Which means that you can either acquire them 10-25% below market value if you are planning to buy and hold or you can enjoy anywhere between 40%-75% return on your money in 12-24 months, if you would like to get-in and get-out (GIGO) depending upon your short and long term investment strategy. 

Our aim is to generate wealth and passive income and so as long as the numbers work – we get to work without limiting ourselves to just one type of development. More often than not, most property investors get stuck into one type of strategy without exploring all options and considering their long and short term investment and passive income goals. Let’s say residential development is a strategy you are familiar with and have had some success with it. 

  • But what happens when the residential market is slow? 
  • Or what happens when there is too much competition in the residential development space and you can’t make a deal work, because vendors are asking way too much for their land? 
  • Would you like to sit out and weight for the market to pick up and lose all this time?
  • What if you know about the blue ocean, where the competition is less, market is good & projects have healthy margin?
    • Would you pass on these opportunities?

Blue Ocean Strategies

Using the Blue Ocean Property Investment Strategies is part of the Paradigm Shift in Property Investment. It is about future proofing yourself by diversifying your portfolio and making sure that you can continue growing in all seasons. An example of blue ocean strategy would be, to zero in on uncommon investment strategies and be flexible with the kind of opportunities available. The aim of investment is to get a return on your money irrespective of the strategy you use. For example, you could be focusing on commercial and hotel developments where you hold some units for cashflow and sell some to even out the debt. Or instead of going all the way with construction, you could be focusing on adding value and then simply flipping the project. There are numerous strategies available as long as we have the right People, Project and Partnerships. This is the second part of this paradigm shift.

People, Projects and Partnerships

Most property investors in this industry believe that:

  • Developments are hard
  • Require hundreds or thousands of dollars
  • Are too risky
  • Have higher entry points
  • It’s hard to generate a solid property portfolio
  • Don’t produce cash flow

These misconceptions are further fuelled by property gurus who charge an arm and leg for half cooked information, by instilling limited beliefs in property investors who are just starting out, making them feel inadequate and incomplete and leave them hanging with little or no support. I have had many investors come to me, complaining that because they have spent all their money on expensive seminars and so called mentoring programs, they haven’t got anything left to actually invest in an income producing asset. I know over 5 investors who went and bought properties in various country and mining towns and not only that their portfolio is a dog’s breakfast, they are also stuck between a rock and hard place. Moreover, these property gurus will never offer a service where they can actually help and do what they teach for their students.

Today’s property investors are overloaded by information and a ton of property investment strategies unable to decipher which one works and which one is the best and the right one to dedicate their time to.

Exponentially growing your wealth via property should be as simple as ABC… once you have locked in your strategy with me.

A lot of you probably still think that it’s too hard, too risky and just downright waste of time, effort and investment. 

  • But let me ask you:
    What if you had the right system and mechanisms, the right strategy, the right support, and the right team on your side? 
  • How would that make you feel? 
  • How would that look like for your future?
  • How would that sound to your ears? Too good to be true... perhaps. 

But if it was just as good as it sounds, looks and feels? Would you take action if all these boxes were ticked for you? Would you move forward?

And that’s why, the new property paradigm is about bringing together People, Projects and Partnership so experienced investors can grab the blue ocean opportunities and enjoy the highest returns on their investment. So here is what I offer:

Property Profits, Without Any of the Work

If you like the idea of making double or even triple figure returns in property development or through any of our blue ocean strategies, but don’t want to learn all the skills or do all the work yourself, I have some good news for you.

Now there’s a way to make more money – faster -- in property development & investment, without needing the knowledge, or time to develop projects yourself. 

INNER CIRCLE Property Investment is a complete done-for-you service that gives you...

  • Access to superior off-market opportunities only available through PDS’s vast network of industry contacts (Note: The best deals never make it to market -- they are snapped up by professional developers like PDS)
  • The chance to be involved in bigger, more profitable projects by joining with other investors (Note:  Larger multi-dwelling and commercial developments are usually more profitable but require more capital. Through INNER CIRCLE you can reap the more lucrative rewards of these opportunities with an investment as little as $100,000)
  • The bigger rewards of property development without needing the knowledge or time to develop & execute investment strategies yourself (Note: This is a complete ‘Done-For-You’ service)

How Does Property Investment - INNER CIRCLE work?

  • 1
    PDS through its students & Development Management Company continually sources and scrutinises the best property development as well as the blue ocean opportunities from all around Australia. When we find something that passes our rigorous criteria, we invite a small selection of INNER CIRCLE investors to partner with us and share the exciting profits.
  • 2
    Your investment of as little as $100,000 is joined with other investors to form an investment pool that is used to develop your chosen property. (All done legally against an IM (information memorandum) put together by a securities company holding an AFSL license).
  • 3
    PDS's Development Management Company, manages the entire process from beginning to end (this is a genuine ‘armchair’ investment opportunity) while you reap the rewards.
  • 4
    Depending on the nature of the project, you will receive a return on your investment in cash or unencumbered equity. (As a general rule, we do only target projects that show a minimum 15-20% development margin on cost for the project and a return on equity between 20%-80% depending on the project lifecycle).

How does the INNER CIRCLE - Property Investment Helps You GET A STRONGER RETURN ON YOUR MONEY / EQUITY – Faster

  1. Bigger Profits: Make instant Developers Margin of minimum 10%-15% on each project (which can go towards another development or replace your current income) and return on equity between 20%-80%
  2. Faster Profits:  No need to wait for capital gains – make your money as soon as each development is completed. This means you can take control of your financial future and plan for retirement with certainty (no matter what the economy looks like)
  3. Grow Your Portfolio Sooner: Reinvest your Developer’s Margin into your second, third, fourth property etc. without having to wait for capital gains (giving you a larger, more profitable portfolio for retirement)
  4. Make Money In Any Market: Capital gains is a bonus but not necessary as your Developer’s Margin will be minimum 10%-15% of the value of the project (so you still make money – sometimes more -- in declining markets)
  5. Save Time:  No need to find deals, negotiate prices, navigate council red tape, manage tradies, or solve a single challenge – we do all the work for you (so you can focus on your family, your career, your life)
  6. No Experience Needed: This is a genuine ‘armchair’ opportunity -- no need to attend seminars, study courses, or read any books. But if you are interested in learning how to develop property yourself, you get access to the complete step-by-step property development course or to find out more about the property development process we use to get consistently profitable results.
  7. Don’t Need Big Investment: Gain access to highly profitable developments with as little as $100,000
  8. Better Projects: No longer will you be limited to small renovation projects or domestic houses. Join with other investors to leverage larger, more profitable projects
  9. Lower Risk: PDS invests substantial time (and often our own money) in every project so we have a personal stake in making every project work, as quickly as possible.

Who is INNER CIRCLE - Property Investment For?

INNER CIRCLE investors come from all walks of life, from company CEOs, doctors and average working families (who are obviously incredibly smart and savvy investors!). Some common traits include…

  • They like the idea of property development, but they just don’t have the time to learn the skills and actually get a deal off the ground.
  • They are tired of the measly, single-digit returns offered by banks, shares, and traditional property investing and want a way to make better returns – safely and securely.
  • It drives them crazy to be paying 5%, 7%, and even 9% interest on their loans when they receive a piddly 1-3% on their own investments.
  • They are sick of waiting for the property clock to turn and want a way to take control of their investments and make good money regardless of the markets
  •  They look at their savings and super and would like to make sure they are going to accumulate enough money to retire – and want a simple and safe way to boost their returns and build their wealth

What is the Criteria for INNER CIRCLE Investors?

We follow strict investment guidelines to maximise security for investors. And we only partner with sophisticated investors (with a gross income of $250,000 or more per annum in each of the previous two years or net assets of at least $2.5m or if you have a certificate issued by your accountant as per ASIC regulations).

Frequently Asked Questions

What does PDS do?
PDS provides an ‘armchair’ investment opportunity – done-for-you-property development – for people who want the exciting rewards of property development without needing the knowledge or time to develop properties yourself.

What experience do you have?
PDS has successfully developed over 60 Units & have approximately 42 Units across various developments valued at more than $65m. The founder of Property Development System has formal qualifications including…

  • Masters in Business Administration (Finance & Marketing)
  • Post Graduate Diploma in Business Management (Finance & Marketing)
  • Bachelors of Business (Accounting & Marketing)
  • Diploma of Finance & Mortgage Broking Management
  • Certificate 4 in Finance & Mortgage Broking
  • Industry Diploma in Property Development
  • REIV Agents Representative
  • Click here for more about Amber Khanna

How do you help investors?
Clients come to us to enjoy the bigger rewards of property development without needing the knowledge or time to develop properties yourself. We find deals, negotiate prices, navigate council red tape, manage the development, and solve all challenges to bring the project to profitable completion within budget and time-frame.

How are you different from property educators?
PDS INNER CIRCLE is not an INFORMATION service, it is an IMPLEMENTATION & EXECUTION service. If you are interested in learning how to become a property developer yourself, check out our property development courses and property mentoring programs, membership, and property development feasibility applications.

How are you different from property marketers?
We do not sell properties, we develop & execute blue ocean property investment strategies on your behalf. That means we don’t make commission. But we do have a personal stake in making every project work, as quickly as possible, because we invest substantial time (and often our own money) in every project.

Do you offer loans?
No. We are developers not mortgage brokers, financial planners, town planners, lawyers, or accountants. We have a network of professionals in all these disciplines and more. But our expertise is in finding and developing properties.

How much do you charge?
It doesn’t cost anything to be notified of investment opportunities, however, priority is given to our regular paid members. We charge a development management fee on all projects, which will always be outlined in the project feasibility and the development management agreement. Development project profits are shared based on the percentage you own of the investment.

How much money do I need to get started?
$100,000 is the minimum investment.

What return on investment should I expect?
Every project is different and before you invest, you will be provided with an IM (information management) that outlines the projected returns and risks involved with the project. In past as thumb rule, we do not get into projects with less than 20% return on equity on the project life cycle.

How long will it take to make a profit?
These details are specific to the project you are investing in and depend on the size of the project. Project specific timelines are outlined in the IM provided to you. However, as we invest substantial time (and often money) in every development, we have a personal stake in bringing projects to a profitable conclusion as quickly as possible. A typical residential project turnaround can range from 12 Months to 24 months depending upon the project.