The Delphi Method

One journey, run with you

Many people buy an investment property first and look for a plan second. The Delphi Method does it the other way round. It starts with what your equity can do, steers you through Australia's property rules in the right order, and plans each purchase so the next one is possible.

The strategy, the sourcing and the purchase are ours, run with you. The regulated pieces, such as lending and financial advice, are handled by independently licensed professionals we bring in and coordinate.

01 Equity

It starts with a Coaching Call to work out your usable equity, borrowing capacity, goals and timeframe.

Usable equity is the part of your home's value a lender will let you borrow against, less what you still owe. Lenders generally lend up to around 80 per cent of the value without mortgage insurance. We work out your figure with your broker, along with your borrowing capacity, deposit and costs, and cash flow, before you look at a single property.

We also name where you are aiming and the gap between where you are today and where you want to be. Many people have never written it down.

For example, a $700,000 home with $400,000 owing: 80 per cent of the value is $560,000, less the $400,000 loan, leaves an estimated $160,000 of usable equity. A lender or broker confirms the real figure.

02 Strategy

Next comes your portfolio plan: how much to buy, where and in what order, with ownership structures explained in general terms. Advice on which structure suits you comes from a licensed adviser.

This is where the rules are handled in the right order. Lenders test borrowing at a buffer above the actual rate. Each state and territory sets its own stamp duty and land tax. Deductions, depreciation and how the property is owned are questions for your accountant, and we make sure they're asked before you buy, not after.

Lending is arranged by independent licensed mortgage brokers, and we coordinate with them. The method works from the usable equity in your home. Delphi has a long track record with SMSF property purchases. The rules have changed, and we help you navigate them. It isn't our main offer any more, but if you'd like to know more, ask us. Whether an SMSF suits you is a question for a licensed financial adviser.

03 Research and sourcing

We research target areas and identify properties that fit the plan, then analyse each one on its numbers: price, rent, costs and growth drivers.

The property is bought to the plan, not to the emotion. We do the heavy lifting: the research, the shortlist, and the checks on rental demand and long-term fit. You choose. Each property we put forward comes with the numbers we used to assess it.

04 Acquisition

We negotiate the purchase and manage the process through contract, due diligence and settlement, keeping you informed at each step.

Building and pest inspections, strata records, zoning and contract conditions are reviewed before you're committed. We work for you, to get you the best outcome.

05 The next property

After settlement we review your equity and borrowing with you and plan the next purchase, when they support it.

One property is a purchase. A sequence of properties, bought in the right order, is a portfolio. Growth is planned step by step and never over-reached: the next purchase only moves ahead when your numbers and buffers support it. Along the way we keep an eye on the levers worth reviewing, such as the rent and the loan, with the licensed professionals who handle them.

The three calls

You speak with the team on three calls. Everything in between, such as reminders, scheduling and paperwork, is handled for you.

1. Coaching Call: we go through your usable equity and borrowing with you, using your Scorecard answers, and take you through how buying with your equity works and how a portfolio can build from there. Fees are covered on the calls, before you commit to anything.
2. Figures Call: we go through your actual figures, using the documents you upload beforehand.
3. Agreement Call: we go through the agreement and fees with you. The agreement is then sent to you to sign.

After you sign

Once the agreement is signed, the method runs from the Strategy part onwards: we build your portfolio plan, coordinate with the licensed broker who arranges the lending, research and source properties that fit the plan, negotiate the purchase and manage it through to settlement. After settlement, we review your equity and borrowing with you and plan the next property when they support it.

Your next step

Book a Coaching Call, or take the Delphi Scorecard first so the call starts with your numbers.

General information only. Delphi & Co does not provide personal financial, tax or legal advice. Financial advice and lending come from separate, independently licensed professionals.