Along our journey of settling over $2 billion in mortgages, primarily for investors, we at mortgagehq recognised property as a steadfast vehicle for wealth accumulation.

However, as investors scaled their wealth, they often encountered a challenge. Their accumulated equity, which once stood as a testament to their financial acumen, began to stagnate and lose efficiency. As their capital gains began to outpace their cash flows, their yields diminished.

Many investors inevitably face this universal challenge. They have equity, but their servicing capacity dwindles, hindering the growth of their portfolio. This predicament led many of them towards property development, viewing it as a viable strategy to recycle their equity and enhance their income.

Our observations led us to identify some pervasive misconceptions in this transition to development. Many held binary views of selling every property developed or retaining all of them. While selling provided immediate cash flow and profits, retaining properties was the key to long-term wealth.

Yet, retaining properties wasn’t always sustainable, as it often came at a considerable cost. We identified a nuanced balance, a ‘sweet spot’ regarding the number of properties one should hold to ensure consistent growth without exhausting resources.

Furthermore, we noticed an unhealthy fixation among developers on cost. Their eyes were set on immediate expenses, often overlooking the pivotal metric of Return on Equity (RoE).

A focus on RoE can be transformative, steering the trajectory of long-term wealth creation.

As mortgagehq effectively served its investor clientele, we identified an emergent niche: investors transitioning into developers. They sought specialised services distinct from conventional offerings.

Market exploration revealed a glaring void. Brokerages predominantly pursued transactions, with scarcely any concentration on optimising RoE and cultivating a wealth-building strategy for clients. It was this revelation that sowed the seeds for CapitalHQ.