We develop a unique plan for every client. We believe that no one solution fits all. Everyone has different financial circumstances, needs, goals. We start with a Wholistic Needs Diagnosis to gather all of your financial information. We analyze this and prepare a plan that takes into account;
- Your Budget
- Your future goals – are you only buying one property? Do you want to build a whole portfolio?
- Your Income
- Your marital circumstances (now and in the future)
- Your family circumstances (now and in the future)
- Your tax situation – how to minimise tax most effectively. This includes income tax and CGT which often conflict each other
- Land tax across the states – which varies from state to state and is heavily influenced by how many properties you are planning to buy and what structure we have recommended for tax purpose
- Diversification across states and investment types
- Your level of comfortableness with risk v return
- Plus, much, much more.
Once the plan is prepared we present it to you, face to face or via email. Our fee includes any follow up questions and any adjustments you want to make to the plan.
No. But highly recommended. We can work with you with or without the plan but the plan is extremely worthwhile preparing before you commence your property journey. It puts the 'foundations' into place and looks at all of the different things you should consider BEFORE you actually find a property. I find far too many 'property spruikers' shoving property down clients throats before considering the fundamentals such as – whose name should you buy in? Should you buy in a SMSF or Family Trust? What sort of property suits your goals and financial circumstances? Plus much more. Having a plan prepared sorts all this out and sets the basis for you to move forward with confidence.
No it is not. A good plan will be adaptable and change as time moves on. The plan is a basis for moving forward and should be then adjusted to reflect the actual property you find. When you are ready for your next property you should revise the plan.
Good Question. Property is currently an unregulated industry and property 'spruikers' are on every street corner. It is amazing that such a large financial transaction is unregulated. Most property 'spruikers' don't even have an education or any form of license. On the other hand we are regulated as Accountants, Financial Planners, Mortgage Brokers, Tax Advisors, SMSF Advisors and we are licensed Real Estate Agents and Property Advisors. We are heavily regulated by many bodies including the ATO, SPAA, NTAA, COSL, MFAA, PIAA, PIPA, ASIC and others.
We offer a fee for service model or a commission based model. If you are concerned about excess commissions you can choose the fee for service model whereby you pay us a fixed fee and we rebate all commission to you.
Hmmm, maybe the extensive amount of degrees and diplomas all of our team hold. Or maybe more so, that we walk our talk. We are frequently buying properties for ourselves in the locations we are recommending.
Absolutely. Everyone who has private super should consider this option for many, many reasons. You can contact us for a free assessment and explanation of how an SMSF could work for you.
It really does depend on many factors that are individual to each client. We don't believe in recommending Trusts just for the sake of it as it can often result in much higher fees to your Accountant – who funnily enough is the one who recommended the trust in the first place. On the other hand, it can be a fantastic asset protection mechanism that is essential in some cases. It can also be a great way to accumulate wealth for future generations. Contact us to discuss your personal circumstances in more detail.
My personal track record was a bit sketchy until I learnt a lot through all my mistakes. Areas I researched well in terms of economic fundamentals and growth drivers did well. Areas I brought without research (heart choices) did not do so well at all. For example I brought in
- Frankston, Vic in 2006 and it grew by 25% shortly thereafter
- Skye, Vic and made $100,000 gain in 3 months
- Springfield, QLD in 2006 and it grew by 28% shortly thereafter
- I recommended Melbourne – Point Cook and Melton in 2007/2008 and they grew by 20-30% and I withdrew my recommendations for these areas in 2010 before the market retracted
- I recommended Gladstone in 2009 well before the price bubble that we have seen over the recent years
- I have brought in Canberra many times and made some really good gains but now I generally don't recommend due to the downturn we see whenever there is political uncertainty – like right now in 2013
- I brought in Queanbeyan, NSW and on sold it at a profit shortly thereafter when Defence moved a large contingency to just outside Qbyn.
- Where I made large losses, large enough to wipe out all the above gains, was where I brought with my heart, not my head – areas such as Ulladulla – where the property values tumbled by 40% in the years after I purchased.
I brought my first property at age 17. By 22, I had 5 properties in ACT. I had to sell all of these due to relationship breakdown but then proceeded to build up another 4 properties in NSW quite quickly. These were high value properties, 2 of which were commercial. I sold these for similar reasons but then moved onto buying properties in different states including 3 in NSW, 1 in ACT, 1 in QLD and 2 in Vic. Believe it or not, for similar reasons these were all sold. Since then I have brought 2 in NSW, 1 in ACT, 2 in QLD and am in the process of buying another 3-5 before on the wave of the current market upswing. So in total, by end of 2013, over 25 properties. (Catherine)
Yes, yes, yes. I have made many mistakes and I use these mistakes to help my clients not make the same. The first mistake was lack of diversification. My first 5 properties were all in ACT. When the election came around, the market uncertainty in ACT, affected my portfolio greatly. Vacancy rates increased when the Public Service was cut. I made this mistake twice as my next four properties were all on the South Coast of NSW and they were high end value properties. The GFC wiped half a million of the value of this portfolio and the equity dropped below bank loan value and the banks foreclosed. My other mistakes include buying old properties that have great land potential, such as zoned for Units, but not fully assessing my ability to maintain the cash flow deficit. In the end, I had to sell them all as the cash flow from unexpected repairs and maintenance was destroying my cash flow. My final mistake I would say was selling the portfolio over and over again each time I hit a relationship breakdown. If I had maintained the whole portfolio it would now be worth more than $12,000,000.
The biggest gain I made was buying a 2000 square metre block in Skye Victoria. It had an extended settlement of 3 months and before the 3 months was over a builder who had brought the block next door offered to buy it off me – before it had even settled. I said No but he kept offering higher and higher amounts and eventually I accepted an offer of $100,000 more than I had paid and I on-sold it before I had even brought it.
However, I admit this was a bit of a fluke. I believe it is better to focus on long term, stable, buy and hold deals in good areas that simply grow in value steadily over a period of time rather than chasing one-off gains.