Proprty Investor Services
Wealth creation through property investment has been a long preferred option for Australian investors.
One of the main advantages is the ability to use a relatively small amount of your own cash to control an investment of much greater value – usually at least 5 times the value of your own equity in the property.
We can assist property investors with a wide range of services, including:
Property Investment Analysis
Rental income and taxation benefits can help you with the costs of holding a property investment. You may be surprised at how little you may have to contribute each week to an investment with long term capital growth potential.
Using specialist Property Investment Analysis software, we can model the likely returns from an investment property
Borrowing Capacity Assessment
Do you know your borrowing capacity. Let us help you work out the level of borrowings you are comfortable with, and what the banks are prepared to lend to you. There can be a wide range between what different lenders are prepared to lend on the same income levels.
If you wish to borrow more than 80% of the purchase price, it will often be the Lender's Mortgage Insurer, and not the lender, that dictates the total amount that can be advanced.
Don't just settle for what your current banker tells you is your borrowing limit. Let us compare your borrowing capacity across our wide panel of lenders.
We can assess your borrowing capacity, and arrange pre-approved finance to enable you to negotiate your investment property purchase with confidence.
Pre-Purchase Finance Approvals
A pre-approved mortgage will allow you to know how much you can afford to spend as well as the amount you are likely to pay in mortgage repayments.
A pre-approved mortgage is also a powerful negotiating tool with vendors. Sellers will know you are serious about making a deal and that you should have no issue securing finance when the time comes to sign on the dotted line.
Talk to us to discuss what's required to get a pre-approved loan.
Ownership Structuring Advice
Do you know the best way for you to own the property? Should it be owned by the higher income earner to take advantage of negative gearing tax concessions, or by the lower income earner to minimise future capital gains tax liability, or should it be owned jointly? Would you be better off owning a property through a self-managed superannuation fund? We can assess your circumstances and assist you choose the ownership structure that is right for you.
Finance Structuring Advice
The way your mortgages are structured can have a big impact on how soon you can invest in additional rental properties, and the extent of any tax deductions available in the future.
Should your loans be interest only or reducing? Would a line of credit loan be better? What are the pitfalls? Will fixed interest rate, variable rate or split rate be the best option? Should you ask for a redraw or offset facility?
Let us help you structure your finances in the best way for your needs, and arrange the right finance for you.
Income Tax PAYG Withholding Variations
If you acquire a negatively geared rental property, and expect to receive a tax refund at the end of the year as a result, it is possible to receive the benefit of the tax refund much sooner than waiting for your tax return to be processed and refund received.
We can obtain approval from the Australian Taxation Office on your behalf to allow your employer to reduce the amount of tax they withhold from your pay each week/fortnight/month. Getting your tax refund sooner can assist with the cash-flow needs of holding a rental property.
One of the advantages of buying a new investment property is you are able to claim significant tax deductions for non-cash depreciation expenses.
The capital cost of the building structure itself is written off over a 40 year period, and the cost of white-goods, floor coverings, blinds and other non-structural items are claimed over a much shorter period. A depreciation report prepared by a quantity surveyor is required to establish the cost of the items which may be claimed as a tax deduction.
Newcastle based quantity surveyor BMT & Associates has offices across Australia, and is our preferred provider of depreciation reports. Of course, the cost of the depreciation report itself is tax deductible in the year of purchase.
Property Professional Referral Service
You've heard it a thousand times before and you'll hear it a thousand times again: location, location, location.
When it comes to property investment, they say nothing is more important than finding the right area or suburb for your purchase.
What is it that makes one location better than another for property investment? What are the key drivers that will ensure strong rental demand and what are the catalysts that will generate good capital growth?
When buying an investment property, it is essential you consider the needs of your prospective tenants. You should be looking for properties close to schools, transport, shopping, hospitals and entertainment facilities, and there needs to be good employment opportunities in the area. The best investment opportunities are rarely in your own suburb.
But knowing where to buy is only one key factor in successful property investing.
We have found some people are happy to do their own research when it comes to property investment, but there are other who want to invest in property but never get around to it as they don't have the time or skills to do the research themselves, lack confidence in choosing their investment, or may benefit by having a professional choose the property for them to take the emotion out of the investment decision.
We can assist identify if property investment is appropriate for you, the type of property and ownership structure best suited to your wealth creation strategy, arrange the finance for you, and then work with you to ensure you maximise the available tax deductions.
To assist potential investors we have established a relationship with Blue Wealth Property, a company that specialises in sourcing property for investor clients of accredited professional financial services businesses – accountants, financial planners, and mortgage brokers. Blue Wealth Property is the company Heather and I buy our investment properties through, and they have also assisted several of our clients build investment property portfolios.
Blue Wealth Property is Australia's largest residential real estate research company, researching all capital city and major regional markets to identify the best time, place and type of property to invest in. Blue Wealth then use their market position to gain access to review many development projects (apartments, townhouses, or house and land packages), and only approve the best of the best – their rejection rate has consistently been over 85% of developments reviewed in the past few years. They then negotiate with developers on the approved stock to get the best deal for their investors.
Blue Wealth have a team of over 30 dedicated staff all committed to help you on your property investment journey. They provide education and support throughout the process, including your own microsite (personal website) where you'll have access to relevant information about the property you are buying. They do not charge you for these services. Blue Wealth are licensed real estate agents and are paid a sales commission by the property developer, just as the real estate agent is paid by the vendor when you purchase a property you have identified yourself.
We are paid a referral fee by Blue Wealth Property if you buy a property through them.