PROPERTY

Did you know that only 7.9% of Australians own investment property with most owning just 1 property and only 24% of this group own more than one?

What is Property Investment?

Investment in residential property is one of the most tax effective and transparent ways to accumulate funds whether it is for Retirement or for achieving your financial goals. With the right preparation and risk mitigation strategies, you can protect your Investments and ensure that you keep moving forward, regardless of what the market is doing or what happens to your personal situation.

Planning is crucial as a great investment must have the ability to meet your growth, income and tax management expectations. It is important to understand exactly what your investment objectives and financial goals are to select the right investment property to suit your personal situation. At FAA the advice and information on Investment Properties we provide, is supported by our comprehensive range of associated services.

 

What are the Benefits of Property Investment?

Some benefits of Investing into Property include:

  • Wealth creation through long term capital growth
  • Retirement Planning
  • Can offer substantial tax benefits
  • Stable Investment
  • You can leverage to purchase your investment and grow your property portfolio
  • Create an additional income stream
  • The tenant and the tax-man help to fund your investment

 

What are the Benefits of Property Investment?

The FAA Consultant understands exactly what your investment objectives are and will facilitate the entire process for you. In simple terms, for very little out-of-pocket cost, you can have a very large investment growing for you!

Property Location or Position
Areas of current and future high demand are a priority and areas that have a strong draw for potential tenants. Locations where land or homes will prove to be scarce or more desirable in the future ensuring that the next 20 years has strong growth prospects. This may be linked to solid local government, supportive of development and with a commitment to investing in public infrastructure, such as roads, schools, universities and commercial development.

Design & Type
The design must be appropriate to the suburb and local area and the quality of the construction must be of the highest standard, with above average inclusions. These factors have a major impact on the future maintenance, the ability to attract quality tenants to the property and the tax effectiveness of the whole package.

Value for Money
Rather than looking for bargains, we insist on value for money. This comes from never compromising on the key selection criteria.

Property Management
We work with property managers who are extremely proud of their management track record.

Professional Service
Because we have such a wide range of property locations and styles, we are well suited to selecting one or two properties that will better match your needs. This “matching” process includes a comprehensive review of your current and future personal and financial circumstances. Based on a medium to long term approach to property investment, the aim is to build a complete property portfolio based on your goals. We assist you throughout the entire process, by sourcing a selection of Properties to select from, providing detailed information, costing analysis and statistics on direct Investment Property options.

We also assist with communicating with:

  • Your Builder/Developer – to achieve the best investment for you by maintaining our standard of designs, inclusions and build time frame
  • Our Finance Team – to organise the funding of your new Investment
  • Your Property Manager – to source the right tenant for your new investment property
  • Our Tax Accountant – to arrange your Depreciation Schedule and an appointment to meet at Tax Time

The Property Team at FAA have strict criteria in the selection process for Investment Properties. Some of the key points that we consider are as follows:

  1. Long Term Capital Growth projection
  2. Infrastructure plans, employment opportunity, population growth
  3. Rental return and low vacancy risks
  4. Suburb profiling and demographics
  5. Lot location and positioning
  6. Type of property suited to our client’s personal circumstance; e.g. House, Townhouse, Unit
  7. Executive level of inclusions and approved building designs
  8. Reliable Builder/Developer that is passionate and has the same values that we have for our clients
  9. Properties that are more likely to be ‘trouble free’ with low maintenance for our clients
  10. A Property that matches our client’s personal needs and financial circumstances

This list eliminates over 90% of the properties available for consideration.

 

How does Property Investment Work?

  1. Your consultant meets with the Property Department to discuss your situation, your goals, objectives and motivating factors. Property team then sources property options based on your individual situation.
  2. An appointment is then booked for you to meet with the property consultant to discuss the options that are best suited to your needs and also to answer any questions you may have.
  3. When you have made your selection, we ensure the property you have selected is secured for you. We then arrange the paperwork to get your contracts organised to proceed.
  4. The Property Team will contact you to organise an appointment to sign the required contracts. If you are unable to get into the office, we can organise to have these contracts posted out to you. We will then arrange for the builder and your solicitor make contact with you to discuss the contracts and answer any questions or concerns you may have.
  5. We then ensure your signed contracts are forwarded to the appropriate parties including your FAA finance team member, who will liaise with you to source the required information to get your finance approved within the necessary timeline as noted on your contracts. This will then determine when your settlement date for finance.
  6. Once finance settlement has occurred, we will liaise with the builder to ensure that construction can begin and follow up with them to ensure that the property is progressing as expected and that there are no delays. ** We also request that the builder updates you during each stage of construction or gives you the tools for you to track the progress as well. **
  7. Your FAA Finance team member will email you at each of the 6 stages of construction (Deposit, Base, Frame, Enclosed, Fixing & Final payment stages) with invoices which are required for your bank to release the funds to the builder to keep the job progressing.
  8. We will liaise with your Property Manager to contact you at the fixing stage of construction to discuss the management of the property and organise the advertising for rental.
  9. At this stage, we follow up with the builder to ensure that the property is nearing completion, checks with finance that all parties have been paid and confirms with the Property Manager that there is an approved tenant ready to move in when the property is complete. The builder will then liaise with the FAA Property Team to advise that the property is complete and the date handover can occur.
  10. Handover has occurred and the tenant is ready to move in. Your Property Manager will then be in contact with you to discuss the next steps in the process.

 

Planning

You need to prepare for the worst while hoping for the best – to achieve this you need to plan! As an Investor, it is important to make sure that your actions match your intentions. Many people have a general idea of their plans for the future. You might know that you want to own five properties by a certain age, for instance, or that you wish to retire on your property portfolio in 10 years’ time.

To be successful, you need to know the actual steps you should take to turn your dreams into reality, you actually need a plan. If you don’t have one, it’s time to make one! If you do have one, now is the perfect time to revise it. It should be a flexible working document – one that can be changed and updated to reflect changes in your lifestyle and situation – and you should aim to review it every six months or so, to ensure you’re still on the right path. Most of all, it should be tailor made to you and your financial position, and your specific goals so that you can be sure you’re maximising all of the opportunities available to you.

There are many factors that will influence your plan, and they can loosely be grouped under three headings: finance, family and lifestyle.

How can we help you?

Contact us today to organise an initial appointment with an Investment Property Specialist.
The specialist can provide a free financial assessment and evaluate the impact on your individual circumstances.
We provide a holistic service and can assist you in all areas of your financial life.