The 18 Do s and Don ts of. Property Investing. Using. Pocket Money 7 O clock Markets SMSF s Property Hot Spots. Watch your future grow

Transcription

1 The 18 Do s and Don ts of Property Investing Using Pocket Money 7 O clock Markets SMSF s Property Hot Spots Watch your future grow

2 No Advice Warning This guide contains general information only. The information in this guide is general information only and has been prepared without taking into account your personal objectives, financial situation or needs. You should consider any ideas in this guide in light of your personal objectives, financial situation or needs before acting on them. You may wish to consult a licensed financial adviser to do this and in fact we recommend that you do. The information in this guide is no substitute for financial advice. Concepts & Results and its affiliates assume no responsibility for any actions you take independently, and without seeking professional advice from a licensed financial adviser. 2 of 12

3 Hello from Phillip Strategic Director I m delighted to provide you with a free copy of this guide but also introduce you to Pocket Money Property Strategy Life today can be full on especially if you own your own business or have a demanding job, not to mention family commitments to juggle as well. Finding time for yourself to re-charge your batteries can be a struggle, let alone finding the time to research property markets, look at properties on weekends, deliberate over which properties are worth a second look and which ones are lemons, and then deal with all the complexities of choosing agents, accountants, mortgage brokers, solicitors and property managers. Is it no wonder you feel so overwhelmed. And then there is the never ending pressure of the clock ticking as the years keep passing you by. You've been doing the numbers and you know you need to do something to get some good quality performing investments working for you in order to secure a comfortable retirement and improve your lifestyle today. So what can you do? How do you keep all the wheels turning on your already busy life AND make strategic, well researched investment decisions that are going to take you forwards, not backwards? The answers are in my Pocket Money Strategy and 7 O clock Property Hot Spot webinars and that s why they have been so popular. I've personally helped hundreds of clients through my programs to purchase investment properties in high performing areas, using very little of their own time or money...and as a result, completely transforming their financial position. More and more people are being referred and wanting to know how I've helped so many others do it, so I'm hosting a limited number of webinars where I will be giving you all the tools & processes I've used in my programs. I look forward in seeing you at one of my upcoming complimentary webinars soon Phillip Scandizzo ASCPA, CFP, MFAA, SPAA Strategic Investment & Tax Consultant Concepts & Results 3 of 12

4 The Do s 1. Have a property game plan Imagine you decided to swim a marathon... You could just jump into the water without doing any training and chances are, you wouldn't last very long before you had to get out of the water with an injury or exhaustion, way before the finish line. This kind of strategy can actually do you serious long term damage and it will also likely turn you off ever swimming another marathon. Or, you could put your own training program together; based on what you already know from the swimming events you did at school or what friends have told you might work. And, whilst you are likely to do a little better than the person who didn't train at all, You d have to agree that you won't do as well as you could have if you'd been working with one of the country's most experienced and successful marathon swimmers helping you get prepared for the event. A winning marathon swimmer knows where the pitfalls are. He or she has likely made just about every mistake there is to make and already corrected their process based on what those mistakes have taught them. They know when to swim hard and when to keep some fuel in the tank to go the distance. They will also have the benefit of knowing what equipment, support people and resources you need to maximise your training process and get you to the finishing line in the best time possible, feeling great and injury-free. 4 of 12

5 It's just the same with property investing. Many people get burnt thinking they can just jump in and succeed in property investing without doing any research. Or perhaps they take a "hot tip" from a friend or family member that ends up costing them dearly. Smart property investors, like the elite marathon swimmer, know they need a Game Plan and they spend years refining those Game Plans so that they have a repeatable system for creating wealth. You can start the process of working with the best strategic minds to get your super fit and ready to take the plunge. Claim your place at one of our limited-seating complimentary webinars today by visiting our website. 2. Have an exit plan Your plan should include your desired retirement date and the income you ll require for the lifestyle you want when you retire. But more importantly your plan requires a strategy that will help you save a bucket load in capital gains tax when you are ready to sell one or more of your properties. 3. Make sure someone else is paying for it When structured correctly the tenant & the taxman can pay for most of the costs associated with your investment. That way you keep your out of pocket contributions to your investment at an absolute minimum. 5 of 12

6 4. Property must have financial super powers When you buy a property you want it to be self-sufficient. You don t want it to cost you money every week, you don t want it to stagnate in value, and you don t want it to be a burden on your current lifestyle. You want it to be a wealth making machine on auto pilot. At our 7 O clock Property Hot Spot Webinar, you ll learn the key drivers that you must have to ensure your property has the right financial super powers. 5. Squeeze costs & lock in Ensure your property has little or no owner corporation fees, low managing agent fees, low or no maintenance costs, little or no bank fees. An interest only loan with consideration to fixing the interest rate for a period of time, will improve affordability, Savings can also be made with buying costs such as potential savings with stamp duty and mortgage insurance. 6. Surround yourself with great people Surround yourself with experts in their field (finance, accounting, valuers, legal, property agents, and conveyancer s etc.) and leverage their expertise. 6 of 12

7 7. Consider using your super to buy a property This magic opportunity has been around since September The law now allows self-managed super funds (SMSF s) to use the cash they have as a deposit and tailored borrowings for the balance to purchase an investment property. 8. Review your financial position regularly Test the available equity in your property and the balance of your super regularly with an expectation that you will be able to move forward and build on your game plan. 9. Get investment ready Be in a position to pounce when you have to. Have all your finances pre-approved and ready to go. Off market property opportunities, when they do come, don t hang around too long. 7 of 12

8 10. The good, the bad and the ugly debt There is debt that helps you build wealth. Legitimate tax deductions & investment earnings help you pay it off much faster than you would on your own, and whilst this is happening your asset is growing in value. This is the good debt. We consider bad debt, as debt you have to pay off all by yourself with your hard earned after tax dollars. Even though your asset is growing in value, you cannot claim any tax deductions against it. Then there is Ugly debt. This debt is attached to an asset that is losing value, has no income stream and you are paying for it with after tax dollars. 11. Always buy in a 7 o clock market Be on the lookout for suburbs that have come off the low or bottom part of the cycle and are about to be the out performers or turn into hot spots, driven by key drivers that will produce sustainable capital growth to leverage your equity in the next 3 to 5 years. 12. Buy total turnkey At hand over you want everything ready to go. Your property needs to be in a position where your tenant can move in as soon as you are given the keys. That means there is absolutely nothing you need to do but collect the rent. 8 of 12

9 The Don ts 1. Avoid the rush When you know how to invest in property, you will be aware that there are always great opportunities to buy. Don t jump into a property unless you have done your numbers and you have worked out your capabilities. So don t rush in. Make sure you get your game plan right first. 2. Avoid falling in love If you could see yourself living in a property because you love the way it looks or feels and it s everything you have ever wanted in a property, and if you find yourself saying things like I can see myself retiring there or what a great place to spend the weekend then be very careful. This love factor for property is based on emotion and as the saying goes, love is blind 3. Avoid burning tax decutions If you want your money to work harder STOP and think.how can I use my cash in a more tax effective way. The golden rule is to never to reduce debt that is tax deductible whilst you have non tax deductible debt. When you have spare cash, pay off non-deductible debt first such as; Your home loan or personal Loans Car loan and credit cards 9 of 12

10 4. Avoid the property spruikers When the market is reaching its peak (we call this 11 o clock in the market) then you will find a greater number of hard sell property spruikers. They come out to play as they know that it is easy to sell to emotionally driven investors who want to buy before they miss the boat. The problem is that the market has already moved and the boat has sailed. 5. Avoid contracts stacked in favour of developer Most contracts are always in the favor of the developer/builder. Ensure that your interests are considered and remember the developer needs you not that you need them. 6. Avoid buying in the worst 2/3 rds of the market This is the bad and ugly part of the market (we refer to this as the market between 12 and 6 o clock) Buying in these markets could produce a long and painful wait until the market comes around again and it s a stretch of time that most people can t afford. 10 of 12

11 Take 10 minutes to see what s possible If you think you need to be doing more or be doing something better you are probably right. You can find 10 minutes in your busy life, you ve just got to want to do it. So if you are fed up with waiting around and sick and tired of wasting your money and paying too much tax and you want to start building a high performance investment property portfolio that makes your life more enjoyable then Book your FREE 10 minute no obligation strategic phone session Whether you are self-employed or working for someone else, take the first step and let us help pinpoint the things you need to be doing. Book a 10 minute no obligation test drive and uncover strategies that you may not have even thought of. Then and only then, if you are comfortable in what you hear and there is a connection between us, we can start to map out a game plan that we can help you implement and get things happening. 11 of 12

12 Contact Us Please do take this opportunity to call to speak with one of our strategic advisers, make an appointment or to just pick our brains with any questions you may have on our website below. Our contact details: Concepts &Results Pty Ltd 612 Warrigal Road Malvern East, Melbourne, Vic Tel: (03) Fax: (03) of 12