At Assetz we understand that investment is serious business and encourage all our clients to ask allot of questions. The relationship between AssetZ and its clients must have trust.
We want you to be completely satisfied that you are making the right decision after careful considerations. In this section we have tried to answer all the questions. We pride ourselves on having excellent relations and as such all AssetZ’s dealings with its clients, suppliers and strategic alliance team are totally transparent.
If you have any concerns or questions which have not been answered to your complete satisfaction do not hesitate to contact us so we can resolve any issues.
Why deal with AssetZ – from A to Z?
At AssetZ we do not just promote one investment strategy; we take the time to get to know you. We take a snapshot of you now and another at where you want to be, we look at where you are in life’s journey, a 32 year old has different needs and goal s to a 57 year old.
Once AssetZ has a clear idea of what you want and we have established that we can work together the team at AssetZ will prepare an individual strategy for you. You then choose your next move.
What do you sell?
No seminars surprises, DVD packs or expensive non producing courses, AssetZ only sells its services to its clients. AssetZ acts as the referral base for all your investment needs we do the homework, research and find the best of the best for each asset facility and investment based service providers.
How is AssetZ paid?
Assetz is paid by the service provider once they have performed a successful service for you the client, look at us receiving a marketing fee from the provider. Remember we only choose the best of the best; each one of the strategic alliance affiliations AssetZ has established has been interviewed and screened by the team at AssetZ for their integrity, technical expertise and ability to provide excellent service at competitive pricing.
Am I paying more for the services through AssetZ?
Definitely NOT, in most case you will be paying less. The strategic alliance network has speciality services, as we get to know your needs and wants and develop a strategy to achieve these goals we direct you to the most appropriate services and service providers. You will be paying for advice that you need from people that already know the answers, you will not be paying for someone to research and learn at your expense. Not one facility can provide you with all you need to know in the business of investing.
Who pays the builder?
Unless otherwise stated, payments are drawn down at the completion of each building stage from your lender, in accordance with your building contract. It is the owner’s responsibility to ensure the lender makes the stage payments.
Who checks the quality and progress of the building?
The builder’s project manager checks the quality. If AssetZ is the client’s representative, we check the building at various stages and report back to the owner, photos are obtained at each stage of building where possible and forwarded to the owner.
If quality or progress falls behind, who manages that?
The builder. Building can be delayed by forces outside the builder’s control, such as bad weather. If AssetZ is the client’s representative, we will monitor the building timeframes and report back to the owner.
If anything goes wrong, who is responsible?
Finance – if finance is arranged through Assetz, then it is the recommended mortgage broker’s responsibility to take care of a problem.
Building – if any problems arise with the building, it is the builder’s responsibility to amend the problem. Builders are insured because of this, as building remains their responsibility until the property’s completion and handover. The owner generally has three months to report any problems after handover, which should then be rectified by the builder. Various components of the property will be under warranty, including the structure, which is required to have a minimum 5 year warranty.
What and when are services to the house done?
Unless otherwise stated, physical electrical, gas and water connections are generally included in the build contract, installed towards the end of the build. During construction, payment of electricity connection through a service provider is generally the owner’s responsibility, while the usage until building completion is the builder’s responsibility. Connecting to service providers is then arranged by the tenants when they move in.
Generally, physical telephone connections are not installed but provisions for the wiring are put in place, together with phone points in the house. Physical connection is generally arranged by the first tenant when they connect to a provider. The owner is then required to pay for the physical connection.
Can we have any choice in the house’s design, colour schemes, landscaping etc?
Packages put together by AssetZ are for investors, designed for the rental market and not for the investors to occupy.
With this is mind, the general aim is to:
– create a low maintenance property
– maximise rental income
– minimise building costs
– appeal to a broad range of potential tenants
– create good potential for capital growth
Clients may be able to choose some aspects of the project design, but should keep in mind that these are investment properties, so unless they are planning on moving into it themselves, the colour schemes and other variants are not that important.
What checks does AssetZ do on builders before referring them?
We request the following from all builders we use:
– Builders license number
– Registered supervisor check
– Copy of any relevant insurance certificates
– All Building Association member numbers
Are build prices fixed and will there be any extra build costs?
The property build price shown may be subject to soil tests and may not include any demolition, object removal, tree removal, rock removal, retaining walls, cut or land fill unless specified. Final build pricing and details are set out in the building contract. The build contract is provided upon receipt of a signed Offer to Purchase form, the purchaser is not obliged to sign or commit to the building contract.
What an Assetz mortgage broker does for you
When you decide which lender you want to work with, that lender pays the broker fees or commissions for directing your business to them. Your interest rate will be just the same as if you were dealing directly with a bank manager or lender yourself.
To be sure you are being recommended to the right lender, just ask your broker to show you all the lenders on their panel, and what your loan options would be against each lender’s criteria. A good mortgage broker will provide you with a range of suitable options without the need to ask. You can also ask to see the commission your mortgage broker will make from each lender; in some states this is a legal requirement.
Nearly half of Australian home buyers now use a mortgage broker, viewing it as essential to find them the home loan that is in their best interest.
There are plenty of great deals around if you know where to look and who to ask. Every day, good mortgage brokers link home owners, investors and business people with the best finance products available from their panel of major banks and lenders.
Assetz mortgage brokers especially understand the real estate market and have access to a range of major banks and secure lenders. They use their knowledge of the home finance market and the assistance of specialised lending software to help you find the home loan that is both in your best interest now, but has the flexibility for future changes. Our mortgage brokers will then take over the legwork and guide you through the application process until your home loan is settled.
Your mortgage broker will:
1. Discuss your existing situation and your home loan requirements; and obtain all necessary information relevant to your home loan application.
2. Explain the types of home loans available to you from a range of banks and specialist finance companies.
3. Based on the information provided by you and utilising specialist home loan software, match your home loan requirements to a selection of loan products offered by our panel of lenders.
4. Provide an overview of your ‘Purchase Budget’ in writing, incorporating the relevant costs associated with your home loan application.
5. Provide an in-depth overview in writing of the home loan product or products you select.
6. Complete and package your home loan application and deliver it to the lender’s assessment team on your behalf.
7. Act as an intermediary between you and the lender, negotiating the terms and conditions of your loan. They will also answer any questions the lender’s assessment team may have.
8. Liaise with your solicitor, real estate agent and accountant and any other related parties to ensure a smooth and timely settlement.
9. Assist with any future home loan requirements, whether you wish to check, change or top-up your loan.
10.Act as a valuable information service beyond the settlement of your loan by providing you with relevant information on the home loan market, updates on products and special offers that may be of interest to you.
What’s the right investment strategy for me?
The basic strategies used by many property investors fall into the categories that follow below, Which strategy is best for you will obviously depend on many things including but not limited to experience, cash flow, financing ability, age, purpose, timing and location. This is another reason to use Assetz’ services, so that we can analyse and recommend the best strategy for your individual needs.
Positive cash flow
A positive cashflow property puts money in the investor’s pocket before tax. With all costs (expenses and mortgage repayments etc.) covered by rental income, there is still money left over.
This is where the investor buys the property below valuation, not below the sale price. The valuation amount of the property is what the banks and lenders regard as its value. If purchased for below its valuation price, then less of the investor’s own money is used in the transaction.
This is also called creating equity. Developers are often willing to sell at a discount when the property costs them more in interest to hold on to and wait for a higher price. They often prefer to move it quickly and sell it to our investors.
Strata Title is splitting up a property into separate titles to increase its market value. Once the property is split it is possible to sell the individual properties.
The combined value of the separate sales should be more than the original price paid for the property before strata. This investment strategy works on the principle that two pieces of property are worth more than one.
Purchasing a property and making some cosmetic alterations to make it more attractive can improve the value to more than the original purchase price. Spending time and some money on a property can increase the resale value and the rental return. This is a great way to create equity. The property’s value increases even though the land component has not changed.
A lot of investors renovate to increase the rental income or the cashflow of a property eg. adding an air conditioner to an investment property can add $20 to $30 a week in rental income.
This provides the investor with a better yield and the money spent can be depreciated to receive the tax benefits. The aim of renovation is to do and spend the least to get the maximum return.
Is the act of dividing a piece of land into two or more lots with individual titles to make it easier to sell or to develop. This high profit-potential option works on the same principle as Strata, where two or more pieces of land with individual titles are worth more than the original lot.
Is a transaction where investors enter into a contract to buy a property before it is built and settlement is only when it has been finished. Historically investors speculate that the market will rise before they actually need to settle on the property.
Why do it now? A lot of developers need pre-sales to get their finance to build the property, it makes them look more attractive to the banks.
Maybe property is just not right for you at this stage and AssetZ, through our strategic alliance network, can put you in contact with the best independent, impartial advisers to meet your needs.
Unless you are independently wealthy, win the lottery (and hang on to the winnings) , or are happy to live below the poverty line in your retirement years you will need to do something proactive in the area of ‘making your money work for you” often called investment.
Living longer better medical treatment
Average man live to 83 and average women to 87, and with new break throughs in medicine, better health related education and a general increasing awareness of better living this average age will increase. How are you going to survive? Government handouts and superannuation payments will fall short affecting your standard of living. Without adequate and careful planning it will be very easy to fall below the poverty line.
As a 30 year old you don’t believe you will ever reach 60. And as a 60 year old you cannot believe how quickly the last 30 years has gone by – if only we did something about planning for our future when we were 30, when we had time when were young, when we could afford to put a little bit away each week, buy that property and invest in that stock – it’s so much harder now.
Don’t let life get in the way of making plans for your future – act now
To a new Property Investor the jargon and acronyms used in the property investing world can be confusing. In this section AssetZ want to take the mystery away from some of these terms and ensure all our clients understand the principles and wording used in this exciting business.
Susan, a property investor, buys a unit for $300,000, putting in $50,000 of her own money and borrowing the remaining $250,000. The interest of 7% each year is $17,500 and the weekly rent is $300 or $15,600 a year.
Ongoing costs including rates, water, insurance, maintenance and depreciation allowance are $2600 each year. After expenses, income for the year will be $13,000 ($15,600 minus $2600), equivalent to a net rental yield of 4.3%. However, annual interest repayments are $17,500, so she has actually lost $4500 during the year ($17,500 minus $13,000 = $4500).
In this example, the investor can reduce the tax liability on her other assessable income by the investment property’s loss of $4500. If the investor is on the highest marginal tax rate of 46.5% (including the Medicare levy) this tax deduction would have the ultimate effect of reducing the real loss on the property from $4500 to $2408 ($4500 x 46.5% = $2092; $4500-$2092 = $2408). This is a good saving.
If an investor is on a lower rate of tax of 31.5% (including Medicare levy) the after-tax loss on the investment would be reduced from $4500 to $3083 ($4500 x 31.5% = $1417; $4500 – $1417 = $3083). The saving is still quite attractive.
So why would you as an investor still be happy to take a loss on the money invested? Simply it is to benefit from the capital growth of the asset, the property at $300,000 would grow in value on average around 7.2% pa. This would give a capital growth figure in the first year of around $21,600, even when you minus the negative gearing loss of $3083 you still have a gain of $18,517 in the first year. The good news is the property on average will turn neutrally geared in 3 to 5 years leaving you with the capital gain continuing to grow.
What AssetZ aim to achieve for the clients is to provide you a property that will give you maximum capital growth and also turn neutral/ positively geared as soon as possible. We achieve this by only sourcing deals that meet our strict 57 point check list.
We need to get this right as with every deal we put our name and reputation on the line.
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