At SCG our goal is to ensure that all our clients invest effectively. Unfortunately over 80% of Australians that invest do it incorrectly or not to their full potential through not seeking the right advice.
Property Investment is what we do as our career every single day. Whether you are a first time investor, seasoned investor building a portfolio, purchasing using equity or through a SMSF, we can utilize all our resources and guide you on how to purchase an Investment property and maximize your investment potential.
“ the truth is always in the result”
First Time investors
When investing in property for the first time it can be very overwhelming and a daunting experience. At SCG we take all the fear and hassle out of this process and provide all the information you will need to make an informed educated decision on where to and what to invest in, which suits your own personal and financial situation.
We help educate you on the following before we even look at properties:
- Understanding the power of Leverage
- Borrowing Capacity and safe lending criteria
- Explain Tax benefits associated with investing
- Utilising the best tax effective strategy
- Property cycles and different types of property for investing
- Personalize a strategy to build a portfolio
- Negative and positive gearing
- Turn key inclusions
- Investing in New vs Old
- Targeting the best possible Inv Property tailored to your needs and goals
Once investing we even oversee the property management and prepare any loan approvals from a variety of finance choices.
Experienced Investors building your portfolio
- We review any current portfolio and finance structure
- Determine how to improve/increase your property portfolio
Building a Portfolio with Diversity
At Southern Cross we believe, when building a property portfolio you need to diversify your property selections which includes property type and alternate locations. A variety of locations can maintain momentum of capital growth even when one location slows in a property cycle.
Each property type (houses, apartments, townhouses etc) has its own unique advantages and disadvantages, which most investors realize. However, limited knowledge, time, professional resources, and market expertise can hinder creating a truly diverse portfolio.
Property Cycles
Experienced investors understand that economic conditions differ from each location and city to city. This results in up and down “cycles” of property activity. Over the mid to long-term, statistics show property has been proven to be a consistent performer. However it still makes complete sense to take advantage of buying into the right market at the right time.
Extensive research can show which cities have the strongest potential to enter an upward cycle.
Research and Independent data
SCG research and analysis team use the most reliable research agencies in Australia from a variety of sources including Australian bureau of Statistics ABS, Residex, Ryder reports, Matusik, RP Data, National housing supply council, Real Estate industry of Australia, Victoria, NSW and Queensland. State / Federal government and local council reports.
Purchasing through SMSF
Taking control of your superannuation and setting up your own self managed super fund (SMSF) can be a great option for clients wanting to diversify how to purchase property.
Since 2007, Australians have been allowed to borrow money using their superannuation to purchase residential property via self-managed super funds. But there are legislation restricts, including property purchases in new projects must have a single settlement payment when the build is completed. Set up and qualifying criteria on SMSF’s can be quite tricky so for more information on setting up your own SMSF’s and to find out if you actually qualify to purchase through a SMSF, contact us for more information.
Terminology
Negative gearing is a form of financial leverage where an investor borrows money to buy an asset, but the income generated by that asset does not cover the expenses and interest on the loan. (When the income does cover the interest it is called positive gearing).
TAX benefits
Interest on an investment loan for an income producing purpose is fully deductible, even if the income falls short of the interest. Any shortfall ends up offsetting income from other sources, such as wage and salary income for an individual.
Ongoing maintenance and small expenses are similarly fully deductible.
Property fixtures and fittings are treated as plant, and a deduction for depreciation is allowed, based on effective life. When later sold the difference between actual proceeds and the written-down value becomes income, or further deduction.
Owners can also claim depreciation of capital works, specifically for building and landscaping. The current rate is 2.5% over 40 years
On sale, capital gains tax is payable on proceeds less cost base (and excluding items treated as plant above). A net capital gain is taxed as income, but if the asset was held for 1 year or more then the gain is first discounted by 50% for an individual
Call our Southern Cross Support Team on 03 9982 4699
