We provide the following FAQ’s in the hope it will allow you to better understand what we do. If you feel that there is an aspect of what we do or a question that should be included please bring it to our attention. Please contact us.
What makes Property Investment Educators different?
Several things actually…
Firstly and perhaps most importantly, our program works as a buyer’s advocacy. The vast majority of people purchase property through a sales agent of some kind where the bigger the property they sell you the more money they make. In our program the individuals who assist you to identify property to suit your situation get a FLAT commission so their focus shifts from trying to sell you the biggest rental property to assisting you to purchase an Investment Property that will allow you to purchase another sooner.
Secondly, we only promote ‘worst case’ scenario holding costs. Most companies that appear to do what we do, promote ‘sexy’ marketing figures telling you only how good the property will be. Our Clients know that if they can comfortably manage the “worst case’ then the Investment will work for them in real life.
Thirdly, we do not pressure our Clients. We pride ourselves in ensuring our Clients have the time and means to do their ‘due diligence’ before they purchase.
Fourthly, all our associated service providers are independent companies. Unlike other companies who provide a suite of services all within the one company we are able to provide complete transparency regarding any and all costs. ALSO, since there is no obligation to use our associated services they have to perform to get your business and this maintains competitiveness.
How do I know if I can afford an Investment Property?
It appears that many people fail to recognise “affording the property has little to do with whether you can borrow the money to purchase the property. You have to be able to manage the ongoing holding costs of the investment.
To be truly sure our clients can afford an investment property we create a “worst case scenario” figure from all of the projected costs. In this way our clients know that if they can manage this “worst case” figure then in real life the cost of the property will be less.
The other important feature of our program is that ultimately YOU decide on a holding cost that suits your needs. Again this worst case figure enables this.
Do you only promote Tax Effective Property?
No. We utilise different strategies as required for individual investments.
In addition to purely Tax Effective property investing we also assist Clients to purchase property via their SMSF (Self-Managed Super Fund) and to Develop land or property. (Developing can have a tax effective outcome but it can also create a lump-sum Cash outcome).
Does everybody who goes through your program buy the same type of property?
Definitely not! Even within the one strategy (e.g. Tax Effective Property Investing) a property that is ideal for one Client will almost certainly not be the ideal choice for another.
Determining what suits each Client is one of the central services we provide our Clients and is derived from their Personal as well as Financial needs.
My parents told me to pay my house of first before getting into more debt
Certainly owning your own home is an important goal, especially for Retirement security. Most people are not aware however that a correctly structured investment property can allow you to pay off your Home mortgage sooner. In this sense it is sometimes called ‘good debt’.
Correctly structured is the key concept here. If debt, equity and cash flow are structured correctly in a property portfolio, ‘good debt’ will allow you to build wealth faster and with less risk. If the portfolio is not correctly structured the resulting debt will not be so good, nor as effective.
If you wish to continue this conversation we would appreciate the opportunity to organise an obligation free Initial Consultation where we can explain more completely. Please contact us.
How can you Guarantee Capital Growth?
Short answer; you cannot. Despite what some people claim, it is literally impossible to guarantee capital growth, HOWEVER it is possible to maximise the probability. So this is what we do.
The factors that determine potential Capital Growth are no secret. They are the same factors that professional investors look for. They are economic drivers that demographers have come to understand indicate a higher probability of Capital Growth sooner. These same factors are the ones we use when short-listing potential areas for our Clients to invest in. Essentially they come down to supply and demand.
Please note it is ultimately our Client’s decision as to what area they wish to invest in.
Where is the best place to buy an Investment Property?
What determines the best place from our perspective is a very personal thing. This is not to be evasive; the truth is that there are many factors which determine the best place for each Client.
Part of the value we bring to our Clients is the realisation of this and then the provision of the information to allow them to determine their own answer.
In the PIE process we start with “Why are you Investing?” This determines the investing strategy. Then for example, if the strategy is “Buy and Hold” then then next step would be Holding Cost, as we maintain there is no point in owning a property investment that you cannot afford to hold for the long term. We would then look at Location.
If you are seriously interested in determining what area would suit your situation we would like the opportunity to assist your investigation.
I’m an experienced Investor, what can you offer for me that I can’t already do?
The short answer is twofold. For no extra cost we bring leverage with our builders and the time leverage of our service.
Firstly, as an individual you cannot hold much leverage with builders. We, on the other hand bring a lot of business to our associated builders and they respond accordingly.
Secondly, you as an individual have only so much time. One of the biggest services we provide is to leverage your time. Much like a good property manager will collect all the relevant information about prospective tenants and present this summary to you for your consideration, we do this with property investing.
Our associated service providers are professionals in their fields and will provide all the relevant information you wish summarised for your consideration. You still keep control and make the key decisions and most importantly you can verify our information before you make these decisions.
Where do I start with investing?
You take two important considerations and then you make an educated decision.
“What do I want to achieve (Why am I investing)” and “What is possible for my situation”.
It is important to realise that investing in property has a steep learning curve with many potentially costly mistakes along the way. One of the advantages we provide our Clients is the capacity to investigate these two considerations in a meaningful way without the inconvenience of spending lots of money and lots of time to do so.
If you are seriously interested in Property Investing we would like the opportunity to investigate what is possible for your situation. Please contact us.