Shared Success – A Concise Synopsis

The first step is getting your financial affairs in order An informed decision to invest can’t be made unless you are organised and have a good understanding of your financial situation. If required, Shared Success and its qualified advisers can assist you with this. Some of the questions you should consider before making a property investment include:

• Do you have an investment strategy?
• How many super funds do you have and how much do you have in superannuation?
• Do you have any lost superannuation being eaten away by administration fees?
• Are your investments and superannuation funds performing at acceptable levels?
• Are your administration and management fees reasonable?
• Do you have adequate insurances protecting you and your assets?

Need answers to these questions? We’re ready to assist.

Location! Location! Location! It’s absolutely critical when considering property investment to make sure you target cities predicted for the best growth in 2019 and beyond. We only present property investment opportunities located in inner-city suburbs or award winning residential estates that have a high population growth. This approach gives the best opportunity for better capital growth.

Minimise your debt risk Our property investments are geared to a level where the interest rate on the debt is completely covered by conservative rental income to create positive cash flow.

Infrastructure and amenities All investment properties must be within walking distance of shopping centres, schools, community services, recreational centres and rapid transport options. Infrastructure and amenity improves population growth.

Architect designed with future proof inclusions
Every property investment is architecturally designed and finished to a premium quality standard. All investments also feature what we call future-proof specifications that include reverse cycle ducted air-conditioning, LED lighting, energy efficient and noise reducing 6.5mm glazing to all windows and doors, 32amp electric car chargers and solar roof panels with provision for energy storage. This high specification level serves to underwrite rental income and promote capital gain.

Eliminate tenancy hassles All our property investments are managed on your behalf so you’ll never have agents/tenants calling you with maintenance issues. All rent and outgoings (cash flows) are managed on your behalf under an Australian Financial Service Licence (AFSL) ensuring all your compliance requirements are covered.

Limited-resource loans The Shared Success preference is for loans secured only against your new investment purchase and not against any of your other assets. In the event the lender needs to recover their funding, they can only claim on the loan’s security – being the investment property itself. The lender does not have access to and cannot make a claim against your other assets such as your principal residence, super, vehicles or cash. This is a safer investment option.

Negative gearing risk Shared Success is not concerned if legislative changes are made to negative gearing in the future as any changes will not adversely affect the Shared Success strategy.

No expensive superannuation set up costs Purchasing an individual property within a self managed super fund can be very expensive and may put you in a situation where “all your eggs are in one basket”. We recommend you obtain specific advice about SMSF investments.

Don’t expose yourself to construction risk Make sure any property is completed and earning income before you invest. All Shared Success investment opportunities are completed properties, with tenants and rental income in place.

All investments meet Liveable Housing Australia guidelines
Liveable Housing Australia is a partnership between the Federal Government, industry, consumer groups and the community. All our investment properties are designed with accessibility features that are suitable for families with young children, people with temporary injuries and ageing/disabled people and their families/carers. By meeting these design guidelines, we’re ensuring the investment properties are attractive to the broader community – particularly those seeking National Disability Insurance Scheme (NDIS) or home care services.

Due to the fact that a property investment is made when the time is right for you, you should look at the Australian Property Clock as part of your investment selection process. Remember, you are investing for capital gain so you need to ensure the area in which you are investing is earmarked for future growth by industry experts.

The West Coast factor
By way of example, Perth and Western Australia present a current opportunity that aligns with today’s property clock. Perth’s prices started to fall in 2016 at the end of its mining infrastructure investment boom in 2014. New building starts dropped and a steady decline in property values are now gifting Perth with the cheapest median home price for any of Australia’s capital cities.

Perth is nearing the bottom of its property cycle, with rental vacancies dropping from 8% to 3% in 2019. In parallel with this, $75 billion of new infrastructure projects have been announced for 2019 including lithium mining and processing and the establishment of new iron ore mines. All of this, together with WA’s share of GST being lifted from the mid 20% to a guaranteed minimum of 70% bodes well for property investors.

Real Estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.

RobertKiyosaki