PropertyThe foundation of the Residual Wealth strategy is property investment, primarily in the Queensland market. We believe that there are three critical areas to the successful implementation of a property investment plan: LocationThere are two main drivers in the property market – infrastructure and population growth. Not all areas grow at the same rate. Our research team is constantly looking at drivers that will move the markets forward. Such research has resulted in some clients achieving $40,000 - $120,000 in capital growth in a 12 month period! Many billions of dollars will be poured into the Australia economy over the next decade for mining exploration to satisfy the currently insatiable appetite of Asian economies. The refreshed demand for uranium to enable the reduction of Greenhouse gases to replace fossil fuels as an alternative energy source is driven by carbon trading. The development in infrastructure will be extensive as the dollars from mining exploration turns into extraction. Skill shortages and the remote mining locations are attracting high salaries. Massive growth in infrastructure has already begun in Gladstone with the new Aluminium smelter fuelling population growth through workforce requirements. Add gold, shale oil and iron ore deposits in the Queensland resource rich basins including The Surat Basin, The Bowen Basin and the Galilee Basins. Such areas are going to experience strong population growth. These are not boom areas, they are the new way of life in Queensland. Resource contracts in these areas have been put in place for thirty year contracts. Balance this with a desirable lifestyle, growing tourism, interstate migration and limited availability of land and you have the overlap of factors driving demand in Queensland. StructureIt is one thing to identify a property . . . it is another thing to know which structure you should purchase the property. Should you use your own personal name, a partnership, should you split the ownership with your partner, should put it the property in a trust or perhaps even a self managed super fund. What about finance structure? What is the best way to structure your loans? StrategyThere are many strategies that can be implemented when investing in property. We determine your risk profile and then match you with the right strategy. These include: Buy and hold (aiming a positive cash flow)Buy and hold is the accumulation of property over time. It focuses on the power of leverage and gearing to amplify the growth of property assets. By focusing on infrastructure geographical areas, gross returns of 6% or higher can be achieved. Additionally NRAS (National Rental Affordability Scheme) can assist investors get a positive cash flow on property from the first day a tenant moves in. NRAS , National Rental Affordability SchemeNever before has the Australian government offered private enterprise – people like you – a real opportunity to invest in the realm of affordable housing. The government wants to stimulate the housing market, get more new homes built and help middle income earners with more affordable rental opportunities.This means that your NRAS investment property will give you no less than $9,524 in tax rebates every year for 10 Years. The Residual Property team have calculated in real figures what this means for you. Using the rental component of the cpi (consumer price index) which is currently around 5%, the amount will be approximately $120,000 over the ten years. This opportunity WILL REDUCE YOUR TAX. Therefore it will provide you with never before seen cash flow and tax rebate advantages over the first 10 years of ownership . To read more about NRAS and receive a free research report please go to www.nraspropertyscheme.com.au Small developmentsIf you wish to have a more active role in the acquisition of property, the power of small developments may be beneficial. It is possible to create value on a piece of property by obtaining a development approval. These types of development can be achieved with standard residential finance with some of our clients achieving profits of between $50,000 - $142,000 with this simple strategy. Off-the-planThe off-the-plan strategy is the identification of property that has a time period to settlement of between three to twelve months. A small deposit can be used to secure the property and by the time settlement is required, the property potentially could be worth more resulting in a large return on the initial investment of the deposit. Joint venturesOften it is not possible to continue to grow a real estate portfolio beyond a certain size due to equity and finance serviceability restrictions. Joint ventures allow you to be able to continue your ability to profit from the property market. |
Contact UsResidual Wealth Tel: 1300 737 997 Testimonial"Just a short note, thanking you for arranging the necessary refinancing for my home purchase. Your advice regarding the type of loan and sourcing the loan was comprehensive and accurate. Your staff was very helpful in explaining all of the details when answering my questions regarding each step of the process..." Hellen Scriven |
