Investment Summary

Karinya Homes pPty Limited ACN 22 118 670 545 (Karinya) under Queensland BSA License Number 109 4492 intends to provide investors and owner occupiers with the following;

• A researched allotment of vacant land for use in the construction of a new dwelling that fits the necessary investment criteria (investment criteria under additional information) and that is intended for residential occupation upon turnkey completion.
• Access to wholesale pricing through predetermined block valuations in dealing directly with the land developer.
• A standard Real Estate Institute of Queensland (REIQ) contract for the purchase of such land.
• The conceptual and final preparation of all necessary plans and working drawings required for pre-submission to the relevant Council that comply with or exceed the developers covenant.
• The provision of wholesale construction pricing for the intention of constructing a residential dwelling inclusive of site works through direct access to the builder under a fixed price contract.
• A standard Queensland Master Builders (MBQ) contract for the erection of such a dwelling as agreed upon by both the client (owner) and the builder as set out in the MBQ contract and,
• To carry out such obligations in accordance with local licensing authorities.

Karinya further intends to facilitate professional assistance where required in the areas of;

• If you do not have an Adviser, consultation with a licensed Financial Planner compliant to a minimum standard of PS146 to determine the appropriateness of the investment and to consider all aspects of risk mitigation and diversification via a Statement of Advice (SoA) as required by the Australian Securities and Investment Commission (ASIC) under legislation contained in the Financial Services Reform (FSR) Act 2002.
• A complete Financial Structure Analysis and if requested, introduction to panel lenders represented by the four major Australian banking institutions.
• The Preparation and supply of a specific Property Investment Analysis Report (PIA Report) relevant to the investors specific circumstances.
• Independent property conveyance.
• Completed combinations of internal and external colour selections prepared by experienced interior designers.
• Obtaining applications from prospective tenants, screening of those persons, tenant placement and ongoing management.

Taxation
Back to top

Neither Karinya Homes nor the Australian CPI Group are licensed taxation specialists and we therefore urge our clients to seek independent taxation advice prior to engaging our services regarding this investment as offered. Should you not have an accountant or if you would like us to appoint one for you, we can arrange for an accountant to call you. As with many sectors of the financial services industry, the area of taxation is constantly changing so we feel that in order for you to make sound financial decisions, your accountant must be included in the discussion process so that the appropriate structure is obtained.

The concept of negative gearing and various personal debt reduction strategies are constantly under scrutiny by the Australian Taxation Office (ATO). Most strategies are directly linked to personal income tax thresholds and the effectiveness of depreciable items within an investment.

Depreciation Schedule

For every new investment, we supply at no cost to the client, a full depreciation schedule, a copy of which is also provided to your accountant. This service protects you from liability when claiming your deductions on various items throughout the home ensuring the correct percentages are used and, in the hands of your accountant, this schedule will maximize the tax effectiveness of the investment improving your overall results.

These schedules contain not only allowable items but also estimates of the actual construction value. The ATO have further determined that unless a person is otherwise qualified, a Quantity Surveyor is one of the few persons carrying sufficient experience and qualifications to make such estimates.

Equipment (division 40 of the tax assessment act 1997)

This provision of the tax act is available to owners of both new and used property and relates to over 1,500 items that are legitimately classed as Plant and Articles.

Capital Allowances (division 43 of the tax assessment act 1997)

Income producing buildings may also qualify for Building Allowances depending on the date of construction. These building allowances relate directly to the cost of construction and are often not taken into consideration by novice investors being somewhat difficult to estimate.

This service is extremely important to the ongoing success of both new and old portfolios. For this reason we have made it available for existing properties at a discounted fee (see additional information under fees).

Tenants
Back to top

In order to obtain maximum yield from your investment, tenants must be well screened and of high quality. Many investors overlook the fact that obtaining a good tenant begins with land selection. As previously mentioned being a client of Karinya Homes you will benefit from exhaustive area research delivering an allotment of land in a sought after area at a price generally under retail market value. The careful selection of this allotment will guarantee demand for the area is high when ultimately advertised for lease. The home size and design will further ensure tenant enquiry for your particular home is above that of any competitors nearby. With demand being high your property management company is able to choose a quality tenant from those that apply often exceeding forecast rental projections.

Every aspect of tenant selection takes time and expertise. Our management company has the specific skills required to achieve this. Real estate agents who also manage a “rental register” are not always concentrating on your best interests with their main “core” business being the buying and selling of real estate. A dedicated property manager is just that, someone who specializes in managing your property.

Our managers advertise for, screen and place tenants on your behalf then manage them on a daily basis. Your manager is responsible for ensuring the following;

• Rental monies are deposited on time as per their tenancy agreement.
• There are no pets unless specifically allowed by yourself
• Any repairs requested are inspected for validity before work is carried out and that all work is advised to you in writing.
• Inspections of the properties are carried out on a quarterly basis.
• You have an up to date login code for online access to your properties details.

Many property managers advertise a low rate to obtain business however there are many fees that are not discussed such as initial letting fees, postage, petties and re-letting fees which when expressed as a percentage can exceed 12% of your rental income. Karinya has already negotiated a flat rate of 7.5% plus tax with its manager. In second and subsequent years the Letting Fee drops to half that of the weekly rental while the percentage drops to 6.5%. (some conditions may apply. Refer to General Terms and Conditions).