Strategic Partnerships
“The strength of a company is in its continued client satisfaction. Sadly, in many cases, client satisfaction ceases after the final payment has been made.”
(Jonathon Harris on Client Management and its relevance to successful, long term business planning).
The need for professional assistance in creating and operating an expanding investment portfolio is high. Both successful, experienced investors and inexperienced, first time investors have realized the importance of utilizing professionals while seeking appropriate advice in dealing with today’s investment markets.
Your association with Karinya will ensure client satisfaction continues well after construction has completed.
With any financial decision you should seek financial advice. Your licensed Financial Adviser will assist in the collection of personal data, the analysis of that data and the preparation of an SoA that will consider all aspects of your financial well being. Your SoA will generally contain recommendations on each of the following;
- Diversification
- Investment Options
- Investment Suitability
- Personal Risk Management
- Superannuation
- Investment and Risk Alternatives
- Estate Planning
- Retirement Planning
Your adviser will also consider the affordability of any recommendation undertaken together with an assessment of its impact on current lifestyle demands. Your adviser will specifically isolate any areas that he or she feels require attention and basically provide you with answers to questions that will assist you in making an informed decision. The development of a property portfolio is not for everyone so care must be taken to ensure that the investment will suit your personal needs.
Should it be determined that a property investment is not suitable for you at this time, your adviser will inform you of this and discuss alternative investments that may be more appropriate. He will also provide advice on your existing superannuation investment, discuss ways of enhancing the performance of that investment and in collaboration with a personal risk specialist, make a full recommendation regarding your personal insurance policies for the protection of your family.
One of the main purposes of your ongoing association with your adviser is to assist you in understanding the complexities of the ever changing Australian financial landscape. There are many urban myths surrounding the financial markets, many of which involve superannuation law particularly where property is concerned. Unfortunately it is not uncommon to find ill-informed investors have setup strategies that are in breach of the SIS Act 1993 and are subsequently found to be non-compliant thereby attracting substantial tax liabilities. If you do not have a financial adviser please let us know so we can recommend one located near you.
An integral part of any investment plan is your banking structure. A solid portfolio requires a strong foundation, ironically much the same as a well constructed home. Without this it may become unstable. If your investment has been deemed appropriate, a banking specialist will assess your current banking arrangements and if necessary, make recommendations as to any changes that may be required in order to enhance the functionality of your current structure paying particular attention to its ability to accommodate future strategies and acquisitions. Once this has been achieved you will be introduced to your personal banker who will be responsible for the delivery of personal service on your account as required.
Your personal banker, in conjunction with your finance specialist will, if requested, also be responsible for the monitoring of your account levels in relation to limits and will ensure your budgetary goals are being met. The overall success of your plan may depend on this so it is important to update these balances on a monthly basis.
Our system compares numerous factors and values including income returns and investment expenses to ensure a measured approach is taken in all transactions whilst monitoring an average LVR of generally not more than 80%. Complete file notes are also recorded and automatically transferred to your financial adviser on a quarterly basis for their file records.
A number of different structures have been designed by our team depending on your specific
monthly requirements and existing levels of both personal and/or investment debt. In most
cases these structures are focused on the elimination of personal, un-deductible debt in the first instance.
The supply of quality land at “fair value” is obviously the key to a successful property investment package. In order to obtain this we utilize the collective buying power of individual clients to bypass agents and go directly to the developer. In doing so we are able to negotiate a wholesale purchase price for the land itself and in most cases eliminate the associated agent fees. These savings alone immediately provide our clients with a competitive edge over the general market and assist in the early realization of equity buildup thereby providing the basis of future potential development. Developers are happy with this arrangement as they can still obtain a reasonable price for their land and enhance the supply of ongoing pre-sales with in many cases, the same purchasers.
The South East Queensland market has proven its strength and sustainability over recent years and continues to maintain solid growth despite a market downturn in most other Australian states and territories. Local councils have encouraged “responsible” development of the urban footprint and have begun some time ago, implementation of a lengthy plan for the creation of new infrastructure throughout the region. It is highly important to us that our clients are not simply one of the larger majority who buy into an area that, as a result of investor saturation, do not realise the full potential of their investment. We work closely with our developers to ensure total controllable investor activity is maintained at a level no greater than approximately 35% of an estates total housing capacity.
“I believe that the overall integrity of a new, well planned community where the developer has gone to great lengths in providing the basis for a friendly and aesthetically pleasing estate should not be compromised by unplanned investor activity. This is a factor we should be able to control to a large extent”
(Lloyd Thomas, Developing a Property Portfolio for Retirement).
In order to maintain a general harmony in the community, investments should go virtually unnoticed and certainly not be in concentration in any particular area.
We feel that a comfortable living environment is extremely important for any family whether they rent or owner occupy and that people should have the opportunity to raise their family in communities where there is a real desire to live. This attitude to area selection from an investors perspective not only ensures capital growth remains inline with the property sector but more importantly, underpins the process of quality tenant selection which in turn encourages an ongoing relationship that is mutually rewarding for both landlord and tenant. Identification of local infrastructure is also critically important whether it is already in place or yet to be constructed. The location of schools, shopping centres and medical facilities will determine how much demand is placed on public transport, personal transport and main road networks while additional lifestyle facilities such as public golf courses, walking/cycling tracks, parks and playgrounds encourage a relaxed end to the working week.
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