In this on-demand webinar you will learn how to successfully invest in property using our Premium Membership, as well as tips to minimise tax before EOFY

1. Strategies to Minimise
Your Tax before EOFY
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3. Property investor for the past 10 years
Personal experience with renovations &
cash flow properties
Great amount of industry experience
Dennis Wong

4. Started as a Real Estate Valuer
28 years in property & finance industry
Licensed Real Estate Agent
Senior Property Consultant working with
investors to achieve property success
Tim McCracken

5. Material contained in this presentation is an overview only. It should not be
considered as a comprehensive statement on any matter nor relied upon as
such.
This presentation contains general information only and does not take into
account your personal objectives, financial situation or needs and you should
consider whether the information is appropriate to you before acting on it.
Before acting on any information you should consider seeking advice from a
financial adviser and your accountant before making any financial decision in
relation to any matters discussed in this presentation.
General advice disclaimer

6. We help investors
build and manage
their property portfolios

7. Guided and mentored thousands of
clients to plan and purchase property
since 2006
Helped clients build wealth through
properties
Provides superior real estate
information
Assisted clients reduce debt and
retire early
Over 260,000 members
Real Estate Investar

8. ASX:REV
Heavy investment in product
Public company governance
Strong and focused board;
Simon Baker – Former CEO of REA
Anthony Catalano – CEO of Domain

9. In partnership with…

10. Poll: How many
properties do you own?

11. What is your actual goal?
Hint: If you are watching, it should involve
buying a property!
How do you plan to achieve this goal?
Is it reasonable to expect you can
complete that goal?
Do you have the time?
Do you have the know how?
If the answer was “No” to any of the last
three questions THAT IS OK!
Setting achievable property investment
goals

12. Start at the end!
Identify where you are now
What are the steps you need to take to get
to your goal
Your goal should be comprised of several
smaller goals
What do you need to complete those
smaller goals, write out those details
Start!
The number one reason most people fail is
they don’t do that last step!
Setting goals, some helpful tips

13. What do you need to determine to ensure your finance is
structured right:
Review your current financial position
Assess the property being acquired
Need to consider your future objectives and goals
Importance of having the right finance
structure

14. Importance of having the right finance
structure
Is a Bank relationship important?
Cross collateralise or stand alone?
Is having the cheapest deal available the right strategy?
What product is right for you?
What if you get it wrong?

15. Poll: Would you like a
free financial check?

16. Introducing Tim McCracken
Tim McCracken (BA - Post Grad. Dip BBS - Cert. Finance)
In finance and property industry for 28 years in many roles
including real estate valuer, commercial sales and property
consulting.
Experienced in identifying market and growth cycles.
Today Tim is the senior property consultant with Real Estate
Investar working with investors to achieve property success.

17. Tonight’s Presentation is in 3 Stages:
(1) Tax minimisation
(2) Investment strategies
(3) Property examples

18. Tax minimisation – myths and reality
1. Tax minimisation is legal and in fact encouraged by the
government to do so as a legal right, through approved
vehicles such as property investment.
Tax avoidance is illegal
2. Cash flow positive property is a better investment than
negatively geared property.
Property is a “geared investment” (that is, the use of borrowed
funds) , so whether a property costs you say $20 out of pocket
per week (negatively geared) or is cash flow surplus $20 per
week (positively geared) makes very little difference.
Property investors invest primarily for capital gain (growth), not
cash surplus per week.

19. Property Analyser
Property Analyser is a financial planning program that enables
investors to calculate:
Affordability
Potential depreciation (tax minimisation)
The financial suitability or performance of a specific
property personalised to their specific individual financial
circumstances

20. Property Analyser

21. Depreciation – what is it?
There are two types of allowances available:
(1) Depreciation on plant and equipment; and
(2) Depreciation on fixtures and fittings
Fixtures and fittings refers to items within the building like
ovens, dishwashers, carpet and blinds etc.
Building allowance refers to construction costs of the building
itself, such as concrete and brickwork.
Both these costs can be offset against your tax assessable
income.

22. Depreciation – how is it quantified?
A depreciation schedule is prepared by a registered Quantity
Surveyor and needs to be specific to the subject property.
The depreciation schedule is required to be submitted with
your claim for your refund from the government.
The building allowance is depreciated at 2.5% over 40 years
The fixtures and fittings are generally depreciated over 5 years
at 20%

23. Can you claim depreciation on
an existing older property?
Yes you can . . . How ever it depends on the age of
the existing property.
For example – if it was more than 5 years old, there
is no claim for depreciation on the fixtures and
fittings (unless there has been a recent renovation).
If the property was say 30 years old, there would still
be 10 years of build cost depreciation , however it is
calculated on the cost to build 30 years ago and then
depreciated at 2.5% for the last 10 years.
That is one of the many reasons why investors prefer
to buy new property.

24. What happens if I have not claimed
depreciation on my investment ?
Many Australians are not even aware that they can claim depreciation on
an investment property, as they have correctly not claimed on their home.
So if you have purchased a property from say 2 years ago and have not
claimed depreciation – do not be alarmed, as you do not lose the
entitlement to the claim.
You need to get a depreciation schedule done by a quantity surveyor and
then get your accountant to commence the process to claim missed
depreciation.

25. Can you claim depreciation on
your home?
The general rule is NO.
However, should you move out of your home and then decide
to change the property’s status to that of an investment
property, it is possible.
Please note that there are many tax complications and
considerations to do this and you must consult an
accountancy expert in this field.

26. How do I receive my refund from the
Australian Tax Office?
This depends on whether you are PAYG or self employed.
1515 Form.
PAYG – your effective tax rate is altered so you receive this
benefit immediately in your pay cycle – weekly, fortnightly or
monthly.
Self Employed – depending on your pay cycle, BAS statement
or at the end of the financial year.

27. Interest payments
Like depreciation, you can claim a portion of your interest loan payments
to minimise tax depending on your tax bracket.
If you were in the top tax bracket of 45% you can claim 45% of your
interest cost.
For example if you have a loan of $400,000 @ 5% interest.
The interest would be $20,000 per annum.
You can therefore claim $9,000 refund.
NO – you can’t claim interest payments for your personal home loan.

28. Example of a property investment
and the first years tax refund
Purchase price $500,000
Rent ($500 pw) $26,000
Interest (5%) $26,000
Ownership expenses $9,000
Build depreciation $6,500
Fixtures and Fittings $10,000
Tax rate (income $80,000) 32%
Tax refund $8,150
Please note that Stamp duty is not tax deductible

29. Benefits of buying new property
before the end of the financial year
Based on the previous slide you will be able to claim $8,150 as a lump
sum.
Should you wish to prepay 12 months interest (which the hard cost is
approx. $26,000 and when the appropriate tax rate is applied an
additional approx. claim of $8,500 can be added to the $8,150).
Therefore you can minimise approx. $16,150 in tax for this financial
year.
If you have the capacity and considering two properties, then this would
increase to approx. $32,300 in the first year.

30. Poll: Would you like to
purchase before EOFY?

31. Norman Terraces – Norman
Park – Brisbane – $667,000
After tax cash flow - $28 pw
Gross Yield – 4.52%

33. Location - Norman Terraces – Norman Park

34. Rhodes – Capalaba – East Brisbane
$414,000
After tax cash flow - $20 pw
Gross Yield – 5.28%

35. Location – Rhodes - Capalaba

36. Meridian Townhouses – Yarrabilba SE
Queensland $395,000
After tax cash flow - $26 pw
Gross Yield – 5.13%

37. SE Queensland best kept property secret –
Yarrabilba

39. Introducing “Meridian”

40. The Four Corners of Meridian

41. Price Point
3 bedroom townhouses $385,000
4 bedroom townhouses $395,000
1 bed + study ( approx. 80 m2 ) $243,000
Dual Income $473,000 - $504,000
( 2 separate titles )
All single contracts
Stage 1 completes Mid-June 2017
Stage 2 completes March 2018

42. Summary of additional properties
Brisbane – Milton $409,000 - $416,000
(includes $15,000 furniture package)
SE Queensland – Pimpama $438,000 - $440,000
Brisbane – Aspley $505,000 - $515,000

43. Sydney – Completed $645,000 - $950,000
Parkview
Balmoral
Gardens

44. Introducing our Premium Membership
To consider tax minimisation strategies, you really do need a
specialised investment strategy.
Real Estate Investar have property investment strategists who
can assist you with this.

45. Premium Membership Advantages
Personalised Property Strategy is provided
100% money back if you are unable to obtain
finance pre-approval
Leverage our experience, professional ties and
partners
Receive a $5,000 cash rebate on settlement
for investment grade property opportunities
Exclusive access to off the market and pre-
release stock
First access to stock before Free & Pro
Members
Dedicated Portfolio Manager for on-going
service

46. Premium Process

51. Poll: Would you like a
free strategy session?

52. Questions?
Thank you & good luck on your investing journey
http://info.realestateinvestar.com.au/strategy-session