2. NOW

 

 

What is your current situation in relation to where you want to be?

 

 This step is about applying the information from the fact find form to establish the current baseline and starting point. So having set your goals it is then very important to take stock of where you are now financially in relation to where you want to be. It’s about identifying the gap to be closed through saving and investing. Key to this step is knowing all about your current financial position – your personal balance sheet, profit & loss statement, cash flow and your capacity to borrow to invest. The fact find is also designed to explore your risk profile (attitude) and risk appetite (tolerance) to take action, because it has been shown time and time again that one’s psychology around risk determines what strategy works best for them, and this can be very different from person to person. It is worth noting that:

 

1. goals

 

 

What are your goals for achieving wealth through property?

 

This step is about establishing goals and the time frames 

required to achieve results. It’s about clarifying what is important to you now and for the future. It’s about answering questions around your need for cash flow versus capital growth. It’s about exploring the end you have in mind, whether this is early retirement, financial security in later years, leaving wealth to the next generation or other preferences.

It is worth noting that:

 

3. PLAN

 

 

How will you close the gap between where you are now and where you want to be?

 

 This step is about creating and documenting a plan to model outcomes that will achieve the required result in the desired timeframe. There are many things to consider at this point and the planning starts by determining what overall strategy will realistically work best for you, given the goals and timeframes identified in step 1, and an understanding of your current situation as per step 2. Having considered gearing levels, styles of property, ownership options, capital growth rates, required rental returns, holding costs and so on, initial cash flow modelling is done using real property examples to get a realistic picture of what is indeed possible. It is worth noting that:

 

 

How can your plan be optimised to provide the best investment performance possible?

 

 This step is about using optimisation strategies to enhance the results of the plan. This is primarily done through cash flow / capital gain modelling of a selection of current opportunities in various markets and economic situations. Research and analysis tools are used to compare and contrast what will work best for the client, within the context of their risk profile and appetite to take a risk.

It is worth noting that:

 

4. OPTIMISE

 

5. IMPLEMENT

 

 

What specifically must you do to implement your investment plan?

 

This step is about identifying the property of choice and implementing the plan using the appropriate structure to maximize the opportunity. It starts with the outcomes of the planning process being documented in a Statement of Property Investment Advice (SoPIA). This becomes your personal ‘business plan’, and just like in business, this document is used to determine what specifically needs to happen, by whom, and by when to implement the advice received. The SoPIA forms the basis for monitoring progress to plan, and when necessary, taking action to stay on target

It is worth noting that:

 

6. MANAGE

 

 

What is involved in the ongoing management of the investment property throughout holding phase?

 

This step is about putting a management plan in place to protect and manage assets and risks.  So purchasing and settling on a property is not the end, but instead could be thought of as the end of the beginning of your investment journey. At this point you have completed the acquisition phase and move into the holding phase where ongoing management becomes the most important aspect. Given that property investment is a longer-term wealth creation strategy, it is likely that changes to your personal situation, the economy, and the law will occur during the timeframe involved to reach your goals. And, many of these changes could affect your ability to continue acquiring properties, hold them, or exit your position as initially intended unless you work through the six (6) step process shown, at set review points or as the need arises to keep on target. It is worth noting that:

The SoPIA will provide you with a selection of properties to choose from that are aligned

with your investment goals

 

It is also important to consult your tax adviser/accountant before making a

final decision on the asset ownership structure

 

Implementation will involve the coordination of a number of other professional advisors

including mortgage brokers, lawyers, conveyancers, accountants, insurers, property

managers, and real estate agents

 

Your CODE Wealth Advisor, with the support of relevant partners, is there to help

you with project coordination to settlement and the securing of an appropriate tenant

 

Goals aligned with core values are the most energizing – fundamental for success

 

Well defined goals are SMART – Specific, Measurable, Achievable, Realistic, Time-bound

 

Many people go through life without clear goals therefore get mixed results

 

Example of a clear goal – ‘to have $2,000 p/w passive income from property in 10 years’ time

 

Strat        

EGY

  • Goals aligned with core values are the most energizing – fundamental for success

 

  • Well defined goals are SMART – Specific, Measurable, Achievable, Realistic, Time-bound

 

  • Many people go through life without clear goals therefore get mixed results

 

  • Example of a clear goal – ‘to have $2,000 p/w passive income from property in 10 years’ time

 

This step is a ‘reality check’ by making sure all current facts and figures are considered

 

Net wealth is the difference between your assets and liabilities (debts)

 

Net cash flow is the difference between your income and expenditure – savings capacity

 

Being market ready involves up to date accounts, tax returns and no outstanding tax bills;

knowing what your borrowing capacity is; and having appropriate investment ownership

structures in place

 

  • This step is a ‘reality check’ by making sure all current facts and figures are considered

 

  • Net wealth is the difference between your assets and liabilities (debts)

 

  • Net cash flow is the difference between your income and expenditure – savings capacity

 

  • Being market ready involves up to date accounts, tax returns and no outstanding tax bills; knowing what your borrowing capacity is; and having appropriate investment ownership structures in place

 

Property types – each have different risk and return characteristics

 

Risk profiling determines what strategy works best for you

 

Investment risk can be mitigated through a portfolio approach using diversification

 

Gearing has the potential to magnify losses as well as gains

 

Taxation and asset protection will vary depending on what ownership structures are used

 

Visual and numeric tools show clients a virtual ‘try before you buy’ cash flow of all the

estimated income and expenses required to own the property

 

The modelling is significantly more complex where a portfolio of properties is involved

 

Care is taken to get a factual rather than opinion based understanding of all the issues

and opportunities to be considered in the optimisation process

 

Independent research is vital to making impartial and unbiased assessments of the

opportunities available

 

  • Visual and numeric tools show clients a virtual ‘try before you buy’ cash flow of all the estimated income and expenses required to own the property

 

  • The modelling is significantly more complex where a portfolio of properties is involved

 

  • Care is taken to get a factual rather than opinion based understanding of all the issues and opportunities to be considered in the optimisation process

 

  • Independent research is vital to making impartial and unbiased assessments of the opportunities available

 

  • The SoPIA will provide you with a selection of properties to choose from that are aligned with your investment goals

 

  • It is also important to consult your tax adviser/accountant before making a final decision on the asset ownership structure

 

  • Implementation will involve the coordination of a number of other professional advisors including mortgage brokers, lawyers, conveyancers, accountants, insurers, property managers, and real estate agents

 

  • Your CODE Wealth Advisor, with the support of relevant partners, is there to help you with project coordination to settlement and the securing of an appropriate tenant

 

RESE        

ARCH

Your CODE Wealth Advisor is there to provide you with ongoing support to ensure you

are indeed successful in achieving your goals

 

Complimentary annual reviews with your advisor will mean your plan remains current

as progress is made and economic and other circumstances change

 

This will involve cycling through the six (6) steps of the Wealth Builder Blueprint model &

updating your plans after checking what has changed, what is steady, and what is new

 

  • Your CODE Wealth Advisor is there to provide you with ongoing support to ensure you are indeed successful in achieving your goals

 

  • Complimentary annual reviews with your advisor will mean your plan remains current as progress is made and economic and other circumstances change

 

  • This will involve cycling through the six (6) steps of the Wealth Builder Blueprint model & updating your plans after checking what has changed, what is steady, and what is new

 

  • Property types – each have different risk and return characteristics

 

  • Risk profiling determines what strategy works best for you

 

  • Investment risk can be mitigated through a portfolio approach using diversification

 

  • Gearing has the potential to magnify losses as well as gains

 

  • Taxation and asset protection will vary depending on what ownership structures are used

 

ERTY

PROP