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Seven steps to get the investor mindset

Seven steps to get the investor mindset

By Rich Harvey, Managing Director propertybuyer

This month I received an unsolicited email from a selling agent giving feedback on one of my team members Nick. I have to say it really made my day – see below for details of what real estate agents think of us.

On this Saturday the 16th, we will be hosting the first full day seminar event in Sydney for The Ultimate Property Investor Event and you can get a special two for one offer!

This month we look at seven steps you need to take before you are “buyer ready”, plus we examine the tax effectiveness of building a duplex and review the suburb of Waterloo to see what’s changing.

This September update includes:

1. Seven steps to get the investor mindset
2. How to effectively tax structure building a duplex
The Ultimate Property Investor Event - Sep 16th - 2 for 1 OFFER!
4. Agent story - What do Real Estate Agents think of us?

1. Seven steps to get the investor mindset

Property investment is an easy get, isn't it? Find a property, pay the price, sit back and relax, safe in the knowledge your investment is set to soar in value so you can cash in and enjoy lie-flat seating in first class - simple, stress free and oh-so painless.

Of course, that pipe dream needs to remain in fantasy land, because successful investors know that before you can start throwing offers at potential holdings, you need to answer one important question.

Am I really ready to be a property investor?

The ATO have done the numbers and they show most people stop after buying one or two investments, cutting short their path to financial independence. The key to building investment momentum is establishing from the start that you’re good to go.

Here are seven steps to determine if you’re ready for launch.


Now is the time to take your pulse on investment risk. Have a long hard think about your comfort level for and how you’d handle an unexpected downturn in the market.

For those with a low-risk threshold there’s good news. Conservative long-term real estate investing has proved time and again that you don’t need to bet the farm to make a quid. Just make sure you’re prepared to take on the debt and deal with value and rent fluctuations, all the while remembering the benefits and sticking to the strategy.


The moment for a full and frank assessment of your personal finances is not two-days out from going unconditional on your first purchase – it’s now!

Get together a comprehensive budget and see where there’s excess. Here’s a tip – spend a solid few weeks tracking your spending – write it all down like a dieter doing a food diary. Digging into the nuances will prove extraordinarily useful in understanding where your money goes each week – and how you can trim costs to improve the bottom line.


Think about how your life is likely to play out over the coming five, 10 or even 20 years. Are you a young couple planning to have children? Are your kids hitting the expensive years of private school fees? Perhaps you’re making plans to upend your life and move overseas for work.

Almost all hurdles can be cleared with enough forward planning, but right now – before you buy – is the time to write down plans so you can implement strategies around purchasing property, managing cash flow and mitigating risk.


While financial independence is the most common reason for property investing, not everyone wants the Lamborghini. Some investors are quite happy to be mortgage free and enjoying a modest income. If you’re keen on far loftier goals, then setting them early is part of the winning formulae. The most common regret among experienced investors is, “Why didn’t I start earlier.”


This is also an opportunity to interview your guides for this investment pilgrimage. Seek out great advisors – mortgage brokers, conveyancers, building inspectors, buyers agents, accountants etc. You need a team you can trust.

This is also a chance to check credentials. Make sure your advisors belong to professional bodies and abide by codes of conduct.


These are the people who will be most involved in the personal and emotional elements of your investment journey. Friends and family who are part of your everyday movements. Surround yourself with positive influences. People you can bounce ideas off and who will be overjoyed with your successes. This support network is imperative to the investor mindset.

Forum groups or meetups with other investors are terrific places to mix with like-minded folk. A word of caution though – sharks patrol these waters. Keep your wits about you and don’t get caught in their bite.


Do the prep, take on the research and get ready but most of all – set a start date. This is when you’ll say, “Right! Let’s do this!”

There’s a term you’ll come across in the property game – Analysis Paralysis – where you’ll overthink an opportunity until it no longer exists. If you set a start date and stick to it, then you’re mentally preparing to break free of analysis paralysis.


Use theses seven steps to ensure you’re ready to launch your investment journey so you’re one of those investors prepared to play the long game, and reap the rewards.

To give yourself the best possible edge to secure your next home or investment property, talk to one of my professional team of buyers’ agents who will make your property dreams actually happen. Instead of just thinking about it, call us on 1300 655 615 or tell us your enquiry / wishlist today.


2. How to effectively tax structure building a duplex?

Do you keep both, sell one or sell both? By Chan & Naylor

A property that is established as the owner's main residence is exempt from capital gains tax when sold at a profit. This often includes occupying the home for at least three months after acquiring it and registering utilities under the owner's name.

Change in tax exempt status happens when a development application is lodged for the construction of a duplex. Note that if the owner moves into one of the duplex nominated as the main residence, the property maintains its tax exempt status. However, if the second duplex is sold at a profit, it becomes subject to capital gains tax.

If the owner subsequently moves into the second duplex as his next main residence, the capital gain on its sale will be apportioned between the time the second duplex was occupied as a main residence and the total time the property was owned.

In other words, the capital gain is computed as the difference between the cost base and the net selling price. The cost base includes the purchase price, construction costs, stamp duty, building inspection, DA and legal fees. It will only be taxable if the sale is higher than the cost base.

If the owner sells the second duplex right after completion, ATO will consider him carrying the business of property development, which means any profit will be taxed as business income. There will be no 50% discount, unlike when the gain is considered as a capital nature and the property was owned for more than one year.

Remember that if you intend to sell at a profit, the gain is taxed as ordinary business income, no matter how long you have owned the property. The CGT will be included on your tax return and if added to your income, may even be pushed into a higher marginal tax rate.

What does this mean? It may be more tax-effective to establish both duplex as your main residence before selling them.

If you would like to know more about property investment, you can click here to know more about Chan & Naylor services. You can leave your details here and we can schedule you for a free consultation. We'll contact you to explain more.

Whether you are a beginner, seasoned investor or business owner, we can give you guidance to maximise the financial areas of your life. We can give you an integrated and tailored solution of your superannuation, taxation, property investment, asset protection, estate planning and more.

Click here to schedule a chat or call any of our local offices near you.

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Disclaimer. To view the original article, click here.


3.'The Ultimate Property Investor Event'

Date: Saturday 16th September, 2017

Time: 9am - 5pm

Where: Mecure Hotel, Sydney

Just enter the code TWOFORONE when prompted

Online: http://www.propertybuyer.com.au/ultimate-property-event/

Smart tactics for savvy investors.

You know you want to make money from property – but how? Where can you trip up and how can you get your plans on track? With the boom market now behind us, learn how to get the inside edge for your next property investment. The market is changing, tax laws have changed and you need a fresh approach for your future investments.

D on’t save your way to $100k, learn how to make $100k in 12 months using innovative property strategies that really work into today’s market.

At the end of this event you will have clearer goals, clearer strategies and greater knowledge. Take the next steps to build a portfolio that is recession proof and ride out the property cycles. Get access to exclusive market insights and strategies that will propel your wealth forward

3. Agent Story - What do Real Estate Agents think of us?

We love to showcase our client stories, but what about the other side of the coin - the real estate agents? Private buyers may not realise they are often up against a buyers' agent when trying to secure a property, and Real Estate Agents often take preference dealing with the Buyers' Agent - why?

Michael Coco, Ray White Glenmore Park

"Over the past 12 months I have had the pleasure of dealing with one of your Property Advocates Nick Taylor-Fick on two separate occasions that resulted in sales for my business.

I have felt compelled to write this testimonial based upon my experiences in dealing with Nick. He is a true advocate for his clients understanding their needs before pursuing options.

Even in a hot market he has been able to position his clients as the best option for an offer to be accepted by the owner. In one of the cases this did not mean the buyer had the highest offer, but he positioned his clients to match the vendors needs regarding fast exchange and meet the owners settlement terms. In a property transaction this art of property negotiations is not generally understood by all purchasers and is daunting for many people that are buying their first home or looking to invest.

I have been selling real estate in my local area now for 18 years and Nick is by far the most professional buyers advocate I have dealt with, his constant communication and genuine desire to help his clients to achieve their goals is to be commended.

We hope to deal again with Nick and the propertybuyer team soon."

Buyers' Agents Comments:

I obviously deal with a lot of real estate agents and I have found Michael to be one of the best sales agents in the west.

I pride myself on my communication skills and Michael too is a great communicator, with strong local knowledge. Our relationship means he will give me access to properties before they come on the market and silient listings.

Real estate agents like to deal with a professional buyers' advocate because they have confidence we wont waste their time. Agents really don't like time wasters!

An excellent buyers' advocate will also be very clear with their brief which in turn gives the agent a good feeling they can work with and trust them.

When I am dealing with agents, I am only coming with qualified, finance approved, ready-to-buy clients. Not only this, I have done a lot of the necessary preliminary work already. I know what the clients want which makes the process smoother for all.

As an agent will know I am not going to muck them around, they will want to deal with me over a buyer who may not be ready to buy (even if my offer is less than another)!

It is in the agents interest to not only sell the property but to sell it quickly.

Buyers' Agent, Nick Taylor-Fick

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