Agenda Thursday 27 th August.

Transcription

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2 Agenda Thursday 27 th August. Welcome Frank Valentic, Director - Advantage Property Consulting Melinda Cohen Veekan Whyte Gina Luke Tea / Coffee Break Frank Valentic The Valentic Report Peter Bruce

3 The Group Blocks Strategy Melinda Cohen Project Co-ordinator

4 Structural Building Report Full written report available for your information. Generally, include some maintenance and/or minor structural work items in older blocks. Normal wear and tear items to be addressed in external rejuvenation.

5 Sub-Division for Property on One Title Appoint land surveyor to draw up proposed plan Submit to council for approval up to six months Land surveyor finalises plans and submits to council for certification and approval Certified subdivision plan approved by vendor s bank, if there is a mortgage on the property. Once approved, bank arranges separate mortgage documents for individual property.

6 Sub-Division for Property on One Title Payment is required for surveyor s fee, registration of titles, and other bank and legal fees. Total amount is divided evenly and must be paid immediately by each purchaser directly to the surveyor and solicitor so titles can be registered. Titles are then individually registered and settlements can be booked. Subdivision process can take up to seven months.

7 External Works Commitment All clients who purchase into a block commit to contributing funds for external renovation works. Scope of remedial and rejuvenation works and options presented to owners. Owners required to vote on motions. Contribution ranges between $15,000 to $25,000 per unit.

8 Planning and Building Permits Planning permit may require approval by local council for external renovation works. Permit is applied for after settlement to avoid double stamp duty. If permit is required, approval can take up to four months from settlement.

9 External Renovation Period Depending on scope, external renovations generally take three to six months. Timeframe will greatly increase if planning permit is required. Ensure you have adequate funds to cover any loss of rental incurred during the renovation period.

10 Internal Renovations Owners can renovate apartment interiors themselves or by using a licensed contractor. It is the owner s responsibility to obtain applicable building permits and comply with building regulations. A scope of internal renovations must be provided to Advantage Owners Corporation for approval if works affect building externals or common areas. If choosing your own tradespeople, you must ensure they have adequate qualifications and insurances.

11 Purchase stage Project Co-ordination Arrange Building Inspection Report Meet engineer on site Prepare a rejuvenation estimate based on: Quotes for scope of works established from the Building Report Years of experience with rejuvenations Advice from sales and property management teams Information provided by our trades.

12 Project Co-ordination Settlement Stage Proposed works are a complete effort to address any maintenance issues and maximise investment gain. Members receive Rejuvenation Budget at least 14 days before the Inaugural General Meeting (IGM). The scope of works is discussed on decided by the owners at the IGM. Members attend Final Inspection and One-Week-Prior-to-Settlement Meeting.

13 Renovation Stage Project Co-ordination Generally, 4 to 6 months for renovation depending on the scope of works. Members receive resolved budget and rejuvenation plan. Post renovation building inspection with members Members final walk-through Final meeting with members to discuss outcome issues, suggestions.

14 Results from Group Blocks Strategy

15 Results from Group Blocks Strategy

16 Questions?

17 CATE WHYTE

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19 GINA LUKE

20 Property Investment opportunities Property Strategy Investment Opportunities under the new Superannuation Presented by Rules Gina Luke CEO & SNR Financial Adviser Suite 3 No. 1 Ricketts Road Mt. Waverley, Victoria 3149 t: (03) f: (03) e: pinant@pinant.com.au 28/08/

21 Disclaimer General Advice Warning This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial, tax and/or legal advice prior to acting on this information. Please note that we do not provide any specific advice on direct property, nor do we receive any payment for referrals we make to a property adviser. Before acquiring a financial product a person should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product. The material contained in this document is based on information received in good faith from sources within the market, and on our understanding of legislation and Government press releases at the date of publication, which are believed to be reliable and accurate. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Gina Luke & Pinant Financial Planning Pty. Ltd. are Authorised Representatives of GWM Adviser Services Limited. GWM Adviser Services Limited ABN , trading as Garvan Financial Planning an Australian Financial Services Licensee, Registered office at Miller St North Sydney NSW 2060 and a member of the National Australia group of companies. 28/08/

22 What's your age? 28/08/

23 Life Cycle Upgrade home Accumulation Lifestyle choices Financial Independence/ Retire Consumption Travel Support family 28/08/

24 What's Contributions your age???? Concessional Non Concessional 15year CGT exemption $500,000 exemption rollover relief 28/08/

25 George & Mary George aged 46 Mary aged 47 Income of $80,000& $37,000 Bonus of $80,000 per annum & $10,000 Rollovers from Cbus $160,000 Hesta $12,000 Purchase price $550,000 Retirement Goal ages 60 for male and 55 for female 28/08/

26 Risk Profile Strategy 6-83% Growth / 17% Defensive: Time frame of at least seven years. Moderate to high tolerance of risk. 83% weighting towards growth assets. High volatility. Strategy 5-69% Growth / 31% Defensive: Time frame of at least 5 years Moderate tolerance of risk. 69% weighting growth assets Significant volatility. 28/08/

27 Returns Expectation Strategy 6-83% Growth / 17% Defensive 28/08/

28 Returns Expectation Strategy 5-69% Growth / 31% Defensive: 28/08/

29 Protected Capital & Pension 28/08/

30 SMSF A Property: Residential, Commercial and Land even Rural Self Managed Super fund Existing super + a commitment to putting more into your fund Custodian Trust SMSF Lender or self finance Investment & Insurance Strategy Insurances lf Managed Super fund 28/08/

31 Tax Payable Property owned by: Tax payable on: Individual Company Super fund Super pension Rental income Up to 45% 30% Up to 15% Nil Capital gains Up to 22.5% 30% Up to 10% Nil 28/08/

32 PLAN George & Mary now have their SMSF Bought their first property on inside of superannuation Planning to buy property number 4 on outside of super in 12 months time. 28/08/

33 Financial Projections Year Current Scenario 1 Scenario 2 (Proposed) Year 15 Net assets future value Year 15 Net assets present day value (NPV) $1,226,720 $1,874,121 $2,034,428 Future Value of Total Financial Investments (net of loans if $811,007 $1,239,015 applicable) $1,344,996 These projections are based on reasonable assumptions about future rates of return, interest rates, tax rates and other factors. As these are necessarily assumptions, the projections are indicative only. I f you would like further information about our assumptions, please ask us. Past performance and past rates cannot be taken as a guarantee of future performance and rates. This analysis is prior to any Capital Gains Tax on retained or recommended investments. The analysis is based over a full year and results will vary if strategies are implemented part way through the year. Please refer to the key assumptions and attachments for further details. 28/08/

34 Thankyou 28/08/

35 The Valentic Report Frank Valentic, Director of Advantage Property Consulting

36 The Valentic Report Melbourne s clearance rate averaging around 78%, with an average of 700 auctions. Volumes up by 20%. Volumes to rise up to 1000 plus auctions with Super Saturdays most weekends in Spring. Interest rates predicted to be cut again in November. Bubble predictions by economists, lecturers and Barclay Bank and Treasurer. Harry Dent and Jordan Wirsz 60% drop predictions.

37 The Valentic Report Market conditions show highest levels ever. Glen Waverley $5-6 million sales and Elwood RSL $17,500 per sqm. Now 78 suburbs with medians over $1,000,000, up from 62 suburbs. 60% increase in million dollar sales. Sydney up 22%. to million dollar median James Packer s house $71 million and John Mc Grath 20 year highest. Victorian population growth100,000 per annum with highest interstate migration. Unemployment from 6.9 to 6%.

38 The Valentic Report Ringwood and Bayswater blocks of units around 45% above reserve ($575,000). Melbourne voted most liveable city for the 5 th time. Overseas investors are 15% of all transactions. Chinese buyers spent $7.4 billion 60% increase.

39 The Valentic Report Melbourne s rental vacancy rate averaged 2.9%. Rental demand slowing down for apartment market (201,000 new units in Australia, 25,000 in Melbourne. 16% increase to record levels). Sydney minimum 70sqm 2 bedrooms. Melbourne prices 30-50% above 2010 boom prices. Investor lending stricter criteria Increased rates by.27%, APRA changes, AMP cancelled. Australian share market plunged $52 billion.

40 The Valentic Report June quarter median prices - all time high. Houses - $706, % increase for the quarter. Units - $520,000. Apartments are patchy. Sydney s house median is over $1,000, million non waterfront home.

41 The Valentic Report June median house prices. Most Expensive Suburbs House Toorak $3,400,000 Middle Park $2,840,000 Hawthorn East $2,040,000 Brighton and Kew $1,860,000 Portsea $1,862,500.

42 The Valentic Report June median house prices. Most Affordable Suburbs Melton $251,250 Kurunjang $285,500 Frankston North $290,000 Werribee $309,500 Warburton $341,000

43 Glasshouse auction result. The Valentic Report The Block Next series on Commercial Rd, South Yarra. Renovations complete. Auctions in late November.

44 The Valentic Report Hot Spot areas middle ripple suburbs. Reservoir Coburg Fawkner

45 Group Block Purchase Results Glenhuntly - $500,000 - $705,000. St Kilda - $505,000 - $720,000. Elwood - $400,000 - $635,000.

46 Most Recent Purchases 1-12/10-10 Ida St, Fitzroy North Boutique block of twelve 1 and 2 bedroom apartments (priced from $306,000 - $442,000). 1-7/20 Hemming St, Dandenong Boutique block of seven 2 bedroom apartments (priced from $185,000 - $235,000). 12/35 Walsh St, Sth Yarra Off market block of two bedroom apartments purchased for $800,000.

47 1-6/80 Argyle St, Fawkner Block of two bedroom villas (priced from $219,000) and 1 three bedroom villa ($299,000) Lambeth Place, St Kilda Block of 2 bedroom apartments purchased for $420,000 - $450,000 each. 42 & 44 Rennie St, Coburg Two semi - detached houses for $630,000. Estimated rentals $450 per week. 1-4/42 Westbrook Ave, Kew East Off market block of 4 two bedroom apartments purchased for $2.3 million.

48 Future Opportunities Coburg North / Fawkner - Block of 2 bedroom villa units (from approx. $219,000 each). Reservoir - Block of 2 bedroom villa units (from approx. $285,000 each). Reservoir - Block of 1 and 2 bedroom modern units (from approx. $270,000 each). South Yarra / Prahran - Block of 2 bedroom apartments (from approx. $475,000 each). St Kilda - Block of 1 bedroom apartments (from approx. $350,000 each).

49 The Valentic Report Follow me on - Advantage & Frank Valentic Facebook pages - Twitter - Linked In

50 Question & Answer Session PETER BRUCE