- Strategise one step at a time
- Flexibility is key
- Trust your buffers
- Zoom approach to sanity
- Regular reassessment
- Check your mindset
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by admin
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Paul Glossop: Good day guys and welcome again to Pure Property Investment one on one. I’m joined again today by Andrew Foo. Andrew is the principle of Apexx Wealth. He’s also a financial planner. And that’s probably why I’ve got you in the studio today mate. Is that probably talk a little bit more about property investing, property investors as well as insurance and protection. Now when I say that, I don’t probably necessarily mean landlords insurance, building insurance and other things that may fall into that general space. It’s probably more about protecting the individual investor and how they can make sure they insured correctly and maybe not even over insured to make sure they’ve got the right insurances in place to protect their wealth and their position.
Andrew Foo: You know, that’s a great point. You know when people are looking to purchase their investment properties, they don’t think about what could happen, they don’t think about the worst case scenario. They think, “Okay, we going to get this property, this is how much money is going to come in it’s going to grow over time and that’s great.” But unfortunately, life doesn’t work like that.
You know we susceptible to you know illness and injury as we go through life and that’s where insurance plays an important part. Because you can build your wealth and that’s great but we’ve also have to look at measures to protect it. So that you know takes in to account life insurance, you know total and permanent disability insurance you know trauma insurance and income protection.
They the four main insurances that we deal with, with clients to help insure that their family and their assets are protected. Now it all comes down to cash flow as well. I mean insurance is a preventative measure, it’s great to have it but we don’t want it to break the bank. So there are ways that we can structure the ownership and how the insurances are paid for depending on the client’s situation and what their cash flow is like. So, whether that’s through super or a combination of inside super and outside super, we can definitely look at all those avenues.
Paul Glossop: Good points there mate, and I think some of the key aspects is insurance isn’t just there to make money for the insurer realistically your role is to say “Well, what do you currently own? How are you currently insured? And then from there, how can we make sure that you protected adequately without obviously getting unnecessary protection and making sure that it’s cost effective.”
The other part too is that’s there to protect you. Now you might have assets which are cash flow positive and you might say “Well, I’ve got a — potentially from my side of things, my income goes down or permanently disabled or I fall ill or lose my job or whatever comes with it. That particularly property might not be the one that needs to be protected but there might be other aspects as far as life insurances and all these other succession planning insurances which for the most part people just don’t think about because you where, you don’t know what, you don’t know.
And I think part of that is really understanding where do you currently sit, what protection you currently have and how can we make sure that you have protection in every place to make sure that if for whatever reason the unforeseen arises, you don’t have to sell everything to mitigate and claw back those options. And I think for me personally, as a professional investor, one thing that I always want to make sure, both for myself and my clients, is that if we are buying a property the out is not to sell everything, the out shouldn’t be to liquidate, the out should be to say make sure you got the right concession’s in place to say if this happens you’ve got this, if that happens you’ve got this.
Your plan is to make sure your worst-case scenarios are understood. And over a long term you’ll achieve the better outcome than you would but you’ve got the protection. You can sleep easy knowing that all that’s in place and it’s been put in place by the right person with the right skills. A lot there to probably think about guys. And I think if you don’t have or you’ve got a question mark right now thinking about “ I don’t know what insurances I have and how they protect me”, give Andrew a call, his details are at the bottom of the screen as well as us.
You can give us a call at any time for any reason as well our contact details are at the bottom of the screen and you can get in touch with us anytime. Look forward to catch up with you soon and take care. Cheers!
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Paul Glossop: Okay guys, welcome to Pure Property Investments one on one. Today I am here with Aaron Christie David. Aaron is the principal of Atelier Wealth. He’s a finance expert when it comes down to structuring mortgages for both owner-occupiers and investors.
What we want to talk about today if you don’t mind Aaron is the probably from the investment perspective and we said a fair bit at Pure Property Investment and I am sure you do as well, where as first time investors, they don’t necessarily mean to be that they’re young but first time investors with a small deposit looking for help and trying to figure out how do I access or jump into the property game with a limited amount of cash.
Aaron Christie-David: Yeah, sure thing. I think it’s very exciting sitting in front of a first-time investor. The nerves, we hear a lot about “rent-vesting” which is a very popular term. What is that? It’s the notion that you rent where you want to live and buy where you can afford, which is a really good idea to get your foot in the market as well.
So, we look at their options. We sort of put up two or three options really. You could go into deposit and maybe pay some mortgage insurance or maybe you can get into a five or ten percent deposit, pay some mortgage insurance, that gets you in the market. The 2nd option is if it is an option for you, a guarantor loan as well.
Or maybe relying on the equity Mum and Dad’s property to gain access to buy that first property which then can reach that 20 percent deposit that you may not have. The third one is we set ourselves maybe a six or twelve-month goal as well to say. Right, here is much is the deposit is that you need. Let’s work backwards inside your budget to see how much you can save realistically over maybe six and twelve months and that way, you can get your foot in the door as well.
Paul Glossop: Perfect mate. And I think those three things that you spoke about there, one being, look if you got a certain amount of cash right now and you’re saying, “Okay, I’ve got this cash, what can I achieve?” And obviously, you’d sit on the other side of the desk and say, “Look, based on that, based on your income, based on your expenditure, here is about where your borrowing capacity sits. The 2nd one is saying, if we can say, we take your deposit plus there is an opportunity to get you a guarantor loan as part of that, then that might tip up the ability for you to say, you can avoid things like lender’s mortgage insurance, you might get a larger deposit and allow you to buy an asset that maybe is a higher performing asset or thirdly, and if it is either of those two potentially, don’t really fit the bill at this point and time, setting a strategy and saying, if you do want to buy that property, you’re sitting here with this amount of money at the moment and we I need to get to here. Then, setting that strategy in say the next six, eight, twelve months, whatever it be, here is how much we need to save. And then setting a plan in place to save that money and to get you into that position.
But sometimes, all we need is a kick in the butt realistically and getting someone to partner with you. And that is what I really say a lot of times. Like you said, I love sitting down in front of first-time investors because there are so many unanswered questions but there’s a lot of excitement, there’s a lot of drive. And the key is making sure that you don’t get disheartened if you are told no or if you’re told not right now. It doesn’t mean it’s never. It also means, now is the time to say potentially get a plan in place, so you can execute it when the time does come.
Aaron Christie-David: Even now, it’s actually having a plan in place. Saying that I want to buy an investment property isn’t a plan. That is just an aspiration. Sit in front of a person that has done it or have tread that path and I think that will set you up to succeed as well.
Paul Glossop: Absolutely. And it’s exactly like you said, I’m so excited to work with people like yourself, who understand it, who invested in the past; who also understand the finance game and saying, “Guys, you don’t need to be disheartened, or you don’t need to say that buying a property is a plan or is a strategy.” Because there are literally half a million properties transacted every year in this country. And I dare say a lot of them were bought without any actual sit down or consideration as to why they make the right investment at the right time, so.
Guys, if you do want to get in touch with Aaron for any reason in regarding finance structures or just discussing your ability to borrow, feel free to contact himself and his team at the contact details at the bottom of the screen. And from our property perspective either owner-occupier or investing, further contact us, we’re always here to help. Okay? Cheers!
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