Property & Asset Management
1300 855 299
PBCL Realty offers straightforward and easy to access solutions to Property Investment and Distress Stock Sales situations.
- PBCL Realty carries on the business of a licensed Real Estate Agent specializing in the sale of investment property and assisting Secured Lenders and Insolvency Practitioners to manage the sale and disposal of property assets in default and insolvency circumstances
- We offer the following services to our clients:
- Your Property Options
- Seven (7) Step Program for Investing
- Gearing
- Property Search
- Unlock your Super and Invest in Property
- Why Invest in property
- Property Services for Banks and Insolvency Practitioners
YOUR PROPERTY OPTIONS
PBCL Realty Pty Ltd is a fully licensed Real Estate Agent and able to assist you with sound property and independent investment advice
For most people investing in property, it seems somewhat daunting. As much as housing is a basic need and providing housing is socially beneficial, it is still driven by supply and demand factors and therefore represents the undiscovered land for the average Australian ‘mum and dad’ investor.
The fact is, many people have gone there before you and hopefully given the fact that you are led by some solid homework and economics and not the HYPE of investing in making the right buying decision, you would’ve made a capital gain or profit on your property investment.
In Australia, history has proven that property at least doubles every 7 to 10 years. That is a growth rate of 7.2% per annum! This growth will come off the back of the full capital value of your asset, not the small deposit that you’ve invested to get going!
We will work for you constantly until the best possible property is found, saving you time, money and unnecessary stress. Using the latest industry software and research tools to analyse details of properties and conduct a comprehensive analysis of surrounding areas we will present you with a short list of our recommendations.
The smartest move you can make is to seek expert advice from professionals that truly know and regularly monitor property hot spots, Australia-wide.
You will find our approach to be very thorough, and simple to understand and appreciate. A detailed analysis of a geographical area and the available properties most appropriate to your requirements is a key service that we provide to clients. We know your time is valuable to you, so we do the groundwork from initial research to the finer details to ensure we present you with the right property for you.
PBCL Realty has the knowledge, right tools, experience and support to help you achieve the results you want. For satisfaction, peace of mind and great results, contact PBCL Realty, the property professionals.
We’ll find you the best property to suit your circumstances! Contact Us Today!
For most people investing in property, it seems somewhat daunting. As much as housing is a basic need and providing housing is socially beneficial, it is still driven by supply and demand factors and therefore represents the undiscovered land for the average Australian ‘mum and dad’ investor.
The fact is, many people have gone there before you and hopefully given the fact that you are led by some solid homework and economics and not the HYPE of investing in making the right buying decision, you would’ve made a capital gain or profit on your property investment.
In Australia, history has proven that property at least doubles every 7 to 10 years. That is a growth rate of 7.2% per annum! This growth will come off the back of the full capital value of your asset, not the small deposit that you’ve invested to get going!
We will work for you constantly until the best possible property is found, saving you time, money and unnecessary stress. Using the latest industry software and research tools to analyse details of properties and conduct a comprehensive analysis of surrounding areas we will present you with a short list of our recommendations.
The smartest move you can make is to seek expert advice from professionals that truly know and regularly monitor property hot spots, Australia-wide.
You will find our approach to be very thorough, and simple to understand and appreciate. A detailed analysis of a geographical area and the available properties most appropriate to your requirements is a key service that we provide to clients. We know your time is valuable to you, so we do the groundwork from initial research to the finer details to ensure we present you with the right property for you.
PBCL Realty has the knowledge, right tools, experience and support to help you achieve the results you want. For satisfaction, peace of mind and great results, contact PBCL Realty, the property professionals.
We’ll find you the best property to suit your circumstances! Contact Us Today!
SEVEN (7) STEP PROGRAM TO SUCCESSFUL PROPERTY INVESTING
- 1. INTRODUCTION
- A simple explanation and overview of self-funding property options
- Leverage & Gearing Strategies
- Interest Charge Savings
- To give you peace of mind by achieving Financial Security beyond pension payments so that you can maintain your current lifestyle in retirement.
- 2. PERSONAL ASSESSMENT
- Meet with a professional consultant in the privacy of your own home to identify your current financial position and capability.
- Learn more about the challenges you may face
- Learn more about viable ways to ensure financial independence
- Share the necessary information that enables us to direct you to the appropriate professional to assist you further
- Analytical assessment is conducted following this meeting so you can be provided with valuable feedback at your next consultation
- 3. PROPERTY RESEARCH
- Based on the information provided by you during your personal assessment:-
- A licensed finance broker will determine your financial capacity and needs analysis
- Once the finance broker has clearly established that you can comfortably afford to proceed with a property investment strategy, a licensed real estate agent will research and determine a shortlist of properties to match your needs and financial capacity.
- Property Research is conducted utilising a strict criteria including but not limited to, average long term capital growth in the subject area, together with a checklist of vital strategic factors.
- 4. PROPERTY SELECTION & CONTRACTS
- Following the needs analysis and property research phase:-
- Our consultant will present to you, your needs analysis plan and the short-listed properties for your consideration
- Now you are in a position to make an intelligent, unemotional and fully informed decision about what is best for your future
- A Licensed Real Estate Agent assists you to complete contracts to ensure you secure your chosen property
- We will refer you to a local Property Management Specialist who will assist you to complete a Property Management Agreement in readiness for your tenant to move in
- You will then have a 5-Day cooling off and 21-Day Finance Approval period to cement your decision, ensure no pressure and that you don’t make a decision that you may later regret.
- 5. FINANCE STRATEGY CONSULTATION
- The licensed Finance Broker who specialises in mortgage finance, property gearing strategies and interrelated financial services will now contact you to discuss your needs analysis report and subsequent property purchase, and:-
- Prime consideration is given to your financial comfort level
- The Finance Broker will provide you guidance on the most effective finance package/s available to achieve your desired goals
- The licensed Finance Broker will assist you to complete the Finance Application and thereafter submit the same to lenders for approval
- The process is then managed on your behalf through to a trouble free settlement. The licensed finance broker will help you preserve as much of your money and time as possible, saving you the battle of comparing loans in an often confusing finance marketplace.
6. BUILDING INSPECTIONS & SETTLEMENT
As part of any investment property purchase through PBCL Realty, we carefully monitor the construction of your property:
- We will provide you with a written report at various Building Stages throughout construction; these generally coincide with the builder’s progress claims, thus ensuring that all areas of construction are assessed before payment of the relevant claim
- PBCL Realty coordinates settlement with your lender, solicitor and other interested parties to ensure a seamless handover.
- 7. TENANT PLACEMENT
- As your new investment property is nearing handover we will liaise with the best local management expert nominated by us to ensure that the best tenant and the highest rent is achieved.
GEARING – POSITIVE & NEGATIVE
- POSITIVE GEARING
- A positively geared property means that the rent received from your investment property is greater than the costs of owning it, including interest repayments, local authority rates, insurance and maintenance expenses.
- Cheap properties paying high rents tend to be thin on the ground. We can locate such properties for you from time to time and when available they are usually snapped up quickly. If you want a positively geared property ask PBCL Realty today.
- To generate a positive cash flow, investment costs must be lower or equivalent to the income received from the property, taking into account your rental yields combined with tax breaks. If the construction of an investment property commenced after 19 July 1985 you are entitled to depreciation allowances that will enable you to claim “paper losses” to reduce your taxable income.
- The benefit of a property that generates a cash flow is realized when you sell the investment property sometime in the future. This is because you won’t have to subtract the losses incurred over the life of the investment, as is the case with negatively geared properties.
- In the final analysis, prospective investors should always apply the fundamental rule always applied by PBCL Realty of buying the right property in the right location at the right price. With capital growth as the ultimate goal, these three elements are vital.
- NEGATIVE GEARING
- Tax relief is one of the benefits of direct property investment. Direct property investment involves the purchase of property rather than investing in property trusts. Suppose an investor purchases a property using borrowed funds and the interest repayments, together with other expenses, exceed the income from the property.
- With negative gearing, depending on your personal circumstances, some of the losses may be deductible from your taxable income. However, we strongly recommend that your investment decision should be driven by the viability of the asset – not just by the desire to minimize tax.
- So what tax deductions are actually available to a property investor?
- Deductions, or expenses, may be offset against rental or other assessable income. Expenses that can be deducted from the rental income include:
- Loan interest
- Body corporate fees
- Local government and water rates
- Land tax
- Gardening expenses
- Costs associated with advertising for tenants
- Depreciation
- Stamp Duty
- Maintenance Expenses
Depreciation refers to the writing-down of the cost of an asset over its estimated life. This form of deduction is allowed for assets such as furniture, carpet, and washing machines. You can claim a proportion of each item of depreciable assets each year over its effective life.
There are different ways of calculating your depreciation. The one you choose should be decided in consultation with your tax advisor.
There are different ways of calculating your depreciation. The one you choose should be decided in consultation with your tax advisor.
PROPERTY RESEARCH
- Access to accurate and objective property research & investment property advice should be the foundation of all good property decisions.
- PBCL Realty provides authoritative property research & investment property advice across all residential sectors and geographic markets within Australia. We share our knowledge and experience to deliver effective property research solutions and investment property advice.
- Our specialised approach combined with industry tools and products for residential real estate ensures you can make the most informed and financially sound property investment decisions.
- OUR PROPERTY RESEARCH SERVICES
- We produce property research reports covering the key indicators and movements in residential real estate markets, offering unique insight and investment property advice for property investors. In addition, we strive to help you understand and forecast the implications of new and evolving issues, such as sustainability, the economy and demographic movements.
- Our property research & investment property advice services include:
- Investment property advice and consultancy
- Market analysis, including profiling and trends
- Demographic and target market analysis
- Geographic information mapping
- Project analysis, including product and pricing recommendations
- Rental and investment property advice e.g. return analysis
- Economic indicators
- We’ll find you the best property to suit your circumstances!
SELF MANAGED SUPER FUNDS AND PROPERTY
PBCL Realty can show you how to unlock your superannuation and use it to enter the investment property area.
With our assistance, you can move your super nest egg from Super Funds earning negative returns, and charging high fees to an investment in stable and growing wealth creation property investment.
You get to take control of the investment of your super fund nest egg and are not left with stock market and manage fund investments that have performed poorly in recent times.
It is easy to unlock your super and invest in property.
The establishment of Self Managed Super Funds and corporate structure advice is available from Structures & Super Fund Options SUPER FUND PROPERTY INVESTMENT – AN OVERVIEW
In this case study, we will consider how a superannuation fund can acquire property from an unrelated party by using an instalment warrant.
XYZ Superannuation FundThe XYZ superannuation fund creates an instalment warrant trust – this trust will hold the asset for the superannuation fund. The superannuation fund will hold a beneficial interest in the assets of the trust. The fund will only acquire the ownership of the asset once all prescribed payments have been made. The fund has the right but not an obligation to acquire the asset.
The superannuation fund enters into borrowing for the purpose of acquiring the asset. The fund will be responsible for the repayment of the loan and out of pocket expenditures not met by the tenant. The fund will receive the income from the asset.
Lender The lender provides finance for the transaction. The loan is a non-recourse loan. The lender is only able to acquire the asset in the event of the fund defaulting on the loan or upon the sale of the asset when the superannuation fund trustees elect not to complete the acquisition of the asset.
Trust Generally this will merely hold the asset on behalf of the fund and will not perform operational functions such as rent collection. The trust will be a fixed trust (i.e. not a unit trust) with the superannuation fund and its trustee/members being the beneficiary of the trust.
POTENTIAL TAX CONSEQUENCES OF AN INSTALMENT WARRANT
Stamp duty Where the trust is not in place at the time of signing the contract, to buy the asset, the fund may find that it is paying double the stamp duty unless a concession is available. Where our recommendations are followed there will be no double stamp duty.
GST The trustee needs to determine if the trust is operating an enterprise and must therefore be registered for GST. This will depend on the assets of the trust. For example, business real property is likely to be subject to GST on income. The transfer from the trust SMSF will be GST free for investment property where the Investment recommended model is adopted.
Capital Gains Tax When the asset passes to an entity other than the beneficial owner there can be capital gains tax implication as there has been a disposal. This can impact both the asset and the right to acquire the asset. The transfer from the trust SMSF will be tax free for an investment property where the PBCL Realty recommended model is adopted.
With our assistance, you can move your super nest egg from Super Funds earning negative returns, and charging high fees to an investment in stable and growing wealth creation property investment.
You get to take control of the investment of your super fund nest egg and are not left with stock market and manage fund investments that have performed poorly in recent times.
It is easy to unlock your super and invest in property.
The establishment of Self Managed Super Funds and corporate structure advice is available from Structures & Super Fund Options SUPER FUND PROPERTY INVESTMENT – AN OVERVIEW
In this case study, we will consider how a superannuation fund can acquire property from an unrelated party by using an instalment warrant.
XYZ Superannuation FundThe XYZ superannuation fund creates an instalment warrant trust – this trust will hold the asset for the superannuation fund. The superannuation fund will hold a beneficial interest in the assets of the trust. The fund will only acquire the ownership of the asset once all prescribed payments have been made. The fund has the right but not an obligation to acquire the asset.
The superannuation fund enters into borrowing for the purpose of acquiring the asset. The fund will be responsible for the repayment of the loan and out of pocket expenditures not met by the tenant. The fund will receive the income from the asset.
Lender The lender provides finance for the transaction. The loan is a non-recourse loan. The lender is only able to acquire the asset in the event of the fund defaulting on the loan or upon the sale of the asset when the superannuation fund trustees elect not to complete the acquisition of the asset.
Trust Generally this will merely hold the asset on behalf of the fund and will not perform operational functions such as rent collection. The trust will be a fixed trust (i.e. not a unit trust) with the superannuation fund and its trustee/members being the beneficiary of the trust.
POTENTIAL TAX CONSEQUENCES OF AN INSTALMENT WARRANT
Stamp duty Where the trust is not in place at the time of signing the contract, to buy the asset, the fund may find that it is paying double the stamp duty unless a concession is available. Where our recommendations are followed there will be no double stamp duty.
GST The trustee needs to determine if the trust is operating an enterprise and must therefore be registered for GST. This will depend on the assets of the trust. For example, business real property is likely to be subject to GST on income. The transfer from the trust SMSF will be GST free for investment property where the Investment recommended model is adopted.
Capital Gains Tax When the asset passes to an entity other than the beneficial owner there can be capital gains tax implication as there has been a disposal. This can impact both the asset and the right to acquire the asset. The transfer from the trust SMSF will be tax free for an investment property where the PBCL Realty recommended model is adopted.
WHY INVEST IN PROPERTY?
Property investment is the superior investment. There are many good reasons proving this statement, including:
- Capital Growth
- Rental Income
- Hedge Against Inflation
- Tax Benefits
- Greater Degree of Control
- Lower Volatility
- High Demand
Let’s take a look at each of these in detail.
CAPITAL GROWTH
Putting your money in the bank or investing in fixed interest does not give you any capital growth. If you purchase property, however, you do so expecting that the underlying value of the asset will grow.
If you had bought a property in a prime location, you could possibly retire a lot sooner, based on your increased net wealth; you could not retire on the funds from a poorer performing property.
Even though properties increase in value over time, it is crucial that you buy in the right location to maximise your returns. You need to ensure that you buy property in the right location to maximise your capital growth.
Shares do provide capital growth but it is very unstable and unpredictable and can change overnight. For instance, during the recent Global Financial Crisis National Australia Bank Shares (a Blue Chip share investment) dropped in a very short time to the same price they were in 1980 wiping out nearly 30 years of capital growth almost overnight and with little or no warning.
Don’t ever delude yourself into thinking it cannot happen again. Property value corrections are always minor and short lived. RENTAL INCOME
One of the benefits of owning investment property is that you start receiving an income almost straightaway. In the current market, you could settle on a property during the week and by the weekend you could have a tenant who will have paid you some rent in advance.
With the other asset classes, you often have to wait until the end of your term (in the case of a term deposit) or until your dividends are due, which is usually two times per year. HEDGE AGAINST INFLATION
An inevitable part of life is inflation, and the rate of inflation varies according to the strength of the economy. One of the benefits of holding property is that property values increase at a greater rate than inflation. This is great news if you already own property. The important thing to keep in mind is to buy the right property in the right location and buy it as soon as you can.
Shares are not a hedge against inflation due to the volatility in the share price and the sometimes irrational and out of control factors that affect share values.
TAX BENEFITS
There are several tax benefits available to property investors, including claiming interest and expenses, and depreciation both on the building and the fixtures & fittings.
Using property as security to borrow money to purchase other property allows you to leverage (borrow against the security) to a greater extent than if you were using a share portfolio as security. Most lenders will lend up to 95 per cent of the value of the property being purchased, whereas most will only lend up to 70 per cent if you were purchasing shares.
For example, if you wanted to purchase a property worth $400 000, a lender may be willing to lend you $380 000. This means you need to fund only $20 000, plus fees (assuming that you have no other security).
If you wanted to purchase $400 000 worth of shares, however, the same lender may only advance $280 000. This means you have to fund the shortfall of $120 000, plus fees. Another advantage of a property investment is there are no Margin Calls and therefore no sudden demand for repayment of the debt like the unfortunate share investors in the Storm Financial debacle.
Any legitimate expense incurred in running your investment property should also be tax deductible. For example, fees paid to a property manager to manage your property are tax deductible. Depreciation of the building may also be claimed as a tax deduction.
The age of the building will determine if you can claim any depreciation and at what rate you can depreciate it.
Buying a new property allows for the greatest amount of depreciation to be claimed. Claiming building depreciation is a smart way to increase your cash flow through a tax variation claim with the Australian Taxation Office. GREATER DEGREE OF CONTROL
Owning property allows a greater degree of control than owning shares. For example, as a share owner, you cannot improve the value of your shares. However, as a property owner, you can add value to your investment by painting, landscaping or renovating. For a few thousand dollars, you can get much more than that back in added value. LOWER VOLATILITY
Although it does have downturns, the property market is not as volatile as the share market. You can sleep well knowing that the price of your property will not plummet overnight, which can happen to shares. Keep in mind also that the security is in the land, not necessarily the building, which makes getting the location right particularly important. HIGH DEMAND
Everyone needs a place to live. For this reason, property, especially well-located property, will always be in demand. But while demand for property is steadily increasing, supply is unable to keep up with it. If this situation continues, prices are likely to increase sharply in the near future.
Putting your money in the bank or investing in fixed interest does not give you any capital growth. If you purchase property, however, you do so expecting that the underlying value of the asset will grow.
If you had bought a property in a prime location, you could possibly retire a lot sooner, based on your increased net wealth; you could not retire on the funds from a poorer performing property.
Even though properties increase in value over time, it is crucial that you buy in the right location to maximise your returns. You need to ensure that you buy property in the right location to maximise your capital growth.
Shares do provide capital growth but it is very unstable and unpredictable and can change overnight. For instance, during the recent Global Financial Crisis National Australia Bank Shares (a Blue Chip share investment) dropped in a very short time to the same price they were in 1980 wiping out nearly 30 years of capital growth almost overnight and with little or no warning.
Don’t ever delude yourself into thinking it cannot happen again. Property value corrections are always minor and short lived. RENTAL INCOME
One of the benefits of owning investment property is that you start receiving an income almost straightaway. In the current market, you could settle on a property during the week and by the weekend you could have a tenant who will have paid you some rent in advance.
With the other asset classes, you often have to wait until the end of your term (in the case of a term deposit) or until your dividends are due, which is usually two times per year. HEDGE AGAINST INFLATION
An inevitable part of life is inflation, and the rate of inflation varies according to the strength of the economy. One of the benefits of holding property is that property values increase at a greater rate than inflation. This is great news if you already own property. The important thing to keep in mind is to buy the right property in the right location and buy it as soon as you can.
Shares are not a hedge against inflation due to the volatility in the share price and the sometimes irrational and out of control factors that affect share values.
TAX BENEFITS
There are several tax benefits available to property investors, including claiming interest and expenses, and depreciation both on the building and the fixtures & fittings.
Using property as security to borrow money to purchase other property allows you to leverage (borrow against the security) to a greater extent than if you were using a share portfolio as security. Most lenders will lend up to 95 per cent of the value of the property being purchased, whereas most will only lend up to 70 per cent if you were purchasing shares.
For example, if you wanted to purchase a property worth $400 000, a lender may be willing to lend you $380 000. This means you need to fund only $20 000, plus fees (assuming that you have no other security).
If you wanted to purchase $400 000 worth of shares, however, the same lender may only advance $280 000. This means you have to fund the shortfall of $120 000, plus fees. Another advantage of a property investment is there are no Margin Calls and therefore no sudden demand for repayment of the debt like the unfortunate share investors in the Storm Financial debacle.
Any legitimate expense incurred in running your investment property should also be tax deductible. For example, fees paid to a property manager to manage your property are tax deductible. Depreciation of the building may also be claimed as a tax deduction.
The age of the building will determine if you can claim any depreciation and at what rate you can depreciate it.
Buying a new property allows for the greatest amount of depreciation to be claimed. Claiming building depreciation is a smart way to increase your cash flow through a tax variation claim with the Australian Taxation Office. GREATER DEGREE OF CONTROL
Owning property allows a greater degree of control than owning shares. For example, as a share owner, you cannot improve the value of your shares. However, as a property owner, you can add value to your investment by painting, landscaping or renovating. For a few thousand dollars, you can get much more than that back in added value. LOWER VOLATILITY
Although it does have downturns, the property market is not as volatile as the share market. You can sleep well knowing that the price of your property will not plummet overnight, which can happen to shares. Keep in mind also that the security is in the land, not necessarily the building, which makes getting the location right particularly important. HIGH DEMAND
Everyone needs a place to live. For this reason, property, especially well-located property, will always be in demand. But while demand for property is steadily increasing, supply is unable to keep up with it. If this situation continues, prices are likely to increase sharply in the near future.
PROPERTY SERVICES FOR BANKS AND INSOLVENCY PRACTITIONERS
- The PBCL Group of Companies includes a number of companies providing specialist insolvency advice to creditors and debtors depending on their needs.
- This service provides the staff at PBCL Realty with the unique insight to the needs of secured lenders and insolvency practitioners who from time to time are required to deal with property stock which may either be distressed or in need of realisation to finalise recoveries in secured and unsecured insolvency situations.
- PBCL Realty offers a comprehensive one stop shop including the following:
- Provision of a market appraisal and assessment
- Obtaining Vacant Possession
- Organisation of a valuation
- Provision of a work out strategy and marketing appraisal where required
- Liaison with tenants and other occupiers of the property
- Property Management services pending sale and disposal of the property
- Comprehensive marketing services
- Coordination of all property maintenance services
- Coordination of security and access to the property
- Sale of business assets and property
- Provision of specialist clauses in sale contract to protect Insolvency Practitioner’s positions
PBCL Realty can manage the whole process from valuation to settlement.
A lot of the services can be undertaken at little or no cost to the secured lender other than the payment of a standard REIQ sales commission.
A lot of the services can be undertaken at little or no cost to the secured lender other than the payment of a standard REIQ sales commission.
DISCLAIMER
Please note we are not lawyers and are not offering any type of legal advice.We are licensed Commercial Agents. The basis of our service offered here is regulated by reference to appropriate state and federal legislation.
We are not offering investment advice for Superannuation funds and if you require it, we can refer you to licensed professionals.
If you require the services of a Lawyer we are happy to refer you to one.