This Property Pays You – Roma Qld Property of the Month

We’ve scoured the Australian investment property market and found it, an investment property that will pay you from day one.

Roma in South Western Queensland is a small town offering big opportunities with high rental yield and good capital growth potential.

Now with a positively geared property to add to your portfolio you could build on your strategy to pay off your mortgage sooner. Roma offers the benefits of long term growth and high rental yields. A well connected town, the urban centre is also a regional hub boasting schools, retail and other essential community services. Roma also has a relatively low unemployment rate of around 3% with property occupancy rates below 1%

About Roma

With a population around 7,000 people, Roma is also located in the Suarat Basin in the western Darling Downs area of Queensland approximately 480kms WNW from Brisbane. It is situated at the junction of the Warrego and Carnarvon highways and is the centre of a rich pastoral and wheat-growing district.

The local agriculture industry is worth approximately $620 million annually, 64.3% being generated from crops. 58.7% of businesses in the Maranoa are in the agriculture, forestry and fishing sector, which employs 32.7% of the region’s workforce.

A Changing Industry Mix

But the industry mix is changing.  The “mining boom” is creating towns that are producing exceptional rent and capital growth. The Queensland Resource Council estimates more than 18,000 new jobs will be created in coal seam, gas and LNG industries and another 23,000 in the minerals sector.

Since 1906 natural gas from the local area was used for lighting in Roma. The industry is now expanding exponentially, particularly with coal seam gas.

Origin Energy’s Spring Gully Coal Seam Gas Development is located about 80 km north of Roma and its projects include an 87 km gas pipeline to Roma’s neighbour town of Wallumbilla, Queensland to connect with the 434 km Roma-to-Brisbane gas pipeline hub there.

The Proposed Spring Gully Power Station is an $870 Million, 1000MW power station will provide electricity to South-East Queensland.

Great Potential

If you prefer positively geared property to balance out your portfolio, contact us quickly as there are a limited number of these properties available. In the fields below leave your name and phone number – this will be sent to our private server and we will be in contact.

Add Roma to your portfolio today.

Welcome to the end of the 09/10 Financial Year.

Paying tax is something we all need to do but none of us like to do.

Next tax time you could be adopting legitimate tax minimisation strategies reducing your tax burden whilst building a strong investment property portfolio.

Find out how…

Before reading this article you should always seek proper, independent financial advice before making any investment decision. See the Disclaimer section at the end of our legal page.

With tax time looming we will all be doing our tax returns and probably realising one thing – we are paying too much tax.

Tax is not a bad thing – someone has to pay for our roads, schools and other infrastructure, but there are legitimate ways to reduce your tax by using the money for something more worthwhile like building an investment property portfolio.

We get questions all the time – how can you own a property for under $30 per week? Why so little?

Well one strategy is Negative Gearing.

What Is Negative Gearing?

Negative gearing strategy in Australia is motivated by our tax regime, which allows deduction of ongoing losses against taxed income. This is further offset by taxing capital gains at a lower rate.

This might sound complicated but in reality it isnt.

How It Works!

You purchase a property and incur costs on that property – these costs include third party expenses, loan interest and set up costs.

If the costs on the property are greater than the (rental) income generated you will technically be incurring a loss on that investment.

But the story continues…

You Earn An Income? This Is How It works

In Australia the losses made on property are able to be weighted against your taxable income.

You will need to have a clear picture of your costs versus income to know your losses – costs include depreciation, setup costs, mortgage costs and interest, ongoing maintenance and property costs such as rates. Just like your personal income – you can claim anything that contributes to the generation of income in your property.

All Portfolios properties come to you with a clear understanding of the costs involved so you make an educated decision on the potential for negative gearing of the property before purchasing.

Your capacity to cover the loss is an important factor in determining the right deal.

So If It Is  A Loss Why Do It?

There are a number of reasons why people consider negative gearing as an option for their property investment strategy from straight tax minimisaton through to the great investment returns to be made on the property.

Many of the Portfolios properties are expected to return in excess of 250% return on investment giving you great returns in any market.

Property is a great investment, but like any investment there is risk and you should seek proper independent financial advice.

Talk to Portfolios and see how we can help you make those steps to a future in property investment.

Multiple investment property finance strategies can be complex and require that extra understanding. It takes finesse, especially in the current lending climate.

Direct experience and a long term track record of financing multiple property portfolios and strategies is what sets Portfolios apart in the Australian Property Investment finance market.Delivering To New Clients

Portfolios has had many clients coming from our peers because of our proven track record of delivery. Our clients are telling us about their finance experience like waiting 5 months for a refinance, little or total lack of communication from their broker, and mostly a general lack of experience in delivering complex strategies. These issues are common place issues. Further, the brokers seemed to blame the lenders for the outcome… which begs the question ‘was it presented to the lender/s correctly in the first place’?

A Case In Point

We have a case in point where we documented a strategy for a client to grow from 5 -7 proprties. At the time they may not have seen our value and gave it to their existing broker, all they had to do was follow the document.

Last week they contacted us for help as after 4.5 months its was not delivered. The implementation was totally incorrect and only 1 of the 4 refinance loans were settled. To add to the insult the loan splits were incorrect and none of the 2 new purchases were even at pre approval, all to the extreme frustration of our new client.

The property investment game is not easy. Having access to the mind and experience of the figure head is paramount.

Being The Best – Not The Biggest

At Portfolios our aim is to be the best not the biggest, with an experienced tight knit team that pride in delivering on what we profess. The summary below is our view on how we view you, your portfolio and your strategy

1. Never cross collaterise your loans, we untangle them.
2. Maximise available funds within calculated reason
3. No fixed interest rates
4. Documenting the fine print for loans – in, ongoing and out.
5. Interest only loans
6. A clear written strategy to follow, decided upfront
7. Transactional line of credit and then basic term loans for the rest
8. Clear on the numbers and the costs for refinancing and include all costs
9. Maximising valuations, lender service calculations and current policy
10. The strategy we offer has been extensively researched, and reviewed by the lender credit manager to ensure it will ‘fly’.
11. The strategy needs to allow for YOU. Not just the loans, see previous Blog ‘How are you placed’.
12. No inflated current industry timeframes for loans. We currently allow 6 weeks for a refinance from submission to when funds are cleared in your bank account. The same for a purchase, any time stated under this … well not consistently achievable

The market is heating up and we have seen loads of activity from our existing and now new clients. Being armed with a sound strategy and loan preapprovals in place are giving them the edge with their purchase negotiations

How is you finance team going ?

Are they delivering what they profess, confirmed and documented upfront and in reasonable timeframes?

We welcome the opportunity of working with you and your property investment to make it happen.

In 2010 we welcome to Portfolios Property.

We have developed a property division in response to an overwhelming request from both our clients and property developers wanting to reach an astute property investment clientele such as the Portfolios community.

Portfolios Property will bring you up to ten premium investment opportunities at any one time.

In selecting properties to offer to our community we use a team of people to put each opportunity through a rigorous validation process before offering them on our website.

In the near future we will be launching an exclusive Portfolios Property website at www.portfoliospropert