Yes No Unsure N/A
1. Is your home exposed to excessive risk?
Is your home loan with the same lender as your investment or business loans?
Critical Question - Traditional finance packages routinely expose the family home to excessive risk. Business owners can be especially at risk.
Are you constantly moving investment debt away from your home?
Critical question
2. Is your home and portfolio at risk
Do you have a 'buffer' between the limit of your loans and
the current balance to meet your living and loan commitments for at least 6 months?
Critical question - traditional finance packages do not provide adequate protection
Does your lender hold more securities than they require?
Are the loans in your portfolio concentrated to the fewest properties posssible?
Lenders lend up to 80% of the property value, but some may lend as high as 95%. Check your mortgage contracts.
3. Cashflow problems and/or inadequate return
Do you have professional pack interest rates?
Critical question - Discounts of up to .7% are available, but conditions do apply.
Have you applied your savings to pay down your home loan?
Important question - many investors fail to maximise their investment returns.
If you have paid off your home loan, have you desposited your savings into an "Offset" account on your deductible debt?
Do any of your loans require principal repayments?
Do you have your salary and rents credited directly to your line of credit or offset account?
Important issue
Do you have depreciation schedules in place for all appropriate investment properties?
Do you have depreciation schedules in place for all appropriate investment properties?
Do you have a 1515 in place ?
Investors can apply to the ATO to have their pay day tax instalment reduced. (The 1515 was formally known as a 240D)
Do you have a balance of growth and yielding properties?
4. Preservation of Loan Deductibility
Are you making additional principal repayments on your investment loans?
Do you have separate loans for your home loan and investment loans?
Critical Question - Loss of benefits can be substantial.
5. Are you Investment Ready?
Have you consolidated all your available funds in a single, fully transactional account?
Important step in becoming investment ready
Do you have funds available, in addition to your buffer, to fund deposit & costs for any intended property purchase?
Important issue - Buffer is uncommitted, readily available funds.
Do you have a pre-approval in place?
Note: Pre-approval is not a guarantee to finance.
6. How Streamlined is your Account Operation?
Do you have direct debits set up to service your investment loans?
Account automation has a number of important benefits to the investor.
7. General Check-up Section
Are you confident you have secured the most favourable interest rates AND the most appropriate finance product?
A finance product is the loan your have. Different loans suit different needs, investors have very specific needs that need to be addressed to optimise their position.
Do you constantly monitor 3 and 5 year fixed rates?
Have you had a finance strategist conduct a full audit of your finance structures in the past 12 -18 months?
The audit must cover wide ranging issues including: increasing cashflow, cutting the `cost of interest`, improving returns, protection of your home, portfolio and cashflow, streamlining and automating account operation and debt servicing, optimising your short and long-term tax position and more.
Are you meeting your repayment commitments quite comfortably?
Important issue
Your Objectives
