What can the PIC Group do for me?
The PIC Group helps people and organisations create wealth through property investment with a minimum of complication, involvement and stress.
How much is going to be enough in retirement?
The fact is that people are wanting to retire earlier and through an environment like ours, they are looking to get RICH DEFINITELY and NOT RICH QUICK!
So how much is enough?
What we do know is that people with more money, have more choices. Historically if you owned your own home and 3 investment properties, you would have been well off. Well the same applies today…
The more assets (“critical mass”) you have in place prior to retirement, the more options you will ultimately have.
So what does financial freedom mean?
At PIC, it means having your assets grow faster that you can spend them!
What steps do I have to take to become financially free?
You need to get thinking right / you need to get your finance structures right / then what you need is TIME.
Explanation…. There are 3 fundamentals you need to achieve wealth through property. FIRSTLY you need to understand why you are doing it ie. you dont ry to pick the bottom or the top of the market… you just get in as soon as you can NEXT, you must have specific finance structures so you have the right money in the right account at the right time all with a minimum amount of complication & stress. LASTLY and most importantly, you need to soak in the market. TIME! in the market is the most important key to achiveing wealth.
Can the Millionaire’s Model work for me?
Yes! the “millionaire’s model” works because it allows you to use other people’s money (from the bank, ATO, the tenant) to leverage your way more safely to get the results for your future. usually the assets we need to accumulate for the future, far exceeds our disposable income and this is why you need to think outside the square and adopt the “Millionaires Model”. it is far better to invest a lot, expecting a smaller growth, than investing a small amount and hope you an unrealistic growth.
Why is residential property the best leveraging tool to use borrowed money to achieve capital growth?
The banks will lend you more money to hold residential property than any other asset thus giving you the ability to hold a higher “critical mass” of assets that you are consistently growing for you. It allows you to play a bigger game, keeping the Millionaire’s Model in mind, when you have limited resources of our own.
What is Pre-emptive Accumulation?
Pre-emptive accumulation is the strategy of accumulating and safely holding property into the next boom. We know that at a given point in time, the property market will boom again so we want our clients to have accumulated as much “critical mass” as their comfort level allows, so that they can take advantage of it to accumulate more property or to help fund their retirement.
Where do PIC services start and finish?
Firstly, you have me – I am your Property Coach – and I am your main point of contact throughout the overall process and I will work with you to make sure you know how to do the best you can with the resouces you’ve got right now. I will be your running mate to keep you on track over the coming years.
During the process, I’ll introduce you to our Finance Broking Team in Dynamic Finance Solutions and they will assess your position, put the strategy into place, then hand you back to me,
Next through the build process, our Client/Builder Liason will ensure your build process runs smoothly with your builder, your Quantity Survey, your Property Manager and tenants.
So why does using equity make property investing easier and so much safer?
Unless you have large cash deposits you want to utilise, we structure your investments to use money from the banks for funding expenses such as deposits, costs and buffers to make it safe & easy to hold your properties long term.
What is equity and available equity?
Equity is an amount of money that the bank will lend you against your property valution. Available equity is the amount they lend after they have deducted amounts owing eg your own mortgage. In the current market, valuers are being very conservative, so we need to take that into consideration when trying to obtain equity from your home.
What makes the PIC Group different from the rest?
We are different because we’re the preferred supplier to industry professionals like your Accountant and Solicitor. We stand up to their scrutiny as well as yours. Your don’t stay in the business for 15 years if you’re not getting results for your clients & Affiliates!
Should I invest into property or shares?
We thinki it’s good to be diverdified so you need to speak with the right professionals.
Regarding shares – we can refer you to a Financial Planner if you don’t already have one as we do not provide financial planning advice.
Regarding property – we specialize in property because it allows us to optimize the leveraging of an individual client’s resouces to play a bigger game and therefore make larger profit.
How does the PIC Group get paid?
We make our core income out of real estate commission and finance broking and that funds our world. These monies are already in the market place and that allows us to work for you while being paid by the Builder. There is also a “once only” lifetime membership fee of $1,100 that you pay once your land has settled.
Why wouldn’t I just set up my own finance structures?
You could… but we set up “clever” finance structures that EMPOWER you and not the Banks.
Our primary driver is to…
* Set up Safety buffers against interest fluctuations & life’s unexpected events
* Gain maximum tax benefits by seperating your personal & investment world
* Reduce the Bank’s stranglehold on cross collateralization where possible
* Structure you to take advantage of future capabilities
* Reduce your “private” debt quicker
* Provide the latest products to maximize your potential
* Strategise Pre & Post retirement to achieve “Self Funding” assets
What happens when interest rates move?
We make allowances within your finance structures to buffer fund for interest rate fluctuations.
Interest rates at the moment are moving, returning to normal levels. At PIC, we currently base our interest rate calculations on 7.5% per annum. Regardless of the rates, this is interest on “good” debt and not “bad” debt.
On “good” debt, Increased interest rates are offset by higher tax deductions.
Do I have to sell down my properties in retirement?
No… we promote “Self Funding” assets during retirement. You don’t have to sell down your investment proeprties. You can hold your properties and move “cash” around to best optimize your world.
Remember, Financial Freedom means having your assets grow faster than you can spend them!
You can continue to hold your properties in retirement with the right type of funding. This helps maximize growth that you can later live off. Then depending on your lifestyle requirements at the time, you can strategically sell down each asset as you need to.
Who does the valuations on your investments?
All the valuations are done by independant valuers through your Banker. At the moment, valuers are placing very conservative values on all property, including your own home and that is something we just have to live with. If a valuation does come in low, you may have to rely on your investment buffers to make up the difference. The main aim is to do the best you can with the most you can get from the Banks.
Should I fix my interest rates?
We alert people to the upside & downside of fixinf interest rates. Fixing rates can severely limit your capabilities in the future. It restricts the flexibility to your investment refinancing through revaluation and inhibits your opportunity to “pre-emptively accumulate”.
The Actuaries for the Banks determine whether it is profitable for the banks to fix interest rates for the Bank and not the borrower. If you want to fix we think it’s a clever idea to put away the extra amount over and above the variable rate into an offset account so that you get the benefit and not the bank.
What if I want to keep my own house seperate from my investment property?
When we get to a situation down the track when there is enough equity in your investment property you can release your own home as security from the line of credit and secure the line of credit against your investment proeprties.
A friend of mine told me investment properties don’t work.
With respect, there are some people out there that have a lot of answers and not much money. What we know is that our systems have worked for our clients over the many years. Results are the only truth.
Only 5% - 8% of people ever reach financial independence? How?
We know that these people firstly PLAN, then they ACT and then they REMAIN committed to their goals with the MILLIONAIRES MINDSET.
Who do I speak with when I’m getting closer to retirement?
Talk to your support network who have helped you accumulate the assets in the first place.
You need to get someone who can stay with the concept of moderate gearing (within your comfort level) to have larger “critical” mass of assets growing faster than you can spend them.
Dont necessarily be sold the standard “commission based” concept of selling off assets, getting rid of debt, just to generate income.
Always consider selling as your last option!
Regarding your superannuation – you should plan with your Financial Adviser regularly how to best manage your asset for retirement. We can refer you to a Financial Adviser if you don’t already have one as we do not provide financial planning advice.
Regarding your taxation – you should discuss your plans with your Accountant before you sell down any of your assets and before you retire as “sale” dates can be critical for taxation.
Regarding your finance structures – Once again, finance structuring and planning is required because your ability to borrow is severely affected by your employment. We recommend you maximise your investment buffers to allow you to hold your investment properties long term, if you choose. You may not need to rely on these buffers – they are there as a safety net and should be used responsibly.
Regarding your investment property – we believe in “self funding” assets. With the right type of funding in place, you have the option to hold your properties long term to maximise capital growth and income in retirement.
Remember what your Coach has told you…. once you sell a property, you’ve missed the next boom.
Then depending on what your lifestyle requirements are at the time, you can strategically sell down an asset as you need to pay down debt as well as live off the capital growth.
Where do you get your properties from?
We don’t carry our own stock. We choose stock in areas with a particular profile based on property growth, infrastructure and resouces and we link you up with one of our 8-9 builders that we use on an ongoing basis.
These builders build properties with the profile that suits the needs of our clients.
What’s the best type of property?
Because we value your comfort level, we source properties that have minimum maintenance, maximum tax efficiencies, a broad profile for rental and strong attributes for revaluations.