How Victor and CFV Can Help After You’ve Bought an Investment Property
You’ve successfully bought an investment property—a major step toward growing your wealth! You made a smart choice by using a buyer’s agent to assist with the purchase. Much like working with a buyer’s agent allows you to leverage their expertise in the property market, partnering with a wealth strategist or financial planner like Victor from CFV can help you optimize your investment for long-term success. Victor can provide the strategic financial guidance you need to ensure your investment continues to grow and support your broader goals.
Here’s how Victor and CFV team can help you after buying your investment property:
1. Modelling for Future Property Investments
Victor can provide you with detailed financial modelling to help project your ability to purchase additional properties. This includes:
- Cash flow projections: To show how your income and expenses will change over time, including rental income and property-related costs.
- Tax payable projections: To illustrate how much tax you will pay based on your current and future property investments.
- Wealth creation modelling: Projections that show how much wealth your property portfolio could create over the next 5, 10, or 20 years.
- Scenario analysis: Modelling various outcomes, such as buying one or two additional properties, and showing the potential financial impact of each option.
These tools give you a clear perspective on how to strategically plan for the next property purchase and beyond.
2. Tax-Efficient Investing
Victor can help you explore strategies for tax-efficient investing, ensuring you make the most of your financial situation. This might include:
- Tax-efficient investing within your business: Victor will guide you on how to allocate funds in ways that maximize tax benefits and grow your business’s wealth.
- Investing for your children: Victor can help set up tax-efficient accounts like family trusts or education bonds to invest for your child’s future while minimizing tax liability.
- Using tax-deferred accounts: Victor can assist you in taking advantage of superannuation and other tax-deferred investment accounts to grow wealth while deferring taxes until withdrawal, allowing for compound growth.
- Asset location: Victor can help you determine where to hold your investments (e.g., family trust, superannuation, or personal name) based on the type of assets you own. High-yielding assets, like shares, might be best held in super for their tax advantages, while low-yielding or concentrated positions like property may be better suited for a family trust or personal name, depending on your tax position.
By strategically investing with an eye toward tax efficiency and asset location, Victor will help ensure that more of your wealth stays working for you instead of being lost to taxes.
3. Improving Borrowing Capacity for Future Investments
If your goal is to continue expanding your property portfolio, Victor can help you improve your borrowing capacity. He may advise on strategies such as:
Switching to interest-only loans: This can reduce your monthly repayments, freeing up cash flow for other investments. However, Victor will also ensure that any savings are being actively invested in wealth-building assets. If you’re not reinvesting the money saved on principal repayments, you risk going backward, as you won’t be building equity in the property.
Victor will tailor this strategy to your specific financial goals, ensuring that you’re prepared for future property investments while maintaining a healthy financial balance.
4. Strategic Investing to Build More Wealth
If your borrowing capacity is currently maxed out due to the recent property purchase, Victor can help you diversify your investments. He can guide you in building wealth through other asset classes such as:
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- Shares
- Managed funds
- Exchange-Traded Funds (ETFs)
Victor will create an investment strategy that complements your property investment and grows your wealth over time, ensuring a diversified portfolio that reduces risk.
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5. Estate Planning and Protecting Your Legacy
If you purchased the property with the intention of passing it on to a child or leaving it to loved ones, estate planning is a critical next step. Victor will work with an estate planning lawyer to ensure:
- A will or trust is in place to outline how the property will be transferred.
- Tax implications for your heirs are minimized.
- Your estate is structured to protect your assets and provide for your loved ones.
By ensuring your estate planning is comprehensive, Victor will help you protect your legacy and ensure your wishes are carried out seamlessly.
6. Budgeting for Unexpected Costs
Unexpected expenses come with the territory of owning an investment property. Victor can help you set up a budget for emergency funds to cover:
- Repairs and maintenance
- Periods of vacancy
- Any additional property-related costs
A well-structured budget will ensure you’re financially prepared for unexpected challenges, reducing the risk of financial strain.
7. Review and Update Insurance
Victor can help you evaluate and update your personal insurance cover to ensure that your investment is protected. This includes reviewing your:
- Life insurance: Ensuring your family is financially secure if something happens to you.
- Income protection insurance: Safeguarding your income if you’re unable to work due to illness or injury.
- Total and Permanent Disability (TPD) insurance: Providing financial support if you’re permanently unable to work.
Victor will ensure that your insurance policies are tailored to your current financial situation, factoring in your new investment property, and making sure your coverage is comprehensive.
8. Long-Term Financial Planning
Victor will help you align your investment property with your broader financial goals. He will review and adjust your overall strategy to ensure that your property works as part of a well-rounded plan. This includes:
- Reviewing your financial goals regularly to ensure your investment property is helping you achieve your long-term objectives.
- Strategic planning for future investments, whether in property or other asset classes.
- Ongoing adjustments to your investment portfolio to ensure you’re on track for growth and stability.
Victor’s ongoing support helps ensure that your investment property is a tool for wealth creation, not a source of financial stress.
9. Using an SMSF to Buy More Property
Once your borrowing capacity is maximized outside of super, Victor can help you explore using a Self-Managed Super Fund (SMSF) to purchase additional properties. SMSFs allow you to invest in property within your superannuation, potentially giving you another avenue for wealth creation. However, this approach should fit within your long-term goals, as SMSF property investments come with specific rules and require a long-term commitment. Victor will guide you through this process to ensure that purchasing property through your SMSF is aligned with your financial strategy.
At CFV, We Help You Achieve Your Goals
At CFV, we’re committed to helping you get closer to your goals and dreams, ensuring that your financial journey is not just rewarding but fulfilling. We believe that wealth, health, and relationships are deeply interconnected in your path to financial freedom. Our approach goes beyond numbers; we work with you to ensure your financial strategy supports a balanced and thriving life.
Whether you’re looking to grow your property portfolio, plan for future investments, or simply build a more secure financial foundation, we’re here to guide you every step of the way.
Book a consultation with Victor today to take the next step toward your financial freedom. Together, we’ll create a strategy that empowers you to live the life you want—now and in the future.