5 things of what not to do when buying a property - sunrise with Anna Porter

💎Never buy without seeing property first

💎Never buy before doing  building and property inspection

💎Don’t buy without finance in place first .

Make sure you get your finance first - easy to get Preapproval (that’s where I come in (give me a ring :) www.bsifinance.com 

💎Don’t sign a building contract before getting  legal advice

💎Never sell off market / you will almost always get a better price when advertised to a bigger pool of investors

Property and Leverage go hand in hand as an investment strategy in Australia

Property is such a powerful way to grow your wealth because of the power of Leverage 

Leverage : is “The 9th Wonder of the World”,

Leverage from property - using opm (other people’s money ) FROM 

• BANKS, 
• TENANTS, AND 
• THE TAX SYSTEM

Here’s how each component plays a role:

1. Using the Banks Money 

Definition: Leverage involves borrowing money to invest in assets, allowing you to control larger investments without needing to provide the full purchase price upfront.

Borrowing Power: When you take out a mortgage to purchase a property, you’re using the bank’s money to invest. This allows you to acquire assets that you might not be able to afford outright and thus leverage up into your Investment.

Asset Appreciation: As property values increase, your equity grows. This can lead to substantial compounding returns on your initial investment, allowing you to reinvest or fund other financial goals. Equity is where you grow your wealth, which also gives you the opportunity to draw down on equity as a deposit on your next investment property … and go again!

How It Works:

• Example: Michael  invested in a property on the Gold Coast last year for $500,000, put a deposit of his own money  of $50k  and we got him a mortgage  for $450,000 (90% of the property value)
• Impact: the property is now worth $635,000. Michael’s  equity has increased by $135,000, and he  only invested $50,000, resulting in a 270%% gross return on his investment ($135,000 gain on $50,000 equity).

2. Tenant Contributions

Definition: Rental income from tenants provides a consistent cash flow, which helped cover mortgage payments and property expenses. 

In the ideal world (which should happen over time) , Interest Rates plus Expenses should be equal or less than  Rental Income received making  your Investment -  Cash Flow Positive in your hands. 

Meaning Michael’s investment property is now funding itself - and as the property increases  in value over time, the $50k investment will continue to get exponential returns .

He can then rinse and repeat :) 

How It Works:

• Example: If your mortgage payment is $3,000 per month and you charge $3,500 in rent, you have a positive cash flow of $500.
• Impact: This cash flow not only covers your expenses but can also be reinvested into other properties or used for personal financial goals, effectively using “other people’s money” to build your wealth.

3. Tax Benefits

Definition: The Australian tax system provides various deductions related to property investment, which can enhance your overall return on investment.

How It Works:

• Deductions: Expenses such as mortgage interest, property management fees, maintenance costs, and depreciation can be deducted from your taxable income.
• Example: If you earn $100,000 a year and have $20,000 in property-related deductions(negative gearing) , your taxable income drops to $80,000, potentially reducing your tax liability. Meaning the taxman is helping you pay for your property .
• Impact: The savings from tax deductions can be reinvested into your property portfolio or other investments, further accelerating your wealth-building process.

Combining All Three for Compound  Exponential Growth

When you strategically combine these three components, you can create a powerful financial strategy:

• Increased Cash Flow: Positive rental income can provide ongoing cash flow, which, combined with leverage, allows for more substantial investments.
• Growth in Equity: As property values increase, your equity grows, which can be accessed for further investments through equity loans.
• Tax Efficiency: Utilising tax deductions can enhance your cash flow, allowing you to reinvest more effectively.
• Maximising Leverage : Using the Power of Leverage intelligently to grow your investment property portfolio.

Compounding

Compounding, is a Powerful Principle that when harnessed correctly, can turn your modest investment, into Significant Wealth over time !!

Conclusion

By leveraging bank financing, benefiting from tenant contributions, and utilizing tax advantages, you can effectively give you more wealth than you ever thought possible - helping you create your generational legacy 

The right Property at the right time 

A key factor is to buy the right property in the right area at the right time!!

This is a key 🔑 factor in maximising your wealth .

The cool thing is that in Australia, property in all major cities have increased significantly over time 

So , when is the best time to invest in Property ? 

In my view - today 

Feel free to give me a call . I will gladly refer you to my property guru network, and I would be delighted to help you maximise your leverage by getting you the right loan ;)

www.bsifinance.com.au

Investing Property into your SMSF

Investing property in your Super can be a great way to build your Retirement Savings in Super…. Because of the ability to leverage using opm (other people’s money) 

SMSF Loans

You can now borrow to acquire residential, commercial or industrial property, within your self-managed super funds”.

”The Power of Leverage … why would you borrow to invest in property with super?”

For every $20,000 of super , you can buy $100,000 worth of property 

Leverage is using other peoples money when you are investing.

Here is a hypothetical scenario of how your investment can work (thanks to ProperT)

• Property $650,000
• 20% deposit $130,000 invested
• Capital Growth @ 5% pa = is on the full value of $650,000
• Rent Achieved is also on the full value of the $650,000 (assume rent covers interest and expenses )
• After 10 years your property could be worth $1m 
• Rent will cover interest costs 
• Your $130k will now be worth $480k 

*simplistic helicopter example provided to merely outline the financial power of Leverage + Compounding Returns

TAX ADVANTAGES

 These are things that an accountant or your financial planner can share with you - but some of the tax benefits include 

• Capital gains tax
• Rental income tax
• Salary sacrifice tax
• Superannuation pension tax
• Writing off Depreciation against Super Contributions

Benefits of Investing in Property in your Self Managed Super Fund

Undoubtedly the greatest tax benefit associated with investing in property within a Self-Managed Super Fund (SMSF), is the potential Capital Gains tax Concession on capital growth.

As per the ATO web site : “If the property is sold while in accumulation phase after being held for more than 12 months, a 10 per cent tax rate applies. However, if that same property is sold after the super fund has converted to pension phase (in retirement), zero per cent tax applies.”

The longer you hold the property, the greater the likely capital gain, and the larger the tax benefit.

Rental income on properties owned by your super fund is also concessionally taxed. Another fantastic financial gain within your super. As with capital gains tax, in the pension phase, no tax will apply to rental investment income, and a flat 15 per cent will apply in accumulation phase. This is also extremely favorable when comparing neutrally or positively geared property, with rental income taxed up to 46.5 per cent, for property held in an individual’s name. 

The Australian Tax Office allows individuals to make pre-tax salary-sacrifice contributions into super, paying 15 per cent contributions tax in super, whilst saving marginal tax in their own name. Which again could be up to 46.5 per cent. More after-tax dollars to invest, results in greater wealth being accumulated by you, and/or more personal debt to be repaid.

You may not be aware, that at age 55, workers (employees or the self-employed) can establish a “transition-to retirement, account-based pension”.

 

The benefits are twofold. First, in pension phase, as stated above, investments will be capital gains and rental income tax free. Secondly, pension payments made from super to an individual are also concessionally taxed and will  be tax free from age 60.

 

Therefore, the typical transition-to-retirement financial strategy involves swapping higher taxed salary income, with lower taxed pension income, thereby allowing additional salary-sacrificed super contributions to be made.

This is not advice, ask your accountant/financial planner to explain. If you haven’t got one - let me know and I will refer you to the best ! (On Referron) 

 

Your financial planner/accountant will explain how you can take advantage of this legislation and how Superannuation pension payments can be received, while working full-time or part-time. 

Where to from here? 

There is a process for  property investment in SMSF 

It is complex - and if done properly can be a game changer for your retirement . You need to have on your team 

- a great accountant 

- a great financial planner and 

- the best mortgage broker - that’s me - https://www.bsifinance.com.au/

And of course , you will need to find the right property in the right place at the right time to maximise your growth potential 

Feel free to call me and let’s see if this strategy can work for you ….. hopefully our chat will be part of your journey to financial freedom :$ ) 

the best mortgage broker - that’s me 

5 tips when Investing in Property to maximise your wealth

Call the team at BSI Finance to help you with you Property Investment 

Property investment has been a fantastic way for Australians to build their wealth over the past 100 years, and all indications show that thieves sector continue.

2 key reasons for this is

1. Increased value of property over time 
2. Ability to “leverage” - use OTP (other people’s money ) - (Tax office and banks ) 

If you're a property investor, here are five tips for managing your financial position:

1. Build a cash buffer to cover periods of negative cash flow
2. Factor in rising interest rates when budgeting future costs
3. Work with an accountant to maximise your tax deductions
4. Review your loan on a regular basis to ensure it's still competitive
5. Speak with a mortgage broker to explore refinancing or restructuring options

If you’re thinking about buying an investment property or ensuring an existing investment loan is structured correctly - feel free to contact me - I would be delighted to help !!

Here is my business card on Referron  https://rfrn.link/ivank

April 2025 is it the right time to buy property in Australia?

Interest rates on hold… for now.

The RBA kept the cash rate at 4.1% in April, but markets are tipping multiple cuts this year—possibly starting as soon as May. Meanwhile, property prices are climbing across most capitals, with strong auction clearance rates and rising buyer confidence.

With the federal election set for May 3, both parties have unveiled bold housing policies targeting first home buyers, investors, and affordability.

Thinking of buying this autumn? Now’s the time to get pre-approved and review your finance options.

Let’s chat.

Here is a poll 

Strategic Growth Plan for Accountants Using Referron & Referrals

1. Positioning & Messaging

Objective: Position yourself as a proactive, connected accountant who brings not just financial insight—but valuable business introductions.

Core Messaging:

• “We don’t just do your numbers—we grow your business through trusted referrals.
• “Work with us and gain access to a network of reliable professionals.”
• “We’re part of a business community that gives first—and grows together.”

Tactic:

• Update LinkedIn, website, and email signature to reflect this positioning.
• Include a link to your Referron vCard with a line like: “Want to connect or refer someone to me? Tap here.”

⸻

2. Referron Setup & Onboarding

Objective: Get Referron installed, optimized, and ready to support your networking and client referral growth.

Actions:

• Download Referron and complete your profile with a strong call-to-action and services.
• Upload your business card and create pre-written intro blurbs clients can use.
• Add 20+ existing clients and trusted business contacts to your connections list.

KPI:

• Referron setup complete
• 20+ contacts connected in Referron within 14 days
• 1 referral made via Referron per week

⸻

3. Building a Referral Flywheel

Objective: Turn happy clients and business contacts into active brand advocates.

Actions:

• Identify top 20 clients who trust you → ask them: “Would you be open to referring me to one person you trust?”
• After tax meetings or advisory sessions, ask: “Do you know someone else who could use a proactive accountant like us?”
• Use Referron to send or receive introductions instantly—showing clients how easy it is.

Use Cases to Promote:

• “Here’s how I helped a tradie save $22k in tax last year—know anyone like that?”
• “I just introduced a great bookkeeper to a client on Referron—happy to do the same for you.”

KPI:

• 4+ referrals received/month
• 2+ referrals sent/month
• Referral-to-lead conversion rate ≥ 40%

⸻

4. Community & Strategic Partner Building

Objective: Build a web of professional allies (brokers, lawyers, planners) who refer consistently.

Actions:

• Invite 5–10 alliance partners (e.g. mortgage brokers, solicitors) to download Referron and exchange vCards.
• Set monthly 1-on-1s to explore how you can refer business to one another.
• Host a quarterly “Referral Lunch & Learn” (virtual or in-person) with 3–5 partners.
• Share client stories to build trust and prove value.

Messaging:

• “Let’s make it easy to refer each other with Referron.”
• “It takes 10 seconds to connect me with a client—you’ll look good, and I’ll take care of them.”

KPI

• 5+ new strategic partners on Referron in 30 days
• 1 referral per partner per month
• 2+ new leads from partners/month

⸻

5. Client Loyalty & Advocacy Campaign

Objective: Turn your best clients into champions who bring you more business.

Actions:

• Identify your Top 10 Promoters (via NPS or relationship)
• Create a simple client referral reward (e.g., movie tickets, donation in their name, or just public recognition
• After every successful outcome (e.g., refund or tax-saving strategy), say: “If this was helpful, I’d love a quick intro to someone else you care about. Here’s my Referron link.”

KPI:

• 10+ client referrals/month
• At least 5 reviews/testimonials posted in 30 days
• Retention rate > 90% YoY

⸻

6. Metrics & Monthly Review

Objective: Review performance and keep accountability.

Dashboard KPIs (Monthly):

The Multiplier Effect

Why this works:

When accountants position themselves as referral enablers, they:

• Stay top-of-mind

• Create reciprocity

• Tap into exponential network effects

Referron makes that whole process trackable, scalable, and effortless—making referrals not just random luck, but part of your business development engine.