1. How will I know that I can afford to invest?
A. Before moving to inspect properties you will meet with a finance broker who will determine your spending capability and your ability to service the loan. We will not recommend inspecting property if you do not have the financial capacity and / or the repayments may cause undo stress to you and your family

2. How much deposit do I pay?
A. Deposits are optional depending on your income / financial position / current equity in your home with the minimum being 5% (20% if an overseas investor - non resident)

3. How much can I borrow?
A. Your finance broker should be able to arrange a loan for 100% of the balance plus all purchase costs and, if required, an additional sum to act as a buffer in the first year

4. Do your finance brokers use banks?
A. Our finance brokers are accredited to most major banks lending on property in South East Queensland

5. What interest rates are charged?
A. This can be negotiable with the banks due to intense competition - currently around 7.7% - depending on whether fixed or variable

6. Do I repay principle and interest?
A. Your finance broker will recommend that you repay interest only (generally)

7. Do I use my existing home as security?
A. You use the ‘sleeping equity’ you have in your home as security for the deposit only. The financing of your investment property will be arranged with another bank to avoid cross collateralisation

8. Is the rental income fully taxable?
A. Yes. It will be added to your existing income less all expenses incurred including interest, depreciation, loan costs and legal, quantity survey and property management fees etc. The shortfall between income and expenditure is deductible, thereby reducing the amount of tax you are currently paying. The tax specialist will ensure that you claim all allowable deductions from your income

9. Is there a capital gains tax (CGT) applicable to investment property?
A. Yes (assuming an Australian taxable income stream). As APWS strongly educates the use on a 'buy & hold' strategy, which means you would not normally consider selling in the short-term. You can substantially reduce the amount of CGT payable (50%) by owning the property for more than twelve months. For overseas non-resident investors, you accrue your expenses each year as a 'loss carried forward' until the investment property is sold and then offset the loss over the CGT applicable - which could well equate to zero CGT payable

10. Do you charge for the support and education you provide?
A. No. There is no charge at any time for APWS services

11. What support services do you provide?
A. Apart from research into prime property investment opportunities, we will introduce you to all of the professional expertise you will require. It is up to you as to whether you use their services or the services of another. You will have at all times, access to us and our advisory panel, through the most advanced on line video discussion and conferencing services

12. Do you recommend units?
A. We work on the premise that land appreciates in value and buildings depreciate with the land content, preferably at least 40% of the total investment cost. Using this principle the only units we may recommend are those in prime locations close to the CBD (main business centre) or developing coastal resorts, where demand influences capital growth

13. Do you recommend older properties?
A. No, we do not because of the loss of taxation allowances for depreciation which reduces the value of the building in terms of return to the investor

14. What is negative gearing?
A. Investment expenditure exceeds income with the difference being written off against earnings thereby providing a tax benefit

15. What is positive gearing?
A. Investment income exceeds expenditure with a positive cash flow inwards. All of the investment expenditure is still tax deductible

16. After I purchase my first investment property, what services do you provide?
A. We monitor the growth of your investment and advise you when your increased equity is sufficient to pay the deposit on your next investment property. As a valued client you will have access to our web site, e newsletters, video conferences, on line communication with our panel of professional advisors, information sessions and seminars. We are but a call away

17. How can I be sure that I have good tenants?
A. We strongly advocate the services of property managers who are very experienced, providing screening of all prospective tenants, prompt rent collection and regular inspection of your property

18. How much do I pay to the property manager?
A. There is a commission of 5% plus a management fee of around 3% both plus GST (10% federal tax, which is this included in stated costs)

19. What cash outlay do I have if I proceed to purchase?
A. A refundable deposit on the land which can range from $1000 to $ 5000 depending on the developer and a deposit to the builder of $1000.  Both of these can be included in the loan amount

20. Is there a defects liability period on the building?
A. Yes. A period of six years applies to all new homes

21. Can I use my own solicitor or tax agent?
A. Certainly

22. Can I have the property in joint names?
A. Yes, but before doing this seek advice from your tax advisor

23. What are the rule of thumb criteria for financial capability?
A. Banks will be looking for taxable income - joint or individual - of at least $75,000   pa with substantial equity$100 K in the current residence or a cash sum sufficient or the deposit

24. How soon after I sign is someone renting  
A. In 99.9% of cases the property will be rented at the day of completion. Signing happens weeks before

25. How much control do I have over the who rents my property
A. As much as you want but, be careful of anti-discrimination laws

26. How much involvement do I need to have in the process
A. If you wish we can manage all activities. Your only activities need to be signing documents and authorising payments

27. What Code of Conduct do you subscribe to
A. Office of Fair Trading and associated legislation related to Consumer Protection
     
28. What if I have a disagreement and wish to lodge a complaint  
A. Firstly we welcome feedback be it positive or a complaint as this is the basis of our continued improvement. However, if you feel APWS has not responded or responded inappropriately you can contact the Office of Fair Trading

29. Do you give my details to third parties
A. We are governed by privacy provisions and legislation
    
30. How long will the process take
A. In our experience 16 weeks (house & land) plus the time taken for local council building approval

31. When can I begin the next purchase  
A. When your equity in your current home and/or your first investment property increase by an amount sufficient to make a deposit (10 % +) on your second investment or you may have surplus cash available

32. What is APWS differentiation - Competitive Edge
A. Our people, our communications, our client focus and our commitment to the best option for each and every client

33. Can I view a sample of the investment opportunities - commercial or residential
A. Yes. Just click on this link to see just a few highly researched and select opportunities, including USA investment property with exceptional yields and capital growth potential