ADFA – Yes, it’s time to start building your property portfolio

If your in ADFA don’t wait to build your property portfolio!

ADFA – Start your property portfolio now for future financial success

As Australian Defence Force Academy (ADFA) members you’re already committed to defining yourself as leaders of the Navy, Army and Air Force. At Capital Properties, we want you to apply that same commitment to your own future financial success. And, believe it or not, right now, while you’re in the ADFA is the perfect time to start building your property portfolio.

While your military training prepares you for many challenges, it might not fully prepare you for life after your service. And we know that for most young people, financial planning doesn’t take top priority. That’s why we’ve made it our mission to work with ADFA members to help them learn strategies for long-term financial success without compromising on their lifestyle. And we believe that building your property portfolio is the very best way to do this.

We often hear from our clients that they just wish they’d started building their property portfolio earlier, so read on to learn how we can help you avoid that same mistake.

Now is the perfect time to consider building your property portfolio and laying the groundwork for long-term financial freedom. At Capital Properties, we specialise in helping Australian Defence Force Academy (ADFA) members like you, to invest your disposable income wisely, turning today’s savings into tomorrow’s security. To get started, book your Capital Properties Discovery Session now.

On the go? Here’s 30 seconds of take outs:

• If you’re in the ADFA then it’s time to start building your property portfolio.
• Capital Properties helps ADFA members to invest disposable income wisely.
• Starting your property portfolio in the ADFA means that you’re able to:
• leverage your income & access ADF-specific financial benefits,
• make your disposable income work for you,
• access the power of compounding growth,
• secure your future financial freedom.
• Attending our FREE Discovery Session takes you through our 7 step successful property investment strategy.
• The first 3 steps to successful property investment are:
• set clear, actionable goals,
• know your finances,
• identify your property investment strategy.
• The Capital Properties team will work with you through all 7 steps, including researching the Australian property market, identifying the right property, cash flow, rental income & tax benefits etc. as well as your ongoing investment strategy.

Keep reading >>

It’s rare to find 18- or 19-year-olds who are already thinking ahead to retirement. And it’s just as unlikely that property investment would be on their radar, especially with some of the media reporting about the current property market here in Australia. Plus, we know how much focus is required to excel in your military career. But we also know that the early bird catches the worm.

 

Our founder and Director, Marcus Westnedge made his first property investment early in his naval career, allowing him to create his ideal lifestyle. That’s why he’s so passionate about educating ADFA about property investment opportunities. Here’s why starting now makes all the difference:

 

1. Leverage your financial position

As an ADFA member, you’re in a unique position to be able to leverage your stable income and utilise valuable financial products designed to help ADF members invest in their future. For instance, Australian Defence Force Home Loans can provide you with generous interest rates and loan structures that aren’t available to the general public. Our recent blog post “Home Buyer Entitlements for Defence Members” covers ADF, Federal and State entitlements.

2. Make your disposable income work for you

So many people waste their disposable income on unnecessary ‘stuff’. Creating good habits now will pay dividends in years to come. Setting up a regular savings deposit creates discipline and accountability. That means you won’t get sucked into spending your hard-earned dollars on stuff that doesn’t matter to you, but you’ll have the money available for the important purchases when you need it.

3. The power of compounding growth

Property investment is a long-term strategy that benefits from compounding capital growth. The earlier you start, the more time you give your investment to grow. And because, property values typically rise over time, especially in key locations, having more years of ownership under your belt means you can reap more of the benefits. This is why we say, “time in the market is more important than timing the market”.

4. Future financial independence

By investing now, you’re not just buying a house, you’re securing your future financial independence. The aim is to reach the end of your military career with an established property portfolio that generates passive income. This gives you the financial security to retire comfortably or pursue new ventures without the pressure of financial constraints.

How to get started in property investment

At Capital Properties, we’ve tailored our services to support ADF members at all stages of their investment journey. If you’re a first-time investor or unsure where to begin, we’ve got you covered. We offer a structured approach designed specifically for your unique needs. When you attend our FREE Discovery Session we’ll take you through our 7 step successful property investment strategy. Here’s a taster of the first few steps:

Step 1: Set clear, actionable goals

The first step in building your property portfolio is to set clear goals. Identify what you’re trying to achieve with your investments? Whether it’s generating rental income for a second income or for long-term capital growth to fund a comfortable lifestyle down the track, your goals will dictate your investment strategy. Our guide on Goal Setting Strategy is a good place to start.

Step 2: Know your finances

A key aspect of starting your property portfolio is finding out exactly where you are financially. That means completing an Asset & Liability work sheet and figuring out your borrowing capacity. You find this tool and others in the Capital Properties Property Investment Tools & Apps page on our website.

As an ADFA member, you have access to financial products that provide flexible terms and competitive rates such as interest rate discounts, lower fees, and greater flexibility. All of which make it easier to buy your first investment property. Capital Properties can help guide you through the process of assessing your resources and securing a loan that fits your situation.

Step 3: Identify your property investment strategy

Once you’ve clarified your goals, and know where you stand financially, the next step is to create a clear plan – or strategy – for achieving them. This is where it really helps to get the right team around you. They’ll help you create a property investment strategy that is specific to you and aligns with your goals.

ADFA property portfolio development

Steps 1 to 3 in the Capital Properties 7 step successful property investment strategy will help you discover if property investment is the right tool to help you reach your financial and lifestyle goals. But for successful ADFA property portfolio development, we’ll need to work through steps 4 to 7 of the Capital Properties 7 step successful property investment strategy where we really get into the nitty gritty of investment.

This includes everything from researching the Australian property market, to identifying the right property and tenant for your circumstances. We’ll also help you keep on top of cash flow and make sure you know exactly where you stand with rental income, interest rates and tax benefits etc. If this sounds daunting, please believe us when we tell you that after we’ve worked with you, you’ll be fully empowered with all the education you need to be able to make sense of this much more easily. Hell, you’ll probably even want to get your friends and family in on the action too!

And our help doesn’t stop once you’ve made a purchase. We’ll be there for the construction phase (if appropriate), property management and make sure you’re on track with your ongoing investment strategy.

Ready to start building your property portfolio?

The path to financial freedom starts with your first step. By investing in property in the ADFA the sooner you start, the more you stand to gain. The team at Capital Properties are passionate about helping you to start building your property portfolio and securing a stable, profitable future.

Remember, the earlier you start the sooner you can reap the rewards, so book your FREE Capital Properties Discovery Session today and discover the Capital Properties Switched-On Strategy Series.

As part of our commitment to your ongoing success, you’ll have access to all of our Capital Properties Property Investment Tools & Apps and Pinnacle Support Program.

Note: This information is general advice only. Always do your own research and seek independent financial advice

Make the most out of the silly season and book your end/start-of-year review with the Capital Properties team

‘Tis the season to be jolly, and what better way to celebrate than by taking a moment to reflect on your property investment strategy with Capital Properties? As the year draws to an end and a new one about to begin, it’s the perfect time to evaluate your property investments, set new goals, and make any necessary adjustments so you can hit the ground running in 2024.

In this blog post, we invite you to join us for an end/start-of-year review to help secure your financial future for the years to come. So, grab a cold one and let’s explore why a property investment check-up is the best way to close out your year.

The Capital Properties team live and breathe property investment for ADF members, and it’s our mission to make sure we help you achieve your property investment goals to reach future financial security. Our FREE Capital Properties Discovery Session is a great place to start, and we have tools and strategies to help you every step of the way.

On the go? Here’s 30 seconds of take outs:

• Capital Properties clients use proven property investment strategies to weather the storms and make the most of the opportunities in the Australian Property Market.
• An end-of-year review will make sure you stay on the path to financial success. The review covers:
  • Lifestyle and financial goals
  • Assessment of current property portfolio
  • Optimisation of property investment strategy
  • New opportunities identified
  • Prep for tax season
• We’ll also cover latest property data, market analysis, research as well as your cash flow position and explore the options available to you, whether you’re ready to grow your portfolio, or make changes to get you closer to that point.
• Book your end-of-year review now so you can hit the ground running in 2024.

Keep reading >>

Looking back to look forward

Before we welcome in the new year, it’s only natural to look back at the past one and reflect on the successes and challenges we’ve faced. In 2023, Australian Defence Force (ADF) property investors encountered plenty of opportunities and challenges in the Australian property market. From the highs of unprecedented rental demand in some areas and attractive government initiatives, to the lows of building supply issues and soaring interest rates, we’ve had a hell of a ride.

Capital Properties clients have used our proven property investment strategies to weather the storms and stay ahead of the game with growing portfolios and strong capital growth across all their investments. And we want to see you continue to succeed in 2024 and beyond. That’s why we encourage you to take advantage of a Capital Properties end-of-year review and make sure you stay on the path to financial success.

Why an end-of year review?

The comprehensive Capital Properties end-of-year review will allow you to:

1. Review your lifestyle and financial goals

It’s easy to get busy and bogged down in the craziness of day-to-day life, especially if they involve training, exercises, and deployments. So, it’s important to speak to someone with an objective view to make sure you are still in line with your goals.

2. Assess your current property portfolio

Together we can analyse your current property investment(s), assess their performance, and make sure they still align with your financial and lifestyle objectives.

3. Optimise your property investment strategy

We’ll make sure you stay on track by working with you to optimise your property investment strategy to maximise returns and minimise risks.

4. Identify new opportunities

The Australian property market is constantly evolving. The Capital Properties experts will help you discover new opportunities that may be worth exploring in the coming year.

5. Prepare for tax season

According to the Australian Taxation Office (ATO), 9 out of 10 rental property investors make errors in their tax returns, especially when it comes to interest deductions. The Capital Properties team can help you ensure your investments are structured in a tax-efficient manner to avoid facing the wrath of the ATO when it comes to tax time.

What does the end/start-of year review cover?

As well as making sure you have a clear vision of your goals and the strategy you need to get you there, our end of year review will cover some essentials such as:

1. Latest property data and research

We’ll re-evaluate your investment property(s) cash flow position and comparative market analysis, including:

• RPdata suburb and statistics reports for each property
• Residex suburb reports
• The latest Forecast ID demographic reports
• Desktop and full valuations
• Rental manager feedback and reviews
• Vacancy rates

2. Strategy development

We’ll look at the options available to you, whether you’re ready to grow your portfolio, or make changes to get you closer to that point. Our finance team will confirm your new borrowing capacity and discuss the next steps. If it suits you better, we can do all, or most of this, over the phone. Your options might include:

• Option A. Capacity for a new purchase – If you’re in the position to explore your next property investment opportunity, we’ll help you get the ball rolling.
• Option B. Increasing capacity – If you’re not ready for your next investment just yet we’ll share tips that will increase your capacity and help you get closer to your goals.

Option C. Consolidation – We can help you work out if you should consolidate your finance, find better interest rates, and reduce your investment/personal debt.

What’s next?

We know that the unique demands of Defence life mean you don’t always have time to stay updated and make sure your investment(s) is working the hardest for you. We created the Pinnacle Support Program to make sure you’re supported the whole way through your property investment journey. And we believe the end of the year is the perfect time to evaluate your property investments and set the course for the year ahead.

It’s also a chance for us to say thank you for your continued trust in our team. Your support is greatly valued, and we look forward to celebrating your successes in the years to come.

Get in touch now to book your end-of-year review and make sure you’re still on track to reach your financial and lifestyle goals.

If you’ve got some time, you can check out our FREE Property Investor Tools and Apps and download a copy of our book, Property Investment SOP  – essential reading for all property investors and first home buyers.

Are you ready to take your property investment journey to the next level?

At Capital Properties, we understand that achieving success in property investment requires a strategic approach. That’s why we’re excited to introduce you to the Capital Properties Property Investment Planner.

This 4-in-1 planner is designed to help you reach your goals of successful property investment for future financial security so you can create the life you dream of.

Invest in your future with the Capital Properties Property Investor Planner, the best 4-in-1 planner for property investors in Australia! Then come along to our FREE Capital Properties  Discovery Session where we’ll help you put these plans into action.

Our Property Investment Tools & Apps and Capital Properties Pinnacle Support Program will support you every step of the way.

On the go? Here’s 30 seconds of take outs:

• As ex-ADF members, Capital Properties understand the barriers and opportunities ADF members face when it comes to property investment.
• The Capital Properties Property Investment Planner was created by Capital Properties founder, Marcus Westnedge.
• The user-friendly planner has tools, tips, and strategies to help you stay focused & learn to prioritise goals & tasks.
• This is Australia’s best property investment planner with daily inspiration, mindset evaluation, hourly schedule, personalised goal setting, and there’s nothing stopping you from starting right now!

Keep reading >>

Designed by ADF Investors, for ADF Investors

The Capital Properties Property Investment Planner was developed by seasoned property investors who understand the challenges and opportunities in the Australian property market, as well as the barriers and opportunities you’ll experience as ADF members.

Marcus Westnedge, the founder and director of Capital Properties, brings a wealth of experience to the world of property investment. He joined the Royal Australian Navy at 17, bought his first property at 19, and built a multimillion-dollar portfolio before leaving the Navy.

He created a 7 step to successful property investment strategy that’s helped thousands of ADF members get on top of their financial literacy and use their disposable income to build generational wealth.

And because Marcus is passionate about helping others achieve property investment success, he’s developed this unique Property Investment Planner to get you started.

What makes this Property Investment planner the best?

It’s not just another generic planner; it’s a roadmap to help you navigate every step of property investment.

This comprehensive planner is packed with tools, tips, and strategies to make sure you stay focused and learn to prioritise goals and tasks like a seasoned property investor. It covers everything you need, including:

1. Building better habits: Success in property investment starts with cultivating the right habits. Our planner provides insights and exercises to help you stay focused.
2. Increase productivity: We’ll show you how to maximize your productivity, so you can make the most of your time and resources.
3. The ‘Well-Formed Outcome’: Learn this specialised goal-setting technique to create a plan of attack and hit each of your targets.
4. Self-evaluation for success:  Self-awareness is key to successfully setting goals, tracking progress and making necessary adjustments.
5. Yearly ‘mind map’: A visual mind map helps you maintain clarity and focus on your property investment goals and plans for the year ahead.
6. Annual budget template: Get a handle on your finances with our accurate annual budget template. Know where your money’s going and plan accordingly.
7. ‘Personal Action Sheet’ and ‘Personal Action Plan’: Monitor your progress toward your goals with our monthly templates.
8. Weekly strategy planning:  Consistency is key. Our weekly strategy planning templates make it easy to stay on track.
9. Daily ‘to-do’ lists: Get stuff done. Each day will bring you closer to your investment goals.

How the Capital Properties Property Investment Planner helps you stay on course

Like every well-executed plan, you need to measure what matters. That’s why our planner is designed to prevent procrastination and keep you focused on your end goal. Here’s why it’s your key to success:

1. Daily inspiration: You’ll find a dose of inspiration to keep you motivated every day.
2. Mindset evaluation: Discover what a winning mindset looks like and adjust yours for success.
3. Hourly schedule: Keep track of your daily activities and create healthy habits that’ll keep you accountable.
4. Personalised goal setting: Define what success looks like to you. What are your career, financial, and personal goals? Think about family time, spiritual growth, recreation, and your long-term goals.
5. User friendly: We’re all about helping you achieve success in property investment, so our planner is easy to use and gets you there faster.
6. Undated: You can start using it right now, no need to wait for a specific date.

Your journey to property investment success starts here. With our Switched-On Strategy Series and Capital Properties Pinnacle Support Program you’ll have the full support of our experienced team.

So, make the first move and make sure you don’t miss out on this opportunity to take control of your property investment future. Purchase your copy of the Capital Properties Property Investment Planner today and set yourself on the path to success.

 

Everything you need to know about property investment in a nutshell

It’s been proven time and time again that property investment is a sure-fire method of making the most of your Australian Defence Force (ADF) wages for future financial success. With informed decision-making, a solid understanding of the basics, and a proven investment strategy, property investment can provide an additional income and long-term wealth.

In this Property Investment 101 blog post, the experts at Capital Properties will cover all the basics you need to know about property investment in Australia. We’ll discuss why you need a savings plan, what your minimum savings amount should be and how and why you need to get pre-approval. As well as why you should engage a Buyers Agent, and lots of other vital information you’ll need before you can move forward with property investment.

Come along to a FREE Capital Properties Discovery Session that’ll take you through Property Investment 101 in the most efficient way. Our team works with ADF members who are just starting out, all the way through to helping our clients manage multi-million-dollar portfolios. The best time to start is now.

On the go? Here’s 30 seconds of take outs:

• Start a savings plan by looking at your income & expenses, then set up a regular direct debit into a property investment fund.
• Capital Properties recommends a minimum saving of 10% of the purchase price of the property.
• Check out eligible Australian Defence Force (ADF) financial benefits.
• Getting loan pre-approval is essential as it saves time, money & heartache.
• Work with a Buyers Agent who understands the ADF lifestyle & someone who specialises in regional and local area investments.
• Research: location, property type, rental yield, capital growth, building inspections & financing options.
• Work out cash flow and investigate tax implications.
• Continue to monitor and adapt your property investment strategy for future growth.

Keep reading >>

Why do you need a savings plan?

It’s essential to have a well-structured savings plan in place before you can even begin to think about where and when to invest.

As an ADF member, using your steady income to build your savings with the goal to invest is key to creating the future of your dreams. A savings plan helps you set realistic financial goals so you can know when you’ll have enough for a house deposit.

How to start a savings plan?

• Read our ‘5 Top Tips to start your savings plan’ blog post.
• Work out your current expenses, including rent/mortgage, energy bills, telephone & internet, medical & dental, groceries, car/transport costs, insurances etc. Capital Properties Budget Planner will help.
• Once you’ve figured out your expenses, look at the surplus, or figure out where you can save some extra dollars, then set a savings goal for each fortnight (or week/ month).
• Open a separate savings account to manage your property investment fund.
• Set up a direct debit so that the money goes into that account before it gets spent.
• Become familiar with your incomings/outgoings so you’ll learn how to manage potential investment costs.

How much of a deposit do you need for property investment?

As a general rule, banks will only lend first-time property investors money if they have between 5% to 20% of the purchase price of the home in genuine savings.

At Capital Properties, we recommend that potential investors save a minimum of 10% of the purchase price of the property to get started. 5% to cover the minimum deposit required to secure the home loan and the remaining 5% should cover the additional fees, such as legal fees, property inspections and potential renovations.

The more savings you have to invest, the better. One, it means you’ll pay less interest over time. And two, with a deposit of 20% or more, you won’t have to pay lenders mortgage insurance (LMI).

Australian Defence Force (ADF) financial benefits for property investment

Australian Defence Force (ADF) members are often eligible for financial benefits that can be used towards property investment. For example, the Home Purchase Assistance Scheme (HPAS), Home Purchase or Sale Expenses Allowance (HPSEA) and the Defence Home Ownership Assistance Scheme (DHOAS).

These benefits/incentives can help you secure a loan with lower interest rates and fewer fees. We’ve discussed these in more depth in the blog post: “Buying a house while in the Defence Force”.

Why you need pre-approval

We’ve written a whole blog post on pre-approval before: “Why being finance ready pays dividends”. In summary, pre-approval is confirmation from a lender that you’re eligible for a certain loan amount based on your financial situation, credit history, and ability to repay the loan. Getting pre-approval for the loan before you start searching for your ideal investment property will save you time, money and heartache.

The benefits of pre-approval

• Pre-approval gives you a clear understanding of your budget, allowing you to narrow down your property search.
• You have a much stronger negotiation position with pre-approval. Sellers often take pre-approved buyers more seriously as they’ve demonstrated their ability to secure financing.
• With pre-approval, you can move quickly when you find the right property, reducing the risk of missing out on a good opportunity.

How to get pre-approval

• Complete a finance application with your lender.
• Provide supporting documents. That’s usually:

• Proof of identification (driver’s licence, passport, birth cert. etc.)
• Proof of employment/income (payslips, tax return, bank statements etc.)
• Proof of genuine savings (deposits made over several years)
• Overview of living expenses and any debts.

• The lender will process your application. All going well you’ll be issued with a pre-approval letter within a couple of weeks (sometimes faster).
• Pre-approvals typically last 3 – 6 months.

Working with a Buyers Agent

Navigating world of property investment can be overwhelming, especially for first-time investors and time-poor investors. This is where a Buyers Agent can provide invaluable help. Finding a Buyers Agent who understands your unique challenges as an ADF member and someone who specialises in investments (in regional and local area markets) are worth their weight in gold.

Why working with a Buyers Agent is a smart move:

• Searching for the right property, attending inspections, and carrying out due diligence takes time that many ADF members don’t have. A Buyers Agent will navigate this for you.
• Buyers Agents have in-depth knowledge of the local property market, including property values, trends, and growth potential. They’ll guide you to make informed property investment decisions.
• Get access to off-market properties with superior investment potential.
• Buyers Agents are skilled negotiators who can secure the best deal for you.
• TheCapital Properties Buyers Agent service will help you find your ideal property and negotiate the lowest price and settlement with ease.

Research: Location & property.

Thorough research is the cornerstone of successful property investment. Before making any decisions, take the time to research various locations, property types, and market trends. Factors to consider include:

• Location

Look for areas with strong rental demand, infrastructure development, and potential for capital growth. Proximity to amenities, public transport, schools, and employment hubs can significantly impact a property’s desirability. Think about trends driving the market, for example the recent push towards “Lifestyle and the property decision making process”.

 

• Property type

Consider the type of property that will appeal to your ideal tenant. Houses, units and townhouses all offer different advantages and potential challenges.   Think about the number of rooms required and look for properties with features like air conditioning, off-street parking, and modern appliances that’ll appeal to those tenants. The ADF property buyer checklist will help with some of these decisions.

• Rental yield

Calculate the potential rental income in comparison to the property’s purchase price. A higher rental yield = a more financially viable investment.

• Capital growth

Research the capital growth of the area to determine its investment potential. While past performance won’t predict future results, it can provide insights into the market’s behaviour. Access the Capital Properties Australian Property Market Report for up-to-date property statistics.

• Building inspection

Before you make an offer on an established property, make sure you get a building inspection. It’ll give you a clear idea of the property’s condition and leverage for negotiation if there’s any issues. Our blog post “Why use a building inspector when constructing” is a great place to start.

Property investment financing options

It’s essential to have a good understanding of your financing options. Different loan types can impact your cash flow, tax deductions, and overall financial position. Some common loan structures include:

• Principal and interest loans (P&I)

In a P&I loan, you make regular payments that cover both the principal amount and interest, gradually reducing your outstanding debt over time.

• Interest only loans

With an interest-only loan, you just pay the interest on the loan for a specified period (usually 1-5 years). This can free up cash flow for other investments but won’t reduce the principal amount.

• Fixed vs variable interest rates

Fixed rate loans offer more certainty around repayments, while variable rates can fluctuate with market conditions.

• Offset account

An offset account is a savings or transaction account linked to your home loan. The balance in the account offsets the loan principal, reducing the interest payable on the loan.

Property Investment cash flow and tax implications

As with any source of income, property investment comes with legal and tax implications that you need to be across. During a Capital Properties Strategy Session, we cover everything you need to know about managing cash flow and tax implications, including:

• Income
• Rental appraisal
• Interest rates
• Loan amount
• Holding costs

Tax considerations:

• Cash flow/gearing:

Where the rental return is less, the same as, or more than your expenses and its effect on your annual tax return. Read more in the post “Property cash flow or gearing, negative, neutral or positive”

• Stamp duty:

A state-based tax on property transactions which depends on the property’s value and location.

• Capital gains tax (CGT):

CGT is payable on the profit made from selling an investment property. The rate depends on your income and the length of time you’ve owned the property.

Ongoing Property Investment strategy

It’s essential to monitor and adapt your property investment strategy on a regular basis. You must be aware of tenants’ requirements, property maintenance, market trends, and keep on top of all incomings/outgoings associated with the property

As your financial situation evolves, you can start leveraging your existing property portfolio to expand your investments. This could involve refinancing to access equity or diversifying your portfolio with different property types or other locations.

If you’re still wondering where to start with property investment, the Capital Properties team can help you navigate the entire investment process. Start by booking into our free Discovery Sessions. This property investment 101 will help you make informed financial decisions, so that you can confidently navigate the property market and make the most of your investment opportunities.

Check out our FREE Property Investor Tools and Apps and download a copy of our book, Property Investment SOP  – essential reading for all property investors and first home buyers.