Canterbury Property Services

HI dp, Terry and everyone else,
just thought I'd let you know Our slab is done and the Builder will be getting Framing Trusses Roof etc done over the next few weeks, its all happening

 

Good luck with it Venom

There is also a short article on capitalising interest and borrowing to pay investment expenses in the latest Bantacs newsletter at
http://www.bantacs.com.au/newsflash/current_issue.pdf
(issue no. 262)

Also ATO correspondence on the issue
http://www.bantacs.com.au/docs/Latest-word-from-the-ATO-on-Interest-Deductions.pdf

 

Funny you should mention Bantac's, as they are the Acountants that Canterbury use.

 

Great news venom! Glad that it's all starting to happen for you.

 

Fantastic Venom. our work is going to start next week.. we have been given 14-16 weeks to complete. The builder seems very professional.... I will keep you posted as we progress.

 

I thought Canterbury were an accounting firm?

 

No Terry they are not, they are like a mortage broker, but instead of setting you up and thats it, they will stay with you and guide you through every step of the way, they have like an in house group of accountants lawyers builders etc that you can use or not, up to you but they all work together to get you the best and most out of every step of their structure they work out for each client. they do have some 6000 clients on their books, and after a lot of searching, not one bad review.
I know people will still be sceptical, but we are in, both feet first
and as I said their accountants are from Bantac's.
dp so glad things are moving forward for you too

 

Interesting.

How is the fee structure with Canterbury? Can you find your own property or do they sell the properties or steer you into properties?

 

Dear all,

I had a meeting with Canterbury at their Brisbane office earlier last week, and I want to share my experience as promised previously

As mentioned in my previous replies, I am planning to purchase my very first home for investment purpose only. At the meeting, Canterbury gave me a project of what I could do in the next 5 years and also what I could achieve in the next 15 years.

Base on my current income, Canterbury suggested me to purchase an investment property and also to set up an offset account. All rental income as well as all other personal finance will be directed into this account. On the other hand, interest payable to the bank will also be directed out from this account. As the account grows to approximately 40k (project 18 months in my situation), this fund will then be withdrawn and use as a deposit for the 2nd property. The same process will then be repeated by having all available funds for the 1st and 2nd property being directed into the very same offset account, and repayment for the 1st and 2nd property out from the account.

After another 18 months, the offset account should have accumulated approximately 50k. This fund will be then used to pay part of the principle of the 1st property. At this stage, an assumption was made that the 1st and 2nd properties have increased in market value, plus the 50k I made to the 1st property, altogether will be used as an assurance for me to purchase the 3rd property which means no deposit will be required. Then at this stage, I have to apply for a "loan limit" (I am sure this is not the right term), which will allow me to capitalize the interest of the 2nd and 3rd properties and have all fund focused on paying off the 1st property completely. After I am done paying off the 1st one, then I will have to move on to the 2nd property and then the 3rd property accordingly. The paying off process will take approximately 11 years, assuming rental income and my personal income remains unchanged.

To allow the process to perfect, Canterbury said share investment and commercial property investment could play a role if the client desires.

I sure for whose of you who have already met with Canterbury would find what I say a bit boring as I assume the process is more or less similar.

Everyone could do the above by themselves, but what I find Canterbury unique is their property searching criteria. At the meeting, Canterbury didn't disclose their entire searching technique; however, I was told that they only (99.9% of the time) deal with brand new property to allow a greater tax return. Canterbury hunts lands in areas it sees fits and work with its clients and its associated builders to develop brand new properties. This would allow the "development" tax to be deducible. Also, properties will only be built in saturated locations lived by educated population. My feeling of Canterbury is that they are very confident with their choices, and that's why they are willing to implement the rent subsidy policy, which I my opinion, is not likely to be executed.

My overall feeling with Canterbury is quite positive. I wasn't being push to do anything nor I was told that I am doomed to fail if I don't follow its instruction. At this stage, all I have are options that I could executed if I desire. Canterbury emailed me a form for me to complete if I wanted to. At the end of the form, it discloses how Canterbury gets paid and whether or not the client is required to pay anything, which I quite like.

And last, please excuse me for my poor English grammar and sentence structures as I don't speak English as my first language

Thanks and good day,

Kingsley

 

Hi Kingsley, You have summed up nicely. Good things about Canterbury , they don't push for action. Its up to the individual to take the next step. Keep us informed about the progress. I have been told about the commercial / Blue chip shares options. I will look later in the process.

I can give the thumbs up to their finance arm. They are very helpful bunch.

 

Hello again Kingsley, dp and all you others, so glad that you are walking the walk with the guys at Canterbury, so great to finally see positive people moving ahead, instead of sitting on the fence asking the same questions. This is real people, its not trying to rip off the ATO, its all within there guidelines as I've said before, Canterbury are not out to rip us off either, they do get comission from the builders and land developers but that do'esnt get added to our price as I have researched the prices of homes and land in the area our IP is being built and its all the same.
This is not a get rich quick scheme, but a better way of accumulating wealth, claiming all that you are entitled to, Paying it all off the smarter way, instead of the hard way ie P&I on both your PPoR and IP at the same time, and maximizing what you are aloud to claim, the reason for the New properties,
I am Super Happy there are at least two more People on board since I joined this Thread, so we can keep in touch with each others progress, hope to hear again from you soon, PS just sent away another Draw Down Form for the next stage of our Build.

 

Build Progress

Hello Everyone,

Just wanted to share,... as of today we have moved to Frame stage. SO FAR , no issues from the Canterbury's builders. we get the photos regularly about the progress.

Just have to wait to see them complete the work.

Venom : how's yours moving along...

Anyone else started building with Canterbury

 

Nearly There

Hi dp, and everyone else,
I have been in NZ for two weeks, and have just returned.
Our IP is past the lockup stage, and over the next few weeks they will be doing the tiling painting landscaping etc, so wont be long till our IP starts earning its keep, so to speak haha.
Hope there is more good news from anyone else, would love to hear about it.
keep in touch, through your journey ok.

 

It is great that IP's are being built. I would like to hear more about $$ behind it.

For example do you dp and venom know for example what is:
.. Your out of pocket expense on your IP property (after all tax deductions, depreciations...)
Is it positive ,neutral, slightly negative or negative?
And if it is negative (costing you some own cash) is it added to cumulated interest over time so when you pay PPoR in X number of years you would have to than pay it off once focus goes to paying off the IP that is soon going to be used for paying off PPOR.

 

Progress Update

Hello All , Just wanted to give you an update on the progress of our Investment. I have been told practical completion is expected around last week of May. I've Made contact with the management agent to start looking for tenants. Venom.. how's ur investment travelling along.. Has anyone else started with Canterbury?? your thoughts?

 

Update

Hi dp & everyone, that's great dp, ours is a little ahead of yours, we will be organizing a time to see the property with Steve, who doe's the final inspection before keys get handed over to our rental manager, this should be in a weeks time, I do like to that the rental manager is not just part of a real estate agent, that sells property as well, and everything else they do, these guys only do Rentals, so have a lot more time to work with our properties if you Know what I mean Sorry aint been on here as much as I would like, but will still keep you all updated, just wish more of you would get off the fence and do something positive for yourself, Canterbury know their stuff.

 

With ours, like paying off two credit cards minimum at the same time, nothing moves very fast but if you are paying off one first with twice the amount, sure the interest goes up on the other but not at the same rate you are paying off first one, then you pay everything into the second one, this is not taking into account the interest ( not the capitalized portion of coarse) and deductions on the IP you can claim, Its not magic, it is just a better, faster way to pay them off, plus you don't stop there, after you start paying off the IP, you buy another then you have the money you were paying on your PPoR, and your two IPs going into one, and just keep going if you like, it goe's faster and faster the more you invest. coming from Wellington NZ, if you are in a position to do it, do it, I love NZ but very hard to make money this could be the way for you

 

Venom. so you are using a handover company ahh? About the rental manager ,,,, are they one of Canterbury's recommendation or your own? .

In order to get their rental guarantee for 18 month, I think I've have to go with the Canterbury recommend rental company, , but I find this company don't have much presence in the internet/ real-estate websites. I just wanted to do some due-diligence.. How about your person??

 

Hi dp, sorry I reread my last post and it doe's sound like we are using a handover co, but no, we were offered to but feel the Builder has been around a long time and would not want to ruin their reputation, so I don't think I need to go through one, The guy Steve I spoke of works for the Builder, like a Forman and just checks the property's before all the Tradies run away haha.
Yes we are using the property managers Canterbury recommended, have met them and we went through all their paperwork, they sound fine and the fee's are great as well, you can at a later stage change your P Managers if you so decide, They are called Rent My Property. is that who you were recommended too?

 

Thanks venom,,, Yes rent my property people.. Glad you have the chance to meet them and have a positive vibe. I have to suck it and see, how quickly he is going to get the clients and keep a good eye on the property... I will fly to Brissy at the end of this month to see the property.

Good luck with your new property.. hopefully you will be planning for the next one ahh?