T N E TM
S E V N I Y T R E E D I P U O G R P S E C I V SER
PROPERTY INVESTMENT SERVICES GUIDE
What is a Property Investment Services Guide ?
The Property Investment Services Guide (PISG) is an important document. It is designed to provide information about the property investment advisory services of SPG and it authorised representatives. It aims to assist you in deciding whether to use the services we offer. It also provides you with an understanding of what to expect from your interactions with us.
PROPERTY INVESTMENT SERVICES GUIDE
If you chose to use our services you may also receive from us a various Property Investment Profile (PIP), Statement of Property Investment Advice (SOPIA) and minutes/outcomes of any subsequent Portfolio Review meetings in the form of Record of Advice (ROA)
What type of documents can I expect to receive from my property investment advisor?
To invest in any of the properties we have presented you must complete the Expression of Interest (EOI) attached to the relevant PIP. The PIP contains information about the particular property and will assist you in making an informed decision about that investment. If we provide you with personal property investment advice we will give you a SOPIA. Personal property investment advice is advice that takes into account one or more of your objectives, your financial capacity and needs and your risk profile. The SOPIA will contain the advice, the basis on which it is given, and information about fees, commissions and any associations which may have influenced the advice. On an annual basis at a Portfolio Review Meeting with you, a ROA will be provided if there have been significant changes in your personal circumstances or the basis of the advice has significantly changed since your SOPIA was provided. If your circumstances remain the same a ROA will not be provided. You have the right to request a copy of your SOPIA or ROA at any time.
PROPERTY INVESTMENT SERVICES GUIDE
?
Who is
SPG
• The property investment planning process and what types of documents you can expect to receive from your property investment advisor. • How we and our associates are remunerated for our services. • The SPG Dispute Resolution Procedure and how you can access them. • Our Privacy Policy and your confidential information. • Other Questions Answered
PROPERTY INVESTMENT SERVICES GUIDE
What Property Services do we provide Advice and deal in?
SPG property investment advisors are authorised to advise in a wide range of residential properties investment offered by leading Developers, Builders and Sellers, that generally may not be available to the public market. SPG researches a wide range of properties and property management arrangements and makes a selection of those it considers worthy of presentation to our clients. While there may be other products and services suitable for you, we only advise and deal in products and services we have researched.
PROPERTY INVESTMENT SERVICES GUIDE
What is the Property Investment Planning Process?
• Goals and Current Reality: Providing a ‘Financial Fact Find’ (‘FF’) to obtain relevant information about your property investment needs and goals plus your current situation so that your property investment advisor can provide the most appropriate advice. This will include consideration of your risk profile and risk appetite. • Strategy: Create a strategy to support your property investment goals over time. This is the framework from which decisions are made to support your continued success. This strategy can be reviewed and optimised from time to time as your personal and property investment circumstances change. • Research Property Solutions: Research property potential solutions with the aim of assisting you to satisfy your identified needs and objectives. Our property investment advisor is able to source new properties on which research andanalysis has been undertaken, and provide extensive PIP reports. • SOPIA: Providing you with a written Statement of Property Investment Advice (SOPIA) which sets out the discussions we have had, your selections of property/ies and your considerations in moving forward. It provides evidence based information about the key issues involved and remuneration received as a result of the provision of professional services to you. • Property Investment Analysis (PIA) Report: As part of the SOPIA your property advisor will provide you with a number of detailed PIP reports on properties if interest for your consideration. The PIA contains further specific information about the property/ies you have selected which you should consider carefully. This is a current overview of the evidence to support potential capital and rental growth for the property. • Implementation and Initial Management: Your instructions to proceed with property/ies selected and support through the finance and settlement and Leasing process. • Ongoing Services: Agreed on a basis for the provision of ongoing review and optimisation services. If, at any time, you do not understand any of the advice your property investment advisor provides or the actions they are taking on your instructions, you should seek clarification from your advisor.
PROPERTY INVESTMENT SERVICES GUIDE
What will SPG not do?
We will not provide advice on properties we have not researched and endorsed. We will not personally provide advice on general or personal ďŹ nance maters, including taxation, superannuation and insurance.
PROPERTY INVESTMENT SERVICES GUIDE
What do we expect from you?
Any advice we provide must be appropriate to your personal circumstances, based on our review and assessment of your situation. As such we expect.
PROPERTY INVESTMENT SERVICES GUIDE
Your Obligations in seeking Advice.
We expect you to provide us with accurate information during the ‘Financial Fact Find’ process so that we can ensure that we have a reasonable basis on which to provide you with advice.You have the right not to tell us personal information. However, if you don’t tell us, the advice you receive may not be appropriate to your needs, objectives and financial situation.
PROPERTY INVESTMENT SERVICES GUIDE
How are we remunerated for the services we provide?
Our initial meeting is free-of-charge & with no obligation. After the ďŹ rst meeting, your personal advisor will discuss the fees and charges that will be applicable to your individual circumstances. Due to the varying nature of individual client cases and various property procurement activities undertaken by SPG, our fees will be disclosed on an individual basis.
PROPERTY INVESTMENT SERVICES GUIDE
What should I know about any risk of the Investments, or Investment strategies recommended to me?
All investments are subject to risk, and can rise, and fall in value and can involve the loss of capital. That any forecasts provided by SPG, its Property Investment Advisors, or authorised Representatives are not guaranteed and are subject to change without notice. That information regarding past performance of investment options is no indicated of their future performance. If you require further understanding, you should ask and seek clariďŹ cation.
PROPERTY INVESTMENT SERVICES GUIDE
Compensations Arrangements
SPG and its Property Investment Advisors conďŹ rms that it has arrangements in place to ensure it continues to maintain Professional Indemnity Insurance (PI) in accordance with Real Estate Institute of Victoria (REIV), Property Investment Professionals of Australia (PIPA) &Property Investment Association of Australia (PIAA). In particular our PI insurance, subject to its terms and conditions, provides indemnity up to the Sum Insured for SPG and our authorised representatives in respect of our obligations and professional conduct. This insurance will continue to provide such coverage for any authorised representative who has ceased work with SPG for work done whilst engaged with us. A copy of our CertiďŹ cate of Currency and the Insurance policy terms and conditions will be made available on request.
PROPERTY INVESTMENT SERVICES GUIDE
Do any relationships exist whichmight inuence the service or advice I received?
No. SPG is privately owned and there are no relationships that will inuence the advice that you receive from them. SPG and/or your property investment advisor does not hold any interest in any property being presented to you.
PROPERTY INVESTMENT SERVICES GUIDE
Will you give me advice that is suitable to my investment needs and financial circumstances?
Yes. However, to do so we need to find out your individual investment objectives, financial situation and needs before we recommend any property investment to you. We will be specific as what our advice will cover and the limitations of that advice because of our expertise or our authority under law. SPG will/may require your consent to seek professional advice from nominated financial strategist’s and your Accountant. You have the right not to divulge this information to us, if you do not wish to do so. In that case, we are required to warn you about the possible consequences of us not having your full personal information. You should read all the warnings and disclosure statements carefully.
PROPERTY INVESTMENT SERVICES GUIDE
Resolution of Complaints
We are committed to providing quality advice to our clients. This commitment extends to providing accessible complaint resolution mechanism for our clients. If your property investment advisor has failed to meet your expectations, you should take the following steps; 1. Contact your property investment advisor and discuss witharea of concern. 2. If your complaint is not satisfactorily resolved within 7 days, you should lodge a written complaint to: SPG Compliance Manager Level 2, Riverside Quay, 1 Southbank Boulevard, Phone: 1300 422 249, SOUTHBANK VIC 3006 Email:melbourne@substantiapropertygroup.com.au The Compliance Manager will investigate your complaint and attempt to fairly resolve it as soon as possible. 3. The Compliance Manager will aim to reach a satisfactory resolution of the complaint within forty-ďŹ ve (45) business days of receipt (or 90 days) where we inform you more time is required.
PROPERTY INVESTMENT SERVICES GUIDE
Your Information And Rights To Privacy
SPG abides by the National Privacy Principles established under the Privacy Amendment (Private Sector) Act, 2001. SPG’s Statement of Privacy Policy is attached.
PROPERTY INVESTMENT SERVICES GUIDE
QUESTIONS ANSWERED Are you accountants, ďŹ nance brokers or ďŹ nancial planners?
No. SPG, is a duly licensed estate agent, and holds a corporate estate agent licence (Estate Agent Licence no. 071402L). Andrew Majdlik is the Licensee and Officer in Effective Control. SPG is a property consultancy practice that specialises in investment property acquisitions, sales and portfolio management.
PROPERTY INVESTMENT SERVICES GUIDE
What qualifications and experience do you have?
All the advisory staff at SPG have relevant qualifications and broad industry experience. To ensure that these skills are maintained, we have detailed procedures for monitoring and reviewing their continuing professional development. Further details on individual’s credentials and experience can be provided on request.
PROPERTY INVESTMENT SERVICES GUIDE
Can I claim a tax deductions for your fees?
The general rule is that the cost of portfolio management and advice is an expense item and therefore a tax deduction. However some parts of the advice relating to strategy or acquisition matters may not be deductable. Ongoing advice regarding your property portfolio may be tax deductable.
PROPERTY INVESTMENT SERVICES GUIDE
What do you give advice on?
SPG is licensed to give advice and deal in real property. For issues that require specialist knowledge such as; Self-managed Superannuation Funds (SMSF), estate planning and ďŹ nancial planning, we can refer you to an appropriate professional. Whilst advice is offered to you for the beneďŹ t of your own real property/investment portfolio and informed decision-making, we recommend our Clients seek their own independent professional advice where appropriate.
PROPERTY INVESTMENT SERVICES GUIDE
Do you have any relationships or ownership ties with any financial institutions?
No. SPG is independently owned and is not associated with any broker, bank, insurance company. Any relationships SPG has with any financial product issuers will be fully disclosed to you.
PROPERTY INVESTMENT SERVICES GUIDE
In-home consultation – No fees and no obligation
What are your fees?
Your1st In-office appointment- For the initial consultation and preparation of a ďŹ nance strategya booking fee is charged. The fee for this service is $275 (inclusive GST) during weekdays or $330 (inclusive GST) on saturdays. This fee is refundable upon attendance at our office of the original appointment date and time. In the event of a cancelled or unattended appointment, this fee will not be refunded.
PROPERTY INVESTMENT SERVICES GUIDE
Engagement Services No fees and no obligations
Our Property Investment Portfolio strategy– This fee is far less than most of our competitors. Our fee for service for consultations, creation of your strategy, identification of next steps, preparation of your written SOPIA, including a minimum of 2 PIP and support services during the transaction is based on the complexity of the recommendations and/or the time associated with the research and analysis of your situation. The fee for this service is $3,500 to $6,000 + GST for a simple to complex situation*. If you are charged a ‘Fee for Service’ and you proceed to purchase a property through SPG, your property investment advisor may rebate you part or all of any fee that you have paid in regards to the Property Investment Portfolio Strategy.
PROPERTY INVESTMENT SERVICES GUIDE
Our Property Investment Portfolio strategy
This fee is far less than most of our competitors. Our fee for service for consultations, creation of your strategy, identification of next steps, preparation of your written SOPIA, including a minimum of 2 PIP and support services during the transaction is based on the complexity of the recommendations and/or the time associated with the research and analysis of your situation. The fee for this service is $3,500 to $6,000 + GST for a simple to complex situation*. If you are charged a ‘Fee for Service’ and you proceed to purchase a property through SPG, your property investment advisor may rebate you part or all of any fee that you have paid in regards to the Property Investment Portfolio Strategy.
PROPERTY INVESTMENT SERVICES GUIDE
y t r e p o r P t r n u e O m t s e Inv ership b m e M
The fee is $3,500+GST ($3,850 inclusive GST). This Membership is a one-off cost which covers; the cost of arranging an initial third party financial strategist to review the clients circumstances and provide advice on funding, evaluating the clients borrowing and investment capacity;the cost of arranging a financial planner for one consultation to review the clients current superannuation position with the ultimate goal of seeing wether or not an investment property could be acquired via the use of a self-managed superannuation fund; the cost of arranging a financial planner for one consultation to provide the client with a risk assessment; the cost of a property investment advisor to research properties that fit the suitability and needs of the client and prepare a minimum of 2 PIP with relevant PIA reports; the cost of arranging a financial strategist to investigate the funding options, initiate thefunding arrangements and facilitate the loan process through to settlement; the cost of arranging a solicitor/Conveyancer and covers the legal costs associated with the acquisition of the clients first investment property;the cost of evaluating and recommending a property manager; the cost of arranging and obtaining ‘Landlords Insurance’ from a panel of Landlords Insurer’s, for the clients first investment property for the first year (at the choice of the client, subject to the client’s acceptance of the Product Disclosure Statement); the cost of arranging and obtaining a Depreciations Schedule Report from a qualified quantity surveyor for the client first investment property;the cost of arranging a financial strategist to conduct an annual portfolio review, in conjunction with an SPG property investment advisor to bring you up to speed with the status of the real estate market. The services included with the membership are only provided on the proviso that the client purchases a property through SPG, and the Landlords Insurance is subject to the client’s acceptance of the Product Disclosure Statement from our Insurer Panel. Once the client commits to the Membership, the client is entitled to utilize any/all of the services offered.
PROPERTY INVESTMENT SERVICES GUIDE
Property Sale SPG may receive a commission, benefit, rebate, discount or any other form of valuable consideration (‘commission’) as a result of a purchase of a property by a purchaser, or settlement of an effective sale. As commissions are negotiable, our fee will vary depending on the amount negotiated with the selling vendor, as commissions are negotiable.
Property Sale Other Services
Other Services Where other meeting are held and/or other strategic advice is sought and provided, an hourly rate of $220 per hour is applicable. *If your services become more complex your property investment advisor may need to vary this fee during engagement and to ensure transparency of fees will complete another engagement letter. As detailed, fees will be fully set-out in your letter of engagement, repeated in your SOPIA and explained by your property investment Advisor prior to the implementation of the recommendations.