Our Investment Properties Are For People Who Don’t Have Time To Research It Themselves.
You’ve Probably Got Questions. We’ve Definitely Got Answers.
Here’s Our Most Frequently Asked Questions.
When you invest in property it’s understandable that before you even talk to us you’ll have many questions. The following questions and answers have been put together to allow you to get the facts about every aspect of your investment property. Our open and honest system means that you always know where you stand.
In fact, we encourage you to ask any builder, property developer or house and land provider these questions BEFORE you do business with them.
If they can’t answer “YES” to them, then speak to us because we definitely can!
1. How do I know if I qualify to invest in a Legal & General Property?
How do I know if I qualify to invest in a Legal & General Property?
You can invest with us if you have about $150,000 equity in your home and if you are earning $50,000 or more. The best way to discover if you are eligible is to have one of our experienced Property Investment Consultants come to you. During this free 1½ hour meeting you will discover if you qualify as an investor. As well, you will find out everything that you need to know about our investment plan. Check out how it all works with this easy to understand 9-Step Simple Plan.
2. Why should I invest with Legal & General?
Investing in property is often, although it should not be, a very emotional decision if you are a first time investor. Having thoroughly researched the overall property market, we only offer property that has consistently achieved higher than average capital growth and with the current property shortage house prices are surging.
Investing with us also offers you a high degree of comfort in the fact that we have invested in only high achieving land estates and no other area outdoes Melbourne’s rapidly expanding South-East Growth Corridor.
3. How much money do I need to invest to get started with an investment property?
How much money do I need to invest to get started with an investment property?
Once you’ve qualified as an investor you pay $1000 deposit then leave the rest to our experienced team who manage the entire process – including land selection, conveyancing, finance and construction.
This means that if you already own your own home, or even still have a smaller mortgage, you can borrow against the equity of your home to invest. You can borrow the full amount including all associated costs for you. Then it will only cost $0 to $25 per week – the precise cost is calculated and discussed at your initial interview.
4. How do I know what suburb is the best one to invest in?
How do I know what suburb is the best one to invest in?
Legal & General have been introducing investors to the City of Casey, the fastest growing shire in Victoria since 1994. Numerous investors, including many of our staff and suppliers, now hold multiple properties which have yielded consistently high returns on their investments. In fact, there is a housing boom in this area. What’s more, it is becoming the Toorak of the South East and fast becoming the education and health ‘hub’ of the South East. Importantly for investors, The City of Casey has the lowest vacancy rates in Melbourne.
5. Can you help me find a loan and get it approved?
Can you help me find a loan and get it approved?
If you qualify, our Accredited Mortgage Broker finds loans for all our clients and secures the best deal available for you and saves you the hassle of doing it yourself. We have 30 lenders on our books – so you know you’ll get the best terms and conditions. We’ll also take care of all the paperwork.
6. Will I have to engage a lawyer to take care of all the legal paperwork including the conveyancing?
Will I have to engage a lawyer to take care of all the legal paperwork including the conveyancing?
As part of our ‘one-stop-shop’ all the paperwork for your investment with us is taken care of – you won’t have to worry about a thing.
7. What if a lender went broke?
What if a lender went broke?
If this unlikely event happened it would not directly affect you. They have loaned you the money, the property title is in your name, and as such you own the property. Your only responsibility is to keep paying the loan to a new financial lender that took over your loan.
8. What if Negative Gearing was abolished?
What if Negative Gearing was abolished?
In actual fact, the Federal Government did make this mistake in 1985 and quickly (in government time) re-introduced it approximately eighteen months later. Investors realised what they were losing in tax advantages and deserted the market in droves. Who knows what future governments will do, but, it seems unlikely that they would do the same thing again, because rents skyrocketed and unemployment went through the roof.
9. What would happen to my investment property if the economy slowed down?
What would happen to my investment property if the economy slowed down?
Economics generally move in cyclical patterns. Remember that you should always buy an investment property for the medium to long term investment strategy, and as such, you tend to ride out the peaks and troughs over this period.
However, right now the HIA is predicting a housing shortage and because of this, rents are set to rise. As well, Melbourne’s South East Growth corridor is insulated from the general market trends. This is because more people come here than any other region in Victoria. Long term property investment with the right product, in the right area, ensures your success.
10. What if interest rates rise?
What if interest rates rise?
If you are really concerned about the possibility of rising interest rates, you could opt for a fixed interest loan. If you are still unsure, you could go for a split loan i.e. part variable, part fixed. Even if interest rates do rise, you would benefit from a larger weekly tax return variation.
Of course, because house prices are predicted to surge due to the housing shortage you will ensure a high return on your investment. In fact, Legal & General’s founder has been investing in property for more 35+ years and always ridden with the variable rate – even when it was 18% – and still made himself a very wealthy individual.
11. What if I don’t have a tenant?
The fact is, when you buy the right property in a sought after area close to schools, shops, transport etc. vacancies are rarely a problem. Remember that up to 30% of the population is renting at any one time and this ratio is increasing.
Unlike many other investment property companies, we have a dedicated Property Manager who deals with the property throughout the construction process to ensure a tenant is secured as soon as the property is completed. Most importantly, we offer a 5-year rental guarantee for 11 months of every year so you can rest assured that even if your property was vacant, you would still have peace of mind.
12. How can I be sure that my house and land package will be a fixed price?
How can I be sure that my house and land package will be a fixed price?
Our fixed price contract has all the inclusions that come with your investment property. Unlike other building companies that add ‘extras’ – some even charge extra for the roof! – you’ll know up front exactly how much your house costs. Indeed, you’ll be provided with a complete set of estimated project costs so that you can see exactly how much your investment property will cost – from beginning to end.
13. Can I choose what my house looks like?
Can I choose what my house looks like?
We will give you the choice of four colour and façade ranges so that you can choose the scheme that you like best.
14. How will I know exactly how much my investment property will cost?
How will I know exactly how much my investment property will cost?
You will be provided with a complete and full set of estimated project costs so that you can see exactly what the investment property will cost from beginning to end so that there are no surprises or nasty shocks when the property is built
15. Do I have to pay all interest costs on the land and building, council rates and any other levies that are incurred during the building of the house?
Do I have to pay all interest costs on the land and building, council rates and any other levies that are incurred during the building of the house?
No. We will pay all costs on the land and building, council rates and any other levies that are incurred when building your investment property.
In other words, once you’ve paid your $1000 deposit you won’t have to pay another cent until the house is built in nine months time. This means that you will never receive a phone call from us saying that you need to pay more. Now that’s peace of mind!
16. How do I know how much depreciation I can claim on my investment property?
How much depreciation I can claim on my investment property?
Our Specialist Negative Gearing Accountant will prepare a depreciation schedule for your investment property that the Australian Tax Office will recognise as the official document that outlines how much depreciation you can claim on.
In fact, through us, you will receive a higher depreciation allowances than any other builder. All homes built by Legal & General have been specifically designed for the rental market – and for maximum depreciation. As a matter of fact, our company will get you more tax deductions than any other in Australia! Depreciation is used to spread the cost of an asset over the span of several years. Unlike other investors, our depreciation schedules are not an approximation but are actual, heavy, claimable deductions.
Moreover, Legal & General won’t stop claiming your depreciation after 5 years. We claim for the first 7 years, and then from year 8 use a diminishing measure-down to year 25. Now you won’t get that from other property investment consultants!
17. Will you liaise with the Australian Tax Office on my behalf to enable me, should I qualify, to minimise the tax I pay out of my pay-packet every week?
Will you liaise with the Australian Tax Office on my behalf to enable me, should I qualify, to minimise the tax I pay out of my pay-packet every week?
Yes we will. In case you haven’t noticed, there is a booming rental demand. According to the Australian Bureau of Statistics, middle and higher income households make up 45% of renters. This has resulted in a high demand for quality rental properties. To encourage investors and fills this demand the Government subsidises you, the private investor. This means that by purchasing an ‘off the plan’ investment property through Legal & General you will have access to tax benefits.
Our specialist Negative Gearing Accountant will liaise with the Australian Tax Office to legally minimise the weekly tax you pay out of your pay-packet – often resulting in little or no tax. Consequently you will receive a much higher return on your investment – and in some cases, will cost you NIL to own.
18. Can you assure me that your builder is reliable and won’t cut corners or take short cuts to save a dollar here or there?
Can you assure me that your builder is reliable and won’t cut corners or take short cuts to save a dollar here or there?
Our reliable builders have been with us exclusively for over a decade and they never cut corners or take short cuts to save money – your quality investment home is built to last. Not only this, our builders always meet our construction deadlines and high standards. Naturally this means that your investment will start making you money exactly when planned from day one.
What’s more, they will build it for $25,000 less than any other builder.
19. How long will it take to build my investment property?
How long will it take to build my investment property?
Legal & General guarantee delivery of your investment property in nine months – two months to transfer the land to your investment portfolio into your names and then a further seven months to complete building your house.
20. Will I receive a personalised Property Investment Analysis?
Will I receive a personalised Property Investment Analysis?
Yes. As part of our service you will be provided with a free personalised Property Investment Analysis (with no strings attached) which outlines all the cash flow projections, so that you can assess if this investment is for you.
21. Will I receive a Property Investment Projection Worksheet?
Will I receive a Property Investment Projection Worksheet?
Yes! You will be provided with a personalised (and accurate) Property Investment Projection Worksheet that shows you how the investment is projected to perform so you can plot your financial future?
22. What about stamp duty? Do I have to pay that?
What about stamp duty? Do I have to pay that?
When you invest with us you will save up to $21,400 on stamp duty because we are building you a brand new home.
Legal & General will help you safely build your wealth. Why not call us on 03 9702 5555 to arrange a free, no obligation meeting? Or send an email to firstname.lastname@example.org and we’ll get in touch with you.