As you might imagine, our property consultants get asked a lot of questions.
That’s great by the way, and when you talk to one of us, make sure you ask lots of questions too.
So anyway, I asked them to let me know what they get asked most often, so I could answer them for you.
Chances are one of these questions might be yours.
Q) What Exactly Do AllianceCorp Do?
A) There are a lot of people who are active in the market, but not many come close to offering the range of services we do.
We are one of Australia’s largest full-service property investment consultancies.
What this means is we help investors like you get into the market, and keep growing their portfolios to achieve financial goals like paying off the mortgage in less than half the time, generating $2,000 passive income every week, reducing tax and much more.
To top it off, we also offer all the services you need, either in house or through our network of specialists.
We can create a strategy for you which is based on your goals.
And then we help you implement it by securing bank finance, sourcing the exact properties which suit your strategy, and we help you with all the extra services such as obtaining a depreciation schedule, finding a conveyancer, a property manager, and even an accountant if you need one.
We do this so investing is as simple as possible, and available to people who otherwise don’t have the time or skills to do it themselves.
Q) Where Is The Market Heading?
A) This is the million dollar question.
Everything we see tells us that the market is heading up.
Capital growth, rents and stability.
We’re in a period of high population growth, combined with a severe shortage of houses.
Even if we halved immigration, it would take years before we build enough houses to balance out the market.
This is why house prices and rents will continue to rise.
Add to this the likelihood that rates will continue to trend down, and we have a very stable real estate market which will continue to prosper for many years to come.
Q) Will The Bank Lend Me More Than I Can Afford?
A) Cash flow is a pretty important issue. Especially if your income is fixed like most people’s.
What if rates go up?
What if my rents fall?
Will the bank lend me more than I can afford to repay?
It’s a fair concern to have, especially since banks aren’t known for acting in your best interests.
However, even if they wanted to lend you more than you can afford, they can’t.
There’s a thing called the assessment rate, which is a rule the banks need to follow.
It comes from APRA (the Australian Prudential Regulation Authority) which is basically the government’s body which regulates banks.
They force the banks to add a 3% margin to the interest rate on your loan application.
In other words, if the interest rate is 6%, they do their assessment at 9%.
Is it too high?
Yeah, probably. Especially now rates are heading down.
But they certainly saved the bacon of a few people who got in when rates were rock bottom during Covid by stopping them borrowing too much.
The assessment rate is just one mechanism which stops people getting into trouble.
Interest rates are also going in your favour by going down.
Another is the likelihood you’ll get regular pay rises.
And of course, rents typically increase over time as well which also helps.
Finally, we have our Master Facility which helps with cashflow as well, and we can explain this when we talk.
Q) You Keep Saying I Should Invest In Victoria. Are You Nuts?
A) OK, there’s a lot of negative talk about Melbourne and Victoria at the moment.
However, our research tells us that a Melbourne boom is coming.
And nothing’s going to hold it back.
We published an article on this previously, and it’s as relevant today as it was then.
You can click here to read it.
It’s currently the 6th most expensive housing market in Australia, much lower than its traditional 2nd place.
Earlier this year it became the fastest growing market in the country.
The economy is very stable and diverse, and is attracting newcomers every week. Victoria’s population growth is second only to mining-hungry Western Australia.
The state spends 20% of its budget on infrastructure. This is 2.5 times more than WA in 2nd place.
Rental affordability remains excellent, and it’s ranked 4th globally for livability. Personally I wouldn’t live anywhere else.
The way we see it, it’s like a volcano ready to erupt.
You might think differently, but don’t say we didn’t warn you.
Check it out.
Q) Why Do You Pick Some Areas Over Others?
A) There are big macro factors which drive the Australian housing market overall. These include interest rates, political stability and so on.
However, the biggest drivers are micro factors which affect different areas.
Unemployment, for example, might be a national figure. But in reality it’s different in different states, and even in different cities and towns in those states.
New infrastructure and employment opportunities are even more localised.
And it’s why overall immigration numbers aren’t anywhere near as important as where the people actually go.
By understanding all these factors, you can identify areas which will grow more, grow sooner and deliver higher rental returns.
I wrote about this recently, and you can discover how we select which areas to invest in.
Click here to discover how we keep selecting the best areas to invest in
Q) Why Pay AlllianceCorp Fees, When I Could Do It Myself?
A) If you want to do it yourself, sure.
Many investors have.
There are three reasons we give for working with us.
One is we start by building a strategy with you.
This identifies what you need to invest in, and in what order – so you: a) build wealth sooner, b) generate passive income and c) can continue to invest without getting rejected by the banks.
Another reason is we have all the services in-house.
Investing can be pretty overwhelming, and this is often the difference between getting started, or sitting on the sidelines, watching everyone get wealthy because you don’t know what to do first or next.
Finally, we secure the best properties in the best locations, according to the strategy we’ve worked out with you.
Working with us means our acquisitions team source properties for you. These are often off the market, and come from our network of developers and real estate agents.
Our services can save you more money than you spend with us, and give you better deals.
In fact, just 2% additional growth over 10 years is worth more than $300,000.
It’s why smart people surround themselves with experts and rely on their advice, instead of trying to do everything on their own.
Have I answered your questions?
I hope I’ve answered your biggest questions.
However, we get asked all sorts of questions on all sorts of topics around real estate and wealth creation.
And one of the great tragedies is when someone tells us they’d have invested years earlier, if only they knew the answer to a question they had.
Whatever you do, don’t let this happen to you.
If you have a question, we want to answer it.
I know investing in real estate isn’t for everyone.
This is why our wealth planners are happy to spend time with you one-on-one to answer any questions you have.
You can drill them with your toughest questions and put them to the test.
You can ask them how real estate could help you achieve your financial and lifestyle goals.
And all we ask is you take the answers seriously, and if you decide to invest, we’d appreciate you considering our help.
To book some time with one of our planners, enter your details below.
We’re more than happy to help.
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