FAQ

We use our data driven system to determine the top 1% of suburbs at any given time. We are licensed to operate Australia wide and are buying multiple states at any time. We then assess your specific brief based on your goals and determine the most appropriate area.

No, we only buy existing properties. There are many reasons we don’t buy brand new properties. Some of those include the likelihood of overpaying, the land to asset ratio and the delivery risk. Your strategist will be able to talk through this in more detail.

At Compound we focus on buying established units, townhouses, houses, blocks of units, and commercial properties. Our team work with our clients to plan their long term strategy based on their goals and look at what asset type they need next in their portfolio.

We provide a very comprehensive due diligence pack on all properties including flood zone, fire zone, insurance quotes, zoning, rental appraisals, suburb reports, comparative market analysis and anything else specific to that property and area. This helps you make a very informed decision.

No you don’t. One of the biggest mistakes investors make is buying through emotion. Our team will provide everything you need to be able to become a borderless investor without any need to visit the property.

We only buy existing properties for many reasons, but we do need to be mindful of maintenance. On purchase we conduct a physical inspection and condition report as well as organise a building and pest inspection which can help avoid any major issues. We then factor in an amount per year into your cashflows to allow for anything that comes up.

No you don’t need to worry about that. We buy properties Australia wide, so we rely on the local professionals for property management. As part of our process, we will identify the top performing property managers in that area and then work alongside them for the duration you own the property.

Yes, we will. We don’t sell properties, but we do help you plan the sale of your property including finding the right agent, determining the valuation as well as the method of sale. We will also assess your portfolio and if there is a property in a certain area that makes sense to sell based on the data we will advise on that.

Our job is to find you the right property for the right price that meets your brief, which can take between 6–12 weeks from engagement to exchange.

No, we understand our clients are busy so we work within your time availability and meet online.

Yes, of course. We work 6 days a week and outside of business hours. We are there to fit within your schedule.

Yes, we have a panel of recommended professional partners. To be a successful property investor you need a great team so during your discovery call the team will assess which partners are needed and make the introduction.

Yes, we help organise your depreciation schedule through a partner quantity surveyor. We also have the Compound Costs Calculator, a tool we have built to help you manage your property expenses.

The tax breaks, for example negative gearing and depreciation, apply in some form to all properties. We don’t see these as a strategy but more of a benefit to property investing. Wealth from property investing is created through compounding capital growth and increasing rental returns over time. That is what our strategy focuses on when purchasing for our clients.

We have a Compound Calculator that will be able to assess all up-front and on-going costs of purchasing a property. Your strategist will run through this specific to your situation.

We recommend a minimum of $65,000 on hand either through savings or equity. This will cover all upfront costs including the deposit, purchasing costs and the Compound fee. If you don’t have this though we can talk through your requirements and help you plan to get there.

No you don’t. We prefer that you don’t have one in place so that we work through a strategy and then assist to get that organised with the correct structure for purchase. If you do, then don’t worry — we will assess it to make sure it is correct and if not, we will work with your broker or bank to correct it.

Yes, of course. Using your equity is a great strategy. There is a term ‘lazy equity’ for equity you have in your property that isn’t working for you. Our finance partners can help assess what is useable equity and we can work out a strategy to utilise that.

Yes, of course. It comes down to your timeline. If you want to move fast, then a mixture of savings and equity can help, otherwise you can use just the equity growth from your properties. We organise bank valuations every 6 months to assess what useable equity you have to see when you are ready to go again. That of course is the benefit of compound growth.

Every investor has one of three constraints: capital, capacity and cashflow, so we are very mindful of these from the beginning. We target high growth and high yield properties which can help you continue to purchase, and our finance partners and accountants can help with structures that allow you to maximise your capacity.

Yes, there are many property requirements for an SMSF purchase, and our investment style works well in identifying high growth and high cashflow properties at affordable price points to make sure you are meeting your conditions within the SMSF. To determine if that is the right strategy for you then please check with your accountant as we cannot give financial advice.

To set up an SMSF and see if it is right for you, please speak to an accountant or financial planner.

One of our partner brokers can assess your situation but generally speaking you can borrow up to 80% of the purchase price. Borrowing to buy property through an SMSF is achieved through a limited recourse borrowing arrangement (LRBA). This means your personal assets are protected and your personal borrowing capacity is unaffected.

Yes, there are. If you buy a property through an SMSF, the fund is required to pay 15% tax on rental income from the property as opposed to your personal tax rate outside of SMSF. When selling a property held for longer than 12 months, the fund receives a one third discount on any capital gain it makes upon sale, bringing any capital gains tax liability down to 10%.

Yes. As with an individual investor, a SMSF can claim borrowing expenses and interest on an investment property. You are able to use negative gearing to offset any tax on the SMSF’s income, as well as profit from any capital gains on the property in the future.

Unlike other entity purchases you can’t access equity within your SMSF.

No, you can’t. All of your SMSF investments must be for the sole purpose of saving for retirement, so you can’t buy a property then use it for personal purposes.

No you can’t. This would contravene current super laws. You cannot rent residential property the SMSF owns to a fund member or any person associated with a fund member, such as a relative.