A Certificate of Title exists for every separate piece of land in South Australia, regardless of whether you are buying a home to live in or an investment property.

Torrens Title a South Australian invention that records and registers land ownership. Once your Certificate of Title is filed, your name is subsequently registered on the Torrens Title register and you become the owner of the property to the exclusion of all others.

This means that as the property owner, you are responsible for everything within your own block.

You are therefore responsible for council services of water, sewerage, stormwater, driveway etc. It is relevant to free-standing homes and some townhouses.

Community Title updated version of the older Strata Title, means that you own your block of land, but you share common areas with others so the responsibility is shared. This is the same with apartments. In apartments, you don't own any land. Instead, you own shareholding in the bit of ground that the whole building is on.

A property such as a villa, townhouse or unit however, is usually purchased under Community Title. When you buy one of these properties, there are 'common areas' that are used by all of the people living in the development or apartment block including driveways, gardens and so on. 

These common areas have to be maintained by all of the unit owners collectively, through a Community Corporation, because they are shared. 

The individual owner is solely responsible for the upkeep of the inside of their land and property, but they must also share the expense of maintaining the common areas.

The lot entitlements which are annexed to the community plan determine the share that lot owners contribute to insurance and other fees charged by the corporation. All community schemes must have by-laws that include provision for the administration, management and regulation of the use and enjoyment of the common property and community lots.

For more information on how this relates to KingsCoin developments or a property you are looking to purchase, please get in touch with our team here.

The financial benefits of owning an investment property are the driving force of our business. Ultimately, property development and investment exist to help grow the wealth of investors through generating returns.

The ultimate aim of property ownership is to have your tenant paying off the property for you. Over the long-term, you will not only own your property likely increase its re-sell value.

Property investment also allows you to leverage your wealth. If you've got $50,000 and you go and buy shares in stock, you're buying $50,000 worth of shares. In property investment, if you've got $50,000, you can buy a $400,000 asset. At five percent increase in the value on a $400,000 asset is far greater than a five percent increase on a $50,000 asset for the same amount of actual equity investment.

The main problem we solve for investors is how to make property investment viable long term to generate wealth and financial freedom.

ABS industry figures suggest that over 90% of average investors will get out of property within five years of making their first property investment and swear they’ll never do it again. If developers really are placing their focus on their customers, why are people so dissatisfied?

It is because a lot of people who invest in property do not have a business plan or exit strategy. Essentially, they do not understand how to generate wealth from property investment.

A typical scenario may be that they decide to take all of the equity out of their current home, and put it into an investment property without testing whether this decision will be feasible. If it turns out that the property is to be negatively geared, that means you're propping it up every single week with some money out of your own pocket. Which means you have to keep working.

How does that work as a business? Well, if you're looking to buy that property to retire, you won't be able to. You'll be stuck paying for it.

KingsCoin helps you to develop your property investment strategy. We look at why you're buying a property and tailor a plan to suit your circumstances. That's how we are able to create value on your investment every step of the way and maximise your returns. 

Positive gearing occurs when your property is earning you an income from the rent you charge. Meaning you are able to pay back your mortgage or loan repayments plus still earn additional income on top of that (gross profit). 

Negative gearing occurs when the cost of owning a property outweighs the income it generates each year. This creates a taxable loss, which can normally be offset against other income including your wage or salary, to provide tax savings.

Aside from negative gearing, there is another way to lower your income tax through property investment. It is done by using the depreciation of a property as an offset to your income tax.

As an example, if your rental income is $20,000 per annum, while your mortgage repayments are $19,000, you're making $1,000 profit. But by depreciating the value of that property by $10,000 per annum, you're actually making what's seen as a loss of $9,000. That loss you offset it against your income tax.

Most of that depreciation comes in the first five years or so, so typically this strategy is more successfully applied to a new property. However, depreciation is a tax deferral, not a rebate. This means when you sell the property, you've got to pay that money back to the ATO.

KingsCoin is frequently searching for development opportunities which fit several key criteria, beginning with zoning that is conducive to property development. We then assess the lifestyle offered by the location, how the suburb is developing and whether is it currently under-valued. The buyers market and rental market also helps to determine whether a development will be sellable.

A final criteria we check is how many other developers are going into that particular area. Property values can be significantly impacted by increased competition, which can lead to over-valuation or under-selling tactics. Since these can limit your returns, we carefully evaluate whether to invest in these areas.

Yes, we do. As experts in property investment, KingsCoin can offer our experience to help you find the right broker.

Not all companies are created equal across the board. Some brokers are good for certain types of products only. KingsCoin advises our clients to use a mortgage broker rather than going directly to a bank. This is because a good mortgage broker will know which banks to put your application in front of based on again the bank’s eagerness to do business and the costs involved interest charged.

Mortgage brokers are paid by the bank. KingsCoin can help to find you a trusted brokers who will place your financial well-being ahead of their fees so you can find the best mortgage to invest with.

Talk to us today


Book a call