Hi all,[
]I am doing a feasibility study and as such I can only give broad details, as a few issues on the practicality of the scheme still remain. As a mini marketing study being part of product development, I am interested in your reaction to the bare bones of the system and would value your comments.
Would you be interested in an employment salary package scheme that would result in you being given a cash flow positive investment property in a prime growth area?
Would you be interested in an employer incentive scheme where the employee of the year would be given the same type of property?There is a possible down side to this however and it is this, if you leave the employer then the cash flow turns negative due to the employer removing his subsidy. This will not necessarily matter as the chosen recipient for this award would have to like his job and enjoy what he does in order to win it
.
In effect the win situation for the employer is that he retains key personnel and the best workers. The win situation for the employee is he owns prime property with high equity growth to the tune of $500 – $1000 pw and receives a cash return of typically $50 pw [dependant on the amount of employer subsidy]I am working on the model and will address negative or legal aspects such as having ATO and ASIC approval.The acceptance of the completed model as a registered scheme by ASIC is also desirable.
Due to the complexity of details involved and their resolution this salary option may or may not see the light of day..
I am hoping to be encouraged by your views as there is still a lot of work to be done.Regards
Bryce Inglis
http://www.ipal.com.au
[email protected]Sounds good in principle. There are also FBT considerations to be bourne by the employer. Good luck.
Hi Yak,[
]Thanks for the feedback, Their are no FBT- fringe benefits tax on investments. This is normal and is used in conjunction with shares as part of salery packages
Regards
Bryce Inglis
http://www.ipal.com.au
[email protected]I dont see any down side then.
But if my employer pays my rates for a property its subject to FBT surely.
The problem must then be in whose name is the property and how does it get financed. Companies have their own problems getting finance and would rather use borrowed money growing their business than investing for staff, unless I suppose its staff they CANNOT lose. And then in whose name is the property – the staff member or the company.
Interesting concept though.
I also had a look at your web site. How are you guys paid for your time. Via an hourly rate or package rate for time spent with clients or via commissions on properties sold. I think you should add this question to your FAQ.
Hi yack,[
]But if my employer pays my rates for a property its subject to FBT surely
It could be viewed as being not subject to FBT, if it’s an integral part of the investment. As happens in the share market with companies and their costs
The problem must then be in whose name is the property and how does it get financed. Companies have their own problems getting finance and would rather use borrowed money growing their business than investing for staff, unless I suppose its staff they CANNOT lose. And then in whose name is the property – the staff member or the company.
The property will finish up fully in the employees name but the processes to get it there are quite complex and the mechanisms are worked out.
also had a look at your web site. How are you guys paid for your time. Via an hourly rate or package rate for time spent with clients or via commissions on properties sold. I think you should add this question to your FAQ.
As a manager I am paid both with a retainer and commission, others are on commission only or they may be salaried. It is quite normal to use commission structures with common use by industries such as mortgage brokers real estate and other types of sales, however I feel that fee for advice structures are the best for financial planners .
The source of the commission is the real estate transaction fee, obtained if you chose buy property from a choice of builders or developers in an area as suggested by us.
Please note that IPAL does not own property and the builders and developers are independent, resulting in a guaranteed fair market priceSorry about it sounding like an add Moderators and sorry about the delay as I am nearly the worlds slowest typist
Regards
Bryce Inglis
http://www.ipal.com.au
[email protected]
]
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