Has anyone had any dealings with JDL strategies. Went to one of their seminars on the weekend and whilst I was impressed with their full service property purchasing etc. They did leave a lot of questions unanswered. Has anyone purchased property through them ???
I've had some one on ones with their local guy after attending the conference. I've been to a lot of different spruikers and look at them as chefs, taking a recipe from one or an idea from another, so I'm not going ahead purchasing through them but I've got a handle on Julio's strategy.
What sort of questions do you have?
Their model doesn't work for us as my wife is extremely nervous about cashflow until out oldest daughter finishes her VCE at the end of this year. They look to get you really "saving" (ie. covering shortfall) on investment properties with a view to retire early but Julio is all about throwing money in to all different investments when you can.
Yeah, I also signed up already with JDL recently after paying $880, and now their investment strategy is to get a property in COOMERA for $435k while charging me once off $8700
When I ask them about how can I gain profits if they charged me $8700 in front ?
their answer is by hoping that the building depreciation can give you more than $10k (fingers crossed)Does anyone here know or can share anything about JDL Strategies please ?
Henry Adams wrote:Yeah, I also signed up already with JDL recently after paying $880, and now their investment strategy is to get a property in COOMERA for $435k while charging me once off $8700 When I ask them about how can I gain profits if they charged me $8700 in front ? their answer is by hoping that the building depreciation can give you more than $10k (fingers crossed) Does anyone here know or can share anything about JDL Strategies please ?But a building depreciation schedule will cost you about $500 and should give you the same result if you arrange it yourself.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Henry,
On limited information supplied some of the following may not be relevant.
Coomera is one of those new release suburbs (has been for a while) and with more land to come.
AT best I would imagine rent return would be around 5% so you are out of pocket for rates, insurance, body corporate (if relevant) and the net differential between rent and interest rates.
For newer properties depreciation is often used, particularly in the early days, to help offset some of the shortfall between inflows and outgoings. You also need to bear in mind that depreciation only reduces your taxable income by the stated amount.
It is not a rebate – for example if your on the highest possible tax bracket your taxable income reduces by let's say $10K in which case you manage to save yourself about $4700 in income tax. The remaining $5300 comes from your pocket. If your taxable income is below the top bracket the amount of tax saved reduces in accordance with our income tax scales.
The only way you will get your money back is through capital growth, when that arrives.
Derek wrote:Hi Henry,On limited information supplied some of the following may not be relevant.
Coomera is one of those new release suburbs (has been for a while) and with more land to come.
AT best I would imagine rent return would be around 5% so you are out of pocket for rates, insurance, body corporate (if relevant) and the net differential between rent and interest rates.
For newer properties depreciation is often used, particularly in the early days, to help offset some of the shortfall between inflows and outgoings. You also need to bear in mind that depreciation only reduces your taxable income by the stated amount.
It is not a rebate – for example if your on the highest possible tax bracket your taxable income reduces by let's say $10K in which case you manage to save yourself about $4700 in income tax. The remaining $5300 comes from your pocket. If your taxable income is below the top bracket the amount of tax saved reduces in accordance with our income tax scales.
The only way you will get your money back is through capital growth, when that arrives.
Thanks people for your suggestion and explanation, I am now more enlightened on this matter, I thought that the agency fee $8700 which can be tax deductible (according to Julio himself) + depreciation = well worth more than the $ 8700 itself can someone confirm this please ? I'm new to this property investment world and would love to know if this deal is make sense or just a scam to take advantage of newbie like me ?
Cheers,
Henry
Henry Adams wrote:Derek wrote:Hi Henry,On limited information supplied some of the following may not be relevant.
Coomera is one of those new release suburbs (has been for a while) and with more land to come.
AT best I would imagine rent return would be around 5% so you are out of pocket for rates, insurance, body corporate (if relevant) and the net differential between rent and interest rates.
For newer properties depreciation is often used, particularly in the early days, to help offset some of the shortfall between inflows and outgoings. You also need to bear in mind that depreciation only reduces your taxable income by the stated amount.
It is not a rebate – for example if your on the highest possible tax bracket your taxable income reduces by let's say $10K in which case you manage to save yourself about $4700 in income tax. The remaining $5300 comes from your pocket. If your taxable income is below the top bracket the amount of tax saved reduces in accordance with our income tax scales.
The only way you will get your money back is through capital growth, when that arrives.
Thanks people for your suggestion and explanation, I am now more enlightened on this matter, I thought that the agency fee $8700 which can be tax deductible (according to Julio himself) + depreciation = well worth more than the $ 8700 itself can someone confirm this please ? I'm new to this property investment world and would love to know if this deal is make sense or just a scam to take advantage of newbie like me ?
Cheers,
Henry
the $8,700 fee would probably not be deductible against income, and only deductible against a capital gain.
What is the fee for exactly?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Henry Adams wrote:Derek wrote:Hi Henry,On limited information supplied some of the following may not be relevant.
Coomera is one of those new release suburbs (has been for a while) and with more land to come.
AT best I would imagine rent return would be around 5% so you are out of pocket for rates, insurance, body corporate (if relevant) and the net differential between rent and interest rates.
For newer properties depreciation is often used, particularly in the early days, to help offset some of the shortfall between inflows and outgoings. You also need to bear in mind that depreciation only reduces your taxable income by the stated amount.
It is not a rebate – for example if your on the highest possible tax bracket your taxable income reduces by let's say $10K in which case you manage to save yourself about $4700 in income tax. The remaining $5300 comes from your pocket. If your taxable income is below the top bracket the amount of tax saved reduces in accordance with our income tax scales.
The only way you will get your money back is through capital growth, when that arrives.
Thanks people for your suggestion and explanation, I am now more enlightened on this matter, I thought that the agency fee $8700 which can be tax deductible (according to Julio himself) + depreciation = well worth more than the $ 8700 itself can someone confirm this please ? I'm new to this property investment world and would love to know if this deal is make sense or just a scam to take advantage of newbie like me ?
Cheers,
Henry
Hi Henry,
this would be correct, but it sounds like they are saying that you are only getting the depreciation because of them? Depreciation is something that will be applied to any property you buy, especially new. The fee is something that a few places charge for being a “one stop shop” where in fact there are many places that dont charge this fee and can still provide the same service. If they are selling you a new property they are, without a doubt, charging a commission to the developer/builder also. I am not sure how there company structure is set up, but if they organise the finance, then there mortgage broking arm will be making a fee also, same goes for insurance etc.
If you are looking for a larger firm to help provide direction I personally think that Destiny are great, they are a buyers advocate agency. I have sold properties to clients of Destiny and they do the best for their clients, not themselves.
In essence, even though you may get the costs of the fee back after you have applied depreciation to the property, you would get this anyway. So you are still paying the fee out of your pocket and on top of what it would cost if you didnt use them. If it is tax deductible then you will get back your tax rate on that amount. so if its $8700, and you are paying 37% tax, you will receive 37% back at the end of the financial year if it is a tax deduction.
Portfolio PI wrote:If it is tax deductible then you will get back your tax rate on that amount. so if its $8700, and you are paying 37% tax, you will receive 37% back at the end of the financial year if it is a tax deduction.Cannot see how the fee is deductible – at best may be able to be used to offset future capital gains.
Derek wrote:Portfolio PI wrote:If it is tax deductible then you will get back your tax rate on that amount. so if its $8700, and you are paying 37% tax, you will receive 37% back at the end of the financial year if it is a tax deduction.Cannot see how the fee is deductible – at best may be able to be used to offset future capital gains.
I guess it depends on what they right the invoice out for! you cannot claim solicitor expences, it must be capitalised so i dont see how it is claimable if the fee was described as what it really is (that is assuming it is a “project management fee” considering it is charged for each property purchased).
Interested to hear an accountants take on this, but I agree with you Derek
Derek wrote:Portfolio PI wrote:If it is tax deductible then you will get back your tax rate on that amount. so if its $8700, and you are paying 37% tax, you will receive 37% back at the end of the financial year if it is a tax deduction.Cannot see how the fee is deductible – at best may be able to be used to offset future capital gains.
Yes, that is somehow I’m in doubt for the joining fee of $880 so now I am still waiting for the response from my accountant too of whether this is true or not ?
But according to JDL strategies account manager that I’m talking with it is deductible ?
Whats it for?
Deductibility will depend on to what extend it is a fee for the acquisition of a capital item.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry, thanks for the respond, yes you got me thinking now if that joining fee $880 can be tax deductible or not.
Henry,
From your initial post I thought there was 1 fee, but it appears there are acutally 2?
$880 joining fee and a $8700 fee. Is that correct?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
Certainly looks like two fees. One to join and another to find a property.
Cannot see how either fee is deductible – capital cost maybe.
Reminds me of an experience I had many, many years ago (when I was but a babe in the woods) when we paid a fee to join something. Not wanting to 'waste our joining fee' we then felt compelled to continue with the company to whom we paid the joining fee. It was almost like 'upselling'
Needless to say we put that joining fee down as learning experience and moved on. As some would say it was a costly investment in education.
deductible or not,
I still don’t understand why they charge the fee?
Terryw wrote:Henry,From your initial post I thought there was 1 fee, but it appears there are acutally 2?
$880 joining fee and a $8700 fee. Is that correct?
Terry yes, I’ve just received the Preliminary Strategy Report which is a detailed transaction of what I should do to secure the retirement, so it seems that they have arrange everything from the loan with the bank, the property in COOMERA ($435k) and the potential tenant all in one, so all I need to do is just sign and get the ball rolling by negative gearing $251 per month until the property got enough CG
Therefore they charged me $8700 for the initial Investment and the $880 is the joining fee once off, for the subsequent IP purchase, they will charge me $3500.
Before you sign make sure you do your research as those fees are large.
I think part of the fee may be deductible upfront. Part of it would relate to borrowing cost and so could be claimed over 5 years. part would be buyers agent type fee for locating the property and this would be claimable against CG when sold and then part of it for finding the tenant and that could possibly claimed all upfront.
I wonder if you did it all yourself and didn't pay the fee would the property still be negative geared?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw wrote:Before you sign make sure you do your research as those fees are large.I think part of the fee may be deductible upfront. Part of it would relate to borrowing cost and so could be claimed over 5 years. part would be buyers agent type fee for locating the property and this would be claimable against CG when sold and then part of it for finding the tenant and that could possibly claimed all upfront.
I wonder if you did it all yourself and didn't pay the fee would the property still be negative geared?
Yes, that’s what I would’ve thought $8700 is very big to me, but then again the client manager convince to me that it is just a small fee compares to what I can get from the building depreciation and the negatively geared property in COOMERA, so far I’m still not yet convinced if this deal is worthed or not.
Thanks for the reply, I’ll keep you all updated with my case with JDL strategies after I had a talk with the client manager who’s calling me everyday waiting for me to sign the document to restructure my existing loan with my bank and purchase this IP in another state that I’ve never visited or even knew it exists.
Hi Henry,
Is JDL (or a subsidary company) operating as a broker in this transaction too
If so looks like a pretty good deal for JDL.
Joining fee + finders fee + brokers fee for refinance + fee for new loan and maybe a marketing fee from vendor.
Does that sound right Henry?
.
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