Answers to Frequently Asked Questions about how you can be professionally guided and mentored through the "A - Z" of kick-starting an affordable, low-risk, high-return property investment portfolio - even if you're on a tight budget!

Yes, of course. After-hours or weekend home appointments are the norm for CPI property consultants.

What you can expect to learn or gain from your first appointment depends on your level of property investment experience.

If you're a seasoned veteran with multiple investment properties in your property investment portfolio, the CPI consultant will cut to the chase and present the full package of investment opportunities to you there and then.

If however, building a property investment portfolio is not something you're familiar with, a much more educational approach will be taken.

For instance...

You'll be informed of all the risks as well as the rewards.

You'll be taught in a matter of minutes exactly how and why the "taxman" makes investment property ownership in New Zealand so attractive.

You'll be taken through a professional "financial needs analysis" to help YOU as well as CPI understand what your financial goals and priorites are.

You'll be introduced to the concept of "Property Investment Analysis" in a very easy-to-understand manner.

You'll be shown photographic examples of the types of properties on offer.

You'll have details of the rental guarantees and property management packages clearly explained to you.

You'll be presented with a very cashflow-friendly way of starting a property investment portfolio.

You'll be invited back to Compass Property Investments' offices for a second appointment so you can be formally presented with your very own tailor-made Property Investment Analysis.

You'll be given the opportunity to have - at absolutely no cost to you - a personalised "Property Investment Plan" initiated at the second appointment. A comprehensive questionaire will be left with you to fill out for this purpose.

If you're genuinely interested in taking the concept of rent guaranteed property investment beyond the initial introductory meeting, you'll be invited to attend a second, "obligation-free" appointment in the boardroom of CPI's head-office in Albany... and it'll be a real education...

You'll spend around 30-minutes being taken through the PIA (Property Investment Analaysis) report that CPI will have prepared for you. One of the primary functions of this report will be to spell out the exact cost - down to the nearest dollar - of investment property ownership from your point of view i.e. you'll get to see exactly how many dollars a week you'll need to invest out of your own pocket in order to service any applicable mortgage shortfall.

You'll spend another 30-minutes or so with CPI's senior financial analyst while he presents you with an overview of CPI's proprietary "Property Investment Plan", a personalised investment blueprint that details, among other things...

1) How many investment properties you'll need in your property investment portfolio between now and your probable retirement age in order to achieve the level of retirement income you'll really need.

2) How much you should pay for each of these properties.

3) How much rent you'll need to earn from each of these properties.

4) Which year/s between now and your retirement age you should acquire each of these properties.

NB: CPI's Property Investment Plan is valued at $1,197 but is YOURS FREE if you take the steps to become an 'official CPI client'.

Once the meeting has finished you'll have the option to go out and physically look at properties, both completed and under construction, if you're prepared to make the time.

CPI currently offers high quality investment properties in Auckland, Hamilton and Tauranga, so you'll have city-wide and even region-wide choices from the stock available.

Traditionally, CPI sticks with time-proven, capital-growth-attracting town houses and free-standing 4 - 5 bedroom homes.

Depending on their location, style and design, these dwellings can be "brick and tile", "brick and linear board with colour-steel roofs", or a number of other ultra-strong, weather-proof combinations.

While most of CPI's properties are marketed "off the plans" or in the early to middle stages of construction, some properties are completed before they're offered for sale.

CPI has recently expanded its operations into northern and central Waikato as well as the Bay of Plenty. A range of properties are now available in Te Kauwhata, Hamilton and Tauranga.

NB: Due to its passionate belief in the mid to long-term capital growth prospects for Te Kauwhata - particularly in light of the massive population influx expected there to service and manage the new prison - CPI has intentionally secured a number of prime properties in this much sought after location.

Yes, but please bear in mind that you won't necessarily be looking at the finished product - almost all properties on the stock list are in varying stages of construction.

You're also welcome to view the plans for any property being offered.

A deposit of $10,000 is required to be paid to Compass Property Investments solicitor's trust account upon the property going "unconditional" This is usually by way of a bank advance on the overall home loan involved.

CPI is committed to making the purchase process as streamlined and stress-free as humanly possible. To this end, CPI's own in-house mortgage broking company - Constellation Mortgages - is able to quickly and easily apply to your own bank for the investment loan, on your behalf.

This can save you a significant amount of time and effort as you won't need to visit the bank or have a mobile manager call around after hours.

Realistically, if you're a salary or wage earner you need to have either a single income  of at least $70,000 pa, or a joint income of at least $100,000. This also assumes that your existing mortgage (if you have one) is no more than double the amount of your income. e.g. if you had a joint income of say, $110,000 and a current outstanding home loan balance of $220,000 or less, you would have no problem in a) obtaining loan approval, and b) servicing any shortfall that applied.

NB: The above example assumes, of course, that you've met all other standard bank credit criteria.

Those days are long gone, unfortunately.

Once upon a time you could buy a rental property for $100,000 and get $200 per week rent. However, these days you're more likely to pay around $350,000 - $450,000 for the same rental property and receive $330 - $430 per week in rent.

Given this drop in rental "yields" over the past decade, what was once a "positive" cashflow has now turned into a "negative" casflow i.e. instead of having a few dollars profit left over each week you're now having to top up the weekly shortfall.

But is this really such a bad thing?

Not at all! Instead of "paying" tax on your rental income profits you're now "claiming" tax back against your rental income losses!

To put it into perspective; even if your yearly shortfall amounted to say, $10,000 - if your investment property was increasing in value at the rate of around $20,000 per year i.e. a 5% growth rate against a $400,000 property... that would equate to a 100% pa capital gain!

ALWAYS REMEMBER, YOUR "RETURN ON INVESTMENT" IS THE PERCENTAGE GAIN ON YOUR MONEY INVESTED, NOT THE BANK'S!

Rising interest rates will mean a higher shortfall and falling interest rates will help reduce the shortfall.

Once Valu-It NZ have completed the chattels valuation on your new property, you'll be sent a copy of it in the mail. It is this document that you'll need to give to your accountant so he or she can then assess the "depreciation" claims you'll be making.

The accountant will also handle all the claiming of "expenses" against the property.

If you're a salary or wage earner, your accountant will arrange for you to receive your yearly tax benefits relating to your new property purchase, on a pro-rata basis i.e. whatever your entitlement is calculated to be, you'll pay that much less in personal income tax throughout the year.

You're free to use whoever you wish. However, it would be wise to seriously consider one of the specialist property accountants on the CPI panel of preferred solicitors and property accountants.

Property investment portfolio planning, if it is to be truly successful in its desired outcome, demands the highest level of property taxation advice available.

Yes, of course. However, given the fee cap that applies ONLY to solicitors on CPI's panel of preferred solciitors and property accountants, it would be well within your financial interests to consider using one of them.

No. All properties offered by CPI are offered on a "turn-key" basis i.e. they are completed, both internally and externally, and there is nothing additional needed.

All properties are fully carpeted and come with window coverings, a stove, a range hood - and in some cases, dishwashers.

The tenants provide all the whitewear and furniture.

Yes, all properties are fully landscaped.

All properties come with either a Master Builders Warranty or their equivalent. Suppliers Warranties cover everything else.

CPI is very fortunate in that many of it's customers are more than happy to reassure a prospective new customer by way of a quick chat on the phone. You only have to "ask".

CPI offers quality investment properties ranging from 2-bedroom town houses through to large, free-standing 5 bedroom homes. Prices range from $300,000 to $480,000 depending on the location and type of property being offered.

A primary component of CPI's client-investment strategy is the potential for capital growth. Considerable market research and due diligence goes into the property selection process prior to any decision being made to secure or build such properties. This is an important bonus to you as an investor because you can be safely assured that your property investment portfolio is of the highest calibre at all times.

In accordance with "good business practice" standards, CPI uses a range of valuers to determine the current valuation or "valuation on completion" of its investment properties.

CPI is responsible for commissioning and paying for all registered valuations applicable to the properties it's marketing. CPI's customers are responsible for commissioning and paying for registered valuations applicable to their existing property/s i.e. family home and / or other rental properties.

CPI organises the Chattels valuation through Valu-It NZ. However, you're required to pay for it upon receiving a copy of it in the mail.

Unless the property you're interested in is one of the very few "established" properties we offer from time to time, there'd be absolutely no need and nothing to gain from paying for a LIM Report.

No, not in the case of properties that have just been built. The tough new "Code of Compliance" regulations ensure that optimum building standards are maintained throughout the construction phase.

The most common situation where investors with a sizeable property investment portfolio find themselves struggling to meet the mortgage payment each month is when the investor is self-employed and therefore unable to receive the tax benefits until the end of the financial year.

Under these circumstances it is fiscally prudent to have a "revolving line of credit" facility in place. This type of loan facility allows you to draw down the funds you need in order to cover the "gross" shortfall, up to a pre-determined limit. Technically, it operates exactly the same way as an overdraft, but without the associated high interest rates and fees.

Once you receive your refund cheque from the IRD, you simply deposit it straight back into your revolving line of credit account. This has the net effect of reducing the outstanding balance on the line of credit facility and limiting your true cost to that of the "net" shortfall along with any applicable interest costs on the line of credit.