Page 76 - Smart Money

Smart Money

accounting and tax, and can work with you to grow with your business
and cater to your business’ funding requirements now and in the future.

You need a mortgage broker; you also need a really good accountant, a
financial planner that you can work closely with to make sure that your
strategy will work, and a commercial real estate agent. It is all about
getting the right people. These professionals can give you ideas that you
might never have thought of.

Case Study

Different banks will lend different amounts towards franchised

businesses. Let’s say you’ve got a Bright Eyes franchise. Westpac will
give you 60%, but ANZ will only lend you 50% because Westpac might
have too many Bright Eyes franchises and they don’t want too many
more. So they make it harder to get. That is why they limit the LVR (Loan
to Value Ratio) that they are going to lend the client.

Key takeaways

To get ahead in business, and in general, you need to make some good
investment decisions and you need to speak to the right people.

$ Your mortgage broker will tell you what you can afford and which
bank to use

$ Your real estate agent will tell you about zonings and what you can
do with the property

$ Your accountant will tell you whether you are set up properly tax-
wise, and whether the purchase is a good idea

$ Your financial planner can do up a plan to make sure that your
strategy is going to be suitable moving forward

It is about buying the right investment property, and having the buyer
investment strategy that is going to suit you personally, not doing what
someone else, your mate or your friend, tells you to do.