Property is generally a long term and capital intensive investments. Getting the details right can have a critical bearing on the long term performance of the asset.

Most of our clients have direct or indirect interests in real property, be it the family home, other residential or commercial real estate. At the other end of the spectrum are the property professionals including builders, developers and realtors. Bartons advises clients in all these sectors, and has a wide understanding of the industry, together with a network of trusted experts we can refer clients to.

The key groups we advise are Property Investors, Property Developers and Real Estate Agents, and the range of services provided, include:

Property Investors

This group of clients ranges from the young couple buying their first investment property using negative gearing, to the professional buying a lifestyle farm or beachside property, to the serious investor with multiple commercial property holdings with plans to grow further.

Many business clients own or wish to acquire their business premises, and there are numerous opportunities to do so in a highly efficient manner, including through self managed superannuation.

Although the scale may differ, the issues are similar. Services to these clients include:

• Make sure the proposed acquisition fits the business/ financial/ lifestyle strategy of the client
  
  
• Investment analysis of the property – income, expenses, growth prospects, subdivision potential – do the numbers make sense? Funding analysis – what is the best way to source the finance for the purchase? Use existing equity from other assets or part cash? Click here to access our Property Depreciation Calculator
  
  
• Bartons Financial Services can test the market to ensure the best deal is sourced, and advise on loan structure.
  
  
• Ownership structure – taking into account the client’s position and preferences, issues such as asset protection, taxation , estate planning, will be reviewed to ensure the optimal ownership structure is achieved, be that simply joint ownership, or more complicated  partnership and trust arrangements for specific reasons.
  
  
• Taxation – a myriad of considerations arise here, in respect of income tax (negative gearing, building depreciation, capital gains tax), Goods and Services Tax (GST status of rent, input credits and issues on purchase and disposal) , and State Taxation (stamp duty, land tax)

Property Developers

Property development can be a high risk, but very rewarding undertaking. Typically participants have previously had exposure to property investments, and have accumulated significant assets, knowledge and a network of advisers before they embark on development.

Our developer clients often seek our advice in the following areas:

• Financial modelling – tailored models can be quickly developed to assess project cash flows.  Advanced investment analysis including internal rate of return / net present value and sensitivity to key risk variables are performed, indispensable for investors and financiers alike.
  
  
• Development structures – working closely with specialist lawyers the right structure for the project will be devised, whether it be a joint venture, trust structure, partnership of entities or special purpose entity. Key issues will be limitation of liability, flexibility of profit sharing, taxation considerations and ease of administration.
  
  
• Taxation – the capital intensive, transaction oriented nature of property development means state and federal taxes, will be significant in the financial outcome of the project.  Careful consideration of the income tax consequences is critical. Goods and Services Tax (GST) is particularly complex as it applies to property, with consideration required of the margin scheme, sale as a going concern, and mixed development issues.  In the State tax arena, stamp duty and land tax loom large.

Real Estate Agents

Our clients in this sector range from smaller independent niche operators, to franchised national brands. We also act for a number of commercial realtors.

Real estate is a competitive and fast moving industry, and successful participants operate savvy and well run businesses.

Services typically provided to this group include:

• Financial and taxation reporting for the agency
• Property management accounting, purchase and sale of rent rolls
• Trust Account audit and advice
• Business and financial structures for multi agent locations
• Agent remuneration models and templates

Many agents invest in direct property in their own right, and we assist them with the services outlined above.

Wherever possible and appropriate, we will endeavour to refer other clients and associates to our client realtors.