Three property development tips for the new financial year: Jo Chivers

Coming to the end of June is like closing one chapter of your property investing journey and opening the next. You cannot change whatever happened up until 30 June but July is a good time to start thinking about exactly what you are going to make happen over the next twelve months.   

Thank goodness our financial year falls in the middle of our calendar year, particularly because it's winter and cold and we're not distracted by summer holidays. If our financial year finished in December I definitely could not manage the stress of Christmas and holiday preparations, shopping AND finalising all I needed to on my business and property portfolio. 

But as it's winter, what else do we have to do before 30 June but sit in our offices paying as many expenses as possible and working on our new year's strategy?

My top three tips for getting organised as we enter the new year are:

1.  Tax Planning Strategy. 

A good tax planning strategy is important to have when you're a property investor, so make sure you have a good accountant who is not just going to process  your tax returns,  but also offer some really good strategy advice. You need to start strategising well BEFORE 30 June to give yourself time to make any adjustments to ensure you'll get the best results.  

2.  Investment Action Plan. 

As we move into the new financial year, it's time to plan your investment action. Think about the big picture and what you are trying to achieve. One of my clients has a very clear strategy which is to work hard over the next five years to continue to build his property portfolio so he can 'retire' from his salary job which is also his business and be a full time property developer. 

He's given himself a realistic timeframe which takes into consideration the property he already holds and what developments Property Bloom is managing for him. He was clear when he decided to work with us that he'd be using the experience to learn all he could so that he'd feel confident to then manage his own developments in the future. 

I love helping people help themselves, it gives great satisfaction knowing that you've not only helped someone achieve a financial goal but to educate them so they can continue on their journey. 

Another client has set up a self managed super fund which she plans to expand dramatically with strong yielding property over the next seven years which is when she plans to retire. 

Another younger client is chasing the best depreciation she can get as she's on a high salary and paying a lot of tax, with her Property Bloom development, she'll receive strong depreciation benefits and combined with her rent, will make her completed development cashflow positive and so she will be able to continue to borrow without too much impact to her serviceability. 

3. Schedule in Check points. 

For any plan, you need time during the action period to step back and check your progress. Schedule time into your diary and this will remind you to take stock of your achievements and review your plans and progress. It's best if you can do this with someone who you can share your big picture and review what you've achieved and discuss any adjustments that may be necessary to stay on track. Your financial planner is ideal but if not available, then your partner or a good friend who you can chat to about what you are trying to achieve and the purpose behind it. By simply saying this out loud to another person is a good way of cementing your plans and becoming accountable. 

We all have different things that motivate us. The start of the new financial year is a good time to rev up your plans as before we know it, Christmas and lure of warm, summer holidays will be upon us. 

Jo Chivers is Chief Executive Officer of property development project managers Property Bloom.