Canterbury Property Services

Discussion in 'Property Experts' started by armorris007, 14th May, 2009.

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  1. melric

    melric New Member

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    just been to brisvegas and had a look at the block all plans have come back with green light so we are about to start building should be ready by end of september looking forward to it cps has been there all the way its been a long process to get to here with buying off the plan but should benifit us in the long run.
     
  2. KayTea

    KayTea Well-Known Member

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    Considering Canterbury - pros and cons

    After a friend recommend that I give CPS a call, I got in touch, and am now waiting for my initial consultation.

    However, before I listen to their information (I'm thinking it is likely to be a bit overwhelming), I'm hoping that someone may be able to answer a few questions for me (I don't want to keep bugging the friends who referred me).

    I've read through this thread and found the discussions very enlightening and am glad to hear that so many people have had so many positive experiences, but I've still got some things I'd like to know, from experienced CPS customers:

    1. Do CPS make you borrow money from, and only work with, one financial institution, or are you provided with a couple of most suitable options to choose from?

    2. If all the rent money from the IP, plus my own repayments etc all go towards paying off the loan on my PPoR, where does the money come from to make the repayments on the interest only loan on the IP?

    3. How stressful was the whole experience? I know that this is a very subjective question, but I can't help wondering if I'm going to spend the next (however many) months feeling as though I'm on a sinking ship. Actually, how long does the whole process take?............

    I would appreciate as many 'stories' and perspectives as I can get. Thanks.
     
  3. Investor23

    Investor23 Member

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    Hi all,

    Firstly must say I have been reading InvestED for years now from when I was just doing my financial planning study and even still after years in the industry. Great forum with huge range of opinions on many topics.

    Secondly I hate the be the bearer of bad news but one of my clients bought this capitalising interest strategy to me. After investigating further (internet research and reading some views online that it was in fact illegal) I said to my client I wasn't 100% sure and I would need to check with our head tax accountant. Head tax accountant said get a private ruling from the ATO or don't do it at all as people have been penalised before...

    I then went and spoke to other financial advisers within the company around the country. One of them had a client that has actually been fined by the ATO using this strategy and strictly warned all other advisers to have nothing to do with it. Now I must say apparently the client hadn't used Canterbury but it was the same strategy. The ATO deemed the interested was not deductible as the strategy was with the sole intention to pay off the home loan sooner. Client was told if they could in no way pay the interest without capitalising it they would have let it go but as the income was being paid elsewhere (to pay down homeloan sooner) they were hit with a fine and required to pay back all of the tax deductions.

    Now I hope this was a one off and everyone in this forum goes well... I would just tread carefully and certainly apply for a private ruling with the ATO if using this strategy.

    All the best.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Investor23, I think you should reread this thread again. I know nothing about canterbury other than is in the thread, but believe they do encourage the capitalising of interest, but not the claiming of the capitalised interest as a deduction. Therefore I am not sure how the ATO could fine anyone.

    Also outlined above, somewhere, are the relevant rulings which state the ATO can apply Part IVA and deny a deduction if the dominant purpose of the scheme is to pay off the home loan sooner.
     
  5. Investor23

    Investor23 Member

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    I have read the whole thread. Some parts elude to claiming the capitalised interest, others do not. If the capitalised interest is not being claimed there is no benefit to the strategy...

    What is the point of paying off my 200k mortgage in 2 years if all I have done is recycled that debt to a LOC of which I cannot claim the interest anyways.

    There are a few companies that recommend this strategy and I can assure you that many of them do boast that you can claim the capitalised interest irrelevant of what the ATO says. Unfortunately when it comes to both accountant and real estate those responsible are not really penalised, unlike financial planning.
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Not trying to defend the company here, but true I think some posters assumed the interest will be capitalised.

    I am not sure of the benefits myself either. Perhaps they advocate using the money you would have paid in interest to pay down the non deductible home loan sooner. But this is really only shifting the loan over to the LOC. Maybe they claim the interest on this LOC once the home loan is fully paid off.
     
  7. Investor23

    Investor23 Member

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    Yeah it is quite an interesting concept. I mean if the strategy actually offers benefit, good on them, they really would be breaking new ground with it. I quizzed one of these companies (once again not Canterbury) on the concept and they said it was ok to claim the capitalised interest then when I queried them on it they dodged around giving a direct answer and just said 'their accountant said it was fine' but I couldnt speak to the accountant.

    Maybe I am just a little skeptical, I just figure if this strategy would as beneficial as posed that it would be much more mainstream.

    I would be interested to see how the valuations came back on the properties purchased through Canterbury? Seems like they are selling QLD properties which I see as positive as I feel Brisbane and surrounding areas are under priced at the moment when compared to Melbourne and Sydney. They would however be making their money in large commissions through the property sales which is generally detrimental to valuations.
     
  8. Maal

    Maal New Member

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    Are CPS in Sydney

    Nice thread,
    I recently had a chat with Jodi but was still unsure whether going with them was a good option.
    After going through this forum it is little bit encouraging.

    Do we have any negative reviews even the minute one's possible that I need to consider?
     
  9. Chris81

    Chris81 New Member

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    Hi guys and girls, I am new to this site. I have read a lot of the posts and replies. As I am new to the investing arena I am very interested in starting to invest. I am also in between a rock and a hard place. The banks are very harsh where I live on evaluations and just want some advice on how to get around this hurdle, would love any advice TIA
     
  10. pdg

    pdg Member

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    On the subject of capitalised interest I contacted my accountant and it cannot be claimed and Canterbury don't claim it because they are of the opinion it's a small amount. I am of the opinion that every bit of tax should be claimed even if you pay down the PPOR at a slower rate, it's overall debt reduction that matters and the more you can drive it down the better. At the end of the day this whole scheme is about using other people's money to grow an asset that funds itself as well as reducing the borrowed portion as much as possible overall. Am I right?
     
  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No you are not. capitalised interest can be claimed in many situations
     
  12. venom

    venom Well-Known Member

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    Im Back :)

    Hello all of you,
    Thought I should get back on here to let you know how things are progressing,
    Well my Wife and I first got our loans and everything approved in January 2013, took around 6 months for IP to get built ( fair bit of bad weather at the time lol) and then the rent started flowing into our Mortgage acc along with our wages.
    When we first started we owed $220,000.00 on our home loan, today it stands at $105,000.00 it could have been a lot less, but when you have Foxtel, and oversea's trips every year it slows things a bit, but Canterbury said from the start, we wouldn't have to change the way we spend.
    They asked us to fill in a form a week ago, to let them know what our wages were for the last year, and if we had any new debts etc, and what our current Mortgages were.
    We have since had a meeting with one of Canterbury, and they were so happy with our progress, they are looking into starting us on another IP, once we get Bank Pre Approval, Needless to say we are very happy.
    Hope all of you that have gone through Canterbury will let us all know where you are now? :)
     
  13. kochi

    kochi Member

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    Pimpama

    Hi all

    Good to read all the posts . Ive been lurking for a few months now.
    I was introduced to Canterbury via a friend 2 yrs ago. After a few meetings and saving enough for a deposit I took the plunge and purchased an IP in Pimpama . It was off the plan and construction completed in mid Nov 2014. It was rented out within 4 weeks and so far its been smooth sailing. Cantrbury compensated me for 2 weeks rent as this was part of the agreement.
    Anyone else built or building in Pimpama?
     
  14. venom

    venom Well-Known Member

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    Number Two :)

    Hi all,
    everyone seems to have died off from posting on here? hope things are still going great for you all.
    My wife and I have been given approval from bank and yesterday signed everything for our second Investment Property, it is near completion, it is a two story three bed, two bath, three toilet Duplex in Springfield, close to everything,
    once the rent from that one starts very soon, we will pay off our PPoR within 12 months.
    We are extremely happy with where we are, all with thanks to Canterbury Property Services.
    Hope to hear from you people that have started this journey with CPS:)
     
  15. venom

    venom Well-Known Member

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    Hi Bruce, thanks for that input about Canterbury, yes we have never had to wait for an answer from them for all our questions, they are a great bunch of positive people that will help youI'm glad that you have came on here to share, and it sounds like you are doing great, hope you will keep in touch Vern.
     
  16. Looking forward

    Looking forward New Member

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    Queensland
    Thank you all that have contributed to this thread over the years.

    I am having my meeting next Tuesday to define what strategy would be best for our current situation.

    I would like to reinvigorate this thread so we can share the journey. Any long term current or newby customers that would like to comment, would be great.

    Let me tell you a bit abouts us. We are currently recovering of a few years of no the best financial decisions. We always thought that we could do it in our own. I believe the guidance and support from Canterbury will help us to regain momentum much faster than if we try to do it by ourselves all over again.

    Main objective is to pay off PPOR and then set a few IP's to future proof our financial conditions.

    Let's enjoy the journey. I am looking forward to the best results.

    Cheers;
     
  17. venom

    venom Well-Known Member

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    Hi Looking Forward,
    Yes it would be great if Canterbury can help you get back on track again, You can rest assured they wont force you into anything if they know you cant do it at this time, but if they can, YAHOO for you, they have helped my Wife and I enormously, Would recommend them to anyone :) please let us know how you get on ok. Vern.
     
  18. venom

    venom Well-Known Member

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    Hello, why has everyone stopped posting?

    Well second IP is up and running now, have had rent from it for a month now, all going great, PPoR is under $80K now, could have been less but we still like to live a little and still travel, Has anyone else got any comments on their progress yet, good or bad? Anyone!
     
  19. Angelpie

    Angelpie New Member

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    Gold Coast
    Hi Everyone,

    Thanks so much for all of the great discussion you have all contributed to here. I have just stumbled upon this topic and read the whole thread.

    I just found the Canterbury site and am extremely intrigued by the strategy. I have sent a request for a meeting but have not heard back yet. I just wanted to make an appearance and say thanks and hope to continue discussions as I find out more. :)
     
  20. venom

    venom Well-Known Member

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    Hi Angelpie, Great to see a new interested Person on here, Yes please let us know how you go with your meeting etc, This is the only place I get to talk about IP's etc as the guys I work with are not interested, would rather talk about Sports and things like that lol. keep in touch. venom.
     
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