January 2017

So you have invested in a home in one of our east coast capitals over the last two or three years and you don’t realise that your huge property investment success can put you at risk! The warning comes from some financial experts in today’s media.
(Please contact us at info@limepropertysolutions.com.au for further information or the chance to discuss this and other issues in the comfort of your own home.)
Most of us are protected from very risky investment by The Australian Securities and Investments Commission (ASIC). ASIC offers client consumer protection to retail investors where financial advisors deliberately miscategorise their clients or when companies fail to properly disclose their businesses. However these protections are not available to sophisticated investors and this is where the problem now lies! Unknown to many successful mum and dad property owners, and in particular successful property investors, the growing assets you have acquired over the last couple of years re-defines you as a ‘sophisticated investor’.

What is a ‘Sophisticated Investor?’
A sophisticated investor is a type of investor who is deemed to have sufficient investing experience and knowledge to weigh the risks and merits of an investment opportunity.
For certain purposes, net worth and income restrictions must be met before a person can be classified a sophisticated investor. The distinction makes an investor eligible to buy into certain investment opportunities, such as pre-IPO securities, that are considered “non-disclosure” or “non-prospectus” issues. Typically, a sophisticated investor must have either a net worth of $2.5 million or have earned more than $250,000 in the past two years to qualify.
Sophisticated investors may have to prove their net worth prior to being eligible to purchase certain security types. Investors will often have their personal accountants send this proof to the brokerage firm. Sophisticated investors are the dream clients of most financial services firms, as they generate much higher fees than retail investors. Read more here.
Certain assumptions are made about sophisticated investors: that they can hold their investments indefinitely (the funds do not need to be liquidated for cash needs), and they can assume a total loss of investment principal without causing severe damage to their overall net worth. You may have made this $2.5 million simply on the value of your own home and one or two investment properties, do you really want to be classified as a sophisticated investor and lose your ASIC protection?
(If you want to know more about property investment and asset growth, contact us now at info@limepropertysolutions.com.au.)

So it’s another year and time to wish a healthy and prosperous 2017 to all our property investors – Happy New Year!
New Year resolutions often include goals for becoming wealthier and doing something about looking after our financial future. They are great resolutions to make and, unlike many other resolutions, if we don’t do anything about it, we don’t feel bad as we don’t really notice our inaction until nearer the end of the year!

The big thing about keeping a resolution is Taking Action! Changing what you do is essential if you wish to change your current outcomes ….. and as far as wealth creation is concerned, there is no easier way than property investment.
(Please contact us at info@limepropertysolutions.com.au for further information or the chance to discuss this and other issues in the comfort of your own home.

New Yorkers have just celebrated their 10th Good Riddance Day; maybe some of us need to do something like this in the privacy of our back yard or at a local park!

Basically a huge shredder was set up in Time Square where people could publically destroy their physical and emotional ‘baggage’. People threw in notes and placards, pills and bills, and piles of clothes; anything representing their baggage of 2015. A line as far as the eye could see stretched all down Broadway.
The simple rule was that any member of the public could come to destroy, “any unpleasant, embarrassing and downright forgettable memories from 2016”. This was done with passion shredding papers with the words ‘NEGATIVITY” and “PROCRASTINATION” written on them, smashing up IT equipment with hammers, destroying credit cards and throwing out mementos from old relationships.

Good Riddance Day has its roots in an old Latin American tradition where people sew objects on dolls and set them on fire letting their pain and frustrations dissipate in the smoke! Read about last year’s event here

And what became of all the shredded rubbish? It is recycled and used as confetti as the famous Time Square Ball dropped at midnight.
Get yourself moving forward again in 2017 here in Sydney and look at doing something different – A Happy and prosperous New Year to you all!

If you want to know more about safe capital growth investment over the next few years contact: info@limepropertysolutions.com.au.