What are the benefits of Obtaining an Investors Certificate?

How to get a wholesale investors certificate?

According to the Australian Investment and Securities Commission obtaining an investors certificate doesn’t need to be a headache. In fact, as long as you have earned over $250,000 or more for more than two years, you may be eligible. However, you may also need to demonstrate a net asset value of more than $2,500,000 at the time of your application. Most Investor Certificates are valid for more than 3 months at a time. You can expect these certificates to cost from $900 up to $2,500.

What does holding an Investors Certificate give you access to?

An investors Certificate (IC) may give you access to Wholesale Products, Private Banks, Pre-IPO and other generous products that are not offered to general consumers. The reason being is that there is typically trade off of higher returns in exchange for higher risk (See: Capital Asset Pricing Model, or CAPM for short). Most products that are offered within the High Net Worth or Ultra High Net Work community attract higher returns. This is because legislative protections do not apply in full to those whom hold an IC.

You should always seek independent financial advise.

What is a Professional Investor?

There are many definitions for a professional investor. However, a professional investor is generally defined as someone who has experience in providing advice or dealing in a financial product, owning a large business or someone with a sufficient track record as an investor. ASIC define professional investors as people whom hold an Australian Financial Service License or has a qualification in law, finance, economics or a business related discipline and a successful track record of investment. A successful track record in investment is typically defined as having a business valued at $10,000,000 or more, related to financial services.

What is a Sophisticated Investor?

A sophisticated investor is typically someone who owns more than $2,500,000 in assets in securities, property or other investment interests minus debt. They may also have had a net income of $250,000 or more for more than two years. A sophisticated investor is characterized by someone whom is comfortable with a moderate level of risk, has experience in managing their financial affairs and investments. Sophisticated investors come from many walks of life and it is important to take into considerations the risks and benefits of providing such a certificate.

What is a Wholesale Investor?

A wholesale investor is someone whom is prepared to invest up to $500,000 into a registered asic product and requires a certificate from an Authorized Accountant or Financial Advisors (RG146) to do so.

 

If you meet the criteria as a professional, sophisticated or wholesale investor then give me a call today. +61434529004.

Accessing China

Doing Business in China

 

If you manufacture a product or have a fantastic Fintech product ideally, china is the next step for your business. China is the second largest consumer in the world with most of its investors having low debt.  Many brands that come from outside of the Asia pacific region entering china tend to do very well. You may have a very well formed business plan. However, you will need to adapt that to the demands of china’s cultural and economic landscape. If you learn to embrace these challenges success will come to you very quickly.

 

Gestures

 

Your professional dress is important as it will assist in crafting your first impression. You need to present yourself as an ambassador of your country, family and business. This means wearing clothes of high quality and brand value. This will give you some credibility when you are first meeting with someone. 

Your handshakes should be firm but not tight, short with just enough eye contact. No handshake should last anymore than 3 seconds. It’s polite to smile and give a light head nod. If your handshake is too firm it is considered an act of aggression or hostility.

 

Face. Face is your reputation and it’s extremely important. Having face, is the ability to make difficult negotiations without losing your temper. To have honor, respect and candour to those whom are you trying to do business with. When doing business with anyone in china, it’s important to understand what it is they want first of all and meeting that compromise in the middle.

 

Your meetings will be far from formal as you are a guest within their country and a potential business partner. Your meetings will start from the middle of the afternoon and could potentially last all night. You can expect meetings like this for at least one week before any formal or on paper arrangements are made.

 

You should only enter meetings with people who can contribute to the conversation. This means only having your key and most senior employees with you at the meetings. Out of mutual respect, your new chinese friends will do the same.

 

Your business cards should have a mandarin translation on one side and an english translation on the other. Your business cards should be presented with two hands having the mandarin side facing up.

 

You need to invest in a special wallet or place holder for business cards. An exchange of business cards is similar to an exchange of phone numbers before a date, it’s exciting but you need to be respectful and keep your emotions in check.

 

Facts

 

The chinese Government wants more foreign trade within china and as gone to a large effort to introduce new policies that raise the standards in terms of legalities for westerners in order to encourage investment and trade within china.

  • Even after the chinese economy reaches it’s late stages of growth or maturity the GDP will likely continue to exceed 5.00% annually;
  • Population in china is more than 50 times that of australia by conservative estimates; and
  • More than 300 million people in china are considered to be middle class.

Local and provincial government departments in china have significantly increased free trade zones, technology, research and development zones as well as the relaxation of special tax laws, simpler licensing processes in order to decrease barriers to entry within the chinese economy.

 

All in all, if you are prepared to do business in china you should have enough capital, time and patience to work with us to make it happen.

Why you should build your investment properties

Why you should build your investment properties

You could probably think of many reasons why you would want to build a new home on a piece of land in a busy suburb within Sydney. However, there are many additional factors that you need to consider. Whilst investing in property is a good option for families toe distribute wealth, it can also be quite a burden if not handled properly.

Merchant Channels Co are a Sydney based Investment banking and wealth creation organisation that specialise in the creation and transfer of wealth within high net worth families and sophisticated investors. Located in Level 8, 66 Goulburn Street, Sydney.

Whilst we see ourselves as the preferred experts in land banking and residential developments and as mentioned about there are many factors that you need to consider before purchasing and investing in land developments.

Zoning

The first factor you should take into account is the Zoning of your land that you are purchasing. Also note the zoning of the land around your purchase. Chances are that if your land is one of many lots that has been cleared for residential and commercial developments, it won’t have that “wow” factor. It won’t have the distinguishing feature that sets it apart from other developments. In fact, building your residential development around others there is a small chance that you could be buying overvalued land.

Developments that are done in heavily populated residential areas are seen as less accessible, not in fashion and overpriced for the value of what you are getting.

I suggest taking a look at land that is available closure to the suburbs, but instead of building into apartments, build it into a large house. Over time, the land and home will appreciate significantly in value as it is the only home within a particular radius that isn’t crowded with neighbors.

Merchant Channels Co have a large amount of experience educating clients and walking them through the process of zoning, development application, funding and management of the residential or commercial development.

Vacancy within the area

Since this article is targeted to those whom are seeking an investment property and are more inclined to seek tenants to pay it off you need to be checking the vacancy rates within the area. Vacancy rates are statistics that are tracked by almost every real estate agency within NSW, this helps them produce reports, interpret housing trends and median market price.

The lower the vacancy rate the better in the eyes of all parties. Banks will see the investment as secure. You, the Investor, will feel confident that your are making a wise investment decision. The real estate agent will be confident about their ability to find a tenant sooner rather than later and this will be reflected by the lower fees.

Vacancy is normally predicted or interpreted with other information and statistics.

Land Cost

Land cost and be significantly reduced if you are buying land with an established property on it. Of course that is dependent on the location of which you are purchasing. You are better off purchasing land and building a new dwelling on it. Not only could it appreciate in value faster but it also looks alot better.

Land cost is not a sunk cost, Land in itself is an asset, so you should think about whether or not you can afford to build right away or after checking with local authorities, you might want to “bank” the land.

Land cost is important to consider because it will increase in value almost right away after your new dwelling has been built. Banking land is something that many builders, property investors and local government choose to do as a means of checking out the competition as well as seeing how much you could flip the land for.

Building Cost

There are a variety of builders that have pre-made building plans that can suite a variety of budgets. With pre-made plans for home with 2 bedroom all the way up to 8 bedroom homes in most cases. Building costs can start within the ballpark range from $300,000 all the way up to $800,000 for the luxury building packages.

As a personal rule (my rule) for every $1 you spend on land you should spend $1.5 on the build. Of course you will need to take into account your own budget, but that is just a personal preference of mine.

Your new dwelling

After your new home has been built and hopefully it is something extravagant- you should speak to your bank about having a valuer sent out to value your new home. If you’ve done your research and sourced experts throughout the land and building process you will probably find that your new home has an impressive value attached to it.

Merchant Channels Co has extensive experience in assisting investors sourcing out land and efficient builders to maximize their profits all year around. Attractive returns without the harsh risks or lock ins that other forms of investments have.

Rethinking investment risks by age

Rethinking investment risks by age

There are many different ways that many aged groups think about investment risk. Typically the older people are the more risk averse they tend to be. However, Merchant Channels Co have many years of experience collecting information, assessing risk and assisting you think about which products are right for you.

Over 55

Investors who are over 55 are typically risk averse and seek stability over large returns on their money. Over 55 tend to favour tangible investment such as property, jewelry and collectables.

The good news is for investors over 55 is that the residential development boom doesn’t have the economic markers that indicate signs of halting or an immediate slow. Although there will be a correction in the demand vs supply of new residential homes and apartments. There are many options for your investment portfolio that are risk averse that attract generous returns,

Jewelry pieces increase in value over time but that is dependent on the cut, the gemstone and the purity of the metal used to form the peace. Merchant Channels Co have a multitude of experience sourcing and collecting the most precious of pieces for your portfolio. Timeless pieces allow wealth to be distributed through to your family instantaneously and without debate about costs (subject to tax law about gifts and transfers of wealth).

Over 40

Over 40 investors are interesting in terms of their investment activities. They are fond of holidays, large homes and new cars. Many people outside of their age bracket ask “How can they afford that lifestyle?”.

Over 40 investors typically accumulate a variety of homes in variety of places. These homes are managed by different realities and typically have low vacancy rates.  Over 40 investors have a large amount of passive income that it often attached to a family trust. Their income from their job, hobbies and rental income all receive generous tax breaks.

Merchant Channels Co have a large amount of experience working with family offices, business dynasties and high net worth individuals. We assist these individuals in forming tax effective trusts that allow them to access their funds when needed whilst making the most of the lenient tax laws. Merchant Channels Co are experience investment bankers, wealth managers and are local to your home.

Over 30

People who are over 30 generally own their first home and are looking to purchase their second home. They typically have a joint income of $180-$240K, three credit cards on average and make additional payments on their mortgage.

People over 30 have a relaxed attitude towards debt and are typically risk tolerant. They have multiple investments in a variety of managed funds, make above-average risk investments in the stock market and do not care much for term deposits.

Generally speaking the tax period June- July is the most stressful period for over 30 due to the nature of their investment activities and not having the time or energy to stay organised.

People over 30 start to think about their retirement options and are generally advised to make the maximum Superannuation contribution they can.

Over 20

Investors over 20 invest heavily in the stock market and are using shares as means of achieving greater returns on capital to save for their first home. People over 20 are risk tolerant and are prepared to take additional risks to achieve greater returns on capital.

Investors over 20 are not engaged in complex investment activities and usually are not big cash savers. Investors over 20 are keen to start their property portfolio and achieve financial freedom earlier.  Merchant Channels Co are early retirement specialists that can assist you in achieving an exciting and independent retirement.

As investors over 20 are living independently their expenses are generally higher  however their income potential is lower due to the fact that they do not have much job experience and are likely to have just finished their bachelors degree.

Investing for your children

Investing for your children is a great idea to start distributing your wealth. There are a variety of options for you to distribute your wealth tax free to your children. Minors are taxed harshly as families have used their children in the past as a means of hiding their income.

Distributing wealth to your children is a complex procedure that should be left to the wealth management experts in sydney.

Broker Application

Broker Application

We are Merchant Channels Co and we value our brokers and introducer’s. If you are interested or have any other questions about filling out a broker application, feel free to get in touch with us directly.

Why become a broker or introducer with Merchant Channels Co?

Becoming a broker for Merchants Channels Co means your clients won’t be missing out on exciting finance opportunities. Brokers are remunerated rather fairly, keeping the interests of all parties in mind.

Merchant Channels Co, facilitates exception services on a first come first served basis, offering you a fast and efficient service giving you and your client peace of mind.

How Merchant Channels Co can help you

  • We have a competitive renumeration base for brokers and introducer’s;
  • Clients are served on a first come first served basis;
  • Flexible funding options for most construction projects and commercial enterprises;
  • Access to private equity and business mentoring;
  • Get a comprehensive breakdown on exploring new revenue streams for your business; and
  • Get access to cheaper debt / venture capital when you successfully rebirth your financial’s as per our advice.

Drop us an email at jonathon@merchantchannels.co.