Would you like a $20k tax deduction instead of paying the equivalent in buyer’s agent fees?
Before I tell you more, I always say to my clients… “never do anything purely for tax”. Tax benefits should only ever be the icing on the cake.
! Buyers agents fees aren’t normally deductible in the year you pay them, as they are typically seen as the cost of acquiring a property and not an expense of running it. Therefore, they are treated like stamp duty and only deductible when you sell your property i.e they are added to the cost base of the property.
If you’re considering purchasing a home, holiday home or investment property right now, you can have the opportunity of making a tax deductible donation of up to $20k instead of paying the equivalent as part of your buyer’s agent fee.
(btw this is my understanding of it being an ex-accountant and so please don’t treat this as tax advice and make sure you speak with your accountant before making any financial decisions)
I said at the start you should never do anything for tax, and so whilst having the equivalent of a deductible fee is a bonus, what are some of the reasons for using an independent buyers agent?
- 1- We get access to properties off market or pre-auction market due to our extensive relationships with real estate agents. You may never even see these properties on the market and so how can you pick the right one if you only see half of what is really available?
- 2- A grade properties that tick all the boxes always sell well, even in a mixed market like we’re seeing now. We’ve been buying properties for clients for over 10 years and every one we buy, we buy based on a very conservative independent valuation report, that guarantees our clients pay the right price and never pay over the odds. Our competitors don’t believe it’s possible, but we do it every time or we walk away and move on to the next property. Have you got that discipline?
- 3- Do you enjoy taking time out of your busy schedule to view property after property and open house after open house only to be harassed by real estate agents? I don’t blame you. We think that our clients evenings and weekends are valuable and if they can afford it, they should spend it with friends and family instead of traipsing around open homes that look great online, but don’t deliver in person.
- 4- Whilst most people believe they are serious property experts, (especially after a few drinks at a weekend BBQ) how well can anyone do something if they do it once every few years, versus someone doing it all day, every day, for decades? I hire specialists for everything I do (i.e accountants, mortgage brokers, builders, valuers etc etc) and I believe they will do a much better job than a generalist who dips their toe in the water.
- 5- Are you inside the industry? Being in the media and on the street talking to agents and checking out properties, we get to hear what really happens in the market, which properties that will always sell and rent well and which ones won’t. We know the ones that look pretty but perform badly and the ugly ducklings that can be transformed with a cosmetic touch up.
So, in this case, you might be able to have your cake and eat it as well.
Definitely speak with your accountant first and this is only available to a brand new client to Your Empire that we have not spoken with before.
Even if you are just thinking about buying your next property, contact us right now and let’s talk. This is a first in, best dressed deal. If it’s not you but you know someone who might be interested, be sure to share this link right now as last time I did this, there was interest within the hour.
So now you might be thinking the equivalent of a tax deductible buyers agent fee is ‘too good to be true’ and what’s the catch?
“Why would Chris let me donate $20k instead of putting it in his own bank account?”
Well let me explain:
It all started a few years ago when I discovered the Mystery Box Rally.
The Mystery Box Rally combines a fun and social driving rally with the opportunity to support a charity – the Cancer Council.
WIN – WIN.
You see, for each participant in the rally, you have to donate a minimum of $3,500 to charity. The Mystery Box Rally since inception has now raised over $23,000,000 and the founder has got a goal of $50m after losing both his parents to cancer.
To enter, I just needed a car at least 25 years old to drive on some of the toughest, most demanding and remote roads in Australia. You don’t know where you are going until the day of the event and it’s 5 days of full on driving just to be a chance of making the finish line.
Once again, anyone who knows me knows two things…
1. I love cars
2. I don’t do anything by halves
That’s why instead of raising the minimum $3,500, I wanted to set the bar higher. Much higher. Hence the offer that I’m willing for a client to make a tax deductible donation up to $20k and realise the potential tax benefits for themselves.
My goal is to help other teams raise the bar as well for a great charitable cause.
What about the perfect car for an outback rally? What vehicle did I choose for thousands of miles of unforgiving dirt roads in the middle of nowhere?
Better still, it’s more than just a fun car I can use as a tool to help raise money for charity. I can easily fit my two kids in the car to take them to school. I’m pretty sure they love it when I drop them off and pick them up. Sometimes, I hit the horn just in case they don’t see me parked out the front when they are with their friends.
The rally? So far, I’ve attempted the rally three times.
In 2017, I broke down on the morning of Day 2 – my airbag suspension exploded and I had to leave the car in Tilpa.
In 2018, I snapped my rear axle 700km’s north of Broken Hill after jumping off sand dunes at 100kph with 200 kg of fuel in the boot. It took NRMA 2 days to find the car based on my satellite co-ordinates.
In 2019, I finally found success with my third co-driver, even though the whole rally, people were taking bets on which day I’d have to abandon.
Good news. It doesn’t matter if I finish or not. We’re still able to make significant donations to a wonderful cause and have untold amounts of fun along the way.
Unfortunately, the rally was cancelled this year due to COVID concerns and so planning for the 2021 rally is already well and truly underway and set to kick off from Rockhampton on July 31st.
I’m not going to lie, it will be a challenge even to get the car to the start line, but I’m determined.
That’s why I’m willing to allow our next new client make a tax deductible donation up to $20k in lieu of the equivalent portion of buyer’s agent fees.
If you’re that person, this could make a significant difference on your next property purchase.
Be sure to follow me on social media to track the progress of the 4th attempt and to keep up to date with all the latest property news.
Here you can find:
For all those who have taken an interest in my rally attempts and donated in the past, I wanted to say a heartfelt thank you.
Even if you are not in the market for property right now, you can still click this link and donate directly to the cause.
Remember, this offer is only for the next brand new client of Your Empire that we are yet to speak to about using our buyer’s agent services. Contact us now if you are interested.
This offer was posted at 10:40am on Monday 14th September 2020.
Aaaaand… here’s me in a onesie…