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Overview
The Buy Investment Property strategy in Digital Advice allows you to model the purchase of a residential investment property as part of a client’s financial plan. This strategy helps you demonstrate the impact of property acquisition on cash flow, debt, tax position, asset growth and long-term projections. It is commonly used when clients are considering diversifying their portfolio, building wealth through property, or leveraging equity to invest.
By configuring this strategy correctly, you can clearly show the short- and long-term financial implications within your client’s scenario.
⚠️Important
Support logins have read-only access to scenarios. Only Paraplanners and Advisers can create or edit scenarios.
Strategy Selection
Please follow the step-by-step instructions below to prepare advice for the Buy Investment Property for Investment strategy.
📌Note
Before completing this advice, you can model an Investment strategy in the Cashflow Module. The modelling can be added to the advice to support your recommendation.
From the Digital Advice - Scenarios Screen, select the Add Scenario icon.
Select the client the advice is for, or select Joint to create advice for your client and partner. Select the type of advice ( SoA or RoA), then Proceed To Scope.
Select the Buy Investment Property strategy from the Strategy screen under Investment Strategies, then select Proceed. Link the Goals or skip this step.
Buy Investment Property
The Buy Investment Property section is divided into two parts.
On the left is a list of the client's existing investments and holdings, with options to release or create new funds. On the right is a summary page of the actions taken.
The first action is to release funds from the client's existing holdings and investments. You can also create a Liability by selecting the Create Liability button, there is also an option for Other where scenarios involving incoming inheritance, for example, can be modelled.
Release Funds
Release the client's existing funds by adding the amount to be released in the final Transaction column then clicking outside of the table. The released amount will show on the right hand side of the screen.
You can remove the released funds by hovering over them on the right-hand side and selecting the Rubbish Icon button.
Add Liability
Select New Liability to add an Investment property loan to the client's holdings. Enter the requisite information in the fields and save. The Liability will now appear on the right-hand side.
To edit the liability information hover over the liability on the right-hand side and select the Pencil icon to edit or the Rubbish bin Icon to delete.
Other
Similarly, select the Other button from the top of the left screen to add additional amounts and enter the requisite details.
Summary
On the right-hand Summary window, you will see a list of the transactions you have created. These transactions are editable by hovering over the individual transaction and selecting either the Pencil or the Rubbish bin Icons.
The Line items are divided into three main columns Existing, Transaction, and Projection.
Existing
Shows the client's existing assets.
Transaction
Shows the recommended transactions you have entered.
Projected
Shows the remaining amount from the Existing and Transaction amounts.
📌Note
If the existing amount is Zero the projected amount will also be zero.
Total Recommendation Amount
The Total Recommendation Amount can be found at the top right of the right-hand side window.
Asset Allocation and Product List
Access the Asset Allocation Tool and Product List from the three-dot menu at the top right of the window.
Asset Allocation Tool
The Asset Allocation Tool is the same as found in Advice Tools.
It will show the asset allocation information specific to your recommendation.
Product Detail List
Selecting Product Detail List will download a spreadsheet with a detailed product list to your downloads folder.
Add Investment Property
Proceed to Add Investment Property by selecting the button from the bottom right of the window.
Enter the new investment property details and Save, ensuring that the total valuation amount and fees do not exceed the Total Available Amount.
Entering an amount higher than the available amount will trigger a warning message and you will be unable to proceed.
After entering the correct amount, the new investment property will appear in the Summary window on the right-hand side.
Any remaining amount will also show in the summary window. The full Available Amount must be utilised to proceed.
Once the correct amount has been entered, Save, and select Proceed to Review.
Review
Review the details entered on the review page, you can edit the details by hovering over the tile and selecting the Pencil icon, there is also a section to enter a Summary.
Edit the Advice Document
You may also edit the advice document from within the scenario by selecting the Save And Preview button from the top right of any screen within a digital advice scenario and following the Advice Editing Instructions.
Fee Disclosure
After editing the text to your liking, select the Proceed to Disclosure Fees button at the bottom right of the screen. From there, add your fees and complete your advice.
Link Cashflow
After completing the advice, you may add any previously created cashflow modelling to the scenario by selecting the Link Cashflow option from the Scenario Tile. The cashflow tables will be drawn into the final advice document.
