Frequently Asked Questions

What is the process for working with ZTI?

We follow a streamlined four-step process to guide you toward your financial goals:

Initial Consultation: Meet with one of our consultants at your home or our office to discuss your objectives.
Strategy Session with CEO: Review a personalised case study and strategy with our CEO.
Profiling: Collaborate with our licensed financial planner, accredited mortgage broker, and real estate experts to develop a tailored solution.
Ongoing Monitoring: Receive continuous support to ensure your strategy remains on track.

How much does it cost, and how do you get paid?

Our services are free to you. As a solution-based company, we only get paid when we deliver results. If your strategy involves financing, we are compensated by third parties, such as banks, like a mortgage broker. This means you incur no out-of-pocket costs.

What services does ZTI provide?

ZTI offers a comprehensive, one-stop shop approach to financial and real estate solutions. Our services include:

Financial Planning: Work with our licensed financial planner to craft a strategy tailored to your unique situation.
Mortgage Broking: Our accredited in-house mortgage broker accesses multiple lenders to secure the most competitive interest rates.
Real Estate Sourcing: If your strategy involves property, we source suitable investments and connect you with affiliated accountants, property managers, and other professionals as needed.

What is negative gearing?

Negative gearing occurs when the costs of maintaining an income-producing property (e.g., interest and other expenses) exceed the rental income generated. In Australia, negative gearing is a strategy used to make holding investment properties more affordable, allowing them to grow in value over time. The shortfall between rental income and expenses is tax-deductible, reducing the overall cost of ownership. The goal for most investors is to eventually build a portfolio of positively geared properties, where rental income exceeds expenses.

What is depreciation in property investment?

Depreciation refers to the decline in value of a property’s building and fixtures (not the land) over time. It’s a non-cash expense that can increase your tax deductions, including items such as light fixtures, carpets, and building costs. Key tax-deductible expenses include:

Purchase-Related Costs (deductible over 5 years): Valuation fees, bank application fees, mortgage insurance, and consultancy fees.
Depreciation Costs: Building costs (2.5% per year over 40 years), fixtures, fittings, furniture, and inspection costs.

To maximise deductions, we recommend engaging a quantity surveyor to calculate depreciable items accurately and an accountant specialising in property investment to ensure all eligible deductions are claimed. For optimal tax benefits and lower out-of-pocket costs, we advise investing in new or near-new properties.

Why does the government offer tax incentives for property investors?

Tax incentives for property investors alleviate the government’s burden of providing public housing, saving significant funding and infrastructure costs. With approximately 35% of Australians renting (a figure that continues to grow), an undersupply of rental properties could drive up rents, fueling inflation and increasing pressure on government housing resources. To encourage private investment in rental properties, the government provides attractive tax benefits, enabling investors to acquire properties at minimal or no personal cost. Essentially, rental income and tax deductions can cover the cost of your investment property.