Custodian Wealth Builders focus on growth for its clients. This is distinct to investors who are purely income-focused or who buy property because it is ‘positively geared’. The Custodian Wealth Builders model is one that orients around a compound capital growth concept. This means a growth in the number of properties with time. As investments grow, this enables one to borrow increasing amounts and thereby ‘duplicate’ their investment. In the long run, this will enable a person to have a string of assets that are all self-paying, via income from rent combined with legitimate tax savings.
Questions are often asked in review of Custodian Wealth Builders as to whether its system genuinely offers the returns it proposes. To review its work, it is always best to seek and obtain feedback from clients that have applied the philosophy and who have undergone the Custodian Wealth Builders process. These people are best placed to offer legitimate feedback and review the system.
A client feedback review of Custodian Wealth Builders reveals the following…
In 1999, Steve and Kerry Bishop bought their first property investment with Defense Housing Australia which Steve describes as ‘a very safe introduction’. In 2001, they invested in a residential property syndicate, but when it came to seeing their investment returns, Kerry had to actively pursue their money. Three months after they got it, the company collapsed. The Bishops used that money to pay down their mortgage. Around this time, Steve and Kerry saw one of John Fitzgerald’s TV infomercials for his Untold Wealth: Success from Scratch workbook and they decided to give it a try. After working half way through it, they attended one of John’s seminars. They heard John speak, met a consultant, decided to finish the workbook and ‘put a toe in the water’.
In 2005, they used some of the equity in their home to fund the deposit for their first Custodian Wealth Builders investment property in Brisbane. They also bought another investment property in Maitland for Steve’s parents to live in. Steve and Kerry went on to buy their second Custodian Wealth Builders property in 2006 in Brisbane, and in 2007, their third Custodian Wealth Builders property in Melbourne. They initially financed their properties using some of the equity in their home and then leveraged off the increased equity in their earlier investment property for their third. They also invested in Custodian’s Truganina land syndicate, which matures soon.
In 2008, the Australian Government changed the laws governing self-managed superannuation funds so that it was possible to invest in residential property, so Steve and Kerry set up their own fund. Steve says, “I think everyone should have one, even if they just use it as somewhere safe to park their money when the stock market crashes.” Steve and Kerry are committed to property investment. It has proven to be a stable asset class that has doubled in value every 7–10 years –without the wild fluctuations of the stock market.
They are always reading about property, reviewing property when they get the chance and talking to other property investors about their ideas and experiences. They also try to attend as many functions as possible. The best investment decision the Bishops have made was to put their self-doubt behind them, trust in their own judgment and ‘step off that cliff’ to start investing in residential property. They have been able to successfully build their portfolio by staying focused and disciplined. It is important not to get ahead of yourself and over commit. The Bishops believe in sacrificing up front – they have forgone overseas holidays and new cars in the short term to secure their financial future.
Kerry explains, “We work in an industry where people live in the moment and spend to the minute – it’s all about new cars, holidays, new houses and furniture. It’s hard to watch while we sit at home being conservative, but we know we can enjoy our later years. We know of people who retire and then three months later they’re back working on contract because they don’t have the income.”
In review of their experience, the Bishops’ investment advice is simple: stop procrastinating and plan your cash flow meticulously. “Investing in real estate has given us choices,” says Kerry. “We won’t be ‘retiring’, just changing direction. We’re really looking forward to it.” They also have some big holiday plans. Kerry says, “Our dream holiday is to go to Canada. We also want to go to Italy to learn the language and to cook Italian cuisine.”
Steve and Kerry’s feedback indicates that the Custodian Wealth Builders program has worked for them. Their review is one of many stories that have told of the program’s success. Anybody that is looking to review the program’s credibility for them self should seek out other feedback, but make sure that those offering feedback have had the commitment to stick to principles and ethos of Custodian Wealth Builders. After all, as Custodian Wealth Builders say themselves,
those without a good investment philosophy and commitment to make it work will always find it hard to invest well and grow their money.
Custodian Wealth Builders are considered just one of many experts in the field of property investment. They provide a considerable amount of feedback for you to be the judge! Why not go to their site and actually judge for yourself – http://custodian.com.au/
*extract from Custodian Millionaire Case Studies magazine printed in 2012.
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