Property investment in Australia in our opinion, will be in demand for many decades to come. No doubt you've heard that a proper financial structure will also give you maximum tax benefits. Our services provide a full property investment analysis in order to know ahead of time what the costs and benefits will be.
Residential property investment, you need;
- Finance Specialists: To create the correct finance structure and obtain the correct type of loan product.
- Property Specialists: To liaise with the Finance Specialist and ensure the correct invest that fits the clients financial profile.
- Property Management: It's important to ensure your investment property is managed properly and professionally. To this end, we interview and recommend those who have passed the SAS test of performance.
"Buy land, they're not making it anymore" Mark Twain.
Property has long been considered a popular path to wealth for Australians for many years. Previously it had been a case of "Pay off Your Mortgage and then Invest" Nowadays there is a Big difference. Invest and Pay out your Mortgage sooner.
You can consider a Mortgage as a "Bad Debt" because you have to pay Income Tax on your Salary before you pay Interest on your Mortgage. With Negatively geared properties you can get Money from the Taxman to help to pay off your Investment. Consequently "A Good Debt". An Investment Property is an Asset. The definition in Wikipedia is "an item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies":
Not a Hobby!
Having an Investment Property is similar to running a business. There must be a plan in place. You are not buying from the heart, but from the head. It is important to assess your current financial position beforehand. What are your cash reserves and what equity do you have in your present home? Look at your long term objectives and factor in potential changes to your current situation. Are there any short term, or long term changes that can be foreseen. Employment, children, or other lifestyle changes.
Think twice about investing in property markets you are not familiar with look for areas where high growth is expected, in other words where there is potential for capital gains.
Property experts regularly provide tips on up and coming suburbs, just make sure you are aware of any biases they may have. Find out if Myers, Westfield, Bunnings or other big retailers are building in the area. This is normally a good sign for population growth. These guys normally do a lot of research before committing to a big development.
Location, Location, Research.
Look for areas where rental income is high compared to the property value
Do your research into recent sale prices to give you an idea of what you can expect to pay for property in the same area
Find out about the vacancy rates in the neighbourhood. A high vacancy rate may indicate a less desirable area. This may make it harder to rent the property and may make it difficult to sell in the future
Research proposed changes in the suburb that may affect future prices. Things like planned developments or zoning changes can affect the future value of a property. Don’t assume that last year’s boom will continue this year.