Things To Know About Property Investment
It seems as soon as you mention that you are considering an investment property, there is no end to the amount of advice and “expert opinions” that get hurled at you.
Unfortunately often the advice is from those that have never bought an investment property or in the case of NRAS – have very limited or no knowledge of the scheme at all.
Property Investment is a personal thing and there is no “one size fits all” application. Everyone’s personal situations and goals are different so it is crucial these are taken into account when seeking advice.
Property investment isn’t rocket science, but at the same time it is important you understand how it works and most importantly – how it is going to work for you personally to achieve wealth.
The government has made it attractive to invest in property and history shows us that those that have invested in property over the years have done very well from it, however there still needs to be an amount of due diligence and understanding before you take the leap of faith.
Some of the property investment terms you will come across;
We’ve provided a brief explanation below, have a read and if you’re still not sure, contact us.
There are many facets of investing in property that are crucial;
- good accounting advice
- loan structuring
- picking the “right area”
- selecting the “best” property style (house, unit, townhouse)
A quick chat with us will help you with all of that.
If done correctly investing in property is not only financially rewarding but an enjoyable experience. Allow us to teach you the ins and outs to ensure you receive the financial benefits of property.
One of the many advantages of buying an investment property is the tax advantages the government affords investors. Whilst we are not accountants and won’t give you tax advice (we always recommend speaking to a licenced tax agent) we can certainly show you the hidden value of investing in property through tax.
Depreciation is one of those property investment ‘buzz words’ that gets thrown around. We’ve found it’s often assumed that everyone knows what Depreciation means. If you’re not totally clear on it, click here for more details.
Understanding what Negative Gearing is when you invest in property is important, as it does have tax implications. For an easy to understand explanation, click here.
You will find plenty of property marketers spruiking the fact that property prices have generally doubled in Australia every decade over the last 100 years. Whilst it sounds like a great sales spiel it does make for interesting reading.
The reality is that property has always been a safe and reliable investment of choice. Put simply capital growth is the amount your property grows in value over the original price you paid for it. We will be pleased to show you what historical figures have been in your suburb of choice and if the trend continues , what your investment can potentially be worth in years to come.
Having a finance background we strongly believe that your loan structure, in many ways, is as important as the property you are purchasing. Every investor has different goals and financial situations so it is absolutely crucial that the structure of their finance accommodates what they are trying to achieve and gets them to that result in the quickest time possible.
Terms like avoiding cross collatorization, lenders mortgage insurance, use of offset account etc etc are only a few of the many factors a borrower needs to take into account to get the right set up.
Don’t stress – that’s what we are here for, just give us a call.