Investment property – capitalising on the future
Investing in property is one of the great Aussie dreams. It’s almost like a rite-of-passage, if you can afford it – you grow up, settle down, buy your first home, save, and buy an investment.
But as much as many of us have always wanted to do this – to set ourselves up for a more relaxed retirement, driving around the country in a luxury van – there is a lot to think about when it comes to investment properties.
This is a brief guide to investment – click each section for more information or tools.
Like any strategy for growth and future security, investing isn’t just a spur-of-the-moment decision, it’s something that needs to be underpinned by a researched and well-thought-out strategy.
This means, above anything else, setting short and long-term goals, being realistic, and understanding your limitations.
So what does an investment property strategy involve?
As any investor who has experienced a few ups and downs with their property will tell you, property investment isn’t just a set-and-forget type of activity.
It’s something that will offer lucrative rewards – but you only reap what you sew, which means ongoing time and financial investment.
What are the ongoing costs you should consider before investing?
For many of us, saving a deposit for a second (or third!) home or property can be a challenge. But that’s where equity comes in.
Equity is basically the difference between the value of your home, and how much you owe the bank before it’s truly yours.
We’ve all heard a lot about negative gearing recently from politicians, economists and morning TV hosts. But what exactly is it and why is it such a big issue?
Put simply, negative gearing is when the repayment costs of your investment property aren’t covered by your rental income – it’s offers some useful tax breaks but is it all it’s cracked up to be?
And you thought choosing your own home, the one you live in, was a challenge! Try selecting one you’ll pay for, but won’t even live in.
Buying an investment is different from buying your own home, there are a lot of factors to consider. From practicality, to return and finances, this article is a good introduction to questions you definitely need to ask yourself!
Need a simple checklist that will ensure you ask the right questions and do the right research before you buy an investment? Look no further – Investment purchase checklist.
Once you’ve purchased your investment property, the real fun begins! You need tenants and you need an agency that will represent you competently and diligently so your investment continues to bring in money now, and increases in value in the future.
So what do you need to think about when selecting a rental property manager?
It’s open house time and your new property manager has rolled their eyes in wonder as they’ve entered your investment property… and not good wonder, it's wonder like, ‘I wonder how the heck I’m going to find people who won’t be turned off by those brown walls!’.
Styling for rental inspections is very important, click here for some simple and practical tips.