Investing in Property
It has often been claimed that investing in real estate is one of the easiest ways to make money. In some ways, this is true. With a modest financial investment and some equity either in your own home or in the sharemarket, an investment property can be bought and sold for a healthy profit. Or you could choose to hold it and use the rental income and tax deductions to pay off the loan and hopefully enjoy substantial capital gains. And the good thing is…the future of investing in real estate looks pretty good too.
Property is one vehicle to wealth creation and the website Investing in Property has been designed to provide you with the information you need to build a property portfolio.
With the prices of property increasing throughout Australia, more and more Australians will not be able to afford a home and many will end up renting for life.
Apart from the deposit, the biggest barrier to success in property investing for those starting out is the steep learning curve. Real Estate investing, no matter where you live, is quite a complicated business. There is so much to learn about so many areas involving property that we have divided them up for you to help fast-track your success.
Property Types
• What type of property will I buy?
• What are the advantages and disadvantages of buying house and land packages?
• What are the advantages and disadvantages of purchasing flats or apartments?
• What other property types are there in the market place?
Cash Flow versus Capital Gain
• What is positive cash flow property?
• Where do I find positive cash flow property?
• Why is purchasing property for capital gain so powerful?
Location
• How do I find a good location to buy an investment property?
• How far from a major city or town should I buy?
• Where in relation to main roads or schools should I buy?
Condition & Rarity
• How important is the condition of my investment property?
• Do properties that have rare qualities increase in value more quickly than others?
Property Renovations
• How to add equity to your property through property renovation?
• Learn more than 80 factors to consider when deciding if a selected property is suitable for renovation.
Market Research
• What to include in your checklist when inspecting a property.
• How to find and evaluate the right property for you.
Method of Purchase
• The pros and cons of buying property at private sale or at auction
• Timing your offer to get the best outcome for you
• How to make an offer?
Building Inspections
• What to look out for when inspecting a property?
• Organising a building inspection
Tax Deductions
• How to organise yourself in the month prior to the end of the financial year?
• Taking advantage of tax deductible expenses on your investment property.
Insurance
• Why you must have Building insurance for your investment property?
• Why Contents insurance and Landlords insurance are important for every investment property holder?
Sourcing Finance
• Important guide on how to choose an mortgage broker
• Two of the best mortgage brokers for investing in property
Types of Loans
• Comparing fixed rate and variable rate loans
• Consider an investor loan or line of credit for your investment loan
• The pros and cons of No Doc, Low Doc and Equity Release loans
Property Management
• The advantages of using a professional property manager
• What does a property manager do?
• What questions to ask prospective property managers?
Starting Out in Property Investing
Before you invest money in property, invest some time. Think about the financial goals you would like to achieve and a realistic time frame to achieve them. While property prices have been rising for several years and still are, they can also go down.
Once you have decided how much of a time and money commitment you want to make, write down your goals. Design a five year business plan including as much detail as you can. Review the plan after six months and again annually.
Include in your plan an estimate of how much capital you have to invest. This will differ depending on whether you plan to use your primary residence as your first investment.
If you do choose to use your existing primary residence as security and have enough equity in it, you can purchase an investment property with no money down. Always ensure that you can make the repayments on the loan you are taking out, especially if the investment property was not rented for a few months.
Another part of your business plan should state how much risk you are willing to take. Make sure you consider your personality type. Some investors favour capital preservation, while others lean towards maximum return in the least time. Know your risk profile before stepping into the property market.
Take some time to work through the website Investing in Property. You will need to consider your available time, establish a relationship with a mortgage broker or lender, learn about the real estate and rental market, understand contracts, know which insurance to buy, understand your legal rights and requirements, and fully comprehend the tax consequences when you enter a property investment.
There are many success stories available from persons who have been and continue to be very successful in property and we would like to help you to be one of them. You can make a very healthy additional income, or even a full time living, in what remains one of the soundest investments available…and property investing can be great fun too!
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