6 tips for successful property investment

Low vacancy rates, rising rents and the stabilising of property prices in most states are a great opportunity for Australians to consider buying an investment property. Great gains can be made from purchasing property if you buy in the right place at the right time

We suggests the following 6 tips for those looking to invest their hard earned money in a piece of Australia.

1. Create a long-term property portfolio plan
Realise that investing in property is usually a long-term strategy. Always ensure you are comfortable with the advantages and disadvantages associated with a particular investment asset. Consider your goals and all possible outcomes.

2. Consider all costs & positive vs. negative gearing
Keep in mind that the interest and related expenses you incur (such as repairs and maintenance) are tax deductible. If your loan repayments, fees and other costs exceed your rental income, the net loss can be offset against other income you derive, meaning you will be able to reduce the amount of tax payable on your other income. This is called negative gearing. Or, you may consider positive gearing, where the annual rental income received from the property covers or is higher than the annual loan repayments and costs.

3. Think about buying with friends, family or work colleagues
More and more Australians are taking advantage of pooling their resources with people they know in order to get into the property market or increase their property market ‘wealth’. With myriad lender and home loan options now in the marketplace, all it takes for applicants to have their application approved is the ability to meet home loan repayment requirements

4. Choose a loan tailored to your current needsDepending on your monetary situation and current investment portfolio, there are a range of property loan products for you to consider. Apply for a loan that suits your current needs and lifestyle because you can always refinance later.

5. Use a buyers agent/property finderSeek advice about the type of investment property that will maximise your investment. Buyers’ agents know the market better than most and are a valuable resource to use for advice or for negotiating with property sellers and/or their agents.

6. Visit a financial advisor and/or accountantYou need to discuss your full monetary situation with someone who is very experienced with clients who have a range of investment assets because you need to make sure that your financial situation is improved by an investment property and that you can afford repayments without stretching the budget uncomfortably.

To find out more about what loan suits your needs, arrange an appointment with us and we will help you choose the right loan for your lifestyle. Secure your future today!