Key Attributes to Property Success
There are several key attributes that all Australians should consider when investing in property.
- To be successful, understand the rules around taxation and work out how it applies to your specific circumstance. Often Australians make buying decisions without properly understanding the tax implications. In many cases, loans and purchasing clauses can be restructured to get you a better deal.
- To successfully invest in property, you need the right team around you to make sure all aspects of the purchasing decision is sound. Property in Demand engage highly trained experts in their respective fields to work on your behalf. We specialize in financing, mortgage restructuring, accounting, legal, taxation and self-managed superannuation funds. We make it easy for you to understand how to invest and what you need to do to make the right decisions.
- It is imperative to work with a company that has extensively researched hundreds of suburbs across Australia to understand the latest trends and buying opportunities. This saves you time and effort, but also ensures the decisions you make are validated by supporting research. Property in Demand has helped thousands of Australians to make great property investment decisions. We know where to invest and how to get the best yields for your specific requirements.
- Undertake regular reviews of your portfolio and make changes to your finance and insurance structures where there is benefit to do so. From our experience, we suggest doing a full review every 6 months, but that can change depending on the market and the area you have purchased in. You need to be confident about when to sell and when to stay in an area. Property in Demand consultants have all the supporting research to provide the right advice about your portfolio.
Property investment can be a great way to increase your wealth and prepare for retirement. However, there are several different ways that a property can underperform, so it is important to get the right advice before committing to the market.
Here are some general advantages to Property Investing:
- Property can be less volatile than shares or other investments.
- You can earn rental income and benefit from capital growth (if your property increases in value over time).
- If you take out a loan to purchase an investment property, interest on the loan and most property expenses can be offset against rental income through tax.
- You are investing in something you can see and touch.
Here are some ways that Property can under perform:
- You can’t sell off a bedroom if you need to access some cash in a hurry.
- If property investment is your major investment, you may have little or no diversification.
- If the value of the property goes down, you could end up owing morethan the property is worth. This is known as negative equity.
- There are very high entry and exit costs such as stamp duty, legal fees and real estate agent’s fees. Plan for these carefully before selling.
- Rental income may not cover your mortgage payments.
- Unforeseen expenses may require you to use other money to cover these costs.
- An increase in interest rates will increase your repayments and decrease your disposable income.
- There may be periods of time where you don’t have a tenant and will be required to cover all costs yourself.