Investment Property Service Brisbane
Is an Investment Property right for me?
Most people can understand the concept of owning an investment property. It is more straight forward than learning about the share market or other types of investments. But before you jump straight in and start making offers on an inner city apartment or a family home in the suburbs, there are still risks and a whole lot of research needed. When you are buying an investment property you have to approach it without emotion - you are not going to live in the home so you do not have to "love it".
If property is an asset class you would like to invest in then speaking with a team of experts can help you see the big picture, crunch the numbers and identify optimal strategy to meet your goals.
Real-estate agents, buyers agents and property sales people wont be able to offer a comprehensive wealth strategy.
Finding the right team of experts can help you explore things like ownership structure, cash-flow, depreciation, loan structures, tax implications, growth, reinvestment opportunities and what your exit strategy can look like. Armed with this information you will be able to identify the right property to grow your wealth.
Usually, a Financial Planner cannot help you with property investment as it falls out of their scope and they are not qualified to provide financial advice for property. However, Brad Macaulay at Investment Zone is qualified to provide Property Advice as part of your overall Financial Plan and he is also a licensed Real Estate agent.
Brad Macaulay will work with you to establish clear criteria for the ideal investment property, based on your current financial situation. Full cash-flow forecasting is also provided and will reveal how you will grow your property portfolio, save on tax and produce a passive income. Finally, you'll be able to invest with confidence and build a portfolio that pays for itself with a wealth expert!
Book an appointment with Brad to see if property investment is something that will add to your portfolio and help you to set up a secure financial future
Property investment is not just for the super wealthy and the average Australian with the right attitude and the right advice can become property millionaires in a realistic time frame. To get started investing in property you will need a steady income and some start up savings. As your property portfolio grows, this will become easier to manage.
What are the Pros?
Less volatility – Property prices can be less volatile than shares or other investments.
Income – Regular rental income if the property is tenanted.
Tax deductions – You can offset many expenses against rental income, including interest on any loan used to buy the property.
Physical asset – You are investing in something you can see and touch and insure
No specialised knowledge required
What are the Cons?
Expensive– The rental income may not cover all the mortgage payments and other expenses.
Interest rates – A rise in interest rates will mean higher repayments
Vacancy – There may be times when the property is vacant and you will still have to make repayments
Inflexible – You can't sell a portion of the land or building if you need a quick cash injection.
Loss of value – If the property value does go down, it can take time for it to recover to what it was when you purchased it.
High entry and exit costs – There are expenses like stamp duty, legal fees, commissions, taxes and insurance that all need to be paid for.
Long term plan - You may need to hang onto a property for up to 7 years before it is viable to sell the property.
Ongoing costs - Council rates, repairs ad maintenance, landlord insurance, building insurance and property management fees
How to get started in Property Investment
Purchasing a property for investment purposes can involve a different set of considerations compared to purchasing a home to live in. Here are some tips to get you started.
Which rental market?
First, decide if your property will cater for the budget rental market, mid-level rentals or the executive market. While the “executive” end of the rental market provides very good returns, it may not be suitable for the average investor. The market for high-rent properties is more fickle and hence you could find yourself without a tenant for a considerable period and no cash flow to meet mortgage repayments. At the budget end you are more likely to encounter higher tenant turnover.
What type of tenant?
Consider the type of tenant you intend to target. Are you looking for young couples with no children or will you focus on the family market? Units are good for business couples, while the typical house and garden is more suitable for families.
To minimise tenancy turnover and appeal to the higher calibre tenant, the property should be finished and presented to a standard that is more applicable to an owner-occupier. A relatively new or recently refurbished property, well decorated, with good quality fixtures and fittings is important to secure the right tenant who will stay for the longer term. Skimp on quality and you may end up paying more on regular maintenance and replacements.
Location, location, location
Once you have determined the type of property, the next step is location. A more attractive rental property will be close to public transport and good road systems. If your rental is family-focused you need to be sure it is close to schools, childcare facilities and sporting amenities.
Consider if there are places of employment in the close vicinity, such as industrial or commercial centres, attracting substantial numbers of employees – and potential tenants. What is the level of rental vacancies in the selected district?
For long-term capital growth seek an area with high trends in population growth. Take time to study which areas are proving popular and where local authorities are developing infrastructure.
Do it yourself or use an agent?
Happy, contented tenants will look after your property, so good property management is essential. If you intend to do this yourself, be sure you are contactable 24/7 in the event of emergencies and have a list of tradespeople you can call for plumbing, electrical or building repairs. If you intend to use a property agent, check their background, experience and current management procedures. And shop around.
Remember, to improve your chances of profit, property should be considered a long-term investment. With this in mind, it is worth putting in the extra legwork before you buy to help make a good investment decision.
What to consider when investing in Property?
Investment Zone is uniquely placed to assist you in creating your Property portfolio. Make an appointment with Investment Zone to take the first step.