Every person wants to live a life where they are financially secure. Investing in real estate is considered as one of the most secure types of investments.
Buying an investment property be it a house, apartment or land continues to be investors’ favourite way of securing their retirement. Usually, buyers think that investing in property will definitely turn positive, but certain things might go wrong. To get the most benefit from property investments, it must always be done right.
Get the right property investment
Not every investment property available will give you benefits. However, you can use these tips to get the best property for investment that gives financial return.
First, as a property investor you should do research and choose a property that is available at the right price in a growth suburb. No need to invest your money where the returns are low.
Make sure you do your cash flows and sums. Plan to invest in local property where you can afford to maintain your mortgage over a long term.
To get a steady flow of income and to maintain your investment in the right manner, hire a licensed professional property manager and allow them to work for you.
The property investor doesn’t need to understand the local market using professionals to assist with knowledge and the dynamics of the market and which properties are available and which suburbs or areas are desirable by tenants is all they ned to succeed.
To avoid financial problems when investing in property get the right mortgage that suit your needs. Get sound advice from professionals, it makes a big difference.
To avoid financial problems, choose to use equity from one of your existing property. Leveraging equity from another property investment or your home becomes an efficient method to acquire investment property.
Make use of negative gearing. This can offer an investor the tax benefits. The laws in Australia allow investors to deduct their borrowing and leverage the costs on a property from their income.
Check the condition and age of the property, and the facilities
Long term benefits
Usually, investing in property has many long term benefits to the owner. Some of those benefits are:
- There is continuous cash flow especially when an investor has repaid the mortgage.
- There is capital gain and rental income benefits
- Your property can be sold in the future when the time is right if needed for cash flow
- Several tax deductions are available for property investors in Australia.
Some of the tax deductions that can be claimed by investors are:
- Interest
- Property Management fees
- Maintenance and repairs
- Depreciating assets
- Capital works and holding costs
You can also claim a wide range of management and running expenses such as insurance, advertising for tenants, realtor fees, council rates, interest on loans and depreciation of assets.
Buying it right
Buying the property at the right time, in the right location, at the right price can be a daunting task. To make things easy and to “Do it Right” you can follow the below strategies
- Use real estate companies to help you with a purchase
- Do not buy a property on assumptions and emotions
- Have an exit strategy for your property
- Get security for long-term growth
- Be ruled by the reason and not emotions during investment.
Talk to our experts at Fundamental Property Investment to know how we can help. Call us on 1300 790 773 or email us at info@whitestar.kinsta.cloud to know how our free services can benefit you. We assure you that “We’re With You All The Way”.