With so much information at our finger tips and with so many experts it is really tempting to latch onto the latest great idea that you have read or heard at a seminar. Property investing is really simple, the most important advice that you can be given is to just “get started”. If you have a small deposit or equity in your own home there is nothing stopping you. With interest rates on their way back up, property prices at a low point, 1st home buyer incentives, tenants chomping at the bit – it is a fabulous time to strike.
Purchase price is extremely important when buying an investment property. I recently purchased a unit in Stanmore for a lady in Adelaide. The unit was purchased off the plan for $419k a few years previously. It then passed in at auction for $350k with a new asking price of over $349k. My first offer was $305, and purchased it in the same week for $318k. My buyer was nervous about my low offering and willing to pay the new asking price. If she had purchased it herself the 10% I saved may have taken years to recoup.
With such a diverse property market which do you choose? Residential or commercial? off-the-plan or established? city, suburban or country? What is more important – capital growth or maximizing your tax deductions?
What is right for you? So, before you even ask “Which property?” it is essential to sit down and make a plan. This starts with fully evaluating your personal and financial circumstances and goals. Factors you should consider include:
- Your age, net income, dependants
- Nature of employment (employee, self-employed, retired)
- Assets (when purchased, purchase price, current value, amount owing)
- Commitments (loans, credit card/store card balances, HECS debt etc)
- Financial goals (build equity/supplement salary/replace salary/superannuation)
- Personal goals (car/holiday/children/more leisure time/a yearning to renovate)
And then your strategy. Depending on your circumstances, you may need a property strategy that is focused on:
- Building equity through capital growth
- High yielding properties to reduce your debt quickly or provide income
- Tax incentives – e.g. a new property with a great depreciation schedule
- Or do-it-uppers to capitalize on
The most common investment strategy that we see is for long term growth, generally with a 90% mortgage and a couple of years of great tax rebates! Whatever your requirements, keep in mind that it is expensive to buy and sell real estate. So buy well, hold on for the duration of your plan and (if possible) sell in the peak months of around March and September for most of Sydney, and often Summer along the beaches. I once read that the average pension is doubled by every investment property owned at retirement. You will be breathing easy with a small portfolio under your belt.
Amanda On My Side offers exceptional buyers agent services throughout Sydney and across Australia. So, if you are looking for the best home buyers agent, an investment property buyers agent or any real esate buyers agent services then your need Amanda on your side.
Amanda On My Side offers exceptional buyers agent services throughout Sydney and across Australia. Engage a professional real estate buyers agent to help you find the best property at the right price. Buyers agents, also known as property finders or a buyers advocate, can help find, research and bid on your next home or investment property. Need a buyers Agent Sydney – then you need Amanda on your Side.
