Tips For Property Investors
Property investment is a popular type of investment strategy for people in Perth who are looking to create a more secure financial future. Particularly in the current climate, property investments do not always guarantee positive returns.
Here are some things to consider when it comes to property investment in Perth.
Real estate investment is primarily about capital growth; thus, investors ought to buy a property in the right place so that it has the best chance to increase in value. It can be challenging to determine the true value of a property in the real estate sector, unlike the share market where the company’s value can be more transparent. You should aim to acquire a property at a price that is lower than the real market value, to do this you need to research the property thoroughly to assess the real value or worth of the property.
Find a good property manager to manage
Property managers are licensed to offer professional advice on property investments and ensure everything runs smoothly for tenants and property owners alike. Property managers can assist you in managing tenants and getting the best value for your property. Also, a good property manager will advise you on the right time to review rents and when you shouldn’t.
Understand market dynamics before you buy
You should think about the properties in your neighbourhood and talk to real estate agents and locals in the area to understand the market dynamics. Maybe one side of the street is superior to the other, or it attracts more tenants than the other. You need to do your research and consult with a real estate agent you can trust who can give you insights and secrets about properties in the locality.
Negative gearing is essential in providing property investors with specific tax benefits when the investment costs are more than the income it brings to the table. The law in Australia allows investors to deduct their maintenance and borrowing costs from their total income. However, the law only allows you to enjoy tax benefits if you earn other taxable income. The advantage is that even if your property is running at a loss, you can get a reduction of the tax amounts on your other earnings. However, you should not buy a property just because you want to get tax reductions.
Choose the right mortgage
There is an array of options to choose from regarding financing your investment. You need to make informed decisions when it comes to financing options because it can make a significant difference to your finances. You should consult a trusted financial advisor to help you structure your loan correctly. Contact Precept Financial Services today for a free consultation and see how we can help you.
Check the condition and age of the property
Unless your intent is to renovate a property, you don’t want to buy a property in ill repair because the excessive repair and maintenance cost will affect your profits and damage cash flow. Therefore, property investors should work with building inspectors before they buy a property to inspect the building for any potential problems.
Make the property attractive
You should try to keep all the rooms in excellent condition and maintain neutral tones throughout. This will help attract and maintain tenants which is essential to the success of your investment. If you want to attract tenants, try to invest in a property that you could see yourself living in.
Keep in mind this article is providing only some generic information on property investment. If you’d like to get some individual advice according to your specific situation, contact us today for a free consultation and see how we can help you.
Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.
Please see our Financial Services Guide for more information.