Time marches on and those celebrations from the last New Year’s Eve may now be just a dim and distant memory. Unfortunately, the resolutions made during those moments may also have fallen by the wayside as the pressures of everyday life come to the fore. However, some of these resolutions may have been very important and designed to make significant improvements in your life, so they must be prioritised as soon as possible.
When investing in property, one of the most important details to look at is the property location. The right location has a host of benefits such as more demand and quicker value growth and capital gains over time. It will also be a key factor in determining resale value and can make the property more attractive to tenants if you’re considering a rental property.
Investing in property can be a fantastic way to build wealth over time. Property investors can create a property investment portfolio that continuously generates income, and can also be passed along to their children. This also shows that investing in property can be a great way to have a financially secure future for you and your family.
Property investment is big business in Australia. It accounts for 60% of the banking system’s assets, and over half of Australians’ wealth is held in residential concerns. That works out as $6.6 trillion over 9.6 million homes, or a respectable three times the total value of superannuation funds.
Investment properties can be a great way to qualify for major tax breaks. But there’s a caveat to this: timing is everything.
The end of the financial year is the best time to take a look at your finances and make solid plans for the future. If you’re disappointed by the amount of tax you’ve just had to pay, investing could be a great option. Thanks to government incentives and tax break schemes, if you had earned $90K and invested in a $470,000 property through Calla Property, you would have net an annual cash gain of $705 for the year. In other words, the government would be giving you $705 to invest in the property!
No, this isn’t a trick question but if you can answer it, you’ll have a better idea of the property you should be investing in.
If you get it right, your renter should pay the bulk of your investment property through rental payments. If you understand the renting population and what they’re attracted to, you’re half way to ensuring your property is rented out regularly and reliably. Different suburbs and regions attract different kinds of renters who will look for different features in a property and location. The kind of renter who is looking for a property in the inner city is likely to want different things than the renter looking for a property in the suburbs. Things like good cafes and funky bars within walking distance, a gym, shopping and public transport close by. However, someone renting in the suburbs, is more likely to have a family, want to be close to good schools, parks and playgrounds and within easy driving distance to shopping malls and employment hubs.
Australia’s retirement system is known to be among the best in the world. With the government’s age pension and mandatory “Superannuation Guarantee” programs from employers, it has far exceeded other industrial nations like the United States when it comes to high individual savings rate.
Many clients come to see us with the idea that they can make money from property, but they don’t really understand how. If you know the formula, and you get it right, then it’s relatively easy to make money through property investment and often it doesn’t cost very much to do so.
How is that possible? How can you grow your wealth with little initial outlay?
I’ve had many clients ask me about recent changes to banking policy in regards to Investment Loans. The APRA decisions are interesting. In my view they’re trying to find a way to counteract the property heating effect that the RBA rate cuts are having in Sydney.