Investment Hints & Tips

Property investment offers many advantages. Unlike your money stuck in a bank savings account, it is considered a growth asset class where capital growth outstrips inflation. This means that, over time you increase the capital value of your assets. And investing in ‘bricks and mortar’ gives you the comfort of a tangible asset which you can touch and feel.

 

To maximise your return on an investment property, make sure you choose your investment wisely

 

Do your research. Look at properties in different areas and make note of their vacancy timeframes. Pay particular attention to properties which rent quickly, and monitor rental trends, if possible.

 

Choose a property that has strong appeal to tenants. Consider their wants and needs, and meet them, if you want to maximize your return. A property that is popular with tenants will be easier to lease, be vacant less, and put upward pressure on rent.

 

Remember, property is all about location! Homes close to shops, schools and public transport are attractive to tenants and home buyers alike.

 

Choose a property with lots of features which will appeal to tenants. Properties with security features like door and window grills, alarms, and secure access are popular, as is off-street car parking, especially if there is a shortage. Heating and cooling are in high demand, as are renovated kitchens and bathrooms.

 

Consider your investment strategy when buying property for investment. Are you looking for strong capital growth, or positive gearing? Discuss options and benefits of each strategy with your Accountant or Financial Advisor.

If you have equity in your current home you may wish to use this to borrow against for your investment property.

 

Property tax depreciation is available to all property investors. A tax depreciation schedule can be arranged through Richardson & Wrench and BMT Tax Depreciation specialists.

 

Many investors chose an interest only loan as the interest component of a mortgage for investment is tax deductable, however you should always seek specialist advice.

Often, people choose residential property as their investment choice because it is in their comfort zone. It may be worthwhile considering a commercial or industrial investment. This is a specialist area so seek advice from a specialist Richardson & Wrench commercial agent

 

Choosing a reputable property manager will reduce vacancy times and result in better tenants (and the professional fee is tax deductible). Why not speak with a property management expert from Richardson & Wrench South Sydney.