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The best strategies for driving revenue growth are long term.If you are buying an investment property in the hopes of making a quick profit, you could be undermining your future earnings potential. Holding onto a residential address for a while can help you make the most of rising housing prices while also raising equity for potential future investments.
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If you don’t know the dynamics at play in the neighbourhood you are considering investing in, find out.Speak to multiple property managers and estate agents to determine community demographics, dwelling vacancies and local rental yields. In addition, look at local planning approvals for dwellings and infrastructure.
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Be on the lookout for properties that appeal to a wide range of renters, from young professionals to families.Certain features, such as a second bathroom or garage, have universal appeal, so waiting to invest in a property with these assets can improve your chances of attracting suitable, long-term tenants.
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Your credit history and liquidity are important factors in trying to secure finance for buying an investment property.Ownership of other dwellings can also affect the value of your loan and interest rate. Consulting with a financial advisor should help you get your personal finances ready and develop an investment strategy. Consulting a mortgage broker will help you secure the finance you need.
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Seek the advice of a Buyer’s Agent/Buyers Advocatewe can advise you on the best approach to achieving your personal goals by ensuring that your criteria is met with each property purchase. With thorough due diligence and savvy negotiations, we can secure a property under market value, giving you instant equity and immediate capital growth.
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There are many benefits to buying an investment property that go beyond adding a new source of income.
Those with an investment portfolio will know that property is one of the most secure and high-yield markets in which to increase your personal wealth. The price of dwellings in Australia has increased significantly over time, meaning property is still suitable for the risk-averse. Additionally, purchasing an investment property diversifies your portfolio and spreads the risk, in case your other investments are failing to deliver the expected financial results. Investment property also offers the chance for individuals to prepare a new taxation strategy that streamlines end-of-tax-year commitments. Many costs involved with purchasing a property, preparing it for rent and managing it - like fees paid against your loan, advertising for tenants and maintenance fees - are tax deductible. |
Additionally, a negatively geared property (instances in which you lose money on the expenses associated with owning a property) can be claimed as a deduction against other taxable income. This approach to your personal taxes ensures you pay the exact amount you owe without additional costs.
As mentioned before. raising equity against the value of your residential investment property is the easiest way to finance future housing purchases. If you can prove your financial stability in repaying your mortgage on time, you will more easily be able to secure loans and other forms of financial credit from a bank or lending institution. We understand that while the benefits sound great, many first-time investors remain cautious about how they will finance a purchase and will question whether property is a good investment. |
1) What do I need to qualify for an investment loan?
This criteria is not exhaustive but is common for most Australian banks and lenders to require:
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2) How much can I borrow for an investment property?
Your borrowing power depends on the strength of your loan application:
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3) What are the costs of buying a first investment property?
On top of the purchase price of the dwelling, investors also need to factor in these expenses:
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