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| FAQs Isn’t it safer to leave my money in the bank?
Property investors benefit financially from capital gains with rising house prices, as well as rental returns. Money in the bank only receives interest payments, which are subject to tax. Inflation means that the buying power of money in the bank tends to erode while property prices increase.
Should I buy investment property or shares?
Shares are a more volatile investment than property investment. Over the last year, the value of shares has declined by over 40%, while overall national property prices declined only 2.9%. The other thing to remember is that with real estate you have the safety of bricks and mortar, so even if prices fluctuate with the property cycle, you don’t have to sell until you are ready. This contrasts with companies on the share market which can go bust, leaving share holders with share certificates that are worthless. (Refer article from The Australian - Fixation with Real Estate gloom distracts from Share Market doom.)
Do you have to be wealthy to consider investing in property?
Rental income and the use of negative gearing to reduce tax means many people find their investment property pays for itself, or results in minimal out of pocket expense for the investor. Many property investors have an annual income of less than $40,000.
What is the advantage of using a property investment company rather than just buying directly from a real estate agent?
Real estate agents earn commission based on the sales price of the property they sell. This means that they will earn more if they can sell at a higher price. Their interest and loyalty is with the vendor, not the property investor. Property Investment Masters is a property investment company. This means that we focus solely on the interests of the property investor and are there to support you as you buy investment property, as well as being with you for the long term. We are paid a referral fee by the builder, irrespective of the price of the property. We organize for you to purchase the land directly from the vendor or developer. We negotiate the best possible price on the land and receive no financial benefit from that transaction. We simply go and handpick the best blocks available and you purchase these directly from the seller.
Who will manage my investment property? Do I need to find a tenant?
Property Investment Masters has alliances with quality managing agents and can recommend someone in the area of your property investment. We also explain some of the insurance products that are available to ensure ‘you sleep at night’ and are fully covered in case of tenants defaulting, damages etc. We take care of everything.
What are the three golden rules of investment?
The Australian Securities and Investment Commission (ASIC) advise that the keys to investing are:
• buy good quality investments • buy investments with a reliable and rising income stream and • make sure that the investment is affordable. Investment Property Masters assess properties against stringent criteria so that property investors are only offered quality investment property in future high growth areas. These properties make solid investments as they are likely to increase in value at a faster rate than average properties.
Reliable and rising income streams are secured by choosing to buy investment property that has features which are attractive to tenants. These properties will have low vacancy rates, have a desirable tenant base and will remain in high rental demand.
Investment Property Masters prepares property investment packages to suit each client’s personal circumstances. Investment Property Masters will only recommend property investments that meet your individual needs.
Can I move into my investment property when I retire?
Yes, of course. Many investors buy property investments with an aim to move in themselves at some stage. This strategy means that your dream property is secured at today’s prices and in the meantime, tenants and the tax office help to pay for the investment. Speak to your Investment Property Masters professional about whether the area where you want to live in the future is an area of solid capital gain.
How much can I afford to borrow to buy investment property?
Investment Property Masters have a loan calculator that will give you an accurate estimate of your borrowing capacity. Also, we will also give you a fully individualized Property Investment Analysis which outlines all the costs involved in holding a property including rates, insurances, agents fees, etc. This analysis also shows what the actual week to week cost/profit will be. In this current climate our properties are cash positive. Doesn’t get much better than that!
Shouldn’t I just concentrate on paying off my home mortgage? Paying out your home mortgage is a challenge that many Australians face. Why just do that, when with just a little bit more effort and planning you could develop an effective financial strategy that would ensure you were financially prepared and free to provide for your retirement or other. Why does the Government encourage property investment in Australia?
People who buy property investment are helping the community and the economy by providing much needed housing. There is a housing shortage in Australia, which will become worse with current immigration rates at record levels. There is also a shortage of rental properties. The Government cannot provide all the housing that is required. Property investors provide a vital service by providing additional housing accommodation. The Government encourages property investment by providing tax deductions for investing in property that are not available to home buyers for their own home. The Government also knows that you can make money for your future financial security through property investment in Australia and that relying only on your superannuation can be a risk. With more people independent financially there will be less reliance on Government financial support.
Is now a good time to buy investment property in Australia or should I wait?
Now is a great time to buy an investment property in Australia. We are at the low end of the property price cycle, so there are bargains to be found for informed investors. Our research capacity means that we can help you identify investment property for sale that will provide solid capital growth in the future. Record low interest rates make buying an investment property attractive right now. Many investors are choosing to buy investment property now so they can lock in these low rates and be protected from future rate rises.
Call Investment Property Masters now on 1300 657 184 for a free consultation. |
