Property For Investment Australia

Property for investment Australia has long been an important way of Australia’s realising their financial goals. The real estate market in Australia has provided many positive returns for investors over the years. However, you must approach property investment in Australia with careful research and knowledge and consult experts to receive the correct advice. When you make mistakes in property for investment in Australia it can be very expensive, so it’s best to do your research upfront.

There are several experts that you should be consulting along your property investment journey, including:

• A Property Investment Advisor
• A Finance or Mortage Broker
• A Conveyance solicitor
• A Property Manager
• Real Estate agents where appropriate.

It’s crucial to remember that investment property is much different from purchasing a home to live in. There are a completely different set of factors that you need to take into account. 

It would help if you remembered that this should be viewed as an investment property. It would help if you were unemotional and only look at the numbers and potential profit, not whether you want to live in the house. 

We have found many investors struggle to look at property investment unemotionally, which can be a significant mistake. Remember that this is a property for investment, and the goal should be to make money. When looking at a property for investment, you should focus on the following key elements:

• The yield of the property
• The potential Capital Growth
• The ability to finance the property
• The attractiveness of the property for tenants

Property for Investment New or Established?

Whether to buy a new home or to purchase an established property is a vital decision. However, each type of investment comes with its own set of nuances that you need to be aware of. If you are considering a house and land package, this article gives good run-down on how they work.

The decision of whether to purchase new or established needs to take into account the following:

• Your circumstances
• Investment goals
• Budget
• Ability to obtain finance
• What you are looking to achieve
• The area in which you are investing

We are experts on New Property investing in Australia at New Property Australia, so obviously, we much prefer investing in new property. 

To have a look at some of the different new property types you can choose from click here. If you want to know more about the different types of high yielding property investments that we have available, you can send through an inquiry. 

Loans for Property Investment

Loans for Property Investment is one of the most critical factors to the success of your investment. Put simply, if you are unable to obtain finance for your property, then chances are you won’t be able to purchase it unless, of course, you are using cash. 

We can’t stress enough here the importance of seeking a qualified and experienced mortgage broker. A bank will provide you with the best loan for them, whereas a mortgage broker will give you the best loan for your situation. Instead of dealing with one bank or lending institution, a good mortgage broker will assess the best loan or financing from 30 or more different lenders. Therefore, you will have more chances of getting the best loans for property investment through an experienced mortgage broker. 

It’s also vital that your broker is experienced in financing the type of property you are looking to invest in. For example, if you want to purchase a house and land package, your broker needs experience and knowledge in construction loans for investment. 

If you would like us to refer you to an experienced Morgage Broker specialising in new property investment, please drop us a line below.

Property Investment in Australia

There are numerous considerations that you need to take into account when considering Property investment in Australia. Below are some key points that you should consider:

1. Do your research: You need to have some idea of the type of property that you are considering investing in, whether it is a house, apartment, townhouse etc. The areas and suburbs, even the state that you are considering.
2. What yield do you need to make the investment work: The property’s yield will determine what it costs you or how much income you make on an ongoing basis. Here is a quick 2min video on how to calculate it.
3. Budget for additional costs. Whilst your property may produce a positive cash flow after tax, this doesn’t mean that there won’t be expenses and weeks where you have to fork out funds. It’s, therefore, best to have a kitty or slush fund at the ready to take care of unexpected expenses.
4. Property Management: It’s a good idea to speak with several property managers and work out a suitable option to manage your property. A property manager can make or break your investment, and you want to make sure you are getting the best rental yield that they can achieve.
5. Insurances: You need to have your insurance ready so that you are protected when you take possession of your property. This will include building insurance and landlord insurance.
6. Know all of the fees to work out your after-tax cash-flow return: to make sure that you work out the cash flow of your property, you need to ensure that you know all of the potential fees you may be up for. This may include interest, bank fees, Council rates, water rates, strata fees, repairs and maintenance, property management, vacancy periods, insurances, taxes. You should also know all of the possible income such as rent, tax refunds and depreciation amounts.

Property Investment Interest Rates

While the property investment interest rates in Australia are very low, they may not always be this way. As such, you should have a backup plan or some additional funds to be able to cope with higher repayment amounts. 

This is one of the reasons that we are particularly keen on higher-yielding properties. Whilst the interest rates are low; they provide you with a good income return. If the interest rates do rise, which they undoubtedly will, you have additional funds and room to move to make higher repayment amounts. 

Property Investment Depreciation 

Property Investment depreciation is an essential factor for property for investment in Australia. This is because depreciation can significantly increase the after-tax income that you receive from your property. 

If you would like further information on property investment depreciation and how it can affect your property investment, please see this article.