Should I Buy An Investment Property?

Should I Buy An Investment Property
Should I Buy An Investment Property

Suppose you have spotted a property that suits your investment strategy or thinking about diversifying your property portfolio. In that case, this guide gives you a better understanding of what is involved and the factors that you need to consider obtaining a successful ROI (return on investment).

Before Deciding To Invest In Property

Investment property can be a low-risk and proven way to build your wealth. However, it carries a certain level of risk. Before making a property purchase, we always advise our clients to prudently evaluate the risks and benefits to decide whether it will be a practical investment.

By consulting our investment property experts and educating yourself by enrolling in our free mini courses, you can easily do a self-assessment to ascertain how much risk you can take and look clearly at the opportunities, so you know what lies ahead

Here are key considerations before buying an investment property

1. Strategy

After speaking with our investment property specialist, you will need to form an idea of how you will profit from the investment.

The most common property investment strategies are:

  • Capital Growth
  • Rental Income Stream
  • Depreciation of the asset
  • Rental Gurantee
  • Tax Variation to keep outoging low

We can connect over a phone chat or email to discuss the most suitable investment strategy for you.

2. Locating The Right Property

You will need to make the decision based on the following components:

  • Property Type: Unit or Townhouse or may be Freestanding House
  • Established Dwellings or New Buildings
  • Choice of Suburb

** Rental Return And Capital Growth **

Another critical element is assessing potential capital growth and rental income. It would be best to make sure the returns you generate with investment property are comparable to the returns you would have realised had you invested in shares or another asset class.

1. Rental Return

Study the median rental price for comparable properties in the area and consult with one of our property specialists to better understand the maintenance costs, rental growth and other concerning factors.

2. Capital Growth

Capital growth exemplifies the growth in the property’s value over a period. It is one reason why most people buy an investment property—the Australian property market functions in the cycle with periods of growth, including stagnation and decline. And 2021 is the right time to buy your first or maybe next investment property in SA.

Be aware that Capital Gain Tax can apply when disposing off the asset.

** Getting An Investment Property Loan **

Before applying for an investment loan, make sure you do the following:

  • Evaluate your borrowing capacity
  • Compare mortgages to find competitive interest rates
  • Try to get the loan pre-approval, preferably with a credit check.
  • Consider where you might like to invest

Let's help you minimise your risks

Savvy property investors take steps to minimise their investment risks and diversify their property portfolio.

We would love to help you make an informed and confident decision. Connect with us today to discuss the best available suburbs to invest in 2021.

Contact Us today for a Free Strategy Session!

Recent Courses

Tax Deductions Investment Property And Rental Income Tax

Minimise Tax, Free Up Your Cash Flow And Build Wealth...

How To Buy A House: Ultimate Flow Chart And Check List

How To Buy A House: A Complete Guide To Getting...

Goal Setting For Maximum Success

Goal Setting For Maximum Success For Retirement This FREE...

What’s Your Magic Number?

What's Your Magic Number For Retirement? This FREE online...

Book a Free Family And Lifestyle Planning Session and secure your family's financial future today!

☑ Family Budgeting

☑ Set Investment

☑ Mortgage Structuring

☑ Calculate how much you can borrow

☑ Property Sourcing

☑ RP Data Reports

☑ Property Investment Analysis

☑ Co-ordinate Process

☑ Discounted building inspection

☑ Discounted conveyancer

✓ More than 14 years of experience in finance

✓ Over $100 million in loans written

✓ Investment property specialists

✓ Panel of builders that offer fixed price, turn key packages for investors

✓ We help investors build equity and avoid over-paying tax

Property Investor Blueprint

☑ Calculate how much you can borrow

☑ Set Investment

☑ Mortgage Structuring

☑ Property Sourcing

☑ RP Data Reports

☑ Property Investment Analysis

☑ Budgeting

☑ Co-ordinate Process

☑ Discounted building inspection

☑ Discounted conveyancer