4 Ways To Make Property Profits in Sydney’s West

PROFITS IN SEVEN HILLS NSW PROPERTY

There are 4 ways to make money out of prop­erty invest­ments in Sydney’s West and most of the time they only look at one or two of these. Let’s look at them.…

 

 

1. Pass­ive Appreciation

That’s when the prop­erty value goes up in line with the gen­eral prop­erty mar­ket and over time well loc­ated prop­er­ties in Aus­tralia in good pos­i­tions, double in value every 7– 10 years.

 

2. Act­ive Appreciation

This is when you add value to your prop­erty. For example if you buy well, when you buy below mar­ket price and revalue at the cor­rect fig­ure, or when you ren­ov­ate or redevelop your property.

 

3. Rental Return

Rent­als from prop­erty provide cash flow, but this is only one com­pon­ent of your over­all invest­ment return.

 

4. Tax Benefits

It has often been said that it’s not how much money you make that is import­ant, but how much you keep after tax. In their simplest form these are things like depre­ci­ation allow­ances.

But investors who own a num­ber of prop­er­ties and have a “prop­erty busi­ness” can take advant­age of some inter­est­ing ‘tax loop­holes’ only avail­able to busi­ness owners.

 

To invest in a top per­form­ing prop­erty you need a bal­ance of all four of the above ele­ments. Don’t focus too strongly on cash flow. This is because well loc­ated res­id­en­tial prop­er­ties are inher­ently high growth, low yield­ing invest­ments. You really can’t get high growth, high yield­ing res­id­en­tial prop­er­ties without tak­ing a risk.

The investors I have come across who have been the most suc­cess­ful in the long term, and have done so safely and without spec­u­lat­ing, are the ones who bought qual­ity prop­er­ties in good loc­a­tions and allowed them to grow in value. They bought them for their strong cap­ital growth and they never or rarely sold their prop­er­ties. Instead they would refin­ance their invest­ments as their equity increased.

 

The les­son one can learn from these suc­cess­ful investors is to buy the best qual­ity prop­er­ties you can, in the best loc­a­tion you can reas­on­ably afford and never sell them.

 

If you don’t under­stand any of these terms used in this art­icle please go to our defin­it­ive real estate defin­i­tion guide

About 

Jhai is an award win­ning Inter­net Mar­ket­ing Real Estate Agent for Eld­ers Toongab­bie and Kings Langley. After run­ning his own inter­net mar­ket­ing busi­ness he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to mar­ket them­selves online. Jhai is now fixed on one goal. To teach real estate agents that they can mar­ket online so much bet­ter than they cur­rently are.

Since then he has been con­sist­ently quoted in the Sydney Morn­ing Her­ald and Real Estate Busi­ness online. He is a reg­u­lar guest blog­ger on TheHomePage.com.au, shar­ing his expert­ise of mar­ket­ing aspects for the Real Estate Industry. His biggest pas­sions are his wife, mar­tial arts, dogs and most of all property.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia