The Benefits To Becoming A Property Investor In Seven Hills. Top 18 tips To Doing It Right!
One of the most gratifying rewards includes having your money invested in something tangible rather than in shares. What’s more, real estate can most certainly provide both security and a reasonable return over the long term.
Other plus factors for an investment property include:
- Adding value: when you own property, you are in control and you can add genuine value by renovating and making improvements.
- Good returns: rental prices rarely decrease, which means that returns from investment property tend to be constant.
- Capital growth: over time you will definitely see an increase in the value of your property.
- Tax deductions: as a property investor, you can claim a number of costs as tax deductions, including repairs to the property, insurance, rates, taxes, managing agent fees and building depreciation allowance.
- Negative gearing: this refers to the tax deductions from an investment property exceeding the income generated by the property. You may be entitled to receive tax advantages by negatively gearing your investment property — get advice from your accountant on this.
- Long-term wealth: most financial advisers recommend that an investment property should be kept for a period of seven to ten years, the average length of the housing cycle. Ideally you could see your investment double in value over this time.
Before you embark on the road to property investment, however, make sure of the following:
- Thoroughly assess your financial position, know how much you can borrow and understand taxation and gearing in relation to investment property.
- Consider how a change in your personal circumstances could affect your ability to cover the repayments on your investment property, if it becomes vacant for any length of time.
- Research the market and choose an area where rental demand outstrips supply.
- Choose a location that sits within easy walking distance of all amenities.
- Shop around for the best loan for investment purposes.
- Seek legal advice from your solicitor prior to any property transaction.
- Do your homework to ensure you know what your rights and responsibilities are as a landlord.
- Undertake pest and/or building inspections on any properties that fit your requirements.
- Make sure your insurance cover is up to scratch once you purchase your investment property.
- Update your will: you should do this whenever your financial circumstances change.
- If you need to carry out renovations to your investment property, shop around for reputable, experienced trade’s people to do it. Your investment property is no place for someone to learn to hold a hammer!
- And, while you’re at it, research for the right Property Manager. Enquire about our quality services, if you are not currently one of our valued clients.
If you are thinking of adding to your portfolio please call our sales team on 9896 2333 or see our current listings on the elders toongabbie website.
About Jhai Mitchell
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.