Investors
Buying an Investment Property?
Buying an investment property is a very different process from buying a new home to live in. For example:
• You won’t live in the property so lifestyle is not as important as return
• The property could be anything from a house/land package to an apartment, unit or even just a block of land
• Decisions are NEVER made emotionally. The main consideration is profit
• Costs are far lower as the rental income and tax benefits largely (or completely) offset the interest expense
• The property can be anywhere in Australia
• Investment property can be purchased in a Superannuation Fund
• Interest rate movements have less of an overall effect compared to owner occupied properties
This list seemingly makes a very compelling case for buying an investment property.
Mistakes can still be made however, and can be costly. Remember … it’s all about the numbers. There is no “enjoyment of living” in the property to offset adverse market conditions and, to maximise your potential for capital gain, the recommended holding period is 10+ years.
Owning a solidly performing investment property can prove beneficial over the long term and allows you the option of expanding your portfolio, reducing debt or creating cash flow in the future. Time is your best friend so our recommendation is always to view an investment purchase over the longer term.
Contact us to discuss the right property strategy for you. It could be your best investment yet.