Sunday 22 February 2015

EMERALD OFFERS OVER $300,000 4 BEDS Hollywood style main bathroom

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Conway Beach $499,000 Sea Change/Tree Change? - The Best of Both!


Cannonvale Single level 3 bedroom Home lots of room for toys! $370 per week


Cannonvale Great Location 3 Bedroom Home $400 per week

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RENTAL OF THE WEEK - Executive Home at Mayfair Emerald $400 per week

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If you're struggling to save up for your first home, you’re not alone


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Does Generation X prefer property as an investment?


Thursday 19 February 2015

PROPERTY INVESTMENT FOR BEGINNERS



PROPERTY INVESTMENT FOR BEGINNERS

Investing in property to provide a rental income is not just for the rich in Australia.

According to the Australian Taxation Office (ATO) for the tax year 2011-12, as many as 72% of the tax payers stated they earned an income from an investment property earned less than $80,00 per year.

When it comes to building a retirement nest egg for the future, property is still regarded as one of the safest long-term investments.

Investment housing loans soar, and may rise further after Reserve Bank's rate cut

The value of investment housing loans has skyrocketed in the past 12 months, jumping almost 20 per cent by the end of December 2014, and economists are warning it will rise even further after the Reserve Bank's surprise interest rate cut last week.
Consumer confidence has also suddenly jumped back into positive territory – breaking a 12-month horror spell of low confidence that has plagued the Abbott government – thanks to the RBA cutting interest rates to historic lows, cheaper petrol and stock market gains.


Investors in residential real estate has doubled

Economists say lending to investors for residential property is now double the level in 2011, with the value of loans surging 7.2 per cent in December to be up almost 20 per cent for the year.

They say last week's RBA rate cut, and the next one, will make residential rental yields even more attractive to the yield chasers.

TIPS FOR BEGINNERS

1. Know your budget

See a mortgage broker and an accountant to find out what you can afford and how best to structure your loan to maximise your rental return.

2. Don’t underestimate ongoing costs

Include in your budget all the operating costs for your rental property – remember you are going to run an investment business. You also need to have a “sinking fund” for replacement of carpets, repainting and repairs.

3. Be realistic about your investment goals

Are you looking for fast capital growth or wanting to hold the property long-term? During boom periods, it’s much easier to renovate properties and turn them over for a quick profit. In slower economic times, it may take many years to achieve the same growth.

4. Don’t over-capitalise

A rental property should be safe and functional – don't spent lots of money on “luxury” looks and features unless you plan to live in it sometime in the future.

5. Buy with your head

You are buying a business so you need to buy with your head, not your heart. You only become emotional about a property purchase if you plan to live in it.

6. Negative gearing and Capital Gains Tax

If your repayments on the investment loan won’t be fully covered by the rent, your property will be negatively geared. While this can have tax advantages, it can also lead to financial stress if you don’t have enough cash flow to cover the loan repayments, rates or body corporate fees, so consider your budget carefully before buying

And remember, when you do sell your investment property, you may have to pay capital gains tax.

7. Buying with the equity in your current home

It isn’t necessary to have your own home fully paid off before buying an investment property, as you can use any equity you have built up as a way of getting the best loan but, remember, don’t overstretch yourself financially.

8. Due diligence

Before signing a purchase contract, make sure to see a solicitor, your accountant and have a building and pest report completed on the property and a rental appraisal.