10 Things You MUST Consider Before Investing in Property

So you’re thinking of investing in property? Congratulations! Doing your research is the first step, so in a sense, your journey has already begun.

Property investment is a great wealth creation strategy that works on several levels. It can help you to minimise the tax you pay, provide you with additional income and help you to facilitate further investments as your equity in the property grows.

People often think that investing in property is going to be difficult, but with the right help and guidance, that doesn’t have to be the case. However, there are a few important things to consider before you make any sort of financial commitment.

1.Timing

As with any investment, timing is crucial. At the moment, the market is in a strong position, so it’s a great time to invest or expand your existing portfolio.

Vacancy rates are low and rental returns are high in Brisbane, which is good news for investors. High demand = High rental income.

2.Tax

Investing in property can be financially beneficial in several ways, one of which is minimising the amount of tax that you are required to pay. Management and maintenance costs, including interest on your property loan, can usually be claimed against your current-year income, and if your property is rented or available to rent, you can claim deductions. Depreciation and the cost of improvements can also be deducted over several years. We at 21st Century Property Investments will be happy to sit down with you and work through a tax minimisation strategy together.

3.Property vs. Other Investments

 Property is a low-risk investment, because it’s made up of homeowners with shared values and tenants who ensure a consistent income. Historically, the growth rate of property is reassuringly strong, meaning your investment is almost guaranteed to create income. Stocks and shares may seem enticing, but unfortunately you can’t influence the market. With property, you are in control of your investment.

4.Strategy

 There are a number of different ways you can invest and provide yourself with a surety of income, from positive cash flow properties, negative gearing for capital growth, investing in renovations to increase value, subdividing properties and more. We at 21st Century Property Investments can work with you to create a strategy that helps you achieve your personal goals.

5.Location

 It’s worth doing lots of research into locations that are of interest to you before making any decisions. Remember, population in Brisbane are continually increasing, which means residential property is in constant high demand. Try to hone in on vibrant areas with good transport links, plenty of things to do and a high level of amenities. Houses in suburbs tend to perform consistently well, especially when within easy reach of transport, cafes, restaurants, shops, schools, etc.

 6.Money Matters

 Investing in property is easy. Let us show you how your home equity can be used to invest in property.

7.New or Old?

If you’re serious about property investment, then it’s worth understanding the benefits of new properties, particularly those in well-placed locations. New builds are far more energy efficient and environmentally friendly than older properties and will therefore have much lower maintenance costs. New properties also provide maximum depreciation benefits; they also tend to attract tenants willing to pay a premium price. As an investor, this means you can look forward to more consistent cash flow and a higher resale value.

8.Negative Gearing

It sounds more complicated than it is, we promise! Basically, negative gearing refers to the situation where the cost of owning your investment property exceeds the rental income. When this occurs, the difference can be offset against your salary or other income, resulting in significant savings. Let us show you how.

9.Debt Consolidation

 If you’re looking to free up cash to put towards your investment, then debt consolidation might be a good way of doing it. By combining credit cards and other types of debt into one loan at a lower interest rate, you’ll save on fees and charges, paying costs for one loan rather than several. The potential monthly savings you will incur can make a huge difference!

10.Management

 Whether it’s finding and managing tenants, looking after maintenance and repairs or advising you on your rights and responsibilities as a landlord, a good property manager can help you take the hassle out of property ownership. At 21st Century Group we offer an end-to-end solution, from presenting the right investment for you through to managing everything to do with it long term.

Whatever your needs, 21st Century Group is on hand to help you develop and manage an investment property strategy that will help you achieve your personal goals.

Please contact us on 1300 212 368 or send us an email at mail@21stcenturygroup.com.au so we can meet and show you what is out there!