SERVICES
PROPERTY MANAGEMENT & INCOME GENERATION
Property value increase (capital growth) and rental income are just two ways to profit from property investment. As an investor, your focus should be how to make money through real estate.
How do you make money through real estate?
- The most common way to make money in real estate is through capital growth. Capital growth is an appreciation or an increase in the property’s value that is realized when you sell.
- Location, development, and improvements are the primary ways that real estate can appreciate in value.
- Inflation can also play a role in increasing a property’s value over time.
- You can also make money in the form of income from rents.
It’s a good idea to consult professionals about your property investing goals. An accountant can help you assess your cashflow and manage the paperwork involved in the property purchase, while a mortgage broker can compare different home loans to ensure that you get a competitive deal to suit your borrowing and investment goals. A solicitor can help you interpret and prepare legal documents before you sign on the dotted line.
We have brought all the professionals together in order to serve your efficiently and give you the best possible outcome to boost your chances of success.
MOST COMMON INVESTMENT STRATEGIES
Buy and hold
Purchase the property, wait for the value to raise, and then sell. Income from rent can cover the mortgage repayments until the property is sold. The Australian Tax Office treats expenses incurred by property investors as tax deductible expenses, much like other business costs. While an investment property is supposed to generate income, there may be years where you spend more than you make in rent. Tax deduction for the expenses incurred will assist you with managing your cashflow.
Renovate and add value
Purchase the property, renovate it to add value to it, and then sell it at a profit.
Capital growth
Some investors try to zero in on a property and location that, in the current market, will quickly grow in value. These investors may stick to interest-only investment loans in order to reduce their non-tax-deductible costs, and then sell the property after just a few years.
It’s really important that we set you the right structure to borrow at the beginning of your investment journey. The right structure means getting the right loan, in the right amount, in the right name, to maximise your tax and financial benefits. Speak with our associated mortgage advisors to assist you with this process of obtaining finance under the right structure.
Work out your repayments before and after the interest-only period
https://moneysmart.gov.au/home-loans/interest-only-mortgage-calculator