April 6, 2011
With tax return time just around the corner, now could be a great time to buy your first investment property. Here are some tips to build your property portfolio faster.
- Always keep your eye on the prize – capital growth. In the long-run, it will make you a lot more money than a higher rental return.
- Buy in haste repent in leisure: Make it a rule to inspect no less than 10 properties before you commit to ‘the one’.
- Buying something brand spanking new is lovely but consider that older properties usually have better capital growth in the first five years.
- Keeping your property for seven or eight years should ensure you double your money. If you’re over committed financially and have to bail out early, you are likely to lose money.
- Consider the cost of strata fees when weighing up the pros and cons between buying a house and an apartment. Make sure the apartment block has sufficient insurance and maintenance funds.
- Choosing an investment property should not be based on the same emotional factors that came into play when you chose your home. You need to think of it as business.
- Properties close to good amenities will always remain in high demand so consider proximity to cafes, shops, schools, transport and major employment centres.
- Make sure your home loan is structured for all available tax deductions.
- When it comes to reducing interest payments, offset loans are better than those with redraw facilities.
- Learn from the experts. If you’re new to the game, recruit a solid of team of professionals around you such as a property manager, accountant, surveyor, and lender and pick their brains as much as you can.
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