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Mar 08

Helpful Property Investment Tips

 

  • Invest in a brand new property to save maximum tax.
  • Depend on your situation, buy off the plan to save maximum stamp duty.
  • Buy in an area with low vacancy rate, easier to rent out.
  • Invest in property where the holding cost is low, in most scenario between $10-$50 a week.
  • Don’t buy a property that is very expensive, as the rent won’t cover the interest repayment.
  • Have the correct insurance in place; landlord protection and building insurance.
  • Buy in an area with good potential for capital growth, for example location with big infrastructure development, high population growth suburb, or a recognised developing area.
  • Don’t manage the property yourself, appoint an experienced property manager.
  • Get a depreciation schedule for your property, to claim tax deductions.
  • Seek advice from professional people, deal with those that are successful property investors.
  • Refinance your property to continue to build your portfolio.
  • Don’t follow the majority, follow the minority.
  • Have the right finance structure in place that enable you to build a property portfolio.
  • Have a long term mindset, and hold on to your property for as long as you can.
    The longer you hold onto it, the more wealth you build and the more income you’re going to get.
  • Stay away from negative people as they will steal your dreams.
  • Avoid the opinions of friends or other people, unless they are successful investors.
  • Depend on your situation, you can claim around $4,000-$7,000 on tax on a brand new property.
  • Diversify your portfolio with apartments, townhouses and houses, as each has its own advantages.
  • Investing in property is a good debt, as it goes up in value and can also give you an income, accumulate good debt and avoid bad debt.
  • Repeat your success to accumulate at least 4 investment properties over a period of time. 1, 2 or 3 properties are not going to be enough to give you the lifestyle that you want.

 

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About the author

Sang Duong

Sang Duong started with an empty hand and drove a $500 Hyundai car. At the age of 25, Sang joined the property investment industry. Since then, he has ridden the property boom and survived the downturn. He now owns a multi-million dollar property portfolio located throughout Australia. His portfolio has generated him a passive income. His passion is to share his property knowledge and wisdom to property investors.

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