Helpful Property Investment Tips For The Smart Investor

Helpful Property Investment Tips For The Smart Investor
  • Where possible, invest in a brand new property to save the maximum amount on tax.
  • Depending on your situation, buy “off the plan” to save maximum stamp duty.
  • Buy in an area with a low vacancy rate. These properties are typically easier to rent out.
  • Invest in property where the holding cost is low. In most scenarios, this cost would sit between $10 – $50 per week.
  • Don’t purchase a property that is very expensive – The rent will not cover the interest repayment.
  • Ensure you have the correct insurance in place; both landlord protection and building insurance.
  • Buy in an area that has good potential for capital growth. For example, a location with big infrastructure development, high population growth, or one that is a recognised developing area.
  • Don’t manage the property yourself, appoint an experienced property manager.
  • Source a depreciation schedule for your property in order to claim tax deductions.
  • Seek advice from professionals, particularly those that are successful property investors.
  • Refinance your property in order to continue to build your portfolio.
  • Don’t follow the majority, follow the minority.
  • Ensure you have the right financial structure in place that enables you to build a successful property portfolio.
  • Uphold 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 are going to achieve.
  • Stay away from negative people – They will steal your dreams. 
  • Avoid the opinions of friends or other people, unless they are successful investors.
  • Depending 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. It goes up in value, provides you with an income and helps you to accumulate positive debt and avoid negative debt.
  • Repeat your success to accumulate at least four investment properties over a period of time. 1, 2 or 3 properties are simply not going to be enough to give you the lifestyle that you ultimately want.

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