Investing tips

Despite the ups and downs of the global market, property still remains the most solid investment choice for Australians, particularly in high growth areas like South East Queensland. With future development plans in motion for the Sunshine Coast and the region set to evolve into a thriving, economically stable hub, the area is prime for property growth, with plenty of Sunshine Coast real estate developments popping up.

There are three things you should always do before investing.

1. Research

Find out all you can about the area. Find out the sale and rental prices of the properties in and around the area and consider the impact of any future development that may impact that suburb. Seek areas with low vacancy rates as this means if you decide to lease out your property, it will not be vacant for very long.

2. Budget

Know your budget. Early communication with your bank and accountant will help you find out how much you are able to loan so you have a better idea about the kind of property you can afford.

3. Talk to Us

We know the area inside and out and can keep you updated with what is going on in the market. It is our job to help you find a property that is perfect for your budget and that will get you the best return and future capital growth.

There are many benefits of property investment:

1. Negative Gearing

Provides you with tax advantages by offsetting losses against your other income, thereby minimising your tax burden. This includes the interest on money borrowed for investment property, which is tax deductible, further increasing the benefit.

2. Equity

Once you have built up some equity in your investment, you can access funds through refinancing, and use these funds to increase your property portfolio or for other purposes.

3. Value Add Opportunity

Through renovations, sometimes quite minor, you can increase the value of your asset and increase the income you can achieve from it, via increased rent. The money spent on any repairs is also tax deductible (if it is not your prime residence).

4. Depreciation Benefits

This ties in with negative gearing. Ensure you obtain a depreciation report from a quantity surveyor on your investment property to maximise any possible tax benefits from your investment(s).

5. Leverage

This is one of the reasons why property has traditionally been so attractive to investors, as it offers better leverage than most types of investment. The basic principle of leverage is borrowing money to buy an appreciating asset – if the value of the asset increases faster than the amount you repay, your wealth increases.

6. Security

Most lenders prefer financing property as opposed to other investments because it is less risky, it is tangible, prices don’t fluctuate wildly and it’s easy to value.

So let us at Local Agent help you find your local investment property today!