Own Property – A Good Investment For Your Hard Earned Money

Contrary to popular belief, owning property is not an unattainable dream. True, it has become pretty expensive, but this only goes to prove the inherent investment potential that a carefully selected piece of real estate is.

Property is and always has been a sound investment. Whether you’re after the perfect place to call home, that quaint little fixer-upper you’ve always dreamt of putting your creative energy and style into and reselling or an income producing asset in that trendy part of town; with a clear strategy and some patience, there’s no reason why you can’t vastly improve your financial portfolio and be rewarded with peace of mind in the years ahead.

Getting into the market

1. First off, get your financial house in order. Budget, make a plan and stick to it. If you don’t have glowing financials, it’s not the end of the world. Banks are happy to extend a loan on a good property if you have decent, stable credit. It’s also comforting to know that your property will be the smartest purchase you’ll have made not only when or if you ever think of selling, but as leverage should the need arise down the road.
2. Get to know the market you plan to buy into. Things can be quite different from one city to the next, so look at some stats, but don’t be put off if it’s in a bit of a slowdown, that will change. In fact, that might just be your cue to get your feet wet. Consider the tax implications if you plan to flip the property or rent it out to supplement your income. Capital gains tax (CGT) on any earnings, which includes a housemate’s rental, will have to be paid.
3. Get the numbers right. Once you’ve decided what you plan to do with the property, spend as much time as you can hunting down the perfect deal. If you’re all business, as well you should be, look into taking a repossessed property off the bank’s hands. They want to move them as quickly as possible, so you ought to be able to negotiate a good price. Investing is after all a business decision, not an emotional one.

Riding it out until it pays off

As with any investment, it’s got to be nurtured and allowed to grow. Realising good returns can’t be rushed. There are costs, undeniably; taxes, rates and maintenance, all of which can be handled with some planning. Don’t let these scare you off though. The risks and costs are largely outweighed by the benefits. Every cent you put into your home will give you a wonderful sense of accomplishment, not to mention the security of knowing you have a place of your own, not subject to the whims of landlords out to make a fortune. Any way you look at it, property ownership makes complete sense.

If time is a scarce commodity in your life or you prefer to leave to the experts, Jason at LyfeProperty will deliver the facts with no fluff, and help you to grow your family wealth one property at a time.

Contact us here or reach out to jason@lyfeproperty.com.au