Why Invest in property?
Property is a high tangible asset that provides high security, steady growth, stable passive income and considered as a long term investment. It’s relatively easier to get finance and it is a great way to get tax depreciation, especially for new homes.
What should I look for before I invest a property?
If you are looking to invest in a property, three major factors that you need to consider before you step into choosing the right property: Budget, Financial Status, Time Frame.
What are the features that I should look for when choosing property to invest?
For property investments, there are three major factors you should look at: Capital Growth, Rent Yield and Vacancy Rate. You should take into the consideration that figures that you find about certain suburb or property may refer to the historical property performance but not projection.
Who will manage my investment property?
Most investors use on-site manager to take care of their property, which will cost around 6% – 7% of your rental income per year. Some experienced property investors managed their own investment property, but there will be risk involved and it can be time consuming.
Can I use the equity in my home as a deposit?
If you’ve owned your own home for a few years, you could have built up quite a bit of equity in your property. Equity is the value of an asset not subject to any lender’s interest. For example, a property worth $500,000 with a mortgage loan of $150,000 has equity of $350,000. Instead of finding a cash deposit to buy an investment property, you could use this equity as the deposit.
Should I buy new or old property to invest?
Property investment is a tool to create wealth, so we need to look for low expenses option in order to generate positive income. For new property, you will not only enjoy higher tax depreciation, but also low maintenance and ongoing cost, such as renovation.