Frequently asked questions
How do I start investing in property?
To start investing in real estate, it is crucial to first assess your current financial situation, establish clear goals, and secure pre-approval for investment financing. Furthermore, it is important to familiarise yourself with the real estate market and consult with professionals to identify the right investment properties that align with your individual goals.
Why should I invest in property?
Investing in property is one of the most popular ways to get long-term financial advantages, including capital growth, rental income generation, and portfolio diversification.
How do I find a good buyer agent?
Finding a good buyer’s agent isn’t easy, but it’s possible with the right combination of client-centricity, track record, and expertise in the market you’re targeting. Check reviews, ask for recommendations, and make sure they grasp your investing objectives; these will help you make the greatest property decisions.
Can I use my cash as a deposit?
Yes, you can use your cash savings as a deposit when purchasing a house. The deposit amount typically ranges from 10 to 20 % of the home’s total purchase price; however, this figure depends on the lender’s requirements and your individual financial situation.
Can I use equity in my property as a deposit?
Yes, you can use the equity in your current property as a deposit for your next investment opportunity. One of the most common approaches for expanding your property portfolio is to utilise equity; however, it is essential to consult with a financial advisor to assess the potential risks and rewards of this strategy.
Can I use my super to buy a property?
A self-managed super fund (SMSF) allows you to use your retirement assets, sometimes known as superannuation, to buy real estate. However, strict laws and regulations limit the applications that may be made with cash, so it is critical to get the advice of a specialist before proceeding.
How do I know which suburb to buy the investment property?
When looking for the perfect suburb, it is essential to investigate key factors such as growth potential, rental property demand, infrastructure development, and nearby amenities. By analysing historical data, comparing pricing trends, and consulting with professionals, you can identify suburbs that align with your investment objectives.
What is negative gearing?
When the expenses associated with holding an investment property (such as mortgage interest and maintenance) are more than the rental revenue that the property provides, this is an example of negative gearing. This loss can be deducted from taxable income, which could result in a reduction of your overall responsibility for paying taxes. Before making the decision to use negative gearing, it is essential to think about the long-term rewards and risks involved.
How do I get a good property manager to manage rental income?
When looking for a dependable property management organisation, consider their experience, reputation, and prices. Finding someone who is not only responsive but also proactive and knowledgeable about the local market is crucial. You should look through their references and reviews to ensure they are fully licenced and have a solid reputation for managing rental properties.
How can I create a property portfolio?
Establishing a property portfolio involves strategically acquiring various investment properties over time. Starting with your initial property is advisable, and from there, you can leverage the growth of your cash, rental income, and equity to acquire additional properties. Work alongside a financial advisor to help you structure your portfolio to achieve your long-term goals of wealth accumulation.
How do I know if I can afford the property?
Analyse your income, expenses, and past debts to determine your ability to purchase a property. Lenders typically expect that you will meet specific serviceability standards based on your current financial situation. Furthermore, it is important to consider ongoing costs like property management fees, insurance premiums, and maintenance expenses to ensure that you are financially prepared.
