The five-step guide to investing in real estate

The five-step guide to investing in real estate

 

Investment in real estate can provide a variety of advantages, including increased income, increased capital growth, tax deductions, and so on.

Our simple guide will help you get started if you’re thinking about buying an investment property. Let’s get started, shall we?

 

To begin, create a financial plan.

What’s great about property investing is that it opens your eyes to new possibilities for wealth accumulation.

 

The most common strategy is to buy in a location with high capital growth potential and then hold onto the property as its value rises.

 

Putting the property in negative equity. When the costs of owning the property outweigh the rental income, you can deduct the difference from your taxable income.

 

The property is positively geared if the rental income covers the expenses and leaves a surplus in the bank.

 

Renovating a property to increase its value and, as a result, its rental income before keeping it.

 

Investing in real estate to profitably resell a fixer-upper.

 

Planned purchases.

 

Subdivision.

 

The advantages and disadvantages of each strategy should be discussed with your financial advisor or accountant before implementing one.

 

Step 2: Decide on a spending limit.

It’s critical to know what you can afford to spend before looking at real estate listings on realestate.com.au. When determining your budget, keep in mind the following expenses:

The initial outlay of money

Deposit

Fees for opening a new loan account

Mortgage insurance provided by lenders (if you have less than a 20 per cent deposit)

A fee for the use of a stamp (calculators are available here)

Costs related to the transfer of real estate and legal services

Reports on construction defects and pest infestations

Fees for quantity surveying – to create your Depreciation Schedule for the property’s fixtures in order to maximise your tax deductions (after purchase).

Cost of living adjustments

Taxes levied by the government

Insurance

Repayment of a mortgage

Fees charged by the homeowner’s association

The tenant is not paying for the utilities.

Expenses related to property management

The cost of repairs and upkeep.

 

Do your homework in Step 3: Gather information.

It is critical to do extensive research before making an investment decision.

Consider the property’s capital growth potential and rental yield when deciding (the income the property will generate from the tenants).

Because supply and demand determine these factors, look for a property that will be in high demand among tenants and future buyers, as well as one that has easy access to nearby amenities.

 

Contact us to learn more about our free property market reports, which are jam-packed with valuable data.

 

In the fourth and final step, have a pest and building inspection performed.

Our building and pest inspections partners are well worth the money you spend on them. A structural problem or termites in your investment should be the last thing on your mind once it’s all yours.

 

Step 5: Decide your financial situation.

Fortunately, this part is simple: we’ll find you the best investment loan based on your unique situation.

 

You’re all set to begin, right?

 

Expert advice on investment loans and financial structuring in Australia or Zambia is available from us. Contact us as soon as possible!

Or fill out the inquiry form here!

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