Author and Property Market Commentator
Most people buy investment properties the wrong way. Right now there are hundreds of highly geared investors paying too much for their properties and funding the short fall from their take home income - putting real pressure on their quality of life. The reality is many Australians around the country have the ability to buy quality investment properties in fantastic areas that would potentially not cost them a cent each week.
How is this possible? There’s no magic wand, but I have seen and assisted in hundreds of people over the years to buy properties around Australia using an affordable buying system rather than falling into the trap of buying properties the “wrong” way and just causing themselves further heartache.
Your family home is without a doubt the hardest and most expensive property that you’re ever going to own, so lets start there. The reasons why it is so expensive is because all your repayments (rates, insurances etc) need to come out of your take home, after-tax income. As a result your family home is always going to put strain on your wallet, even with interest rates being where they are. Doing this with investment properties is the “Old” way to invest.
Unfortunately most investors take a similar approach and add even further strain to their weekly income when they buy an investment property, and because of this the property can easily become a negative experience. Before jumping in and creating a liability, instead of a positive long-term asset, I urge you to get solid advice first. Crunch the numbers with your accountant, maximise your tax savings as best you can and make that property work for you, not the other way around.
“A Grade" Investors protect their pocket (and their quality of life) by buying low and using both their tax and superannuation to help fund their investments while still getting more than their fair share of capital growth. At my next event I’ll be showing investors how to leverage off my research to identify these properties for yourself and how to utilise my expert team to assist you. To register now please click the link below.
What I am seeing more and more are Sydney and Melbourne based investors entering the peak of their local market and somehow justifying to themselves that paying $200 a week to service the property, due to the poor yields, is acceptable.
I think this is totally unnecessary. As you add these properties you’re putting more pressure on yourself and your take-home income, potentially damaging your lifestyle and the ability to do simple things like head out for dinner or take the kids to the movies. It’s just not worth it.
With the cost of living in big city markets always on the increase is so important to use your tax money more effectively. Seek the advice of independent accountants to maximise tax savings, use tax variation forms to get these savings back faster, and make sure you’re aware of ALL your holding costs to avoid hidden surprises before you purchase.
Affordable property investing is one of the key foundations, one of the key elements to being a successful property investor in the Australian property market today. To learn all this, as well as where I will be buying property in 2017, click here to register for my up coming event “The Big Property Shift” now.