Investing Tips

Whilst there are many investment alternatives available, investing in bricks and mortar has always been a favorite for everyday Australian Investors. Viewed as one of the simplest and safest choices, property investment offers the advantage of creating wealth through capital growth and the benefits of a regular income stream and attractive tax advantages.

CAPITAL GROWTH  –  Is the increased value of your property over time and one of the main reasons people chose to invest in real estate. Capital growth increases through low vacancy rates, steady population growth and strong demand for property.  It is therefore important, to choose the location of your property wisely, to ensure you are achieving maximum capital growth.

RESEARCH – Is a key to the success of property investment. Once you have identified the type of property you would like to buy, it is important to research the rental returns, market trends, recent sales and area demographics.  To assist you in your research, a number of websites are available including: 

FINANCE – Your decision to invest in property should be based on your finances. Most lending institutions offer a variety of products to borrowers including a line of credit, fixed and variable interest rates and interest only loans. With so many options available, it is important to speak with your Lender about the pros and cons of each loan, and which loan is best suited to you.

PROPERTY SELECTION – When searching for an investment property, you should aim to secure one which will be in constant demand by tenants. Location is a key factor in the success of any investment property, and when chosen correctly, will impact on the rental return you receive.  

When investing in residential property, consider proximity to:

  • Schools and universities
  • Public transport
  • Post office, libraries, parks and medical centres
  • Shops and markets
  • Lifestyle and sporting venues

When investing in commercial property, consider proximity to:

  • Major arterial roads
  • Freeway access, on and off ramps
  • Freight depots
  • The CBD

PROPERTY MANAGEMENT – Once you have purchased an investment property, you will need to consider how to manage it.  Managing a property takes time, commitment, and a thorough understanding of property law.  A Property Manager will represent you and your property and advise you of your rights and responsibilities as a Landlord, and those of your tenant. Your Property Manager plays a key role in securing the very best tenant for your property,  the collection and disbursement of rent and outgoings (where applicable), property maintenance, lease renewals and rent increases to ensure you achieve the maximum return from your investment.   When selecting a Managing Agent, it is important to ensure that they hold adequate Professional Indemnity (PI) Insurance.  Stanley & Martin carry up to $5,000,000 PI insurance, which provides our client’s with peace of mind, in the event of legal action being taken.

TAX BENEFITS – Property investment offers the advantage of certain tax benefits including depreciation and negative gearing.  It is important to seek professional advice from your Accountant as they will ensure that all legitimate expenses are claimed and that you are receiving the maximum tax benefit from your investment.