Property Investment
Find clarity in a sea of opinions
Everyone and their brother seems to have an opinion on property investment these days- where to buy, what type, when is best – and they may have succeeded in the past. But that doesn’t mean it’s the right strategy for you. We look at some key areas to advise our clients on property:
Take Stock
Before making any property decisions, knowing your numbers is key in determining what structure to buy in and whether the property will be under your own name, trust or SMSF.
Cashflow Positive or Negative
We take a balanced approach in helping you determine what structure will work best for you long term.
Investing in SMSF
With the right strategies in place, SMSF, or Self Managed Super Funds, can be a great way to purchase and expand your investment property portfolio.
Positive vs Negative Gearing
We can help you understand the difference, along with the benefits and drawbacks.
NDIS / Co-living Properties
With typically high returns, they can provide great opportunities for wealth creation.
Good outcomes instead of gambles
We’ve all heard real estate horror stories, but also those that have worked out very well. With data, research and good advisors on your side, property produces less risk and more possibility.
Be ready to commit
When investing in property, you need to be investing for the long term. In most cases, we tell our clients to consider that the property purchase is for at least 10 years, so it has had time to appreciate based on the original purchase reasoning.
Cashflow Positive
In this structure, properties generate positive cashflow, so when rental income and all property expenses including Principal Loan repayments are taken into consideration, you still achieve a positive cash balance. This might also happen after you factor in your tax refund.
Negative Gearing
These properties are ones that you are required to contribute money into the bills above that of what the tenant is paying you in rent, but may offer great savings on tax. The biggest concern here is that you need strong capital growth to ensure this becomes a good investment and that your income or way of supporting your negatively-geared property remains consistent.
FAQs
Frequently asked questions when it comes to property investment.
- Capital growth or appreciation is the increase of value in your property investment over time. For example, if you bought an investment property for $700k and sold it for $780k, you would have achieved capital growth of $80k.
- Usually 100% of property management fees can be claimed as an expense as well as additional costs to promote and advertise your rental property.
- In most cases, you can claim mortgage registration and transfer charges, building inspections and conveyancer and solicitor fees, but only in tax year you purchased the property. Regulations change in this area, so check with your accountant to find out what is deductible.
Disclaimer: Hatcher Advisory and its subsidiaries, together with its owners, managers and employees have endeavoured to ensure the information on this website is accurate. However, you must undertake your own research and seek advice from your financial advisor, broker or accountant to ascertain its application to your specific circumstances. We do not take responsibility for any outcomes based on this material.
