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Property as an investment

As a brighter real estate market has emerged in 2012 we are seeing more investors returning to real estate as an investment. Over the long term, property has been a great investment and many investors are becoming more cautious about their money in the share market.

Whether you are already a property Investor or are considering property investment for the first time, there are a series of questions you should consider:

1. How stable is your current income and what tax are you paying ?

2. Could a carefully negatively geared property provide both a longer term capital growth as well as helping to reduce your tax ?

(by “carefully” we mean keeping borrowing to around 70% – 75% of the value of the property and not getting to 95% as we sometimes experience – and make sure you seek some accounting advice)

3. What is the rental potential of the property? Often the cheapest properties are in locations that are hard to rent. You want to know that you will always have strong demand from quality tenants

4. Do you purchase in your own name or in another entity – again you need to seek accounting advice

5. What is your longer term investment plan. Property can be a great investment but it is expensive to buy with stamp duty etc, so you need to be prepared to hold for a number of years – usually, the longer the better.

6. Do you have a Self-Managed Superannuation Fund (SMSF). The rules relating to owning property in a SMSF have changed and it is now much easier to borrow to purchase property in your fund.

7. Are you best to buy an established property or would you prefer to buy land and build ?

Once you have satisfied yourself on these issues, we would be pleased to show you a range of properties in your price range that will generate good rent and also show capital growth over the years to come.

Our team at Sandhurst Real Estate is well placed to help you with both the search for the best property as well as leasing and property management. Its all an important part of your overall investment strategy.

Call today on 03 8787 9000

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