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People who wish to start out investing in property may need to finance their purchase by way of a loan. With the number of loan products and the numerous features pertaining to them, some investors may perceive the process of choosing the right investment loan to be quite daunting. 'LEVERAGING' Returns, Leveraging Risk ... One of the quickest ways to acquire a portfolio of properties is to use the power of leveraging. By borrowing funds to purchase a property, one can effectively magnify its capital growth. 'Landing' a High Return on property ... The true value of a residential property involves much more than the size, age and condition of a dwelling. The land value, driven by supply relative to demand, is as important as any other factor that determines the worth of your prized asset. One-bedroom Units Far from Diminutive Investments ... Many property investors are reluctant to include one-bedroom units in their investment portfolios, adhering instead to the mistaken belief that "bigger is always better" as far as real estate is concerned. Catching the Property Tidal Wave ... At a recent business seminar I heard an industry visionary make the following statement: " When the tide is in everyone looks good, when it goes out, then you can see who is not wearing shorts".
Building a home?
Floor plans and building
designs are readily available from many sources. But many people
fail to realise that using these designs without the owner's permission
can lead to serious legal problems.
Property
Investment and the GST ...
The GST was intended to be a simple broad-based tax like the New
Zealand one. But we gave the bureaucrats a free hand to design a
uniquely Australian version and further complicate it with special
exemptions to persuade the Democrats to allow it through the Senate.
Are
you adequately insured? ...
While seeking out and paying the lowest possible premium might
be an attractive option for some forms of insurance, it may not
be the wisest option for property owners.
Smart Finance: Understanding the AAPR ...
The Annualised Average Percentage
Rate (AAPR) - also known as the comparison or true rate - is a figure
designed to show the 'true' cost of a loan, taking into account
upfront fees, honeymoon rates, ongoing fees, different compounding
periods and other factors.
Capital
Gains Tax and the Family Home ...
It is common knowledge that a person's family home is exempt from
capital gains tax ("CGT"). What perhaps is not common knowledge
is the complexity of the legislation giving rise to this exemption.
Managed
Investment Schemes ...
Over the past few years various investment schemes have been developed
which promise a significant return for investors. The great majority
of these schemes are well-managed by reputable persons and do
not cause problems.
The
Goods and Services Tax (GST)
Under the proposed GST, the
sale of new residential property will attract a 10% GST. However,
the sale of existing residential homes and land by private owners
would not be subject to GST.
Australia's
Renting vs Buying trend
A current trend towards renting in favour of home ownership could
alter Australia's distribution of net wealth if it becomes sustained
long term. To make sense of the trend and consider its possible
effects, an assessment of long term rental patterns is essential.
One of the more remarkable aspects of Jan Somers' story is how quickly it all happened... how a hard-working Brisbane housewife became a multi-millionaire by investing in residential property. As Jan puts it: "Once the penny dropped, it all happened very quickly, like a plant growing and blossoming".
Australian Property Investor
takes a good hard look and the pros and cons associated in buying
property off the plan.
Building & Depreciation Allowances ...
When considering investing
in a rental property it is important for you to ensure that all
details concerned with the cost of the property being acquired are
obtained to enable building and other depreciation allowances to
be claimed. The issue examines some of these items.
While there are many successful syndicates in the marketplace, according
to Greg McMahon (a partner of Teys McMahon Lawyers in Brisbane)
there are also hundreds of illegal syndicates now operating.
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Australian Property Investor Magazine