Have a question about investing in property?
We’ve put together a list of the most common questions our clients ask us. If you can’t find the answer you’re looking for, give us a call on 03 9938 1210.
Property offers the opportunity for you to build a diversified portfolio of property assets to achieve different investment goals.
Reasons to invest in a property asset include:
- You can leverage property for maximum cost efficiency
- It’s tax efficient
- It shows a history of strong returns and low volatility
- It serves a physical purpose (for example to live in)
As an investor, restricted cashflow can limit your options making it difficult for you to expand your portfolio. Cashflow positive properties not only pay for themselves, they generate an income making you more appealing to lenders and banks.
Negative gearing is the practice of investing borrowed money in such a way it returns a loss that can be claimed as a tax deduction. When it comes to property investing, there are two types of losses you can claim:
Cash expenses - costs associated with your property such as management fees, council rates, body corporate fees and repairs and maintenance.
Non-cash expenses - paper expenses such as depreciation of building fixtures and fittings.
Claiming all cash and non-cash expenses will enable your property investment to work harder, achieving greater returns.
YES! Because a property can pay for itself, not just from the income (rent) but from the ATO as well. It’s about how you crunch the numbers. For example, depreciation claims can be added to the actual expenses of your property, increasing your total tax deduction and, therefore, increasing your tax refund.
When you sell your investment property, you will be subject to CGT. However, there are ways to reduce the amount of CGT you pay by using the right investment vehicle. For example, a property purchased via an SMSF and sold in pension phase could be entirely CGT free.
The main trigger causing interest rates to rise (but not always) is a rise in inflation. So it’s likely an increase in interest rates would go hand in hand with an increase in rental income and property values.
It’s also worth noting that because of the tax-deductible nature of investment properties, any rise in interest rates can be partly offset by a greater tax refund
At The Property Alchemist, we’re constantly evaluating the market so we can advise our clients about events before they happen. When we look at an investment opportunity, we consider all the factors that play a part in its success, including interest rates. We can also advise different ways to minimise your risk including fixed loans.
Throughout history, there have always been ‘bad’ times to invest in property – what we consider a ‘sellers’ market. Despite this, when you look at property prices in general over the years, history shows that prices double in value over a period of time. At The Property Alchemist, we believe in sourcing locations with strong infrastructure plans in place that will perform regardless the condition of the market.
We charge differently depending on the service we provide. Properties from our books attract a commission by the vendor at industry standard rates. When we act as buyer’s agent, armchair opportunities facilitator or property development manager, we charge our clients a fee based on the scope of the work required.
There’s no ‘one-fit’ solution for every client. We create a strategy in line with your needs and goals and source the best properties to achieve those goals by:
- Pulling on our extensive range of resources and connections to identify investment opportunities.
- Keeping informed about current market trends and growth cycles.
- Building relationships with developers with a proven track record of performance.
- Researching locations with the infrastructure, demand and performance indicators to achieve high returns.
PROPERTY INVESTMENT ADVICE
We build investment strategies that drive the highest possible outcome matched to your individual goals.
HIGH YIELD INVESTMENT PROPERTIES
Cash flow positive properties earn more from rent than they cost to own - so you can pay down your mortgage, invest in other properties, borrow more from the banks or have extra cash in your pocket.
MORTGAGE REDUCTION PROGRAM
The average life of a mortgage these days is 25 years, but it’s possible to shave years off your loan using the existing equity in your home to invest in other properties.
Over the years, we’re proud of the service we’ve created. Because we have what we consider to be the most important qualities of successful buyers advocacy.
EARN PASSIVE INCOME THROUGH PROPERTY
Passive property investments (otherwise known as ‘armchair developments’) give you the opportunity to become an equity partner in a project in return for a share of the profits.
PROPERTY PROJECT MANAGEMENT
We have the experience, knowledge and connections to make sure your project runs successfully and smoothly. If you’re interested in property development, why not leverage off our expertise?