Determining where to invest is one of the many key questions an investor grapples with before considering investing in property.

Typically, investors consider investing in their own backyard. That is, the suburb in which they work, live or play in. The underlining basis of such a decision, is investing within one’s comfort zone.

With this premise in mind the questions to be asking are:

Q: How well do you really know the suburb?
Q: Are emotions influencing your decision making process and providing you a false sense of knowing?
Q: Are you basing your decision on facts and figures?

To obtain a clear understanding of how well you actually know the suburb, you may want to ask yourself some of the (but not limited to) following questions:

• What is the current and historical vacancy rate of the suburb?
• What is the Median rent?
• What is the Median value for a new/or old 1 and/or 2 br apartment, townhouse, etc?
• What does the supply versus demand ratio of stock look like?
• Is the suburbs population growing or shrinking?

How did you go? Where you able to answer the questions accurately? If you did you may be feeling somewhat more confident about your decision. Nevertheless, if you already own property in the same suburb (that is, your house or principle place of residence) investing in the same area will subject you to concentration risk.

If you already own multiple properties in the one State, the other implication you need to be wary of is Land Tax. Land Tax is a State based tax. The more property you own outside of your principle place of residence, as the land values increase, the more arduous it will become to hold your portfolio.
To mitigate these risks or costs, you should not only be considering another suburb, (but depending upon your investor profile) you should be considering another City or State. Geographic diversity is just one of the many attributes Aviate can assist you with.

Finding the right investment property requires research and due diligence. When properly selected, an investment property can have good potential for capital growth and provide a steady rental return. Industry knowledge and specialised service are keys to finding investment opportunities. This has once again been demonstrated by Aviate and confirmed by an independent panel of experts in this month’s (September) issue of the Australian Property Investor (API) Magazine.

The Cover Story titled “Hot 100” lists the most anticipated areas set to boom.
To view article in full click on image below.
(Source: Australian Property Investor)



The API used the following points, (which our investment property provider agrees with unless otherwise indicated) in reference to using the Hot 100:

• View the list as a guide to finding areas worth researching for future investment.

• Don’t buy a property in a particular location simply because it’s included in the Hot 100. Just because it’s on the list doesn’t mean every property in that area is guaranteed to perform well.

• Buy for the long term. The Hot 100 is designed to highlight locations that are expected to see price growth in the coming 12 months, but property is best viewed as a long-term investment. The API’s expert panel was asked to choose suburbs that would perform well in the short term, as well as the medium to long term. (Aviate’s view is that some of the suburbs selected are questionable).

• This list is not your due diligence. You must perform your own, more detailed research into locations you’re going to invest in, as well as the specific property you’re buying. (Aviate extensively documents its research in its Property Investment Reports (PIRs). The PIRs assist investors in making educated decisions on future investments).

To find out how our property investment provider can assist you with geographic diversity and other property investment related matters, feel free to contact us.

By Click on click to call button below and we will call your mobile or land line straight way to discuss your investment opportunities.

You don’t even have to leave your home.

Should you trust the management of your investment property to an agent or do it yourself?

Seldom has the property market looked so ripe for investment returns. Soaring rental values, rock bottom interest rates and a shortage of supply have created a prime market for investors.

But locating and buying the perfect rental property is only half of the equation – the next challenge is to find and manage your tenants.

The good news is that landlords have the option of taking the job on themselves or outsourcing to professionals, and there are certainly pros and cons with both.

Professional property management services come at a premium, which can range from around five to 10 per cent of the gross rental. While this will certainly put a dent into your rental income there are some distinct benefits to using an agent.

For starters you won’t be called on day and night to fix leaking taps and broken fences. The agent will take care of managing all maintenance issues associated with the property, which can be a big advantage – especially if you don’t live near to your property.

There’s also the advantage of tapping into a broader network of prospective tenants should your property become vacant; what’s more the agency will help assess and select the best tenants as well as organising the collection of rent.

The main downside of using an agency is the reduction in income, which may mean all the difference between a cash positive or negative investment.

Self-managing your property essentially gives you more control over your investment. You can pick and choose your own tenants, and as long as you’re handy with a hammer you’ll be able to reduce the cost of maintenance by taking care of small jobs yourself.

At the end of the day you need to consider how hands-on you’re prepared to be with your investment before making a call on whether to bring in an agent or not. If the property is out of your local area, and you’re not much of a handyman, it may be best left to an expert.


Disclaimer
This article does not necessarily reflect the opinion of the author/s, Carruthers Financial Services Pty Ltd or any of its employees or subsidiaries. It is intended to provide general news and information only. While every care has been taken to ensure the accuracy of the information it contains, neither the author/s, Carruthers Financial Services Pty Ltd,'Carruthers Financial Services Pty Ltd's employees, or its subsidiaries, can be held liable for any inaccuracies, errors or omission. Copyright is reserved throughout. No part of this article can be reproduced or reprinted without the express permission of Carruthers Financial Services Pty Ltd expect for the use for which it was purchased for. All information is current as per the date of delivery and Carruthers Financial Services Pty Ltd will take no responsibility for any factors that may change thereafter. The purchaser of this article and all readers thereafter are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this article as a substitute for professional advice.

Negative gearing is a popular technique with Australian property investors because of its tax advantages, but it is not without risk.

There’s no doubt negative gearing has been one of property’s biggest buzz words in recent years. And there’s good reason why: with the right approach it can provide great tax advantages and cash flow benefits favoured by many landlords.So what exactly is negative gearing and how does it work? Gearing essentially refers to the act of borrowing to invest. A property becomes negatively geared when the costs of owning it exceed the income it produces – i.e. you are making a loss.

Why would you choose this approach for Negative Gearing?

For investors there is one key reason – to maximise the return on their initial investment, or in other words, minimise the amount of money that they put down on the property from their own pocket.

For a simplified example, an investor buys a $500,000 property, puts down $100,000 (or 20 per cent of the value) of their own money, and takes out a $400,000 interest only loan.

Over a 12 year period let’s say the property doubles in value, so it is now worth $1 million. When the investor sells the property, and repays their $400,000 interest only loan, they will recoup a gross figure of around $600,000.

That represents a gross return of $500,000 on their initial $100,000 investment. But remember that out of this figure there will be selling costs, any rental shortfall over the period and of course capital gains tax.

Nonetheless this opportunity to significantly magnify a small investment by gearing (or borrowing) remains popular as an investment strategy.

There are also associated tax benefits for negatively geared properties as there may be an opportunity for the landlord to offset any loss against their taxable income.

Take care however: negative gearing is a game that requires caution.

Be very wary of developers’ promises about the potential for future returns on an investment, and do as much research as possible to ensure you are making a sound investment.

It is also essential that you seek professional advice on the tax issues associated with negative gearing and never borrow beyond your means. If you have some concerns, or would like some more information, please feel free to get in touch.

Important Points for getting Negative Gearing Right

• Avoid over-inflated markets and choose your investment carefully
• Make sure you have a reliable, strong income flow
• Borrow conservatively to minimise risk

Interested in finding out more about investing in property, then why not make an appointment for a FREE Initial consultation.


Disclaimer
This article does not necessarily reflect the opinion of the author/s, Carruthers Financial Services Pty Ltd or any of its employees or subsidiaries. It is intended to provide general news and information only. While every care has been taken to ensure the accuracy of the information it contains, neither the author/s, Carruthers Financial Services Pty Ltd,'Carruthers Financial Services Pty Ltd's employees, or its subsidiaries, can be held liable for any inaccuracies, errors or omission. Copyright is reserved throughout. No part of this article can be reproduced or reprinted without the express permission of Carruthers Financial Services Pty Ltd expect for the use for which it was purchased for. All information is current as per the date of delivery and Carruthers Financial Services Pty Ltd will take no responsibility for any factors that may change thereafter. The purchaser of this article and all readers thereafter are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this article as a substitute for professional advice.

There are rich rewards to be reaped from property investment, especially in the current market. Follow these tried and tested tips to help you get the most out of your investment.

1.    Do your homework: Nothing makes for a better investment platform than solid research and a sound understanding of the property market. Start perusing property magazines, get along to seminars, and keep your ear to the ground for any hot property trends.

2.    Get a loan pre-approval: This is a key way to ensure you won’t miss out on the right property at the right time. A pre-approved home loan is a green light for buying and will also give you a realistic idea of your borrowing capacity.

3.    Do the rounds: When it comes to becoming a seasoned investor nothing can boost your proficiency more than experience. Visit as many properties as you can before putting cash on the table so you know how to spot a bargain – and a rip off.

4.    Apartment versus house: Decide whether you want to invest in an apartment or a house. There are pros and cons for both options; what may be a better investment will also depend on the area.

5.    Old versus new: Once again there are pros and cons for investing in new and established properties, so take the time to think about what will be best for you.

6.    Location, location, location: A golden rule for a solid investment is to choose a property close to amenities: transport, supermarkets, schools and hospitals – the more nearby facilities, the better.

7.    Think tenants: Carefully consider the type of tenant you want to attract before deciding what and where to buy. So, for example, if you’re looking to attract professional tenants you’ll need to make sure your property appeals to that segment.

8.    Maximise your finances: Your investment choice will depend on your own personal finances and financial goals, so speak to us about what might be the best strategy for you; also visit an accountant to learn about tax efficient investing – if you don’t have one we can help point you in the right direction.

9.    Keep some cash on hand: Once you’ve bought your property it’s crucial to maintain a slush fund for general maintenance as well as any surprise repair work that may pop up.

10.  Keep your cool: While it may be tempting to snap up a bargain, it pays to take some time to negotiate. Don’t take the sale price without haggling – you’ll be surprised how far some sellers may come down.

Would you like to know if you can purchase an investment property? The why not arrange an obligation free consultation session to discuss the possibilities of owning an investment property.

Link to Know more about investment property then contact us today.

<Disclaimer>

This article does not necessarily reflect the opinion of the author/s,  Carruthers Financial Services Pty Ltd or any of its employees or subsidiaries. It is intended to provide general news cand information only. While every care has been taken to ensure the accuracy of the information it contains, neither the author/s, Carruthers Financial Services Pty Ltd,'Carruthers Financial Services Pty Ltd's employees, or its subsidiaries, can be held liable for any inaccuracies, errors or omission. Copyright is reserved throughout. No part of this article can be reproduced or reprinted without the express permission of Carruthers Financial Services Pty Ltd expect for the use for which it was purchased for. All information is current as per the date of delivery and Carruthers Financial Services Pty Ltd will take no responsibility for any factors that may change thereafter. The purchaser of this article and all readers thereafter are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this article as a substitute for professional advice.

The capital growth associated with apartments has virtually been on par with detached housing over the last five years, putting to bed the myth that houses appreciate at a faster rate than units.

Many home buyers and investors have adopted the philosophy that houses will generally outperform units. Most would argue that the underlying value of the land associated with a house is the real driver of capital growth. However over the last five years there has been little difference between the two property types based on the rate of capital growth. Nationally, houses have recorded an annualised rate of capital growth of 4.8 percent while unit values have increased by 4.7 percent per annum over the same period.

The equivalent level of capital growth associated with units is a relatively new phenomenon. Over the last ten years houses have outperformed units by about two percent per annum.

The improvement in capital growth associated with units may be attributable to housing affordability. Based on the national house value ($506,000) and national unit value ($409,000), units are about $100,000 more affordable than houses; a fairly compelling differential for many home buyers.

Another reason for the improvement in unit values is the changing demand side factors in the Australian market place. More baby boomers are downsizing from their empty nest; twenty and thirty something’s are more interested in living in the same location as where they work and play; and the lack of purpose built student accommodation has seen demand for units increase markedly from the overseas student sector.

Developers have responded accordingly, introducing units designed for a very specific segment of the market: luxurious boutique apartments for the empty nesters, smaller one and two bedroom apartments with minimal kitchen facilities for the young professionals and tiny apartments with communal social areas for the student market are just a few examples.

Additionally, units tend to provide higher rental yields than houses. This is partly due to the fact that unit developments are typically located in areas that have high rental demand: close to major transport networks, employment nodes or retail centres.

With population growth now projected to be well beyond expectations (Treasury recently announced that the Australian population is projected to reach 35 million in 40 years time; 7 million more residents than was originally forecast) and strategic land supply likely to remain constrained for a long time, the demand for well located unit projects is likely to increase. .

Source : RP DATA

If you’re looking to set yourself up for the future, the property market is a great investment choice – and now is the perfect time to jump in.

For as long as most of us can remember owning our own home has been the great Australian dream, but the trend towards owning several properties is growing in popularity and it’s not hard to understand why.
Property investment is increasingly being recognised as a fantastic wealth building tool. To get the most out of property it is best to view it as a long term investment or means of generating what is referred to as capital growth.

Why invest in property?

Historically, property prices in Australia have doubled in value every seven to 12 years, offering a steady path to wealth creation.

Compared to other investment options, such as shares or other complex financial products, bricks and mortar also remain a relatively safe investment.

You won’t need a degree to understand the fundamentals of property investment, and provided you do a little bit of homework there’s a fair chance it will deliver good results.

In contrast to financial markets property has also proven to be much less volatile. Over the course of the financial crisis, the Australian share market lost around 40 per cent of its value while most housing markets only dipped slightly or simply remained flat. According to RP Data, for example, overall property values fell by just 2.6 per cent in the 2008 calendar year.

As well as potential long term capital gains, an investment property can offer you good returns now. The rental income you receive on a property can help cover your mortgage repayments, and in a market such as today’s – when interest rates are low – your rental income may even cover all, or more, than your loan commitments. This will leave you with positive cash flow while your investment essentially pays for itself.

Current opportunities

Current fundamentals in the property market are shaping up to offer some of the best conditions in years. With house prices having softened over the last few years, intense housing shortages combined with low interest rates make positive cash flow opportunities a reality – now is an ideal time to consider an investment purchase.

If you already own a property you may be able to use equity that has built up to fund a new investment.

In fact, once you have your first property under your belt the opportunities for more investments will continue to blossom, with each property giving you greater leveraging power and opportunity to invest further.

To find out your investment options be sure to give us a call – we’ll find the ideal financing strategy and investment property to suit your needs.

<Disclaimer>

This article does not necessarily reflect the opinion of the author/s,  Carruthers Financial Services Pty Ltd or any of its employees or subsidiaries. It is intended to provide general news cand information only. While every care has been taken to ensure the accuracy of the information it contains, neither the author/s, Carruthers Financial Services Pty Ltd,'Carruthers Financial Services Pty Ltd's employees, or its subsidiaries, can be held liable for any inaccuracies, errors or omission. Copyright is reserved throughout. No part of this article can be reproduced or reprinted without the express permission of Carruthers Financial Services Pty Ltd expect for the use for which it was purchased for. All information is current as per the date of delivery and Carruthers Financial Services Pty Ltd will take no responsibility for any factors that may change thereafter. The purchaser of this article and all readers thereafter are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this article as a substitute for professional advice.

Ownership of an investment property is the dream of most Australians but for some it may be too great an undertaking to manage alone.

That’s why a growing number of budding investors are looking to crack the market by pooling their resources and taking advantage of co-ownership opportunities.

Australian residential property has historically performed well, typically doubling on average in value every eight to 12 years, and it is this solid growth that has attracted investors over time.

In the past property investment was considered only an option for the wealthy, but today it can be within reach of most working Australians with the right approach.

Investors that don’t have the resources to make an outright purchase can club together with friends or family to increase their buying power.

There are a number of advantages associated with investing via co-ownership but there are also some pitfalls would-be investors should consider.

A joint purchase will mean that the burden of a deposit can be split, which can be a great advantage for buyers with limited savings.

There are other costs that can also be reduced through co-ownership. Stamp duty, land taxes, conveyancing costs and maintenance fees can all be essentially halved when buying with a partner.

While there are no doubt numerous advantages of co-ownership there are also some potentially negative points that should be considered.

It is essential that you pick you partner carefully, for example. Make sure that they are trustworthy and capable of meeting their commitment to the mortgage.

It is also important that a firm agreement is established regarding how long the property is held and under what conditions it is sold.

With the right approach co-ownership can make the dream of property investment a reality years earlier than many would-be buyers could hope for should they purchase on their own – no wonder this is a fast growing segment of the market.

<Disclaimer>

This article does not necessarily reflect the opinion of the author/s,  Carruthers Financial Services Pty Ltd or any of its employees or subsidiaries. It is intended to provide general news cand information only. While every care has been taken to ensure the accuracy of the information it contains, neither the author/s, Carruthers Financial Services Pty Ltd,'Carruthers Financial Services Pty Ltd's employees, or its subsidiaries, can be held liable for any inaccuracies, errors or omission. Copyright is reserved throughout. No part of this article can be reproduced or reprinted without the express permission of Carruthers Financial Services Pty Ltd expect for the use for which it was purchased for. All information is current as per the date of delivery and Carruthers Financial Services Pty Ltd will take no responsibility for any factors that may change thereafter. The purchaser of this article and all readers thereafter are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this article as a substitute for professional advice.

A growing number of Australians are expected to invest in the property market as low interest rates and rising rental values promise to deliver some attractive returns.

Location, price and the type of property can all play a major factor in determining how your investment will perform, however there is another important factor that some investors neglect to consider: the tenant.

While capital growth is a major goal for most investors, strong cash flow is also an essential consideration for a sound investment – and this will be generated by the rental income.

Good tenants are therefore an essential ingredient in an overall sound property investment, so how should landlords go about attracting them?

Landlords essentially have two options when it comes to finding tenants. The first is to engage a professional to manage the property on your behalf – and that service includes finding suitable tenants.

Hiring a professional can be a smart move but their services do come at a cost – usually around 7.5 per cent of the rental value.

If you engage a professional real estate or property management agent they will not only find and screen suitable tenants, they will also manage your property on your behalf, which includes rental collection, maintenance and tenant liaisons.

If you decide that you have the time to manage your own investment you’ll need to find your own tenants.

When finding your own tenants it’s important that you advertise in the most effective media channels and use the right messages to attract the type of tenant you seek.

For example, for a suburban property renting families are a more likely target market, so local papers are usually a good vehicle for communicating with them. If in the inner city, your target may be students or singles – which you can connect with online.

When selecting a tenant you’ll need to be rigorous with your reference and rental history checks as well as determining their employment status and current family situation.

Also ensure that your tenants sign a rental agreement, which can be purchased on the internet for as little as $40.

Remember, good tenants are essential to a successful investment. Should they not look after your property you may incur excessive maintenance and damage costs – so be selective.

If you’re unsure about how to find an agency to manage your property, or to discuss how tenants may impact your mortgage, please feel free to get in touch.

Considering investing in Property, then please contact to discuss all your options. We can help guide you through the whole process from locating a property to securing your finance. Lets help you create your investment property portfolio.

Email us today.

<Disclaimer>

This article does not necessarily reflect the opinion of the author/s,  Carruthers Financial Services Pty Ltd or any of its employees or subsidiaries. It is intended to provide general news cand information only. While every care has been taken to ensure the accuracy of the information it contains, neither the author/s, Carruthers Financial Services Pty Ltd,'Carruthers Financial Services Pty Ltd's employees, or its subsidiaries, can be held liable for any inaccuracies, errors or omission. Copyright is reserved throughout. No part of this article can be reproduced or reprinted without the express permission of Carruthers Financial Services Pty Ltd expect for the use for which it was purchased for. All information is current as per the date of delivery and Carruthers Financial Services Pty Ltd will take no responsibility for any factors that may change thereafter. The purchaser of this article and all readers thereafter are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this article as a substitute for professional advice.