|
First of
all ask yourself – Why invest in property?
If you want to grow assets you need to
be invested in either property or shares. The key element for
most people investing in property is control ie how the investment
is structured, how it is financed, how it is managed and how you
price it or whether you continue to own it.
Also the banks are usually willing to
lend you a higher proportion of the investment cost, because real
estate is viewed as a relatively safe and stable investment.
Other points of advantage are:
-
Tax deductible business expenses
-
Tax deductions for depreciation
-
Can leverage off your existing
property
-
Rental incomes generally follow
inflation
Planning
It is important to establish a plan
encompassing your own goals. Mortgagehelp offer a comprehensive
Finance Planning Service based on your input. The object of this
is to provide you with a detailed road map, focussing on the end
goals.
Six investment strategies discussed in
Andrew King's book 'Planning for Property Success' are:
-
Ordinary properties
-
Bargain Buys
-
Fixer-uppers
-
Developments
-
Buy and pay off the loan
-
Living off excess cashflow
You can buy this book through us or
pick it up at Whitcoulls or other good bookshops. If you are
investing for the first time read as much as you can – it helps
heaps.
|
|
