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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
- 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 Focus Plan based on your
input. The object of this is to provide you with a detailed road map,
focusing on the end goals. It also
includes attention to minimizing risk, estate planning and succession.
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.
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