Discover the most critical step to property investment before you start to invest – if you DON’T define this step you will never have success with property investment. The first step is determining your strategy.
The question is not “what is the right strategy” but rather “what is the right strategy for you?”, you should not invest in property until you know your strategy.
Developing the strategy right is an absolutely crucial first step. The majority
The ‘Buy, renovate and sell or hold’ investment strategy can maximize potential gain by improving areas of the property that are unsightly. An un-landscaped front yard, a messy entrance way, a run-down bathroom or kitchen on a property are example of these. This is a good strategy for those with the time and skills that can complete the renovation themselves.
To minimize transaction costs, most investors choose to buy, hold and bank on the
The ‘Buy, renovate and sell or hold’ strategy can maximize potential gain by improving areas of the property that are unsightly such as an un-landscaped front yard, a messy entrance way, a run-down bathroom or kitchen. This is a good strategy for those with the time and skills (i.e. tradesmen or women) that can complete the renovation themselves.
It is an exceptionally good strategy for those that have the lifestyle suitable to living in
Buy + Sub-divide + Sell or Hold
Fantastic opportunity for those not faint-at-heart. Serious profits can be made by buying land capable of subdivision and doing what the previous owner was unable to do.
You need a large amount of capital (i.e. cash) behind you as, particularly in the current environment. The banks are simply not willing to lend serious money to even the most experienced property developer.
Buy + Build + Sell or Hold
This strategy is similar to the“buy and subdivide and sell” strategy and once again not for the fainthearted. On the upside, there is good profit to be made, particularly for those able to be involved in the building process themselves. Adding real value by building or improving a property is one of the most fundamentally sound ways to make profit.
So you have decided to buy a property investment and have it rented to get passive income. How do you then make sure that you can have the best possible return on investment through rent? Here are some of the improvements that you can do.
The floors and the walls are usually the easiest and cheapest way to improve your investment and make it more appealing. Add a little life to your property by improving on the walls and floor by installing new carpets or tiles.
Make it Look New
You can style the room to make it look homey. Add few new temporary pieces of furniture, decorations and personalization just to help your prospective tenant get a good picture of themselves living in your property.
Improve the Functional Rooms
Kitchen and bathrooms are very functional rooms. Improve these rooms by thinking of how best your tenants can utilize them and then making the necessary adjustments. A good looking & functioning faucet and space for necessities can go a long way in making these rooms look irresistible.
Keep it Simple
There is no need to make significant permanent changes in rooms that are meant to be personalized. Be aware of things that the tenants might want to change anyway. Bedrooms and living rooms are usually personalized by tenants. Having permanent additions can be limiting factor to them. Fix these rooms in a way that it would be easy to personalize for other people. Paint it with neutral colors that can go well with your tenant’s preferential color. Make sure that the bedroom has enough space for any kind of bed they might think of having. A fixed table might be a good idea to you but might be a hindrance to your tenants.
Add A Room
An additional room can increase the value of your home. When having your property rented out, an additional room can increase the rental fee you can charge. If the area permits and if you have the budget for it, it might be a good idea to add a room to your house. It can also get your property to appreciate in value as time goes on.
These are a few things that you can do to make your property investment more appealing. At the end of the day, you also have to consider your budget and the return. If the average rental is already maximum of your rental charge then it might not be a good idea to spend too much on the house.
Choosing a property location may be the most challenging part in the process of owning a property. Here are important factors you need to consider when choosing a location for your property.
The budget is a very important factor when choosing a location of the property. There are so many options of where to buy a property but you can trim down the location options when you know what you can afford.
City vs Suburb
Do you want to enjoy proximity to everything when you live in a city or do you value a location that offers a quiet and peaceful environment? There are several advantages of living in the city but there are also disadvantages. Same can be said for living in a suburb, so take note of the things that are very important to you to help you choose.
Do a physical inspection of the neighborhood you want to live in. It is important that you check them during the day and during the night. Check their proximity to stores, amenities and activities that you may enjoy. It is also important that it should be near a clinic or hospital in case of emergency. If you practice a religion then proximity to a place of worship may be a key factor too.
Explore Neighboring Areas
Another location near your prospective area may provide better amenities than the one you’ve set your eyes to. The houses may be more spacious or have better facilities than your top picks. It is essential that you check out neighboring area to gauge whether or not that area may be a better fit for you. You may regret not checking after buying your property.
Proximity to Work
It is important to weigh in on the distance between your property and the place of work. If you are looking to buy property to live in, then the long commute may have a big impact to your everyday routine. The additional expenses of traveling farther every day and extra time spent on the road can take a toll on you. If you are looking to buy property as an investment, then you need to take note that proximity to the CBD. It may also affect how fast you can have the place rented, it will also affect the rental price.
Availability of Good Schools
If you have a family or is planning to start one, then being near a decent school should be a huge factor. Not having a good school near you can force you to spend more on private schools. If you are planning to have your property rented, then prospective tenants with kids might not be inclined to rent your property.
A lot of people consider safety as the top priority when buying a property. A property in an unsavory location may be cheaper but you will also have to live in fear. There is also a high chance of losing furniture, equipment and appliances which may be valuable. If you are planning to rent the property out then you may have a hard time finding tenants if you live in an unsafe area.
Are there transportation options in the area you are considering? Even if you have a car, there might be a time when you need to use public transportation. Tenants may also be more inclined to rent your property if there are ample options for public transportation. This is something you should take note of if you plan to get your property rented.
After taking note of the important details above you need to narrow down your options.
Make a list of areas you want your property to be in. Check out the rates in these areas if you can afford them. List down the pros and the cons of your options. When you already have a shortlist, then it would be easier for you to narrow it down to a few that you can check formally.
People often focus on getting the best interest rate for their home loan in the hopes that it will save them money.
While it’s true that a low-interest rate can save you money on repayments, finding the right lender and the right home loan product are actually more important than the advertised interest rate. For starters, the right lender will look at your circumstances and consider different home loan options that suit you. They may make a number of suggestions, and offer flexibility when it comes to repayment plans and other loan features.
But more importantly, the right home loan product will offer you a range of ways to save money on interest – and not just through low-interest rates (which can vary with the official cash rate anyway).
The following considerations can help you find the right lender and product when you are searching for a home loan
• How much can you borrow?
• What repayment options does the loan offer and/or recommend?
• Does the lender apply additional charges for changes to the loan, such as additional repayments?
• Does the loan offer additional features, such as the option of an offset account?
• Have you already borrowed money from this lender?
• How easy will it be to make changes to your loan repayments in the future if your circumstances change (i.e. through better pay, retirement etc)?
Considering these different questions, and even asking lenders about them, will help you find a mortgage provider and product that actually helps you save time and money on repayments
How Does It Work
Foreign Purchasers: FIRB Approval
Buying a property via our developers
Purchasing within a resort
Commercial real estate
FIRB approval must be sought by any foreign individual or company which wants to purchase existing commercial and nonresidential real estate valued at $5 million or more. They are normally approved unless considered ‘contrary to the national interest’.
If the commercial and/or non-residential real estate in question does not yet exist but is at the development or major redevelopment stage, permission to purchase is usually given, unless the purchase is considered ‘contrary to the national interest’.
Construction must start within a specified period of time.
Here we have summarised the types of properties you are able to buy depending on your residential status:
Australian citizens or permanent residents
- No restrictions on the type of property you can buy
Temporary Resident, Retiree or Student
Can buy new property without restriction
Foreign Investors must have possessed a valid temporary residency visa to stay in Australia. This is for a period exceeding 12 months at the time of the application. To be eligible in getting established residential real estate in Australia. Other requirements include:
Can buy an established property, provided it is your residence and it is sold when your visa expires.
Consent of the FIRB is required
Foreign national or foreign corporation
- Can buy new property
- Buy vacant land as long as building commences within 12 months of purchase
- Can buy an established property only if an additional amount of no less than 50% of the original property cost is spent on improvements or additional construction
- Buy up to 50% of new projects or apartments
- Can buy commercial property, but some rules apply
- Consent of the FIRB is required
24th year of uninterrupted annual growth Australia’s economic resilience and potentially provide a safe, low-risk environment in which to do business.
The Australian economy is:
- the world’s 13th largest
- entering its 24th year of uninterrupted annual growth
- rated triple ‘A’ by all three global rating agencies forecast to have average annual real GDP growth of 3.0 per cent between 2015 and 2019
- increasingly tied to fast-growing economies in Asia
- supported by high productivity levels, with 16 out of 20 industries rating. Above the global average diversified and services-based
- an important contributor to five sectors expected to drive future global growth: agribusiness, education, tourism, mining and wealth management
- home to the world’s third largest pool of funds under management and the largest in the Asian region
An innovative economy
Australia is a world-class innovation destination.Has solid foundations of modern ICT infrastructure, high levels of investment, generous R&D tax incentives for businesses and strong intellectual property protection.
As an innovative economy, Australia supports:
- high-quality research outcomes
- rapid growth in business expenditure on R&D expenditure on R&D. Similar to that of other leading innovative countries, such as the USA, Japan and France
- growth in gross expenditure on R&D at twice the OECD average
- some of the world’s best academic and research institutions.
Australia is a leader in the development of new technologies like the bionic eye. Billions of people around the world rely on Australian discoveries, such as Google Maps, high-speed WiFi, spray-on skin for burns victims, cervical cancer vaccine, ultrasound, cochlear implants and civilian use of penicillin.
The Australian labour force is one of the most educated, multicultural and multilingual in the world.
- has the world’s highest secondary education enrolment rate
- has almost 40 per cent of the workforce holding a tertiary qualification or advanced diploma
- is expected to outperform many other developed countries for labour productivity growth in terms of GDP per person employed
- More than a quarter of Australia’s labour force of 12.4 million people was born overseas.
Australia is the fourth most popular study destination for international students. Also a ‘first choice’ education destination within the Asian region.
Connected to Asia
Australia is geographically close to and has a longstanding trade, investment and cultural links with the fast-growing Asia-Pacific region.
Australia has an open trading economy.
- Two-way trade in goods and services in 2013-14 totalled A$669 billion (42 per cent of GDP).
- Ten of Australia’s top 12 goods and services export markets were in the Asia region in 2013-14.
- Asia represented over 70 per cent of Australia’s total two-way merchandise trade in 2013-14.
- Foreign investment stock totals A$2.6 trillion.
- Australia’s inward foreign direct investment (FDI) stock reached A$630 billion in 2013, up 40 per
- cent from 2008 figures.
- The USA and UK remain the strongest sources of FDI, but investment from Asia is increasing.
- Record numbers of overseas short-term visitors.
Ease of doing business
Doing business in Australia is easier than in most other countries. With one of the most transparent and well-regulated business environments in the world. Australia’s political stability and regulatory framework provide investors with confidence and security.
For six years in a row, Australia has been ranked third on the Index of Economic Freedom. It is ranked 10th for ease of doing business and also fourth when compared to economies with a large population.
Australia’s financial services sector has:
- assets of almost A$6.4 trillion, over four times Australia’s nominal GDP
- the world’s fourth largest superannuation system strong financial market turn over
- the largest liquid stock market in the Asian region, outside Japan.