What is the best way to make money in today’s property market and why

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What is the best way to make money in today’s property market and why

The reason that many property investors get themselves into financial  distress or do not maximise their returns on property investments is that they do not treat their property investment as a business. Three basic rules must be followed:

Use an Expert

The number one rule is to use experts in your team.

Using a property expert to help you buy a superior property can effectivelly get you a “free” property. This is because a superior property growing at an average 10% annually over a cycle compared to a property growing at an average of say 5 % is the 10% growth property will double in value 7 years earlier.

Working with an expert property accountant will advise you on all possible expenses to claim and what is the best name to buy in. As an example using superannuation can allow investors to buy property and claim negative gearing against their income that will later have zero tax on income or capital gains.

It is surprising how many investors ignore or worse miss out on these opportunities.

Manufacture Equity

The number two rule is do not only rely on the market to give your market growth. Manufacture your own equity by buying a property which you can do a renovation on that will add both capital gains and rental benefits.

Create a Safety Net

The third rule is to create a safety net for the unexpected (interest rate increases, loss of tenant, major repairs, loss of job etc) so you do not have to rely on your wages to fund your property expenses. The safety net can come from access to equity to fund the unexpected.

We call this a buffer and must be part of what your finance professional sets up for you.

 

Ken Raiss,

Director of Chan & Naylor Platinum

 

For more information call             1300 250 122       or email info@chan-naylor.com.au

 See Ken Raiss presenting at the National Property & Economic Market Update 2012

Click Below for more details

 

 

Disclaimer:

If you intend to rely on any of the information in this document to satisfy liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law, you should request advice from a registered tax agent. This information does not take into account your individual objectives, financial situation and needs. You should assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. The information contained in this document is given in good faith and is believed to be correct at the time of publication, but no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors or omissions (including responsibility to any person by reason of negligence) is accepted by Chan & Naylor, its officers, employees, directors or agents.

 

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