Property Investments Tips – 2021
Are you wanting to buy your first investment property this year? Or maybe, you’re looking to grow your portfolio.
Whatever your 2021 plan is, here are some tips to help finding the perfect investment property for you.
Research, research and more research
Successful investors do the research before they start narrowing down their property pool. They look at everything from price ranges and property types to market trends and location characteristics such as demographics and employment rates. Doing the research early will help you in the long-run and make your search more strategic.
Use the tools that are available
You have ample tools at your disposal to find the perfect investment property. The trick to using these effectively is identifying the ones that are reliable and backed with comprehensive data. PropCalc is a good example. This free tool is the essential cash flow calculator for anyone looking to buy a property. It shows you exactly how the purchase will affect your cash flow, produces comprehensive property reports and analyses key suburbs data.
Search with the tenant in mind
What type of tenant are you looking for? This is an important question to ask at the very beginning as this will inform the type of investment property you will be searching for. Your real estate agent will be able to provide information on what tenants in the area are looking for. This can help you narrow down your property pool, ascertain how successful your first-choice property will be in the area and make any search adjustment where necessary.
Know your long-term plan
What’s your game plan? Property is a long-term investment so you shouldn’t expect a return overnight. Your plan needs to be centred around your overarching investment strategy, as this ultimately determines the property you buy. For example, your strategy could hold a range of objectives including portfolio diversification for risk minimisation, favouring long-term gain over short-term rental yield or visa-versa.
Changes go hand-in-hand with long periods of time – this means your property journey mightn’t always be linear. Therefore, it’s essential to have an agile plan in place that allows for the unexpected.
Consult with a depreciation specialist
Claiming a tax deduction without making an expense sounds like a pretty good deal, right? Well, it’s possible with property depreciation. Depreciation is the natural wear and tear of a property and its assets over time. As one of the highest deductions out there, depreciation can boost your cash flow by thousands in just one year. This isn’t a one-off deduction either, as you can claim depreciation for up to forty years on a residential property.
Source: BMT Tax Depreciation has prepared over 700,000 tax depreciation schedules over the past twenty years. The expert team can provide obligation-free depreciation estimates for all types of investment properties, so you know how much you can expect to claim before making the purchase. To learn more about BMT and the services they offer, Request a Quote or call the team on 1300 728 726.
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Chan & Naylor, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.
Chan & Naylor is Australia’s leading property, business, tax-accounting & wealth advisory group with offices nationwide.