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I was unable to make a decision in buying a land and house investment property, due to the magnitude of information provided by various land developers and builders. With the vast information of each company promoting their own products to be the best, and no one company employee actually fully understanding the fundamentals of what they are selling, Housing Investment Australasia was able to simplify the purchase of my property, including loaction and the selection of the building to maximise growth. Their independent information was easy to understand with their in-depth knowledge of market trends and marketplace developments, thus empowering me to make an informed decision.

As a result of Housing Investment Australasia insights and direction which was 100% free, I have now made $$$. I now depend on them with integrity in making all the difference to my future residential portfolio.

Michael Schilders, Kuranjang.

Property Investing 101

Many of us thinking about building wealth may be considering investing in property, particularly as it is considered by many a “safer” option than shares.  And as many experts predict, it is shaping up to be a good year for investors who might be considering taking the plunge.

There are plenty of advantages associated with investing in property including the potential for capital growth, rental income and tax benefits.  But there are risks that come along including finding quality tenants, earning the rental income you need and meeting any costs for maintenance and repairs.  And of course capital growth is not guaranteed.

If you’re confident that property investing is right for you then you need to have a plan.  Start by working out how much you can afford.

If the investment property is your first foray into property you’ll need to have saved enough money for a deposit as well as any additional costs such as stamp duty, legal fees and inspections.

If you want to avoid mortgage insurance you’ll need to have at least 20%.  If you are willing to pay mortgage insurance it may be possible to borrow up to 90%.

If you already own you own home and have built up equity you can use this to help pay for your investment.  You can use this equity towards the 20 percent deposit and then get a separate loan for the remainder.

You’ll also need to make sure you can afford the monthly repayments.  Of course rental income is taken into account, but be realistic about the level of rent you’re likely to receive.  You’ll also need to consider there may be times when the property is without tenants.

Once you have worked out your budget it’s time to go on the hunt for a suitable location.

As a general rule look for areas that are close to amenities like public transport, schools and shops.  Also focus on areas that are within commutable distance to commercial centres where lots of people work.

Once you’ve narrowed down the areas you’re interested in you can look for appropriate properties.  Think about the likely tenants.  If it’s close to universities or an area that appeal to young professionals a unit might be a good option.  If it’s an area full of young families, a house with a nice backyard might be a better bet.

Whether you chose a house or a unit the kitchen and bathroom are probably the two most important features.  Built-in storage is also a big plus.  Just make sure the property is neat, tidy and has the features that will appeal to your target market.

Make sure you do your due diligence before going ahead with the purchase.  Do the relevant building and pest inspections.

Also make sure you do your homework on the value of the property to ensure you don’t pay too much.

Once you go ahead and make the purchase you need to determine whether you want to be a “hands on” landlord or pay a professional agent to do the work for you.

They’ll generally charge about 7 to 9 percent of gross rent to screen potential tenants, collect rent and organize repairs.  They’ll also carry out regular inspections.

Finally, make sure you have the appropriate insurance in place including building insurance.  You could also consider landlord protection insurance.


This article appeared in the Money section of Nine MSN on 20/10/2010.
Disclaimer – Housing Investment Australasia Pty Ltd. The information contained in this article does not constitute formal advice, endorsement or commitment by the author or by Housing Investment Australasia or its subsidiaries. Readers are advised to seek independent advice regarding any opinions, conclusions and other information in this article. Housing Investment Australasia Pty Ltd does not accept liability for any loss or damage that may result, directly or indirectly from any advice taken from this article.


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