7 Step Program
Why invest in property?
Before anyone invests, they need to be clear about the reasons why. We at Investo Property know the many different reasons why our clients choose to invest. Let’s work together to clarify the reasons why you should invest in the residential property market.
Why you should consider investing in property?
- To create an income
- To build wealth
- To gain security
- To increase choices in life and retirement
- To reduce income tax
- To not be reliant on government welfare in retirement
- To retire early
They may also invest because family members or friends are doing it, because renovation and investment programs make it sound easy, and because property magazines are saying to buy.
How are you going to achieve this?
The three main strategies that property investor looks at when purchasing an investment property.
There are many investment classes you can purchase a property in.
- Your own name - Individulaly or wth another person/s
- As Joint Tenants
- Or Tenants in Commom
- Family Trust
- Company Name
- SMSF - Self Managed Superannuation Fund
If looking to invest in property alway discuss with your accountant or financial planner the enity you should be purchasing in.
The most common strategies when looking to purchase an investment property.
- The Rentinvestor - They have the cash saving for a deposit and will purchase an investment property. While continuing to live and rent where they love too.
- Own a home - Using the available equity in their property to purchase an investment property. They do not require a cash deposit.
- SMSF - They set up this fund and use the available proceeds to purchase an investment property. This strategy doen't suit everybody
When investing, what will your cash flow look like? Affordability is a key issue for investors, and the key to becoming a successful property investor is to understand your cash flow. Make sure you understand that affordability is about a budget: it’s money coming in and money going out, and how to balance your cash flow.
In order to build an investment portfolio, start with the basics:
- Know your financial position
- Know your income
- Know the amount of income tax you pay
- Know how much you can borrow to invest
- Know how to best use your income and tax to build wealth
- Know how to best reduce the income tax you pay and improve your cash flow.
Safety Nets & Buffers
This is the age-old story that we hear about property investors. We hear it in the media, from strangers and family members and see it on A Current Affair. It’s the story about how someone has lost thousands or millions of dollars, and maybe everything they own, from a bad property investment.
News like this makes the average person live in fear and stops them from making a rational decision on investing. By implementing safety measures, an investor can minimise risk and invest in property with peace of mind, knowing their investments are protected. With Investo Property Investments, we’ll work with you to understand the safety nets that protect your investment.
Some of the common fears that hold people back from investing:
- What if I get a bad tenant?
- What if they don't pay the rent?
- What if I can’t get a tenant?
- What if they damage or destroy my property?
- What if I lose my job?
- What if interest rates increase?
- What if the government takes away tax deductions for investors?
- What happens if I get sick?
Properties back by Research
The key fundamentals of investing in the Australian residential property market are where, what and when to buy. These fundamentals are driven by macro and micro indicators. They are something that all investors should know about.
Macro indicators tell us where to invest. An investor needs to look at a region’s population growth and demographics, government and private infrastructure investment, economic health and employment, and the supply and demand of property.
Micro indicators tell us what to invest in. This is where an investor looks at amenities, access to transportation, design, quality and rental income.
Our research, based on ten key macro and micro indicators, will assist you to make the decision that’s best for you, analysing these indicators and then matching them to your investment property plan.
The 3T's to investing
What are the 3Ts to investing? Taken together, they power your property investment. They bring benefit to you as an investor. They can help you purchase and invest in property and build a property portfolio. The 3Ts are the reason why people invest, and what makes your property investment worthwhile.
What are they?
- The first T is your tenant. Your tenant will pay the vast majority of your property expenses.
- The second T is tax deductions. Tax deductions will decrease your holding cost.
- The third T is time. Time has a few different meanings that can be advantageous for your property investment. It’s about timing the market to purchase a property so you get the most benefits. It’s also the amount of time you hold onto your property. The longer you hold onto the property the more opportunity you have for your property’s growth over time.
Investo Property Investing believes the 3Ts are the main reasons to consider property as your investment vehicle. They will help you to pay for your property. They will assist with your cash flow. They will reduce the income tax you pay. Over time, together, the 3Ts should be able to assist you with the growth of your investment and your success in property.
Your plan to invest in property
The most important step of all. What is it? It’s your plan. After completing the first six steps, we are now in the position to implement your plan. By reaching this stage, you will now understand why and how Investo Property believes that property is the ideal investment vehicle to use to build wealth.
You’ll know why you want to invest in property.
You’ll know how you’re going to achieve this.
You’ll have examined your cash flow to know you can afford to invest.
But you’ll also be secure in knowing and understanding your safety nets for investing.
You’ll have worked with us to do your research and understand the best decision for you.
You’ll understand the magic formula of the 3Ts.
With this knowledge and confidence, you’ll have arrived at your plan to invest.
Investo Property is happy to help support you to implement that plan, make it a reality and support you to become a successful property investor, leading you to be able to achieve more of the goals you’ve set for yourself in life.
Let’s work together.