Money Solutions Investment Property Guide
Guide to Property Investments
Property Investments
Property investments can offer numerous benefits, including additional income, capital growth, and tax deductions. However, buying an investment property requires careful planning, research, and a solid understanding of your financial position. If you’re considering an investment property purchase, here’s a simple guide to help you get started.
Step 1: Formulate an Investment Strategy
Property investing offers various ways to build wealth. Common strategies include:
- Buying in areas with strong capital growth potential and holding the property long-term.
- Negatively gearing the property to claim losses against your tax liability.
- Positively gearing the property for surplus cash flow.
- Renovating to add value and increase rental income.
- Flipping properties for profit.
- Buying off the plan or subdividing.
Your strategy should align with your financial goals, investment timeline and risk tolerance.
Step 2: Set Your Budget
Before browsing properties, it’s important to set a realistic budget. Consider:
- Initial costs – deposit, stamp duty, legal fees, inspections, and lender fees.
- Ongoing costs – council rates, insurance, property management fees, and maintenance.
Ensuring you have a financial buffer for unexpected costs can protect your investment.
Step 3: Do Your Research
The key to buying the right investment property is thorough research. Look at factors like:
- Capital growth potential – is the area expected to increase in value?
- Rental yield – does the rental income cover the property’s costs?
- Vacancy rates – are properties renting quickly, or is supply outweighing demand?
Additionally, research infrastructure developments, population growth, and lifestyle factors that may influence property values. Speak to us about our complimentary property market reports for deeper insights.
Step 4: Finalise your Finance
We’ll help you secure the right investment loan tailored to your needs. Investment loans come with different features, such as interest-only periods, fixed vs. variable rates, and offset accounts. Understanding these options will help you choose the best structure for your investment.
If you’re ready to explore your property investment options, contact us today!