Historically, property has always been the safest vehicle to store wealth in. Because of the enormous rate of capital growth recently, buyers need to be more cautious of what they buy and where they buy. Some areas have priced themselves out of the investment market for the time being but will eventually return to being prime areas.

When approached like a business, where you have a definite strategy and a sound plan to achieve that strategy, property definitely will work. However, the majority of investors just buy the cheapest property they can afford with no regard to whether it will fit within their strategy and be of value to them long term. They have no understanding of risk or portfolio balance, consequently, the outcome is often less than desired.

Correctly financed quality property purchased in well researched areas with solid growth potential with the intent to hold long term is probably the safest investment available today. However, for people who are buying to achieve a quick profit, either by renovating or repurposing or redeveloping, there are risks involved. When holding long term, market fluctuations have little effect but if intending to only hold short term, a very definite understanding of the market and what could affect it is absolutely necessary.

Depends on the type of default. The majority of defaults on credit files (over 90{830d1043633127e1fb46cc80e8e725429e813d4a1f208e7acb534f94035a1f28}) can be removed as they often have not been reported legally. This doesn’t mean they are illegal, just there is a definite process that needs to be followed before a credit company can list a default. For a small fee, reputable credit repair firms have a really high success rate removing these defaults. It’s well worth the cost as it allows a client to invest earlier than allowing the time to have the default listing expire.

Using equity in a current home is how the majority of investors accumulate their properties. However, there is a right way and a wrong way. If you are using your bank, they will almost always want to cross collateralize both properties, thereby placing your personal property at risk. It’s why I always use a reputable finance broker experienced in investment property to arrange my finance.

Let’s go back to your strategy and overall investment Plan.                                                  Does the new investment fit within your plan and strategy. Do the numbers work for you and who is actually paying for the mortgage. Have you or someone else completed your due diligence. If the answers to the above are positive, the investment is more than likely good.

It is important to understand the property markets and how they are performing around the country. We use the expertise of reputable researchers and analysts to ensure that the information offered to you is reliable. This allows you to make informed decisions when it comes to knowing where to buy an investment property.

The answer is simple. It depends on the market and demographics of an area. It is essential to understand the market needs in an area to avoid making a costly error. A lot depends on your budget. If a house or Town House is above your budget, then an apartment will at least get you into the current market.

Buying new property has several distinct advantages: Reduced maintenance costs, Lower vacancy rates (people prefer to rent new properties), Higher tax deductions through depreciation of fixtures, fittings and the building. Remember to have a Quantity Surveyor provide you with a depreciation schedule. The odd occasion I would purchase a second hand property is where I intend to alter the use of the property or to demolish and rebuild.

It may well be possible. You would need to meet a specialist mortgage broker to “crunch your numbers” and see how much you can borrow to buy your investment properties. Your borrowing capacity is dependant on 3 strengths. The strength of your income. The strength of your capital (assets) and importantly the strength of your nerves

The first step, once you have made the decision to invest, is to know who can best assist you with the process. You will need a mortgage broker who can advise you on various finance options as well as an accountant who can advise you on the best structure for your circumstance. You will also need an investment property adviser who is also an experienced investor and can provide current information on the property markets around the country. To transact the sale, you will need a solicitor/conveyancer.

Many accountants are great with tax advice and preparing your annual tax return. Once you have bought an investment property it is very important that you have an accountant who understands your financial goals and my advice is to choose one that invests in property themselves. It would always be advisable to consult with your accountant prior to purchasing as they can assist you on deciding what is the best structure for you.

This is a crucial question as most people do not examine the property markets on a regular basis and can take advice from unreliable sources such as their next door neighbour, the local taxi driver or the weekend newspaper. People are usually well meaning but my best advice is to take your advice from an experienced property investment professional who spends all their time researching and understanding the property markets as well as investing in those markets themselves. The best locations to invest change all the time depending on many market factors so it is important to work with the professionals to get the best advice.

This is a very important point as you need to have a strategy before you make your investment purchase. If your strategy is to buy and hold onto the property for the long term to realize capital growth, then it is a matter of knowing that you can service the loan for the long term. Here’s where fixed interest rates come in handy as you know the cost of your repayment for the term of the fixed loan. The strategy to buy and flick (onsell the property quickly and make a fast gain) is popular in a hot or booming property market and much money can be made. There is no right or wrong strategy.

Buying a property off the plan can work well for the investor when the market is rising. It can also be a great strategy for the first-time investor as it gives more time to save more money before the property comes up for settlement. There can potentially be a capital gain made whilst the property is under construction.

A word of caution though, many investors have been caught out when they have bought a property at the “top” of the market and by the time the property is completed, the market has changed, leaving them with an asset that is not worth what they initially paid for it. To avoid this situation, it is crucial to work with a professional who understands the property cycles and markets.

It is crucial to get the right advice when it comes to investing in your Super fund. Always seek the advice of an accountant or financial planner who is experienced and licensed to provide you with Superannuation advice. This may be suitable for you but you will need to understand the pros and cons (after being properly advised) before making your decision.

The amount depends on how much you earn from wages and income from other sources. The amount you are able to borrow can be calculated quickly by a mortgage broker or lender.

Many people have only had dealings with a bank but there is wisdom in seeking advice from a recommended mortgage broker as their business is based on selecting for you the best available finance product to suit your needs. If you go to the bank, they only have their own product to offer you. My advice is to let the mortgage broker do all the work for you.

You certainly can use equity from your existing property to purchase more property. In fact, this is a very good way of building a property portfolio.

The good news is – you can have both! The best way to achieve this is to have a “buy and hold” strategy. Alternatively, there are dual occupancy and dual income properties being built in several areas around Australia. These properties offer positive cash flow as well as capital growth but be aware that the cash flow and capital growth may not occur simultaneously. It is important to mention that your accountant needs to have input here to ensure that you are employing the most tax effective strategy for your personal circumstance.