Successfully growing a property portfolio is a dream of many Australians. Most, however, don’t have the experience or know-how to get it right. So tapping into expertise, knowledge and advice from your very own team of experts is critical to success.
What do I buy? Which area is best for growth? What about deprecation and capital gains tax? How do I make sure I have right finance structure?
There's a lot to consider, and the key to getting it right lies in teamwork - having your own team around you - specialists in their own fields - to get the job done.
So who do you need in your property investing team?
Understanding the fundamentals of property investing, and how you can make it work for you, is an important foundation.
Often we don't know what we don't know - so learning from specialists with experience in helping property investors can be invaluable in improving your own understanding.
There is plenty information available online - however it can be difficult to digest, and often it’s contradictory. You can also find specific property investing education services which offer courses and seminars to help you learn more about the subject - however they can come with a hefty price tag.
At Simple Home Invest, we have designed our service to help you through this process, without charging a fee, to give you the opportunity of getting the information you need to make informed decisions from the very beginning. That's why our service begins with the basics of property investing, and how it can benefit you, and includes helping you come up with a personalised plan, based on your unique goals and current circumstances.
Buying your investment property is very different to buying your own home, because they have very different jobs to do.
Your investment property is there to grow in value, provide you with a return, and help you create wealth for your future. It doesn’t involve emotional decisions (like buying your own home can) - it's a commercial decision.
If you've spent time on the real estate websites, you know it's like finding a needle in a haystack. Unfortunately, many property investors fail because they end up buying the wrong property, in the wrong location. Many fall into the trap of buying in their own backyard - simple because it's familiar. But what if, like most Australians, you don't happen to live in the right location for property investing right now?
That's why a fundamental part of our complete service is researching and investigating different property markets around Australia, and analysing specific investment opportunities in identified growth locations.
Benefitting from this sort of research helps you to narrow the search and focus on growth locations and in-demand properties.
Having the right finance structure for your investment property will save you money and protect your assets. The wrong finances, however, can create big problems for you and your property portfolio.
Finance options and structures are one of the least understood aspects of this process. It can be complicated because of the huge variety of options, and the fact that the banks are not on your side - so coming off second best is a real possibility.
Unfortunately, the biggest mistake which inexperienced property investors make is simply going along with what their own bank suggests. This seriously limits your ability to find the best deal available, and makes it hard to overcome the power imbalance between you and the bank. You can do better, in order to turn the tables in your favour.
It can be difficult to navigate the maze of information out there to compare and choose from the hundreds of different loan options. So working with a qualified and experienced finance specialist can really help you find the right option for you, and get advice about how you can most effectively structure your personal finances.
Finance specialists which may be able to help you include:
- Finance brokers to help you find the right home loan
- Accountants to help ensure you take maximum advantage of investment property tax benefits
- Insurance advisors to help you have the right coverage to protect your assets and income
- Financial planners to help you with self-managed super fund property investing, retirement planning and how property investing can fit in with your other investments
At Simple Home Invest, we understand how critical the right financial arrangements are to your property investing success. So we always ensure you have the opportunity to speak with independent finance specialists - who are experienced in property investment finance, and act in your best interest. Don’t risk walking into a bad finance structure - get the help and support you need by ensuring you have the qualified, experienced finance specialists you need on your team.
A qualified and experienced solicitor or conveyancer can help you through the legal process of taking ownership of your new investment property. They can also help to navigate through contract documents, and give you independent advice about your purchase. They are likely to know what legal issues to look out for during this process and can help to protect your interests.
Like everything in life, sometimes issues might come out of left field when you’re securing your new property. So it’s nice to have a legal expert on your team to go in to bat for you when needed.
Done the right way, your investment property can save you small fortune in tax. Depreciation can be a big contributor to this - and to take full advantage you will need to have a depreciation schedule prepared for your property.
Produced by a quantity surveyor (who requires specialised training and qualifications), your depreciation schedule will identify every opportunity for depreciation from your building and everything in it. Armed with your depreciation schedule, your accountant can help you claim the maximum deduction possible.
We always ensure you have the opportunity to have a qualified, experienced quantify surveyor on your team, because for a small fee, the tax savings they can help you achieve can be huge.
You want to have the peace of mind of knowing that your investment property is structurally sound, and, for new homes, that the craftsmanship is up to scratch.
An independent, qualified and experienced building inspector will see things which an untrained eye will not, and understands the building standards which need to be met. Your building inspector should act independently of a builder, developer or seller, providing unbiased advice and information in a comprehensive building inspection report.
We also always recommend you have such a report produced for their investment properties, and help you through the process of arranging this, reviewing the results, and having any identified issues addressed.
Keeping your property tenanted, and maximising your rent return are critical to maintaining a healthy cashflow from your investment property. For a relatively small fee (generally a percentage of the rent your tenant pays), your property manager can help in some really important ways.
Firstly, for marketing and tenanting your property. Their vetting process and access to tenant databases will ensure your prospective tenants are checked thoroughly and any less-than-ideal candidates are excluded. Their marketing platform should also help you to find a tenant faster, and they will manage the process of getting your tenant under lease and moved in, in accordance with relevant regulations.
Your property manager is also a valuable resource in reviewing your rent as time goes on, through their on-the-ground knowledge of the local market, for advice about how much you should offer your property for rent, and when it’s time to up the price.
And of course, your property manager can be invaluable in conducting regular inspections and addressing issues and requests which may arise with your tenant over time. This is especially helpful if your property is in a different town or state, and if you have a portfolio of multiple properties.
The right team around you is key to making your property investing journey a success. You are not alone, and can benefit from each specialists expertise and advice.
Our complete service is here to help you to put every part of your property investing plan into place, and ensure you have the right team working for you. We'll bring all of these specialists together, to ensure they work together, to benefit you, and help you on your way to achieving your property investing goals.