Buying an investment property
At ISAR we provide clients in Brisbane, Canberra, Melbourne and Sydney a hassle free system of buying investment properties. We firmly believe that a systematic approach, following proven criteria will result in superior results including above market returns on investment. We tailor a solution to each client based on an analysis of their individual circumstances and goals. We then match clients to well researched and analysed property segments down to the individual property.
Why should you invest in property?
Property investment has been and will continue to be used by savvy Australians as a proven effective strategy to create wealth.
Population growth has created high demand for quality, well located property. This has been observed across Australia’s major capital cities with property prices and rents increasing over time. However, not all properties perform equally and while some properties have rapid capital gains and rental prices others have remained flat or decreased in value and rental price. As an investor your goal should be to outperform and achieve superior results compared to the general market.
Why Invest in Property?
Investing is a choice many people make at one point or another, in the hope of bringing wealth to their lives. Whilst there are many investment alternatives such as stocks, bonds and cash, property investment tends to be viewed as one of the safest and easiest options.
However, property investment isn’t for everyone. Thus if you are considering investing in property, it is important to weigh up the pros and cons.
Pros and Cons of Investing in Property
- Capital Growth: When you purchase the quality, well located property, the value of your property will increase over time. A quality, well located property will not only increases in value but also provide rental income that also increases over time.
- Anyone can invest in property: With ISAR’s property investment advisory service, you can invest in property without needing to be an expert. The time and effort that will be required by you is minimal as our team of property professionals will take care of it.
- Low risk investment: Every investment contains risk. However, unlike shares/stocks property is a relatively stable market, this is partly due to the large number of home owners that purchase real estate for lifestyle purposes rather than investment.
- Risks can be mitigated: Building and landlord insurance is available that will mitigate many risks to your property including flood / fire / damage / issues with bad tenants.
- You have control: Unlike many other investments, you have control over your property (within all relevant regulations).
- Taxation benefits: Tax benefits are not a good reason for investing in property. However, tax benefits can assist if your property is negatively geared.
- Liquidity: The process of selling real estate is not as quick and may be more costly than it is to sell other investments such as shares. For this reason it is important to choose wisely and invest for the longer term.
- Upfront and ongoing costs: Purchasing property incurs both upfront transaction costs (i.e. stamp duty, deposit, legal and conveyance fees) and ongoing costs i.e. mortgage payments, maintenance and repairs, building and landlord insurance, land tax, water rates, council rates, etc.
- Potential for vacancy: Your property may be vacant between tenants but you will still need to cover all of the costs (see above) during these periods.
- Bad tenants: No landlord wants to have bad tenants. Bad tenants can damage your property, be late in paying rent or not pay rent at all and even refuse to leave. Some disputes can take months to resolve and become very stressful, especially if there is an emotional attachment to the property.
- Other costs: You may be able to offset come of the cost of a negative geared investment property through tax deductions. However, this will not account for all of the shortfall. You need to be able to afford to cover all of the costs of maintaining the property.
- Note: this is not financial advice. Seek advice for your circumstance from a professional.
From initial consultation to monitoring and management. We make buying an investment property in Sydney, Melbourne or Brisbane and easy task. Are you ready to buy an investment property?