When it comes to property investment, many investors strive to strike a balance between the income and the capital growth a property generates, hoping to maximise both. However, I have written a lot about the fact that the income from a property, after expenses, probably won’t help you achieve financial independence. It’s the power of …
The average investment loan size stands at just over $600,000, which means that half of all investors borrow more than this amount to acquire an investment property. However, in my experience, most investors tend to spend less than $1.5 million on a single investment property. It’s important to note that many individuals own more than …
Changing the ownership of a property is typically cost-prohibitive. This is mainly due to the potential stamp duty and capital gains tax liabilities that can arise. Therefore, it’s vital to carefully consider the ownership structure right from the start. Once you’ve made that decision, it is likely that you will have to live with the …
There’s an endless stream of news articles discussing the economic factors that influence property prices: interest rates, unemployment, the supply of new homes, rezoning, and population growth – just to name a few. Having followed the property market closely for more than two decades, I have two observations to share. First, I’d love to have …
The main difference between property and shares lies in the depth and reliability of historical data. The share market offers extensive and dependable data, making it a valuable resource for financial decision-making. In contrast, property data often lacks the same level of reliability due to various factors, which I discuss below. Therefore, when making decisions …
When an investor first borrows to buy an investment property, almost always the rental income does not cover the associated expenses, including loan repayments. This means the investor will need to cover any shortfall out of their pocket each month. While you can claim a tax deduction for this shortfall (known as negative gearing), it …
When it comes to selling a property, there are many important factors to consider that will help you maximise your success. (1) Presentation and improvements Not presenting your property effectively is one of the biggest mistakes sellers can make. You only get one chance to make a great first impression. By presenting your property well, …
Every asset class comes with its own set of advantages and disadvantages, and property investment is no exception. In this blog, I often highlight the many benefits of investing in property and offer strategies to become a successful property investor. However, it’s equally crucial to recognise the downsides that come with property investment and think …
Experienced property investors are acutely aware of the significant increase in holding costs over the past four years. With the cash rate climbing from 0.10% to 4.35% alongside persistent inflation, it’s been a perfect storm for investors. While inflation might eventually ease, expenses such as insurance, council rates, and maintenance are unlikely to ever revert …
I received a question from a reader asking what would make a superior investment. An apartment in a blue-chip location, or a house for the same price albeit not in a blue-chip suburb. Will houses always deliver better returns? In general, houses often prove to be superior investments, mainly due to their higher land value …
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