Property Investment

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Benefits of Investing in Real Estate

Entrepreneurship is the one and only path through which individuals can realize their financial dreams and one of the easiest and most effective mode of investing comes in the form of real estate. Real estate is a perfect avenue to make substantial financial gains over a long period of time while keeping the costs and liabilities low. Below we discuss some of the reasons that make real estate a perfect investment option for budding entrepreneurs.

Stable Cash Flows

The most attractive feature in real estate is the stable and regular cash flows. Most businesses make millions in profit, but struggle to maintain a healthy cash flow required to meet their financial obligations and continue investing towards their long-term financial plan.

Cash flows from real estate are far more stable and predictable as compared to other businesses in America. This is an amazing advantage to have when an entrepreneur is in the initial stages of his investment. Having an extra sum in your hand can be great for ups and downs in an individual’s life.

 

The Loan Payment

Most individuals hesitate to start their own business due to the high risk of losses or lack of strong financial backing. But in real estate, it is extremely easy to take loans from the bank. These loans would be essentially paid by the tenant and the investor would continue enjoying the increase in the net worth of the asset over time.

Today an investor might owe $200,000 on a property, but next year as the tenant continues to make the payment towards the loan he may only owe $195,000, which means that he gets $5000 wealthier without doing anything. When the loan is completely paid off on the property he would have a substantial asset in his hand that he can sell or continue renting out for a regular cash flow.

Tax Benefits

If a business earns $100,000 during a year and a real estate business also earns $100,000 during a year then the real estate business would be able to keep more of its money. There can be different kinds of perks and tax benefits that ensure that the real estate investors get higher savings on their earnings.

Inflation and Capital Appreciation

There is an established economic principle that the value of money declines over time and commodities become more expensive while for other kinds of businesses this means lesser profits or higher costs, but for a real estate investor the prices of the properties increase in line with other commodities but their liabilities on mortgage payments remain fixed. This amazing feature ensures that the investor earns rent at the market rate that would keep increasing over time while his liabilities remain fixed at a certain amount.

The decline in the value of money would also inflate the price of the property that means the investor would be getting dual benefits out of his money in the form of capital appreciation while having to pay off fixed amount of mortgage payments.

For more information and advice on investing in real estate, please contact our team at Anne Street Partners or call 135 444 today!

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There are many ways that you can plan your finances efficiently and effectively in 2014. With the advancement of technology there are new and easy ways to plan your budgets and money that save time and energy – great for busy families and businesses alike.

Our team at Anne Street Partners have put together some useful advice to help you plan your finances and budgets this year:

1) Use apps and tools : We love financial planning apps – you can track your expenditure, budgets and finances easily. They allow you to monitor your spending carefully and analyze your overall finances. Here are our favourite budgeting apps of 2014.

2) Keep track of spending daily. Regular monitoring of your budget allows you to stay on track and project an accurate financial picture.

3) Set goals. It is important to set realistic goals for the year and work towards them. Whether it be a new house or desired investment, planning and goal setting can really help map out those ideas.

4) Control credit card usage. They can be very useful, but if not monitored they can do more harm than good. Switch to zero balance credit cards where possible and make the most out of any benefits such as free air miles or insurance.

Anne Street Partners financial planning

Keep on track of your finances and budgets

5) Research new investment opportunities. There are a wealth of different short and long term investments available ranging from direct property investment to stock options. They can be more financial viable than saving money in a bank.

6) Speak to a financial planner. They can help you work out a realistic budget, work with you to attain your current & future goals, as well as help choose the right investments to suit you.

Anne Street Partners are Australia’s leading financial planning company. They help both individuals and businesses plan their finances and secure their financial future. Speak to one of their friendly team and find out more today!

 

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Choosing a property wisely can pay dividends in the long run – providing a trouble free, low maintenance second income. However, there are many factors which you should always consider to avoid your investment becoming an expensive mistake. When you look to make such a significant purchase, consider the following factors:

THE LOCATION

Getting the right location is one of the most important factors to consider with any property. A key location, in demand often drives increased equity values in the property through capital gain. Furthermore a key location can also help to attract better quality tenants too, who are generally willing to pay a little more to live in a secure, well connected area.

Ideally, it’s worth considering a property that’s as near to good transportation links, amenities and schools as you can afford. It’ll also help with resale values in the long run.

Don’t forget to think about the pro’s and cons of different location factors – such as being near a busy international airport. It might be ideal for business owners, but not so ideal for families with children. Thinking about who your target market actually is will help you settle on the right area for your market.

Don’t forget that public facilities available nearby, such as hospitals, medical centres, libraries and even post offices are great features to help ensure your property remains easy to market. Close proximity to green spaces such as parks shouldn’t be overlooked at excellent points to consider (especially for people who are fitness conscious) when you come to put your property on the rental market.

THE PROPERTY ITSELF

Getting the right property to fit the right tenant profile is a key consideration. Before you dive into to buy, look at the area and understand a little of its demographics – who actually lives in the area. This is more important that it might initially seem. An example of it is an area that has a strong older demographic, it is more than likely that someone from outside that demographic won’t consider renting your property. If you were aiming to rent in this area, then a property that has long winding staircases probably won’t suit!

Ensure you look at the property for any potential renovations or improvements that might need to be done. It’s always worth getting a professional to check the building for things like rot, termites, leaks, electrical faults, heating issues. Get some advice on how  much these repairs might cost before signing on the dotted line.

A good property is going to be one that has minimal maintenance issues. You might have to do some work yourself, but to increase your returns you want to keep costs down. If the place has recently been rewired or had new appliances fitted – then that would be a big bonus. Also, consider the potential Body Corporate fees you may incur from an apartment. You don’t want your first investment property to be a major renovation project.

THE MARKET

Looking at the market will help you decide what makes a good investment property. If you really wanted a good idea, you could even attend a viewing as a tenant to see how those properties are presented. This will give you a much better idea of what makes an attractive rental property.

We at Anne Street Partners can help you avoid making potentially expensive mistakes in any of these areas – talk to us about how to get your foot onto the property ladder.

 

 

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PROPERTY CAN BE ONE OF THE BEST FORMS OF INVESTMENT

Property can be a lucrative, and in this current economic climate, it is probably one of the best forms of investment.

It is something that can give a good return over time. Buying a property to put on the rental market can give you a healthy second income as well as future investment should you choose to sell the property later.

There are of course many variables and factors to consider, which can be very confusing. But getting these factors right is the key to creating a successful investment.

THINK ABOUT WHAT YOU CAN AFFORD

One of the first things to consider is whether you want to buy a house or an apartment as the prices can vary, you need to remember what you can afford. Do your research and look around the local area where you are thinking of buying property.

DO YOUR RESEARCH

It is always a good idea to try and buy in sought after locations, as it will make your property more desirable and there will be an increase in value – however it can be more expensive from the outset. Location can also have a big affect on your rental income.

Also, remember in attracting tenants, your property needs to be attractive. It’s worth confirming that there are good transport links nearby. This is especially true of new developments outside of the main cities. You might get a larger, more modern property, but the connections could be limited – hindering the ability of the tenant getting to their workplace. Having other amenities and schools nearby is also a definite bonus, as it can help you find the right tenants and may again help you to attract a higher rental income.

Investment in propertyAnother excellent driver of capital growth is infrastructure spending. Infrastructure projects support jobs and population growth.

The areas that benefit from these projects generally perform extremely well as they cater well for future growth and attract more people to the area.

YOUR OWN HOME CAN ASSIST IN FINANCING YOUR INVESTMENT

One of the most popular ways people finance their first property investment is through equity on their own home. It’s a good asset to tap into, helping you to utilise the equity as a deposit. It can also help you expand further in the future, as your next property investment down the line could be financed by equity from your home and your first investment, giving you more options for finance and more capital.

Another factor to consider is depreciation. It’s worth considering a professional quantity surveyor to produce a depreciation schedule for your property to maximize the deduction that can be available to you. This can lead to some significant tax benefits.

LET THE SPECIALISTS DO THE HARD WORK

At Anne Street Partners, our team knows more than a thing or two about Property Investments. We offer a wide range of services to suit you, whether you’re considering getting on the property ladder or are already an established investor. Sometimes getting a plan underway and making it happen can seem daunting. Let our expertise guide you towards making a property investment without the hassle.

Give us a call today and find out more – we’ll tell you everything you need to know about getting your property investment started.

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It’s a big hurdle, stepping onto the property ladder for the first time.It may even seem at first to be a mission impossible. But there are ways that you be make your first home ownership a reality. With some good sound financial advice and some choices you could be on the path to purchasing your first home.

1. Tracking your money

This is a big one. Actually monitoring your expenditure can help you save faster for your new home. This can actually help you record and monitor what you spend and more importantly where you can save money.

2. Look at your bank accounts

Make sure you are maximizing the saving and capital you have so that your bank account can work harder for you. Could there be a bank account that has a higher interest rate?

3. Renting a smaller place

Ask yourself, whether you could afford to rent a smaller place. Spending less on rent while you are saving for your first home, could lower your rental payments and enable you to accelerate your savings quicker.

4. Look at your bills

By simply paying your bills on time, could save you money on charges and other costs. By paying for them through a debit account rather than by credit card will save you even more. Consider a direct method that doesn’t attract an admin fee.

5. Grants

Are there any grants or other schemes to help home owners? There maybe some schemes in your local area that might help you.

6. Loans

Look at loans, make sure that you are getting the best deal. Simply by getting your interest rate down even a fraction could equate to much lower monthly repayment.

7. Taxes

Ask yourself is there any way you could make the tax system work to your advantage. Could you claim some taxes back or pay a lower rate?

8. Budgeting

By planning your finances better, you could be saving a lot of money in the long run. Perhaps you could set yourself a monthly budget, and then stick to it.

9. Saver Accounts

There are many savings schemes out there that can be your savings work harder. With a variety of savings and investment products you could find a way to boost your savings a little more.

10. Stamp Duty

There maybe an actual saving on stamp duty. This would actually help reduce the actual cost of home ownership.

No matter what your needs are with your new home, with a little bit of financial planning and sound financial advice you can get there. Here at Anne Street partners, we can help you every step of the way – from planning your finances to helping you find investment products to suit you.

Give our team a call today and find out more!

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