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Top 6 investment property renovation tips

BMT team — Sun, 06 Feb 2022 21:56:27 +0000

The warmer months are upon us which has some of us thinking about giving our investment properties a facelift. Whether it’s a fresh paint job, flooring or a new bathroom, renovating your investment property can result in higher returns for years to come. Not only does a freshly renovated property attract quality tenants, it also puts more back in your pocket with ample depreciation deductions at your disposal. The essential step to any investment property renovation is taking a head over heart approach. Here are our top 6 investment property renovation tips to maximise your returns. Tip 1: Know your market and budget Tip 2: Be aware of 2017 legislation changes Tip 3: Understand the effective lives of assets Tip 4: Learn about depreciation incentives prior to renovating Tip 5: Take advantage of the longevity of capital works deductions Tip 6: Don’t forget about scrapping deductions Tip 1: Know your market and budget The golden rule to any investment property renovation is to know your market, know your budget. It’s important to remember here that you’re renovating the property directly for returns and tenant appeal, not your personal preference. It goes without saying, but you don’t want to spend outside your budget as this can have detrimental impacts to your cash flow. At the same time, you want to ensure the property renovation is suited to your market. For example, if your target market is professional singles or couples, you may not want to reduce the size of living areas for an extra bedroom. Meanwhile, removing a bath tub won’t be the right choice if your market is families with children. Tip 2: Be aware of 2017 legislation changes When it comes to claiming the most depreciation possible following an investment property renovation, 2017 legislation changes are important to be aware of. Under the changes, ‘previously-used’ plant and equipment assets can’t be depreciated. Plant and equipment assets are mechanical or easily removable in nature. Some key examples include floor coverings, hot waters systems, air conditioning units and light fixtures and fittings. The key factor to be aware of when it comes to linking the legislation changes with your renovation is the ‘previously-used’ provision. This means that any second-hand plant and equipment assets you install during the renovation can’t be depreciated. It may seem easier to stay at the property while the renovation is taking place so you’re close to the action but doing so can have harmful impacts to your future depreciation deductions. The previously-used provisions also apply to brand-new assets you installed during the renovation if you lived in the property at the same time, even for a short period. For this reason, it’s always recommended to never stay at your investment property during a renovation. Tip 3: Understand the effective lives of assets Every type of plant and equipment asset has its own effective life. This determines how much in depreciation deductions you can claim in each year. A key example of how important the effective lives of assets can be when renovating is in flooring. As one of the most renovated assets, depreciation deductions can vary greatly depending on flooring type. Carpet has an effective life of eight years, while floating timber flooring has an effective life of fifteen years. This means you will be able to claim more from carpet in earlier years as it depreciates sooner, while floating timber would result in a steadier flow of deductions over the long-term. Meanwhile, tiles are considered to be part of the building and therefore claimed over forty years at a low rate of 2.5 per cent. For example, $2,000 worth of carpet would be a first full year claim of $500. The same amount of floating timber would be a first full year claim of $266 and tiles would be $50. Tip 4: Learn about depreciation incentives prior to renovating There are several depreciation incentives available that can boost your cash further and sooner following a renovation. Being aware of these can help you choose assets that will compliment your returns. The first is the immediate deduction. This incentive allows you to immediately deduct any new, eligible plant and equipment asset that costs $300 or less. There is no limit to the number of assets that can be deducted, as long as they meet the given eligibility requirements. We have seen this humble deduction boost cash flow by thousands in just one year. The second incentive is the low-value pool. Plant and equipment assets that cost or are valued at $1,000 or less can be placed in the pool. Once an eligible asset is placed in the low-value pool, depreciation deductions are fast-tracked. In the year of purchase, depreciation is calculated at an increased rate of 18.75 per cent. During following years, the rate is heightened further to 37.5 per cent. Tip 5: Take advantage of the longevity of capital works deductions We have provided several tips on making the most out of plant and equipment assets following a renovation, but it’s just as important to exploit capital works following a renovation. Capital works is the structural component of the investment property. If you build a wall, tile the bathroom or install new kitchen benchtops you are doing a capital improvement. These can be deducted with capital works deductions for a forty-year period. On average, we find capital works make up 85 to 90 per cent of total depreciation claims! So its important to ensure you factor in any capital improvement you may be weighing up during your renovation. Tip 6: Don’t forget about scrapping deductions The new assets aren’t the only ones you can benefit from following your investment property renovation. The qualifying assets you removed in the process can also boost your cash flow. A process called scrapping allows you to claim the un-deducted depreciable amount from removed assets. ‘Scrapped’ deductions can be claimed on plant and equipment, in addition to structural assets . While it seems straight forward, we […]

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The pros and cons of allowing pets in rental properties

BMT team — Sun, 16 Jan 2022 21:38:41 +0000

As a landlord, one of the many considerations to make when looking for suitable tenants is whether to allow pets. About two-thirds of Australians own a pet, and while most states don’t have laws restricting tenants’ rights to own pets, many landlords include a clause in their leases that prohibit pets, which is within their legal rights to do. A major reason for landlords to include these clauses, is the perception that pets can devalue a home through damage to the property such as chewed up carpets, unpleasant odours and stains and moulting of fur. However, not all pet owners can be deemed irresponsible. Typically, pet owners will pay higher rents for the premium of having a pet friendly home, so will it work in your favour to consider adding ‘pet friendly’ to the lease? To help you decide, here are some pros and cons to consider before deciding if your property will be pet friendly or not: Pros of a pet friendly property You may be able to charge higher rent and thus achieve higher rental yields You will get a higher response from advertising if you mention that pets are allowed Due to this increased interest, your property may rent quicker and avoid vacancy periods where you are not earning rental income Pet owners generally stay longer as there is a limited number of pet friendly rentals available If tenants are mature enough to take good care of an animal, there is a good chance they will treat your property with the same respect If you are worried about pets damaging your investment property, you could ask for a refundable pet damage deposit Cons of a pet friendly property Individual pet owners might not be very good at cleaning up after their animals Pets can scratch floors, chew carpets and stain floor coverings, possibly leaving unpleasant odours Dogs barking, birds squawking and cats wandering can become a nuisance to neighbours through noise and damage There is increased liability to the Landlord if the pet bites or attacks others Making the decision whether to allow your property to be pet friendly or not should be taken into careful consideration to ensure that it feels right for you and your investment property. Check your insurance coverage and liability for animals If you decide to have a pet-friendly property, you should check your insurance policy to find out what type of coverage you have. Make sure you know the amount of liability coverage your policy includes. Enquire with your insurance company if there are any exclusions to your coverage, such as if they have a list of ‘dangerous’ dog breeds which will not be covered under the policy. Include your pet policy in your lease You should include a ‘pet clause’ in your lease and require each new tenant to sign it. This policy should clearly state your pet policy (whether or not you allow animals) and your expectations of the pet owner. Make it clear that by signing the lease, the tenant agrees to these terms and if they violate these terms, it will be considered a breach of contract. What is a pet resume? The introduction of pet resumes can make it easier for tenants to secure an animal-friendly rental property and helps Landlords protect their investment properties. Pet resumes are designed so animals can make a good impression. It also gives tenants a competitive advantage, proving they’re serious about the rental application and finding the perfect pet-friendly rental. Allowing pets in rentals could provide great advantages to Landlords. Don’t just write off pet owners in fear that your hard-earned investment is going to be destroyed. With most Australian households owning pets and with pet-friendly rentals in such short supply, the right changes to a lease agreement can open up the pool of potential tenants significantly.

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What beginners need to consider when commercial property investing

BMT team — Tue, 11 May 2021 23:46:11 +0000

Whether you’re a seasoned investor or just getting started, it’s important not to rule out commercial properties. While the price tags and unknowns of this varied sector can be overwhelming, doing it right can mean thousands in your pocket in a short time. In this article, we will cover: What is commercial property investing and why you should get involved Key considerations for beginners The mistakes we see too often What is commercial property investing and why get involved? Commercial property investing is the activity of purchasing property, such as stores, offices, warehouses and hospitality venues to rent to commercial tenants. There are several drawcards to commercial property investing that attract beginners to the sector. The first and most important is the potential of a strong, reliable cash flow provided by long-term tenants. Commercial properties are often leased for years, not just months like their residential counterparts. Risk mitigation through portfolio diversification is another element that attracts investors to the commercial sector. Unlike residential property investors, commercial investors have the option of multiple industries and property types. Key considerations for beginners If the thought of commercial property investing has you sold, then there are several key considerations to make before taking the leap. Do the research There are multiple facets to investigate when performing your due diligence and deciding on any commercial investment you make. These can be broken down into two areas: situational and industry-specific. Situational elements include the location features, nearby developments, local supply and demand, demographic factors like population and employment rates. Then there are the industry-specific factors. These are those that are unique to the commercial property type you are looking to invest in. For example, if you’re looking to invest in an office building you will need to look at the competition in the area, office vacancy rates, the demand for office space and historical office trends in the area. Upfront capital and financing options Commercial investing isn’t cheap and you need to hold the upfront capital to get involved. It’s likely you will need ample financing options, so it’s always recommended to meet with a financial expert before getting started on your commercial investing journey. Commercial property financing options can be very different to the residential equivalent. Banks usually see commercial as a higher risk compared to residential and will need a larger deposit and a higher loan to value ratio. Consider ownership structure Are you wanting to invest alone or in a partnership? This is largely dependent on your situation. Each option has its pros and cons but the decision should be underpinned by three main things – your financial situation, investment goals and your partnership options if that’s on your agenda. Three beginner mistakes we see too often Investing mistakes are inevitable, but here are the ones we see often at the start of any investing journey. Influence by unreliable sources Getting sucked into media hype can be the downfall of investors cutting their teeth in the property market. This is especially relevant in commercial investing where industries are subject to different macroeconomic factors. To avoid this mistake, ensure you’re getting your information from reputable sources. Look past the newspapers and use research from reputable organisations like the ABS and CoreLogic that specialist in property research and statistics. Failing to invest in an expert team The team you surround yourself with will help you make your commercial investment as successful as it can be. Key players in your team include your property manager, accountant and a financial expert such as a mortgage broker. Partnering with a buyer’s agent when purchasing your commercial property will also help you identify if the property is worth the price tag. Not claiming all deductions available A major mistake many beginners make is not understanding the tax deductions available to them. These deductions can make a huge difference to the property investor’s bottom line, giving them thousands back in their pockets. Just some expenses that a commercial investor could claim include interest repayments, repairs and maintenance costs, insurances and property management fees. It’s important to remember the hidden deductions to be claimed, including property depreciation. This is the natural wear and tear of a property and its assets over time. Depreciation is often overlooked as no money needs to be spent to claim it. As a commercial owner, you will be able to claim depreciation on the property’s structure, fixed fixtures and assets you own. BMT Tax Depreciation can provide an obligation-free quote for a depreciation schedule for any property you are looking to buy. To find out more, contact the team today.

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8 tips for buying your first home

BMT team — Tue, 05 Mar 2019 05:05:18 +0000

If you’re a first-time home buyer, you might have questions about the process and how to secure a loan. To help you get your foot onto the property ladder, here are eight tips for buying your first home. Are you eligible for a home loan? The first step towards home ownership involves a little self-examination. You will need to assess your finances and determine how much you can afford to repay. PropCalc is the essential property cash flow calculator to assist anyone looking to buy property. Available to use online or download as an app, PropCalc helps you: Discover your maximum borrowing power using PropCalc’s home loan calculator. The calculator will show you your borrowing capacity and future loan repayments Estimate a property’s cost on a weekly, monthly or yearly basis View key suburb data and compare multiple properties at a glance and evaluate which property best meets your needs Don’t over-extend Buying your first home should be an exciting experience, not one that leaves you racked with doubts and panic. Some first home buyers find themselves in uncomfortable situations because they didn’t create a realistic budget for their needs. The best way to avoid overextending is to have an honest understanding of your current incomings and outgoings. If you know exactly where all your money goes each month, before you buy, you’ll be much better able to plan an affordable repayment strategy. Understanding your home loan options The home loan market is complex and competitive. It’s important to compare as many loans as possible to make sure you’re getting the right rate and features. You also need to know what types of home loans are available – variable, fixed rate loans, interest-only and investment loans, there are many different types of mortgages. Clear your debts If you have debt you might find it harder to get a home loan approved or you may not be able to borrow quite as much. Focus on paying off any large debts before you apply for a home loan, especially high-interest debts. Consider combining several debts into one if you can. Note: some debts, such as a university HECS debt, are far less troubling than a credit card debt. A healthy deposit can make all the difference In theory, the bigger your deposit the more you can borrow and you can apply for loans with lower interest rates. While it’s possible to take out a loan with a 5 or 10 per cent deposit, you will likely have to pay lenders mortgage insurance if you have less than a 20 per cent deposit. Make sure you know what you’re entitled to in terms of first home owner grants, as these can boost your deposit significantly. You should also find out if the First Home Super Saver Scheme (FHSS) can help you save for a home. The FHSS was introduced by the Australian Government in the Federal Budget 2017–18 to reduce pressure on housing affordability. First home buyers can save for a deposit by making voluntary contributions to their super fund. Be one step ahead of the game Having all your paperwork and deposit together, plus pre-approval puts you in a much better position to snap up your dream home when you find it. Additional costs to consider: Home loan costs – loan application fee Stamp duty Valuation fee Legal fees – title search and inspection reports Registration and transfer fees Pest and building inspections Removalist costs Post purchase – council rates, utilities and insurances Plan your first home buying strategy Would you prefer to move into an established home or build your first home? An existing property has the advantage of being located in an area where schools, shops and transport are already close by. However, building a first home allows you to put your own stamp on things. Get expert help from the professionals There are many industry professionals who can help and support you with every step of the home buying process. Your team should include: A licensed Real Estate Agent or Buyers Agent to help you find your dream home A Mortgage Broker to help you navigate the loan market A Licensed Conveyancer or Solicitor to do the legal legwork for you A trusted Building Inspector to provide you with an honest evaluation of the physical condition of your future home Surround yourself with a good team of people you trust and everything about the process will become easier. Best of all, this network can help you with your next property move – whether it’s buying an investment property, renting the home you’ve just purchased or just undertaking renovations.

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Property investment tips for success in 2019

BMT team — Thu, 31 Jan 2019 00:50:04 +0000

As we welcome 2019, now is the perfect time to put an investment plan in place for the year ahead. Set yourself some clear goals that you would like to achieve by the year’s end and plan your strategy of how to get there. Here are our top tips for achieving property investment success in 2019. For more great tips and a recap of the year from our CEO Bradley Beer, watch the video below. Improve your cash flow by claiming depreciation Depreciation significantly improves an investor’s cash flow and makes holding an investment property much more affordable. Although depreciation legislation changed, there are still thousands of dollars to be claimed by savvy investors. We found our clients an average of $8,893 in first-year depreciation deductions in the 2017-18 financial year. For clients with property directly affected by the legislation changes, we still found an average of $5,033 in deductions in the first full financial year. For more information on the legislation changes, speak to the experts at BMT Tax Depreciation on 1300 728 726 or read BMT’s budget whitepaper. Look for investment opportunities Tighter lending standards and government-driven measures restricting property investors have contributed to slowing demand for property in certain markets. Regardless, 2018 saw some property markets performing very well. In a market with reduced property demand, if you’re well-prepared and ready to buy, you can find bargains as they come up. It’s more important than ever to keep your finger on the property pulse and be ready to strike when you see the opportunity. Continue to educate yourself Take time to research the market thoroughly before making an investment decision. Look for areas with diverse economic drivers, a good history of performance and solid employment opportunities in a variety of industries. There are many resources available, like MyBMT’s new research and insights tool which can help you with property research, and improve your investment knowledge. MyBMT’s PropCalc will also help you crunch the numbers and calculate the real after-tax holding cost for any property in Australia. Network with property professionals Surround yourself with other property investors to share stories and knowledge and build a solid investment team made up of trusted professionals. Ensure you have a specialist Quantity Surveyor on your team to make the most of your investment property by maximising deductions. Contact BMT Tax Depreciation for all your tax depreciation needs.

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9 experts you should have on your investment team

BMT team — Wed, 29 Nov 2017 00:22:08 +0000

While property investing is one of Australia’s favourite past times, it doesn’t mean it’s always an easy ride. There are ups and down and certainly rewards to reap, but you do have to put in some ground work and planning to become a successful investor. While this can seem overwhelming at times – especially for first time investors – the good news is that you don’t have to go it alone. There are professionals whose very job it is to help you on your way. In fact, it is recommended you have a property investment team of sorts – each player with a different role to help you towards investing success. As the team captain, you get to pick the players. Here are the experts you should include on your team: 1. Accountant and/or Financial Advisor A common goal of property investing is financial reward. But you need to use your money wisely. An Accountant will help you manage your money and advise of any tax changes you should know about, as well as help you claim everything you’re entitled to. A Financial Advisor is slightly different and looks at your financial situation more holistically. They can help you determine your financial goals and set a realistic plan to achieve them. Ideally, your Accountant and Financial Advisor may be one in the same, but both of these services are incredibly useful. 2. Real Estate Agent or Buyer’s Agent When you’re searching for your first or next investment property, it’s good to have a Real Estate Agent or Buyer’s Agent you can trust. Their commission should be transparent, they should have a thorough knowledge of the local market, have a deep understanding of your requirements and be proactive in helping you find your ideal investment. 3. Property Manager While some investors may be tempted to self-manage their property, there are a lot of risks involved in this approach if you don’t have the knowledge or time to manage this effectively. A good Property Manager will help you secure quality tenants, be on top of any damage, will save you time, tell you of any requirements and will help take some of the emotion away from the process. As their fees are tax deductible this shouldn’t be looked at as an unnecessary expense. 4. Mortgage Broker In the past year, Mortgage Brokers have been gaining market share in Australia. The 2017 Property Investment Professionals of Australia (PIPA) investor confidence survey revealed that 83 per cent of respondents are hoping to finance their next loan via a Mortgage Broker, up from 71 per cent last year. If you’re looking to purchase a new investment property, it may be worth speaking with a mortgage broker to help you find the best product to suit your situation and your finances. 5. Conveyancer There’s a lot of complicated paperwork involved in purchasing a property including the contract of sale, mortgage documents and other paperwork related to the transaction. It’s best to enlist the help of a qualified and reputable Conveyancer to do this legal legwork for you. They’ll help decipher any complicated terms and conditions and translate the legal jargon. While you’re not legally obliged to hire a conveyancer, it should help you reach settlement sooner and with a lot less stress. 6. Quantity Surveyor Ensure you get a Quantity Surveyor that specialises in property depreciation to prepare your tax depreciation schedule. A specialist Quantity Surveyor is worth having on your team as they will ensure you’re claiming everything you are legally entitled to. A specialist will also keep on top of any tax changes so you don’t get on the wrong side of the Australian Taxation Office (ATO). The ATO recognises Quantity Surveyors as one of only a few professions which possess the required construction costing skills to calculate the cost of items for the purposes of depreciation. 7. Building Inspector It’s essential that you get a building and pest inspection carried out before you buy a property. The last thing you want is to buy a property only to later find it’s actually riddled with termites or structurally unsound. A trusty Building Inspector will help you determine if you have a quality property on your hands and can save you from forking out thousands on surprise repairs and maintenance after the time of purchase. 8. A mentor It’s great to have someone who is an experienced investor who you can turn to for advice and learn from their real life experiences. Investing in property has its ups and downs so it’s nice to have an investor friend on your side to help, even if it’s just to chat about your situation and investing plans. 9. Yourself While you don’t need to be an expert to invest in property, it’s important to arm yourself with some basic knowledge of the market to keep on track of how your investment is performing. It will also give you more confidence when dealing with other professionals to ensure you’re not being taken for a ride. There are many resources out there you could use to improve your investing knowledge from books, blogs, magazines and online resources to information nights and investing courses. To help you manage your investment team and ensure the right people have access to your schedules, register for MyBMT today. The team at BMT Tax Depreciation are here to help with any questions you may have. You can contact one of our depreciation experts on 1300 728 726.

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Nine tips and nine traps of property investing

Chan Naylor Team — Mon, 18 May 2015 07:42:51 +0000

Wealth creation has become a primary target for most people and many are finding property investment an effective way to hit this target. In Sydney and all throughout Australia there are said to be more than 1.7 million property investors, and a quarter of these have investments in more than one property, according to the Australia Taxation Office. While property investing can be rewarding, you can’t fully reap these rewards if you don’t know what you’re doing. This is why each investor needs to be fully aware of what needs to be done to ensure property and financial growth. Here are a nine tips you should keep in mind to get you started. 1. Plan – start with the end game in mind Map out and write down your goals and vision for what you want to achieve (this could be financial or lifestyle goals) and how the next property will help you reach them. It’s important to know the purpose of your next investment and to regularly remind yourself of the end game. For some, it could be they are looking to build up their portfolio to create a passive income stream to fund retirement one day. For others, it could be that they want to create a ‘business’ of buy, renovate and sell to release them from their ‘day job’ or it could be to create an instant cash flow stream to improve their family lifestyle with a holiday home. There are a myriad of reasons why someone would want to invest in property and for each reason there should be a carefully planned strategy on what steps you need to take to fund the investment, maintain it, improve it, or sell it at various stages in line with the original intent of purchase. For example, if you know from the outset your investment will be for a buy, renovate and sell strategy, then decision making factors like property type, location, budget, loan type and return on investment expectations will look entirely different to someone looking to purchase a family holiday home. Knowing what you want from the start with careful consideration of what the purpose of your investment will be makes the next steps a little easier. This approach will also keep you focused on your long term vision and help you have a balanced perspective when you experience ‘speed bumps or ‘pot holes’ along the road. 2. Determine your property investment budget with the help of your Accountant This is one of the most important factors that you need to consider before you choose a property to invest in. Set a clear budget for the investment and make sure to include not only the purchasing price but also additional costs you will incur such as stamp duty and legal costs. Most importantly, you also need to factor in maintenance costs, including initial renovation (if needed) and ongoing repairs. Involve your Accountant along this journey and get them to review your figures to make sure it all adds up. The golden rule is measure twice, cut once. 3. Seek tax planning and investment structure advice from a specialised property Accountant Knowing why you buy is as important as knowing what to buy. But knowing how to buy is the most crucial of all. People often ask us the perennial question, ‘What name do I put on a contract?’ Sadly this occurs the Monday after the auction. Most investors tend to purchase investment properties in their personal name. There are many tax implications as well as asset protection issues and estate planning limitations which you should discuss with your Accountant first before you think about investing. This is why having a plan in place will help to give some clarity as to what you want to achieve. A good Accountant who understands property will be able to guide you through the process and help set up the necessary investment structures if appropriate for your situation. 4. Set up your ownership structure(s) It will add to the overall cost of the investment, but if set up correctly will literally save you thousands in tax savings and give you the required flexibility for your investment plan. 5. Speak to a Mortgage Broker about getting the right loan for your investment plan and ownership structure Good Mortgage Brokers will give you unbiased advice on a range of loans from a variety of lenders. Armed with your investment plan and budget in mind, seek advice on current interest rates and property market conditions to determine if principal and interest or interest only loans are suitable and whether you should be on a fixed or a variable rate at various stages over the life of the loan. Always get pre-approval before making any investment decisions. 6. Do extensive research to find viable markets and the best locations With your investment plan, ownership structure and finance ready to go, it’s time to go shopping. But before you do, first do your homework. Researching to find the best location and market to invest in is very important. If you’ve hired a Buyer’s Agent to help you, don’t just rely on their advice – do independent research as well. Find and download suburb and property reports and use research tools like realestate.com.au or realestateinvestar.com.au to help find the right property. One essential factor to look for in considering the location is its property growth cycle. Australia’s property cycle as a whole is on a mature stage as major cities have been experiencing a steady rise since 2012, when it bottomed. However, looking at the individual markets you’ll find that these are fragmented with each city offering a different set of highs and lows. It is important to take a closer look at each of these markets to determine where best to invest in. Learn more: Chan and Naylor’s Wealth for life and asset protection 7. Invest in capital growth Knowing the market conditions and property cycle, even if the property is negatively geared in the short term (i.e. […]

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Preparation tips for investment property profits

Mortgage Choice — Fri, 13 Jun 2014 06:41:07 +0000

Whether you’re new to property investment or you’ve been involved in this lucrative asset-building option for years, researching the latest tips about getting the most for your money can help you maximize your investment returns. Prepare for investment property ownership The Australian market is full of potential and property investing is popular right now. However, the fact that there is money to be made doesn’t mean that you’re necessarily ready to invest. Careful consideration must first be conducted to ensure you’re in a stable financial position now and into the future. Get your personal finances under control before you put money into an investment property. Paying down your debts is a must. You’re likely to be paying more in interest on your debts than you would be earning on an investment, so it just makes financial sense to get that taken care of first. Paying down debt also improves your credit score, and you’ll need to have a good score to borrow money for investing. The higher your credit score, the lower the interest rate will be on your loan. You’ll end up with a higher rate of return. Consider interest-only borrowing There are advantages to opting for interest-only loans when you’re investing in real estate. You’ll be able to borrow more, so you could invest in multiple properties. Most lenders allow you to pay down the principal as you please, so opting for interest-only loans doesn’t lock you into a high principal that never gets paid down. Increase property value The market dictates how much you can make on your investment to a point. You retain some control, so you have to be proactive about making your property worth more. Renovations offer the perfect opportunity to increase the value of a property. If you don’t have a lot of money left over to invest in renovations, consider keeping it simple. Even improving the outdoor area or a fresh coat of paint will boost property value. Get expert advice for the right investment from http://www.mortgagechoice.com.au/ This article was supplied courtesy of Mortgage Choice.

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Top property investor tips

BMT team — Tue, 19 Feb 2013 00:48:10 +0000

Property investing success requires groundwork before purchasing your first investment property. Here are some top tips to help you become a savvy property investor: 1. Plan to succeed Consider the following: What do you want to buy? Where do you want to buy it? What are your property investing goals? 2. Are you in it for the short-term or long-term? Defining whether you are after long-term benefits or a short-term cash flow can help decide where you invest and the type of property you buy. 3. Follow the lead of seasoned investors You need the strength to ride out the ebbs and flows of the property market. 4. Ignore the quest for perfection The right time to buy an investment property is when you’re prepared and ready. 5. Order a tax depreciation schedule To ensure that you claim your maximum cash return on your investment property, organise a tax depreciation schedule soon after settlement. Learn more: Top tips for property investment success in 2016 Do you have any tips to add?

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