New around here ? Start With the Basics

• Location: Definitely the main driver, the location must have strong population growth, size (over 30,000 inhabitants), and a multi-economy. A good location provides a safer investment environment
• Infrastructure: Nearby infrastructure programs always drive price growth.
• New or near new: You need depreciation to drive tax deduction and therefore cash flow. Older properties have little or no depreciation, need more maintenance and are more costly to run.
• BALANCE between yield and capital growth: Look for a gross yield of around -five per cent or higher. This thumb rule ensures holding costs are manageable and cash flow is under control.
• Median price bracket: Property should be in the middle of the suburb’s price range. This will make it easier to sell, as most transactions are around the middle level.

Set a target savings goal of a minimum of $25,000. That is your starting point to cover a 10% deposit plus all the associated fees for a lower entry level property of $350,000. While the figures below are a guide only, here’s how that could look:
Purchase price : 350,000
10% deposit : 35,000
Stamp duty* : 2,500 *this is an estimate and varies from state to state.
Solicitor’s fees : 1,500
Bank fees : 1,500
Miscellaneous fees : 1,000
Total deposit and costs : 31,500

Property is a tool to create wealth, and most want this to be as passive as possible. In this case, new properties with high depreciation and low maintenance are the way to go.
Quite a few people are attracted to the idea of buying an old rundown property and doing it up to create instant growth and sell. This strategy works if you have lots of time, money and patience, and is generally for people who are experienced in the building trade.

Yes. Using the equity from a home that you already own may mean that you won’t need a deposit to fund the purchase of your investment property. Instead, your existing home’s equity may be used.
Your equity – the difference between your home’s market value and the balance of your mortgage – is likely to have increased over the years you’ve owned your home.
Contact us to discuss how you can use equity on your current home to invest property.

A property is negatively geared when the costs of owning it – interest on the loan, bank charges, maintenance, repairs and capital depreciation – exceeds the income it produces. Simply put, your investment must make a loss before you can claim a tax benefit.
Aside from negative gearing, there are a host of other things to consider for successful property investments. If you want to find out more, talk to Success avenue consulting team.

You can also positively gear a property. This occurs when the investment income exceeds your interest expense (and other possible deductions). Note that you may be subject to additional tax on any income derived from a positively geared investment.
You should also consider any other costs involved when deciding on your investment property strategy.
If you want to find out more, talk to Success avenue consulting team.

• One-horse towns, where economic life depends on one activity.
• Older houses with no depreciation.
• Expensive features such as swimming pools and heritage-listed properties, as they create problems – especially with compliance.
• Locations near power poles, factories, and busyroads.
• Buying where only investors buy. You need a mix of owner occupiers and investors.

Definitely not, no matter what stage of life you are at, by setting goals now and planning ahead, you will prepare yourself for whatever opportunities and obstacles that may present themselves along the way.

There are six main reasons why 93% of the population do nothing about financial freedom or better future:

• Indecision
• Doubt 
• Worry
• Overcaution
• Procrastination
• Indifference

People don’t plan to fail, they fail to plan!
Most people wish for wealth, but few have a definite plan and the burning desire which pave the road to wealth.

We have absolute confidence that by joining us in the next stages of your learning and planning program, you will increase your knowledge and ability to be among the 7% of the population who plan the road to independent wealth.