Knowledge Centre
Why Invest in Property
2020 was a year like no other in Australia and, thanks to COVID-19, Australia saw its first recession in over thirty years. But now that real estate markets have well and truly bounced back in almost every major Australian city, many of us are looking towards property predictions and asking ourselves; “what’s next”? So, is now a good time to invest in property in Australia? Keep reading to find out! 11 reasons why you should invest in Property? 1. More millionaires have been created through property than any other form of investment. Remember, there’s nothing wrong with seeing what successful people do and applying those principles to your own life. If the majority of extraordinarily wealthy people have probably used real estate, there is no reason why you shouldn’t also. 2. Anyone can do it Property investment is not just for the wealthy. It doesn’t really take large sums of money to get involved in real estate. This is because banks will lend you up to 80% against the security of residential property, which means that most Australians with a steady job and a little capital behind them can afford to buy investment properties. 3. Security It’s often said that residential real estate offers the security of ‘bricks and mortar’, but let’s take a closer look at why I believe it’s one of the safest and potentially most profitable investment markets in Australia. 4. Income that grows The rental income you receive from your investment property allows you to borrow and gain the bene!t of leverage by helping you pay the interest on your mortgage. Over the years the rental income received from property investments has increased at a rate that has outpaced inflation. 5. Consistent capital growth Good capital city residential property has an unequaled track record of producing high and consistent capital growth. Over the past 25 years, the value of the average property in all capital cities has doubled in value every eight to 10 years. However, in the short-term, the picture is much more uncertain and confused, and at times capital growth stops and even reverses, as we saw in the early 80s, the early 90s, and in some areas in the most recent slump we experienced in 2008. 6. You can buy it with someone else’s money Sure you need some of your own money – I don’t believe in nothing-down deals, but the ability to use leverage with real estate significantly increases the return on your investment capital and, importantly, it allows you to purchase a substantially larger investment than you would normally be able to. 7. You are in control Property is a great investment because you make all the decisions and have direct control over the returns from your property. 8. Tax benefits Property investors are able to take advantage of a range of tax benefits including tax deductions and depreciation allowances. 9. You can add value There are hundreds of ways you can add value to your property, which will increase your income and your property’s worth. 10. You don’t need to sell it Unlike most other investments, when real estate goes up in value you don’t need to sell in order to capitalise on that increased value. You simply go back to your bank or mortgage broker and get your lender to increase your loan. 11. Most forgiving Even if you bought the worst house at the worst possible time, chances are that it would still go up in value over the next few years. History has proven that real estate is possibly the most forgiving investment asset over time. If you are prepared to hold property over a number of years, it’s bound to rise in value. If you’re looking for a new kind of opportunity beyond shares, fixed income, and traditional property investments, Simply Wealth could help you diversify your portfolio and meet more of your goals by investing in the growing opportunities of real estate. Please contact us for clarification, or further advice, regarding any of the topics covered in this knowledge centre.
How to Build a Multi-Million Dollar Property Portfolio?
If you are looking for a company that can show you: How to invest from as little as $50 per week without using any of your own time How to legally slash your tax bill and never pay the same amount of tax ever again How to pay off your family home in as little as 7-10 years How to protect yourself from rising interest rates and losing your job How to have your rent paid in full and on time, all the time How to create an extra $30,000-$40,000 per year (tax-free) whilst not changing anything you do right now then please read on where we show you our step-by-step system of creating wealth safely and securely, never having to worry about money again. What are your Goals and Dreams? The most important thing about creating wealth or financial security is to first clearly understand WHY you want to? Is it because you want more money, more time, more life, more choices? This is the first step on a journey that will change your life for the better, therefore, it’s important that both you and Simply Wealth Group have all this information clear and upfront so that we can hit the target we are aiming for. It’s all about YOU One of the main reasons to invest is to give YOU more life. It should make life easier, give you more choices, make you feel good about yourself, and help you to sleep easily at night. The idea is to not have an impact on your current lifestyle. This is where we show you how you’ll be able to afford to have a property investment plan working for you without affecting your weekly budget. Accredited Property Investment Selection & Acquisition At Simply Wealth Group, we only offer and recommend the best available property investment opportunities that exactly meet your needs and situation. We monitor the Australian property market daily. With a variety of quality investments available all over Australia, they must first meet our stringent selection criteria of long-term capital growth, strong rental demand, location and amenities, and of course be of high quality. Tailored Property Investment financial structures and strategies We will ensure you receive the best investment funding available. Our Specialist Investment arm will structure and tailor an investment funding package that will best meet your needs. We’ll identify and recommend which loan is the right one for you, working on your behalf to finalize all the details, saving you time and money. We will explain interest rates, application fees, exit fees, refinancing, short-term and long-term flexibility, and how to cleverly leverage equity and cash flow to your advantage (85% of seasoned investors are not aware of this) Expert Property Investment Legal Advice & Services We take the headache out of owning an investment property or adding to an existing portfolio with the right legal advice. Property investing is a specialized legal area, getting it wrong could seriously jeopardize your outcome. We have the best of the best legal experts when it comes to property investing. We show you how to protect your assets and wealth from day one so that your wealth always stays with you and your loved ones. How to legally reduce your Tax and never pay the same tax again We’ll help you through all the complexities and ever-changing taxation laws that are associated with property investing. This is why most investors do not maximize the tax returns available to them. Not all accountants are the same. Our property investment taxation specialists are experts in their field. They’ll provide the appropriate property investment tax advice and ongoing services with regard to your current and future tax position. Coordinating the settlement of your property Unfortunately, this is the one area that people pay very little attention to. It’s this one area that can actually make or break the experience you have when it comes to investing in property. Many take this process for granted and you as the client are always the one that pays the price of having to get involved and having their precious time wasted. We ensure that all parties are coordinated appropriately with minimal fuss and with very little involvement from you. The headache-free Construction Program At Simply Wealth Group, we’ve been proudly helping investors achieve their financial goals and dreams for over 10 years. The knowledge and commitment to quality we have gained over this time have enabled us to streamline the building process, resulting in a hassle-free and enjoyable building experience for you. Whether building one of our innovative home designs or choosing a boutique architecturally designed apartment, our dedicated and professional team has proven time and time again that by using only the best products and materials on the market and constructing homes on time and on budget, we are the market leaders in both quality and service. Keeping you in the know every step of the way We manage the entire project on your behalf so that it is built on time without any delays and therefore put money in your pocket (rent) as fast as possible. When you have constructed and project-managed thousands of properties as we have, you know how to deliver an experience to customers second to none. We update you fortnightly with a progress report. It’s like being on-site, from the comfort of your own lounge room. We work for you, NOT the builder When you buy a car, you want to ensure you are getting what you have paid for. When you go to collect the car, you want to check that the steering wheel comes with the car right? But what about the things you can’t see or don’t know about? At Simply Wealth Group, we ensure you are getting everything you signed up for – without ever compromising on quality. We know every little detail and step that goes into building a quality investment property. Tenant allocation without you lifting a finger We claim to have the
Understanding Investment Risks In Property Investment
Understanding Investment Risks In Property Investment is crucial for success. This article emphasizes the importance of managing and mitigating these risks to maximize returns and minimize losses. By comprehending the potential risks and implementing effective strategies, investors can make informed decisions and navigate the property market confidently. Embracing Risk Mitigation Investment risks cannot be eliminated, but they can be mitigated. It’s crucial to approach investments with a comprehensive risk management plan. Remember that anyone promising a risk-free investment strategy is likely not being realistic. By acknowledging the risks and taking appropriate measures to reduce them, you can navigate the investment landscape more effectively. Mitigating Investment Risks in Property Tenant Vacancy Risk: The risk of not finding a tenant for your investment property can be mitigated by reducing the rent to attract tenants. Pricing your rental competitively can increase the chances of securing reliable tenants and maintaining a steady rental income stream. Interest Rate Risk: Fluctuating interest rates can impact your investment returns. To mitigate this risk, consider fixing your interest rates for a certain period, providing stability and predictable mortgage repayments. Income Loss Risk: In the event of job loss or income interruption, having income protection insurance can provide financial security. Additionally, this insurance coverage helps safeguard your ability to meet mortgage repayments and maintain your investment property during unexpected circumstances. Seek Professional Guidance Furthermore, working with a knowledgeable investment advisor, such as Simply Wealth, can provide invaluable insights and guidance in mitigating investment risks. An expert advisor will help you develop a sound investment strategy tailored to your goals and risk tolerance, ensuring a well-rounded approach to risk management. Conclusion Investors can manage and mitigate risk through careful planning and proactive measures, turning it into an integral part of investment. Property investment comes with its own set of risks, and understanding how to minimize and address these risks is crucial for long-term success. By adopting a comprehensive risk management strategy and seeking professional guidance, you can navigate the property investment landscape with confidence and maximize your wealth-building opportunities. For further clarification or expert advice on property investment and building passive income, please contact us. Our team is dedicated to helping you unlock the potential of your investments and pave the way for a prosperous future.
Understanding Home Equity: Calculation And Significance In Property Investment
If you consider yourself a home owner and are curious about what equity means, this article is for you. Read on to learn the definition of home equity, as well as how to calculate it and what factors influence it.
Starting Property Investment Journey: How Much Do You Need?
If you’re considering embarking on a property investment journey, it’s natural to wonder about the financial requirements for getting started. A crucial aspect to consider is the initial deposit amount. In this article, we explore the recommended deposit percentage and associated purchase costs to help you understand the financial aspects of your property investment journey. Preferred Deposit: 12% – 20% of the Property Purchase Price To embark on property investment, it is generally advisable to have a deposit equivalent to 12% – 20% of the property’s purchase price. You can source the deposit from cash savings, equity in an existing property, or other available funds. For example, if you plan to purchase an investment property valued at $600,000, having a deposit or equity amount of $100,000 would be ideal. This allocation allows for a 12% deposit ($72,000) and the consideration of additional purchase costs ($20,000) that you may incur, depending on the property type. Understanding Purchase Costs When calculating the funds required to enter the property investment market, it’s essential to factor in purchase costs. These costs typically include stamp duty fees, solicitor fees, and loan-related expenses. The specific amount can vary depending on factors such as property type and location. Consulting with professionals, such as real estate agents and conveyancers, will help you obtain accurate cost estimates. By accounting for purchase costs, you can ensure a realistic budget and effectively plan your property investment journey. Entering the property investment market requires careful financial planning, primarily focusing on the initial deposit amount and associated purchase costs. We recommend having a deposit equivalent to 12% – 20% of the property purchase price, assessing your financial situation and consulting with professionals is crucial to determine the precise amount required for your specific investment goals. Understanding the financial requirements allows you to make informed decisions and confidently embark on your property investment journey. For further clarification or expert advice on property investment and building passive income, please contact us. Our team is dedicated to helping you unlock the potential of your investments and pave the way for a prosperous future.
Understanding Wealth: Building Passive Income Streams
Wealth encompasses more than just monetary abundance; it grants the freedom to live life on your own terms. Imagine living your dream lifestyle without the need for active work. This idea of financial independence can be realized through passive income streams that generate earnings while you enjoy your desired level of freedom. In this article, we delve into the meaning of wealth and focus on property investment as a vital element in building passive income for long-term financial security. Defining Wealth: Living the Life You Desire Wealth extends beyond accumulating assets or a specific monetary value. It can be measured by the number of days, weeks, months, or even years one can sustain their desired lifestyle without actively working. True wealth lies in the ability to retire early, pursue personal goals, and experience financial freedom. By establishing passive income streams, you can generate consistent earnings that supplement or replace active work income. Property Investment: Building Passive Income Investing in real estate offers an excellent avenue for generating passive income. While purchasing an investment property may require a home loan, rental income can contribute to the repayment of the loan over time. Initially, the rental income may not cover all expenses, but as your mortgage decreases, your net income from the property increases. Property investment allows you to build equity and enjoy a reliable income stream. Diversifying Your Passive Income Portfolio: Shares and Funds In addition to property investment, shares and funds provide opportunities for building passive income. By investing in quality shares aligned with your risk tolerance and financial goals, you can benefit from dividend income and capital appreciation. Alternatively, you can rent out your shares to other investors, generating interest payments and creating a passive income stream. Diversifying your passive income portfolio with shares and funds can enhance overall financial security. Achieving Financial Freedom: Partnering with Simply Wealth At Simply Wealth, our mission is to guide you in making your money work for you. We provide expert advice and strategies to help you build passive income and achieve financial freedom. Through a personalized approach, we assist you in identifying the right investment opportunities, creating a balanced passive income portfolio, and maximizing returns. By leveraging our expertise, you can create a path towards a fulfilling and financially secure future. Conclusion Wealth represents the ability to live life on your own terms, extending beyond the accumulation of riches. Building passive income streams is crucial for achieving financial freedom and realizing your desired lifestyle. Property investment serves as a cornerstone of wealth creation, offering reliable income and long-term growth potential. Additionally, diversifying with shares and funds can further enhance your passive income portfolio. Partnering with Simply Wealth empowers you to make informed investment decisions and create a roadmap to financial independence. For further clarification or expert advice on property investment and building passive income, please contact us. Our team is dedicated to helping you unlock the potential of your investments and pave the way for a prosperous future.
Property vs. Shares: Which offers better investment opportunities?
When it comes to building wealth in Australia, property and shares are widely recognized as two primary avenues outside of superannuation. Both have demonstrated the potential for generating reliable income and capital returns over the long term. However, deciding between investing in property or shares can be complex and subjective, influenced by budget, lifestyle, income, tax implications, and personal values. In this article, we delve into the debate surrounding property and shares as investment choices, highlighting the benefits and considerations of each. Property Investment: A Traditional and Leveraged Approach Property investment has long been considered a safer and more conventional method of wealth accumulation in Australia. One significant advantage is the ability to leverage your investment. For instance, with $100,000 in cash or equity, you can purchase a $400,000 investment property, amplifying your potential returns. This leverage can provide an advantage over investing solely in shares. Shares: Potential for High Returns and Liquidity Shares, or stocks, offer investors the opportunity to own a portion of a company and benefit from its success. In recent years, the share market has experienced record highs, recovering from the COVID-induced crash in 2020. Shares provide the advantage of liquidity, enabling investors to easily buy and sell their holdings. Additionally, the stock market offers the potential for high returns, although it also carries risks. Factors to Consider: Budget, Lifestyle, and Diversification When deciding between property and shares, it is crucial to evaluate several factors. Consider your budget and the initial capital required for each investment option. Assess your lifestyle and determine which aligns better with your long-term goals. Additionally, examine the tax implications of each investment type, as they can vary. It is essential to weigh these factors against your personal values and risk tolerance. The Power of Diversification: Combining Property and Shares Rather than exclusively choosing between property and shares, diversification is often a prudent strategy. Combining both asset classes can help mitigate risks and enhance returns. The two can complement each other, as they often operate independently. This approach allows for broader exposure to different markets and asset types, potentially maximizing investment outcomes. Conclusion Deciding whether property or shares are a better investment option requires careful consideration of various factors. Property investment provides leverage and stability, while shares offer liquidity and the potential for high returns. However, rather than viewing these options as mutually exclusive, a well-rounded investment strategy often involves diversifying with both property and shares. By incorporating both asset classes, investors can harness the strengths of each and achieve desired results. Seek professional advice to tailor an investment approach that aligns with your goals, risk tolerance, and values. Contact us for expert guidance on navigating the property and shares market, or to gain further clarification on any aspect covered in this knowledge center.
