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3 Top Tips for Successful Property Investment

1. Use a Qualified Property Investment Professional

It’s important to use a company who walks the talk to help you with the process. It’s best not to do it on your own. You may be unaware of what you don’t know in the world of successful property investment.

Do your research.  There are many companies out there. Look for companies that have been around for the long term and are investors themselves. Ones with good reviews; just like our team at Dinas Estate Agents that have over 30yrs of experience.

It takes years of research and experience to understand the property market and its cycles. A qualified property professional will guide you on how and where to invest successfully for the long term through any market up’s and downs.

2. Use a Licensed Property Manager to Manage Your Property

We recommend you don’t manage your own property investment. Whilst it may be tempting to do it yourself, you could fall into the trap of not conforming to many legal tenant obligations that you may be unaware of.

By engaging a Real Estate Agent to assist you with the Management of your property you will save precious time and avoid possible pitfalls. A good property manager will streamline your investment by assisting with finding tenants, managing bonds, paying bills, obtaining quotes and engaging trades for repairs & maintenance and much more for a small fee. This can be a stressful and time-consuming job for an investor doing it themselves so is best left to the experts.

At Dinas Estate Agents we help you find a qualified and experienced Property Manager to handle your investment property needs.

3. Treat your Property Investment as a Business.  

Remove the emotion from your decisions. Be objective and make purely financial decisions as you would your own business. Plan for the long term. Property investment takes time. Have some financial reserve for tough times and regularly maintain your property to a standard. Keep all receipts/financials in a separate folder/file and don’t mix personal finances with your investments.

Engage a reputable accountant that knows about depreciation and understands property investment. This is important so you don’t miss any legal cash and non-cash tax deductions that you may qualify for like depreciation etc.

Don’t wait to Invest. Invest then wait….

Don’t wait to invest. Invest then wait.

At Dinas Estate Agents we believe that to succeed in property investment first you must take action. You should purchase a quality, well located investment. Then you must hold your investment property asset for the long term.

As we are all aware the property market fluctuates up and down over short periods of time. But history shows us that over a longer period of time most carefully selected property, in the right areas, with sufficient previous historical capital growth data, tend to continue their trends upwards.

We provide our clients with a carefully planned investment process beginning with Education. This Education through our Property Investment Program educates our clients on areas and types of property that have produced adequate historical capital growth over time.

If you are considering investing but have concerns over the property markets fluctuations then we recommend that to give you peace of mind you must perform your calculations for the long term. A minimum of 20-30yrs.

So as mentioned don’t wait to invest. Invest then wait.

It’s not about timing the property market it’s about time in the market

 

 

 

 

 

 

 

By investing then waiting you are able to:

  • Maximise your opportunity for capital growth
  • Claim all legal Tax Refunds
  • Receive most if not all of all the legal Tax Deductions from your property for the full period
  • Building Depreciation: Generally, claimable over 40yrs with Depreciation Schedules created by reputable Quantity Surveyors
  • Depreciation of Fixtures & Fittings: Generally, claimable over the first 10yrs with Depreciation Schedules created by reputable Quantity Surveyors
  • Receive a profitable rental income (In the early years of your investment the rent will help you hold the property. In the later years your investment should pay you a passive income via the rent)

Example Scenario:
Joe buys an investment in Melbourne 2010 when property prices were at record highs. In 2012 he sells for a loss due to the market downward movement.

Had Joe kept this property until 2018 he would possibly have made an adequate profit as capital growth trends in Melbourne achieved 7%growth over this longer period of time.

Solution:
Buy and hold for the long term when it comes to investing in property.