Helpful Hints About Investing
1. Consult an investment specialist
While G2 Property can assist your investment goals by providing a complete turn-key solution to finding a property, seeking formal advice from a financial planner, investment mortgage specialist, accountant can add real value to your broader investment plans.
Financial planners can show you options you hadn't considered, highlight the tricks and traps of investing, and help finetune your strategy so you stay on track to reach your goals. Any information your financial planner, investment mortgage specialist or accountant requires G2 Property is there to help, we are sourcing property on an on - going basis to fit into the individual strategies of many of our associate's clients.Coming from a financial planning, mortgage management and banking background don't be afraid to ask when a request from your strategist is made.
2. Choose a reputable builder
Buying a house is a significant financial investment so it's important to find a builder that has a solid track record and the strength to survive when times are tougher. Do your research, ask for credentials and consider the builders' previous successes or pitfalls before committing your money.
G2 Property provide's you with a credentials document for all its Investment Property builders. We have selected a very short list of builders that we know have an impeccable track record, know the investment market, have exceptional communication and provide high quality assurances throughout the process.
3. Understand your cashflow impact
With so much to consider when buying property it can be difficult to understand what your real out-of-pocket expenses will be each month. G2 Property can provide you with a tailored cashflow analysis or PIA (Property Investment Analysis ) on request to help guide your decisions and for you to discuss with a financial planner, investment mortgage specialist , accountant.
4. Know the costs upfront
Protect yourself against any surprises by knowing exactly what you're getting, when, and how much it will cost. Will you need to purchase blinds, build a fence or pay for kitchen appliances? Who will pay for lost rental income if your house isn't built on time? G2 Property has a committed price and timeframe for delivery of its properties, with inclusions clearly stated in your contract. Our builders also offer a build time guarantee. They will pay you rental income if your property is not finished with in the contracted time frame.
5. Be realistic about what you can afford
Your existing financial situation will determine how much you can borrow, and knowing this upfront will save you time and energy in your property search. Consulting an independent mortgage broker can help you establish your borrowing capacity and compare options from many lenders simultaneously.
6. Be clear about why you're investing
People invest for different reasons. Depending on your goals you may want to reduce your income tax, secure your financial future by having another income stream after retirement, move into the property one day or get extra money in your pocket today. To get the most value you should be clear about your expectations, and consult a professional financial planner if required.
7. Research optimum areas to suit your strategy
Why are you really planning to invest in a particular area? Or are you searching for answers about where to invest?
What's right for you will be determined by several factors, including why you're investing (see hint number six above). You need to understand the local area, what types of people are living there, what rental repayments they can afford, and what facilities are available such as schools and shops which will draw tenants to this area well into the future.
G2 Property can provide you with free local market information about all its residential communities to help you understand the region and add context to your decision. We also have a research for each project from the major research houses such as RP Data, Residex, ABS, BIS Shrapnel, your financial planner, investment mortgage specialist or accountant will be familiar with these reports and be able to help in explaining the information if needed.
8. Educate yourself about investing in new property
Investing in brand new property can offer numerous advantages to investors:
- You can claim higher tax depreciation benefits for new investment properties, than you can with established homes. This might leave you with more cash in your pocket.
- A newer, higher quality house, could give you better rental returns if you compare like-for-like properties in the same area. Make sure you get rental estimates before you buy and judge for yourself. G2 Property provides rental estimates for free with all its properties.
- New property usually has lower maintenance fees and other 'incidental costs' because you know the plumbing is new, air conditioning is still under warranty and the walls shouldn't need a coat of paint for years!
- A better quality property could attract a better quality tenant, leaving your valuable investment in good hands