Take us up on the offer of a free property portfolio strategy session today. We’ll help map out a tailored property investment strategy for your situation. Usually costs $297, but we’re offering it at no cost today.
First Time Investor
Jammaya purchased her first investment property, which was completed in early 2019. Jammaya has been using investment property to significantly reduce her tax and is currently going through the process of purchasing her second investment property.
First Time Investors
Eddie and May pictured to the right on handover day of their investment property in Mt Barker. Their decision to be investing in Adelaide property was a sound decision with their property rented out to fantastic tenants on the first open inspection!
First Time Investors
Sandrine and Eduardo purchased an investment property in Queensland. They’re currently working towards taking advantage of our HiLo investor loan product which enables clients to get a 1.5% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal
We send each client a request for an honest Google review after each appointment because we value all feedback (positive and constructive). Here below are a selection of recent customer reviews.
Buying an investment property is much the same as buying your own home, but with slightly different loan options that are structured specifically to help you make the most of your assets and build your wealth.
We’ll help you with a balanced property investment plan that includes loans that are optimised for reducing your property holding costs and allowing you to live life, whilst still securing your financial freedom.
We’ve recently released a brand new loan for property investors that allows you to secure a 1.5%* interest rate on your owner occupied home loan, so long as you have an investment property loan. It’s an incredible product that can save you thousands in interest per year.
We’re pro’s at finding great deals for investors and have helped property owners with over $180 million in home loans.
We deal with all the major banks and specialist lenders for investors. We even have our own loan product that helps to maximise your investor loan tax deductions.
Feature Investor Home Loan
NEW home loan product for Adelaide property investors with an incredible 1.25%* interest rate. And 1.25%* is truly incredible. Most people are paying 3.8% or more and this loan will literally halve the amount of interest they pay. Enquire now to find out if you are eligible for this fantastic deal!
Meet The Team
Property investing can potentially offer you a range of fantastic benefits. Both negatively geared and positively geared properties have plenty of tax benefits. At tax time, we help dozens of people per week with huge tax refunds that are a result of the “on paper” tax write-offs. When done correctly, tax deductions will amount to thousands of dollars per year for most property investors.
(08) 8263 4009
Clovercrest Plaza, 429 Montague Rd, Modbury North SA 5092
Owning your home may be the most basic method of property investment, one that most property owners employ. For many, this is as far as their investment portfolio will go, which is fine, providing you are building investments elsewhere (using stocks, bonds, or cash) to create a nest egg for your future. Your home may appreciate in value over 30 or 40 years (as property inevitably does) but ownership of only one asset will not secure your retirement.
A long term strategy based around accruing a portfolio of numerous properties which you hold on to for at least 10-15 years, after which you sell all the properties and use the profits to retire with, this is likely to build the most wealth.
We suggest that this is not a strategy for the inexperienced. The idea here is to buy a cheap, run down property and renovate it quickly before selling it at a much higher price. Flipping is not suited to the faint-hearted. Failure rates can be quite high, especially if the market suffers a drop just after you have bought. To flip a property effectively it often becomes a full-time job. You need to become a site project manager and make decisions quickly, adhering to a tight budget. It is time consuming and tiring.
This strategy uses families coming together to purchase property. To work effectively, this strategy requires definite trust within families, and for this reason it can be fraught with difficulty. It is not a strategy we would recommend – we have all read about families fighting over money!
Buying property with friends in a partnership of two, or perhaps three or four people pool their resources to achieve their investment objectives. Because of the number of investors, much less start-up capital is required, also you always have a second opinion available to you, which can help protect against making poor investment decisions. A warning needs to be issued however, as differences of opinion, personality clashes, and long-term strategy shifting are often the biggest downfall to this strategy. Additionally, legal complexities can make it difficult to extricate yourself from this situation, should the need arise.
This is a strategy that requires high cash stocks! The aim is to purchase land and build developments on that land, from simple houses up to multi-dwelling apartment buildings. The complexity of full property development can make fools of even the most experienced and savvy investors.
There are several benefits to investing in an established house. A house has promising capital growth prospects, as the land beneath the property has the potential to increase in value. Investors have the option of adding value to an established home by completing renovations or updating fixtures, fittings and appliances. An established property can also begin generating rental income immediately after you receive your keys.
Buying an established home as an investment can also have disadvantages. Older properties may require more maintenance and repairs as fixtures and fittings age, which increases your ongoing costs and can become a drain on your cash flow. There may also be fewer tax benefits associated with investing in established properties.
Building a house-and-land package can offer several distinct benefits over buying a home that is already built. You save money on stamp duty costs, as you’re only paying stamp duty on the land value and not on the entire purchase price of the property. As the property is newly-built, there should be very little maintenance for the first few years. New homes can often be more attractive to tenants as compared to an older property, which can translate to reduced vacancy rates. There are also significant tax advantages to building a brand new investment property, so you have the potential to reduce your tax liability.
During the construction stage, your new property is unable to generate any rental income. You’re also responsible for the interest costs on the mortgage throughout construction until the home is complete. Finding suitable vacant land in popular locations can also be challenging, especially in already established suburbs.
Apartments can provide several benefits for investors. In most cities, apartments can achieve higher rental yields than those offered by houses, so they’re often good for generating positive cash flow. Apartments also usually require less maintenance than older houses, as much of the building management and maintenance is taken care of by a strata manager. If you buy an existing apartment, you’re able to generate rental income from settlement day.
Apartments do not have their own individual land value as a house does, so they may have limited opportunity for capital growth. Any increase in property value is reliant on the value of the improvements in the dwelling as a whole. Owning an apartment also means paying strata fees associated with the management of the building and common areas, which can reduce cash flow. There is also the risk that multiple apartments within the same building or complex may be advertised for sale or rent at the same time, creating an over-supply of similar stock.
Like it or not taxes are part of the property landscape. It doesn’t matter if you are an investor or home buyer we get slugged.
The biggest whack of the stick is a tax called stamp duty. This tax is issued by the state governments, therefore the amount and the way it’s implemented vary from state to state. Here in SA, the Stamp Duty is the highest in the country. Added to that it isn’t tax deductible up front, it can only be added to the cost base when you sell an asset (for investment purposes).
A possible way to reduce stamp duty is buying a house and land package or land and then building, as the stamp duty is only calculated on the land component instead of the entire value of the house and land.construct or buy off the plan.
Another option is buying an apartment off the plan. This can save you as a purchaser tens of thousands on the initial investment. Sometimes State Governments provide incentives for apartments close to the city, to reduce urban sprawl. If you are interested in apartment investments, this could save you tax monies in reduced stamp duty also.
If your financial goal is to eventually live off your rental income, it makes sense to think about your potential rental yield. Across most capital cities in Australia, the average rental yield is around 4%.
Of course, it’s possible to find properties with much higher yields. There are also properties out there with much lower rental yields too.
Unfortunately, many investment properties that tend to offer slightly higher-than-average yields are often in areas with little potential for capital growth.
For example, across some low income areas and many regional areas it might be possible to find investment properties with rental yields of 6% or 7% – or even higher. However, the potential for capital growth is reduced.
On the other hand, a property in a highly-sought after location might cost significantly more to buy initially and only generate a rental yield of 2%. However, the potential for capital growth is increased.
When you’re working out your investment strategy, take the time to consider which aspect is most important to you.
Are you aiming solely at rental yield? Generating sufficient rental income to replace your day job is a great strategy, but will you be stuck with a lemon if you decide to sell one of those properties at a later date?
Or will capital growth play a role in your strategy? After all, if you plan to sell one or two properties in the future to pay off the debt on your remaining properties, then capital growth will be an important factor for you.
There is long-standing debate among property investors that has been going for years: should you invest in an existing older property or is building a new property the smart way to go?
There are definitely advantages to both options, but there are also downsides to consider too. When it comes to choosing the right investment property to add to your portfolio, take into account the pros and cons of each before making your decision.
When people look at investing in property they need to consider which type of property is going to give them the greatest benefits not which property they are attracted to. “Heart Buying” is for the property you want to live in not the property you want to make you money.
Many established suburbs have an appeal that can’t be readily duplicated in brand new estates. For example, historical suburbs are often characterised by stately old homes and well-established streetscapes.
Building a new property in a newly-established subdivision means streetscapes may not be completed or fully-formed yet. Of course, the increasing level of urban infill offers more options for building newer homes in amongst established properties too.
Buying an older property gives some investors the opportunity to add value to the property by completing some cosmetic renovations. Researching land and building costs in a particular area and comparing them against the values of similar properties in the same suburb can be a great way to uncover undervalued properties. An investor then has the opportunity to renovate and increase the amount of available equity in the property.
Of course, there are also opportunities for new homes to increase in value, especially if the property is built in an up-and-coming location.
Property investors are eligible to claim depreciation on capital works, plant and equipment. Newer properties have a much higher level of depreciation, which can provide significant tax benefits to a property investor.
An investor may be able to claim some depreciation on the actual building with an older property, as long as it was built after 1987. However, the capital works on a new property can be depreciated for up to a maximum of 40 years. The fixtures and fittings within the property, including appliances, flooring and window coverings are all depreciated at different rates, so the depreciation of any plant and equipment in a newer property offers greater tax advantages.
Many older homes may require repairs as they age. A leaking roof, cracked walls, old plumbing and electricals, or septic problems can cause a drain on finances if you’re unprepared. By comparison, newer properties usually need much less maintenance and are likely to require fewer repairs.
Newly constructed homes also come with a builder’s structural guarantee and a statutory home warranty. A property investor may be protected for several years in the event that a major building defect or structural problem is discovered.
A new home can be more enticing for a prospective tenant than an older property. Modern designs, energy efficiency, new appliances, and built-in wardrobes can offer more appeal to a tenant compared to an aging home with fewer inclusions. In most cases, it’s possible to find a willing tenant before construction is even completed.
Many investors prefer to purchase an existing property, simply because they can begin receiving rent right from settlement day. When you’re constructing a new property, the tenants can’t begin paying rent until the building is completed.
Of course, new homes can sometimes fetch slightly higher rental yields than older properties in the same areas, simply due to having more modern inclusions and features that appeal to tenants.
When it’s time to consider choosing the right investment property to add into your portfolio, take all the pros and cons into account before making a decision. Take the time to understand how an older versus a newer property will impact your taxable situation and make an informed choice that matches your personal financial and investing goals.
At first it may all seem overwhelming; the initial deluge of paperwork you need to produce and information you need to assimilate can stoke your fears. The truth is that the hardest part is taking the first step. (And, if that first step is approaching Nieuvision, then it’s not hard at all). As long as you’ve got your finances in order, you can start researching properties. If you spend a little time researching thoroughly, chances are you will find a decent property. At Nieuvision our team are committed to buying the very best property available for you. We will perform all the necessary due diligence and property inspections to ensure the property you buy is of the very highest quality.
You may not know it, but real estate is a less volatile investment than the stock market or mutual funds. There’s a lot of talk about the property market on the news, especially in these uncertain economic times but it’s important to remember that strong population growth means that there is a continuing demand for housing. People will always need a place to live, even during difficult times and will often forgo other luxuries in order to pay rent. As long as you have plans in place to see you through downturn blips in the market, it won’t take long for you to bounce back once the prices rise again.
With investment properties you have the control in deciding how much you grow and develop your investment. You decide where you buy, how you buy and when to sell. If the area has been rezoned, you can double up on your income by building a second dwelling. You can renovate as much as you like to improve rental returns. The choice is yours. When these decisions are made under the advice of property investment experts, like those here at Nieuvision, you know that the result is going to be excellent. We’ll take the emotion out of any decision making, and advise you which choices will bring the greatest returns.
Real estate is simple: house, townhouse, unit, villa. You charge rent and you hope that that rent will cover most, if not all of the mortgage. If you can no longer afford it, you sell it. If it’s all going well and you are accruing equity quickly, you buy another property. No reason for fear! The most important things you need to know are capital growth, cash flow and yields. For more advanced strategies contact one of our talented Nieuvision people for more in-depth advice.
The beauty of property investment is that you can use your investment to claim a range of tax deductible expenses which will help reduce your tax bills and improve your cash flow. A good accountant should be able to cut your tax expenses by tens of thousands of dollars, which may seem unbelievable, but it’s not. Our accountants at Nieuvision are specialists in tax law and will help find you every single dollar you can claim.
Rather than you working 50 hours a week in order to pay off your investments, your tenants do all the hard work for you. You get to sit back and watch your investment grow in value. Does that seem scary to you?
This may sound like a cliché, but it is true. Real estate makes more millionaires than any other asset classes. Fortune Magazine found that 97% of all wealth was either created or held in property. That’s a pretty impressive statistic. Stocks and mutual funds may seem like the flashy investment choices but we know that property is the undisputed winner.
Many people dream of owning at least one investment property as part of their retirement strategy. The appeal of buying houses is that they are seen to be more tangible and solid than shares on the stock market. However, I am sure each of us can recall meeting someone along the way who had been burned by property investment. This makes me wonder whether they fully considered their purchase before signing on the dotted line. The following are 7 critical questions everyone should ask themselves before buying their first investment property.
You need to decide the primary motivation for your purchase. Are you doing it because your friend has had success? Did you see someone on TV who had bought 10 houses before age 30? Or, do you want to build cash-flow to help you retire earlier? Having a clear goal in mind before you start will make reaching that goal much easier. Successful property investment takes a long time and you will generally be planning to hold on to the investment for, at the very least, 5 years.
Every lender will assess your income differently, so there is never a single answer to this question. Your individual circumstances will be examined and these will fulfil some lenders’ criteria better than others. A professional mortgage broker experienced in investing will be able to help you and our team at Nieuvision are some of the best in the industry. Not many of us have a huge chunk of money sitting in savings accounts waiting to be used as a deposit on a house, but lots of people have access to equity in our own homes. It can be possible to extract this equity to use as a deposit which will also affect how much you can borrow.
Location, location, location! That is the real estate mantra. If you are looking for an investment property in Adelaide, draw up a list of preferred suburbs and see what is on the market in those areas. Investment property in Queensland? Do the same. Then decide who is your target renter will be. Families? Young professionals? Student housing? The type of house you buy will depend who you prefer to rent to. We advise talking to our property investment team – they can offer advice based on years of experience in the property investment field.
It is also important to have a clear understanding of just how much money you have available to commit each month to achieve your goals. Buying the wrong property for your circumstances can be a costly mistake.
You’ve found what you think is the perfect investment property, and are ready to go ahead. The only thing is, you need to get $400 a week in rent to cover the mortgage. The real estate agent (who wants a sale) is telling you that it will be fine. But will it? You can use property portals such as www.domain.com.au and www.realestate.com.au to get a realistic idea of rents on comparable properties and ask an independent company to do a rental appraisal. Or you can get some professional advice and guidance from the property management team at Nieuvision to ensure the property’s rentability is as high as you need. They will research each property thoroughly and find you the perfect match for your needs.
When it comes to an investment property, people can sometimes get caught up in the idea of owning the property without really understanding all the costs involved. Property ownership isn’t just about making payments on the mortgage every month. Each property can have numerous other costs that need to be considered: insurance, property taxes, estate agency fees, maintenance, rates and levies, even household utility bills during vacant periods. If this sounds like it will stretch your finances too far, consider a cheaper investment property, or rethink your investment timeframe.
Owning a rental property is not for the faint hearted. They can be time consuming. If a shower head breaks, you’ll have to fix it. A leak in the retic? Go over and repair it, quickly please. Apart from dealing with issues such as finding and screening tenants, rent negotiations, repairs/property upkeep, you may also be confronted with more difficult issues such as tenants not paying rent, damages committed by unhappy tenants, and even tenant evictions. If you work full-time, or are running a business, these property management tasks may be daunting, to say the least.
We suggest finding a suitable property management team and take the pressure off you. For a small weekly fee they will handle everything for you – that is definitely worth it!
Not all rental properties will be right for your investment strategy. Many investors prefer to buy properties with the potential to increase in value, so it’s important they buy at the right price in a good location with great amenities in the local area.
Other investors focus primarily on cash flow, preferring to buy homes that generate profits from the rental income they receive after all expenses have been paid. If this is your strategy, you’ll want to ensure you choose a property in a good location with strong rental demand and low vacancy rates.
Of course, there’s also the consideration of the type of property you want to add to your investment portfolio. Different types of property have the potential to generate vastly different returns in terms of rental income and capital growth, so understand whether you want to buy a unit or apartment, or an established house, or opt to build a brand new house-and-land package.
The key to choosing the right one is to work out the right investment strategy that will help you achieve your financial goals. When you have a strategy in place, you’re in a better position to choose the right property for your needs.
Cash flow is king. If you’re serious about investing in property, take the time to understand the numbers involved. Know what rental yield your property is achieving and what interest rate you’re paying on your investment mortgage.
Take the time to understand the tax deductions you can claim for being a landlord and know what your ongoing ownership costs are.
A professional property manager will take care of managing your rental property on your behalf. Aside from ensuring your tenants pay their rent on time, your property manager will also strive to check the background information on any new tenants who apply to live in the home, increasing the odds of you getting a good tenant.
Your property manager will also conduct regular inspections to ensure your investment is being looked after and take care of any maintenance issues that arise.
Discuss your finance options with a good mortgage broker. There are lots of different lending options available when it comes to financing your investment property, so ensure you get good advice about the right ones to suit your financial goals. Your individual circumstances will determine whether you choose a fixed or variable interest rate.
It’s also important to make sure that your loan is structured correctly. Understand the difference between interest-only mortgage payments and principal-and-interest payments, and know how they affect your investing strategy.
When you understand all the options available and how they could potentially impact your strategy, you’re in a stronger position to choose the right financing for your needs.
Speak with your accountant about the correct ownership structure to suit your investment strategy. Your accountant can also show you how to accurately keep track of all the tax deductions available to you as a landlord so you can maximise your tax benefits overall.
While the tax advantages of owning an investment property are a great bonus, they should never be your primary reason for buying. You should also discuss how owning a rental property impacts your income in terms of cash flow.
Every investment has an inherent level of risk. Any good investor will take the time to understand ways to effectively manage their risks. Remember that interest rates can rise or fall, changing your cash flow figures. Tenants can move out, leaving your property vacant until your property manager finds a new tenant.
When you understand any potential risks of investing, you’re able to find effective ways to manage them so your strategy stays on track over the long term.
* 1.25% interest rate is only available to new loans or increases to existing loans when the minimum new borrowing amount is $150,000 and the LVR does not exceed 80% on eligible owner occupied home loan products. It’s also only available for the owner-occupied loan and to get it, you also need an investor loan where the total owner occupied debt does not exceed 35% of your total debt (owner occupier loan and investor loan/s combined). No package or other discounts will apply to the advertised rate. Split loans, land rent loans, interest only loans, loans requiring multiple security and building loans are not eligible. Offer available for a limited time only and may be withdrawn or altered at any time, available for qualifying loans applied for from 19/07/2019. Terms, conditions, fees, charges and normal lending criteria apply.
^ The comparison rate is calculated on a $150,000 loan with monthly repayments over a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different (higher) comparison rate. Interest rates are subject to change without notice.
Valuation fees, discharge fees and other fees (such as government charges) may apply.
All loans are provided by Nieuvision Financial Planning, a trading name of Loan Guides ABN 861 235 660 67 AFSL/ Australian Credit Licence 445 229. © 2019. Interest rates are subject to change without notice.