A promising investment
There are few investments as secure as property, they don’t call it ‘as safe as houses’ for nothing. Investing in property offers a number of ways to build wealth effectively and securely, both in the long and short term.
Find out how you could benefit from investing in property, and exactly how it could help secure your financial future.
Invest wisely and grow equity
If you buy a property in the right suburb, you could see a significant increase in the value of your home in a short period of time. In some cases, your original deposit investment may double or triple in only a couple of years thanks to local property values soaring.
We call suburbs with this kind of market potential ‘high growth areas’ – suburbs that are scheduled for investment in infrastructure, facilities and amenities, for example a new school, train station, or major company HQ. These factors all have an effect on the housing market, and it’s not uncommon for house prices to rise in value 15–20% in just one year under these circumstances. One of Victoria’s highest performing suburbs increased 40% last year, with a number of other suburbs enjoying 20–28% increases.
There are hundreds of reasons why a property might increase in price. It’s down to the local economy, population and attractiveness of the area. At Reventon, we constantly analyse the property market so we can advise our clients of new potential high growth areas. Download a free property suburb report, personalised to your areas of interest, to get professional insights from our team and a better idea of where you should be looking for your next property purchase.
Draw from rental income
Property rental income is a way of boosting your wages each and every month. It’s a steady means of income and reliable as an investment return. Receiving rental income is only possible if your property is geared positively – meaning that the total cost of your investment property is less than the rent you charge.
When calculating potential rental income, remember to take into account all of the costs of your investment home. This includes your loan interest payments, insurance, any bills you will pay as a landlord, property management fees, and any repairs or refurbishments required for the property.
Once all of these costs are added up, you can check if the rental income you’re charging will leave you will money in your pocket each month. If you’re unsure about how much you can charge for rental income, it’s important to seek advice. Rental income depends on market value, the quality of your investment home, and in some cases state limits.
Reventon offers a full property management service so you can be sure that you’re charging the right amount, and that you have all of the details covered for your investment home – from securing the best tenants, conducting inspections, and organising repairs.
Make savings on your tax payments
If the amount of rent you are charging does not exceed the amount you are paying in costs of your investment property, that doesn’t mean it’s not worth the investment. This is known as ‘negative’ gearing and is actually a popular investment strategy for many buyers, with a number of financial benefits.
When investing in property, you can make tax deductions for the costs related to your investment. Rather than paying extra tax on the income you receive from rent, if your property is negatively geared the difference represents a loss and can be offset against other income – like your wages – to reduce your tax bill.
Reventon can advise on the kind of tax savings you may be able to make with your property, so it’s worth speaking to one of our advisers. Or if you want more information, find out more about tax and property investment.
Invest for the future
Investing in bricks and mortar bring a huge number of benefits to your bank balance and your future financial security. It could mean that you’ll earn or save enough money to reinvest in another investment property, building a portfolio to ensure that your financial future is secured.
The property market is always moving, so there’s no time the present to get started. There are plenty of funding options available to people in a range of different circumstances. Our team offers a free consultation so you can find out how it works for you, we’ll even visit you at home.
Book your free consultation now and unlock your financial freedom.