Strategic Property Advice

Why Invest in Property?

Investing is a choice many people make at one point or another, in the hope of bringing wealth to their lives. Whilst there are many investment alternatives such as shares, bonds and cash, property investment tends to be viewed as one of the safest and easiest options.

Before making a huge commitment with your property investment purchase, it would be in your best interest to engage us and arrange a professional Consultation.

Our proprietary software enables personalised modelling with an assessment of how property investing may work for you including the effects on your cash flow, estimated tax benefits, yield, growth and as a wealth creation tool.

Why Invest in our Strategic Property Advice?

Avoid making costly mistakes before purchasing property!

Have you considered all the "what if" scenarios?
Understand the impact on cash flow from a property investment purchase.
Have you considered the effect on your current lifestyle of purchasing an investment property?
Is Tax minimisation the only reason you have considered purchasing an investment property?
"Negative" or "Positive" gearing? Which option will best suit you?

All these questions and more can be answered by our highly qualified Consultants at My Mortgage Advice through a personalised and detailed analysis report.

Contact us now on 03 9585 8755 to arrange a Consultation.

If you are considering investing in property, it is important to weigh up the pros and cons. Here are just a few examples of each.

The Pros and Cons of Investing in Property

Pros

Capital Growth: The value of your property will grow over time and may be extremely beneficial financially if well chosen. Not only will you benefit from steady capital growth, but regular monthly rental returns
A relatively safe investment: This is the only investment market that is not dominated by investors, hence creating a natural buffer in the market. It is also the most forgiving investment; if you purchase the worst house in the area, chances are that its value may still increase over time.
Mitigate risk: You can insure your asset against most risks; fire/damage / a tenant leaving, damaging your property or breaking the lease.
Almost anyone can invest: You do not have to possess a vast amount of knowledge, as you may with stocks or opening up a business.
Control: Unlike other investments, you are in full control of your property investment; you can make all the decisions and have control over all of your returns.
Tax benefits: Although tax benefits should not be used as the sole decision-making factor, they can be a benefit of investing in property. If your property is negatively geared, it may provide tax benefits.

Cons

Liquidity: Although you can sell your property if things get tough, the process is not as quick as it is to sell other investments such as shares
Hidden and ongoing costs: Along with the initial costs of investing in property (i.e. stamp duty, deposit, legal and conveyance fees), you will need to consider the ongoing hidden costs of property investment such as fitting out the property, maintenance and repairs, building and landlord insurance, land tax, water rates, council rates, etc. Other investments such as shares do not incur these ongoing fees.
Rent-free periods: During the periods when you are unable to find a tenant and the property is vacant, you will need to cover the mortgage repayments.
Bad tenants: Problematic tenants are every owner's nightmare. They can severely damage your property, refuse to make payments and sometimes even refuse to leave the property. Some disputes can take months to resolve and become very stressful, especially if there is an emotional attachment to the property.
Other costs: Although negative gearing may offer tax deductions, you will need to consider and budget for the shortfall between repayments and rental income as well as the cost to cover repayments when the property is vacant.

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