Investing wisely in property can pave the way to financial security in the future. In Australia, many people are making the decision to purchase investment property extensively. A successful investment requires rigorous and detailed preparation and help from the best buyers agent in Sydney or Australia. Therefore, here are the most important things to consider when investing in property.
Types of Properties in Australia
If you’re just starting as a property investor, it’s important to determine if your investing plan is positively or negatively geared. “Gearing” refers to the practice of borrowing money to invest. Here, we will discuss negative and positive gearing, how they function, and the benefits and drawbacks of both approaches.
- Negatively Geared Property
For an investor, negative gearing occurs when the return is lower than the expenses associated with the property. This may seem as a drawback at first, but it’s really a frequent tactic for investors in major cities and their suburbs, where there is a good chance of price appreciation in the future.
The reason for this is that the buyer is anticipating substantial financial profits upon selling the investment in the future, which will most probably be more than any short-term losses incurred. These losses can potentially qualify for a tax write-off.
- Positive Cashflow Property
When profit exceeds expenses associated with the property, the investment is said to be positively geared.
Positive gearing is preferred over negative gearing due to its reduced perceived risk and higher reward in the form of better-expected returns and more stable income.
The surplus income might mitigate any increases in interest rates or other unforeseen property expenditures.
At the onset, an investment property may not be favourably geared due to market conditions, rental yield, or the loan amount. A number of factors might lead to an investment becoming favourably geared, such as a decrease in the loan balance, interest rates, or an increase in rental return.
Simply put, positive gearing generates extra cash flow that can be put toward reducing the loan balance or reinvesting. Rental income “profit” is subject to taxation at the taxpayer’s top marginal rate.
But which type of property would be great for you? You can hire a buyers agency in Australia; we know the area and market and help you decide on the best one.
This is one of the core benefits of purchasing an investment property in Australia. You can offset some of the operating costs of your property through tax deductions. You may be allowed for breaks in management fees, legal issues, repair costs, and mortgage expenses. To know more about the tax benefits, you can reach out to the Australian Taxation Office for a complete list of deductions applicable when owning an investment property.
How Can You Finance a Property in Australia?
There are many options to finance your investment property in Australia. You can go with the First Home Owners Grant option. However, you will only be eligible for this if you live in the property for at least six consecutive months before renting.
In addition, you must know the new ways of financing your property.
Do your research to know about various lenders’ policies. Some lenders won’t offer mortgages to expats. However some have this facility, but you have to clear their benchmarks. Moreover, some lenders periodically change their policies based on market changes. But doing this research on your own requires a lot of effort and time. So, it’s best to leave this job on our shoulders; we can guide you on various options.
- Deposit Requirements
It’s always recommended to property buyers in Sydney to get a complete analysis of the mortgage terms, so you won’t end up paying extra. In case you are an expat, you should definitely do this because some lenders may ask for a higher deposit.
Usually, most lenders allow buyers to borrow up to 80% of the total value of the property. However, it’s different for expats. Typically, an expat may borrow up to 70% of the property’s value based on different cases, such as visa status, new country of residence, and its currency.
By hiring Buyers Agency Australia, you can get the advantage of understanding the eligibility criteria and market. With our expertise, you’ll be able to borrow a good sum of money without a higher deposit.
It doesn’t matter who you’re and how many assets you have; a lender always asks and checks your loan repayment capacity. And this process is more complex and rigorous if you are an expat. So, it’s good if you maintain a good credit score, income, and expenses to apply for a mortgage and get it as soon as possible.
The serviceability differs from lender to lender. Always choose the best one so you can easily finance a property in Australia without putting pressure on your wallet. Here, again taking help from an experienced buyers agency in Sydney will help you get on the right track.
Get a Silent Listing of Properties with Us!
Whenever you begin searching for an investment property in Australia, always look for Off-market properties.
These sorts of properties are not publicly advertised for sale on mainstream channels. Instead, sellers list these properties on buyers’ agents’ websites.
Usually, these off-market properties are actually pre-market listings. These properties are also known as quiet listings, silent listings, or pocket listings.
But why would someone sell off-market?
- For privacy
- Save on advertising and marketing costs
- Nervous about auctions
- Sell quickly
What are the advantages of choosing an off-market property list for buyers?
- A wider market
- Negotiation potential
- Less competition
- Quick Buying
At Buyers Agency Australia, we have the best off-market deals. With property buyers in Sydney and Australia, you can easily access high-quality off-market and in-demand property without competing with other investors. We will save you from pitfalls, making big mistakes, and help you choose the best investment property.
How Will We Help You in Choosing the Right Property?
In order to choose the right investment property, we have curated a 5 step-process:
- Discovery: Our experts will speak with you to know your requirements and what are your expectations. Based on that, we will start finding the properties that fit your needs. We match your needs with different properties.
- Strategy: The next step is strategy, in which we dive deep into your preferences, budget, and lifestyle to map out your future objectives. This way, we get a clear understanding of your requirements.
- Selection: In this step, we will suggest various properties that we find right for you. Also, we will suggest to you various off-market properties and help you make a better decision.
- Negotiation: Once you finalise the property, we aim to save you immediately. Our experts will do the homework of digging piles of sales data on your behalf to determine an accurate property valuation.
- Settlement: Once you’ve gotten an exceptional price and reached a settlement, we’ll still be there for your help. Our experts will help you inspect the property and papers and complete all the formalities and legalities.
How to Manage Your Investment Property in Australia?
After purchasing a property, you need to hire a manager who can keep your property – do necessary repairs and manage other critical things. However, finding the right manager is another challenging task.
We at Buyers Agency Australia also provide you with a list of property managers. This will save your effort and time and help you maintain your properties so you can drive higher ROI.
Need Help Finding the Right Investment Property? Contact Us Now!
We are experienced, trusted, and licensed investment property buyer’s agents in Australia. We have simplified the whole process to ease you find the right investment property. Our experts know the various pitfalls and save you from making any mistakes.
We have a data-driven finding process that saves you from over-paying and helps you in making the right decision. Our professionals know the market and what type of properties can help you leverage higher returns.
And most importantly, we provide end-to-end help, so you choose the best investment property.
Purchasing an investment property is a big decision and requires significant money. That’s why it’s important to know every parameter and hire the best buyers agent in Sydney.
Above, we have mentioned some key highlights you should consider when purchasing an investment property. Read on those points and contact our experts to get better guidance. We have a tailored solution per your need, so you never compromise with your requirements.