Property investment can be a great way to build your wealth over time. But it’s not always as simple as just buying a property and holding onto it.
There are a few things you need to do to make sure your investment is a success.
1. Do your research
The first step is to do your research. You need to understand the market you’re investing in, as well as the type of property you’re looking to buy. It’s also important to have a realistic idea of what you can afford.
2. Get professional help
Investing in property is a big decision, so it’s important to get professional help.
A good accountant can help you understand the tax implications of investing in property, as well as giving you advice on the best way to structure your investment.
3. Find the right property
Once you’ve done your research and spoken to an accountant, it’s time to start looking for the right property.
There are a few things to consider, such as location, price and rental potential. It’s important to find a property that you’re confident will increase in value over time.
4. Negotiate the price
Once you’ve found the right property, it’s time to negotiate the price. This is where having a good accountant can really come in handy.
They can help you understand the adelaideaccountancy.com.au true value of the property and make sure you don’t overpay.
5. Manage your property
Once you’ve bought your property, it’s important to manage it properly. This includes finding the right tenants, maintaining the property and keeping on top of repairs.
It’s also important to review your investment regularly to make sure it’s still performing as you hoped.
Property investment can be a great way to build your wealth over time. But it’s important to do your research and get professional help before you make any decisions.
With the right property and a bit of effort, you can make a success of your investment.
The Potential Returns From Property Investment
Are you thinking of investing in property? If so, you’re not alone – according to the Australian Bureau of Statistics, almost 30% of Australians own an investment property.
There are many potential benefits of investing in property, including the potential for strong capital growth and regular rental income.
However, it’s important to remember that property investment is a long-term commitment and there are also risks involved.
Before you make any decisions, it’s important to do your research and speak to a professional to get advice tailored to your individual circumstances.
In this blog, we’ll take a look at some of the potential returns you could achieve from investing in property.
Capital growth
One of the main reasons people invest in property is for the potential capital growth. This is the increase in the value of your property over time.
Capital growth can be achieved in a number of ways, including through population growth, economic growth and improvements to the property itself.
For example, if you buy a property for $500,000 and the value of the property increases to $600,000, you’ve achieved capital growth of 20%.
If you then sell the property for $600,000, you would make a profit of $100,000. This profit would be taxed at your marginal tax rate, less any relevant capital gains tax concessions.
It’s important to remember that capital growth is not guaranteed and can go up and down depending on a number of factors.
For example, if there is a downturn in the economy or a change in government policy, this could have a negative impact on capital growth.
Rental income
Another potential benefit of Nitschke Nancarrow Accountants investing in property is regular rental income. This is the income you receive from renting out your property to tenants.
The amount of rental income you can earn will depend on a number of factors, including the location of your property, the type of property and the current market conditions.
Generally speaking, properties in capital cities and regional centres tend to achieve higher rents than properties in rural areas.
Similarly, properties that are in high demand from tenants, such as properties close to transport and amenity, tend to achieve higher rents.