Are you Investment Property Ready?

Ash Ross from Ross Group discussing investment property readinessRecently we hosted our Investment Property Education Sessions, with the goal of empowering our clients to make wise decisions around their financial future. Long term, this consists of a mix of investments working together as a team. Investment property is a popular form of investment, given our history (it’s the Great Australian dream right?!) and comfort with bricks and mortar, investments we can see and touch, are favoured in wealth creation strategies.

There are a number of elements you need to have under control before you are investment property ready.
– Your debt is under control.
Are your monthly repayments comfortably less than your monthly average household income? Do you have any issues with paying your credit cards, mortgage or other personal loans?
– You have enough cash for emergencies.
Do you have cash savings you can draw on in an emergency? A good rule of thumb is to have ready access to cash equal to 3 months of household expenses.
– You have adequate insurance.
Have you arranged protection for yourself, your family and your home or other property?

When you are ready, consider potential structures for purchasing and loans, weigh up negative gearing Vs. positive gearing, and the purchase of new Vs. old. Then you start looking…
Look for areas where:
– high growth is expected (potential for Captial Gains)
– rental income is high compared to property value
– consider proximity to CBD and amenities
Look for properties that:
– have features that will appeal to a broad market – including yourself!
– will attract more than one segment of the rental market
– have a logical floor plan, maximising space
– have lots of natural light
– are close to shops, schools and transport

Continue to research recent sale prices and vacancy rates in your potential neighbourhood, and any proposed changes that may affect future prices. You may also consider investing in a buyers advocate. Whatever the decision, the one to take the first step is always the hardest! And initially, your time will be required to focus on making the best decisions. Like most things in life, when it comes to investing, you need to have a goal and a plan to achieve your strategy. As they say, a goal without a plan is just a wish… and anyone can have one of those!

If you are interested in learning more about our Investment Property Education sessions, or would like to discuss your situation, please contact us at: info@therossgroup.com.au   OR

Come along to our upcoming event on “Property & Superannuation”:
When:     Wednesday 22nd April @ 5.45 pm for 6 pm start (concludes at 7.30 pm)
Where:   Holmesglen Institute of Tafe, cnr Warrigal & Batesford Roads, Holmesglen
How:       Contact Mel Ross on mross@therossgroup.com.au OR phone 98878751

Remember, “the best way to predict your future is to create it.” – Abraham Lincoln

 

 

 

Contributed by Mel Ross.