Property is a solid asset to add to your personal financial suite, but it’s crucial to invest in the right one at the right time. Property-related hiccups can incite a huge level of stress and worry so I always encourage hungry homeowners to lean into advice from the experts.
There are so many different factors to consider before signing on the dotted line, but if I had to pull out my top three to help you on your journey, it would be the below:
Timing
As most people understand, the real estate market is very cyclical, operating in booms and busts. In layman’s terms, prices regularly fluctuate as a result of larger economic factors. Right now, interest rates are rising, which means sellers are very eager to sell, and buyers have the upper hand. Overall consumer sentiment is very low meaning there is less competition and greater opportunity for negotiations.
Location
Capital growth is a significant factor to consider when it comes to investment property, you want to know and look out for areas that are rapidly expanding in terms of population, economy and infrastructure. More often than not you’ll find said locations to be driven by aesthetics – buy within close proximity to beaches, town hubs, or landscape views to capitalise on long term demand.
Forward Thinking
Investment properties have to be approached with intention, and that intention is to own and never sell. It’s a long game that can offer financial freedom later in life, but know those benefits take time to really accumulate and meet your return on investment. My advice, however blunt, is just buy it. If you bought seven years ago just think what the property would be worth today…
It’s always worth noting that once you own an investment property, it’s quite inexpensive to keep it, because you earn rent and get a tax deduction on many of the expenses associated with owning. Seek advice from a tax professional to ensure you have a firm grasp on stamp duty, capital gains and land tax, as these all need to be taken into account for maximum return on your property each financial year. As Australia’s leading property taxation experts, H&R Block remain up to date on every single tax concession related to home ownership and property investment. They understand the changing tax implications so you don’t have to.
Buyers are often rocked by just how much there is to know about property investment, before taking the plunge. It is crucial that you create a support network of industry professionals that you can turn to for trusted advice throughout the buying process and beyond.
Improving your property knowledge is only going to help you identify, seal, and sustain an amazing property. Like the old adage; don’t fail to plan, plan to fail.
By Gavin Rubinstein, Property Ambassador for H&R Block Australia
ABOUT GAVIN RUBINSTEIN:
Gavin is defining a new era of real estate. An unparalleled commitment to achieve excellence sees him as one of the most desired property advisers in Sydney. Across all touch points in client, process, and team, he’s elevating the expectations in service and the commitment to deliver, and in turn, make one of life’s great stresses, anything but. And it’s Gavin’s character, negotiation skills and refined attitude that takes it to the next level — having been awarded Ray White’s number 1 salesperson across the state of New South Wales for 2013, 2014, 2015, 2016, 2017, 2018 and 2019. In 2018 and 2019, that extended to the Ray White Group globally. As his first year as a principal, he ranked at the top across the whole group. In 2022 he rebranded as ‘The Rubinstein Group’ with the full support of the White family and is set to open a second office before the end of the year.
Forever one step ahead, Gavin is uncompromising in his dedication to continually be better than yesterday. For the client, for the future, for his team, and this vision is mirrored in the wider Rubinstein Group — a collective of like-minded operators in drive and delivery. Shaping real estate expectations while creating a legacy of ambition, dedication and perfection.
ABOUT H&R BLOCK:
Established in 1971, H&R Block Australia is the leading tax preparation firm in Australia, handling over 700,000 returns annually. Headquartered in Sydney, the company serves the taxpaying public in more than 450 offices. Our tax consultants use the latest in computerised processing and up-to-date electronic filing technology to prepare all types of returns, including personal, investment, small business and corporate returns. As Australia’s number one preparer of personal income tax returns, H&R Block also offers a range of services to small business clients, including bookkeeping and accounting services.