1. Choose a suitable property.
Investing in the real estate industry is usually for asset appreciation, so choosing the most likely value-added property is the most critical step in your decision. It is also important to ensure that you have a stable rental income, because this capital flow will reduce your economic pressure and create income.
Different grades of residential properties-apartments and villas-may produce different benefits in different periods. For example, vacant land can not provide rental income, but if the supply of land in this area is in short supply, it may appreciate rapidly. Investing in apartments may mean lower maintenance costs than detached villas. In some areas, the rental return will be higher, but you should also check it yourself, because usually the asset appreciation of these properties is relatively low.
It is also important for you to consider whether your property can meet the needs of the local population. For example, a multi-bedroom backyard villa will be more popular if it is close to the university. Family houses adjacent to quiet streets and schools will be more favored by family tenants than those around commercial streets.
Add and add
Investing in real estate is an effective way to increase production and increase value for a long time, but you need to hold it for a long time to make a profit from it. You need to know the taxes and fees related to investing in real estate and add them to your calculation formula. Accounting advice is very important, because these data will change over time, and stamp duty, value-added tax and local tax need to be included in your investment calculation.
You know, the bank only calculates 80% of the rental income when checking whether you have the loan liability ability. This is because banks need to calculate intermediary fees and vacancy rates. I suggest you also consider this when calculating.
3. Find a suitable property management company and let them manage it.
They are professionals in this field and can help you get the maximum benefit from this property. Property management (or intermediary) to give you advice is the property law, the rights and responsibilities of owners and tenants. The property manager is also responsible for the maintenance work. Of course, you also need to agree on all related maintenance costs in advance (except some emergency maintenance projects). Don't deal directly with tenants, but try to contact your property management company every time and let it negotiate with tenants.
4. Know the market you buy.
Think about other shopping businesses in the area, and make sure that you have done your research and consulted a trusted professional. For example, check reliable websites (such as RP Data), where you can find average rent, property value, regional reports and so on. At the same time, it is also a good idea to know about the future planning of this area. For example, there are large-scale construction projects in your property, which may affect your rent, while there are planned roads nearby, which may reduce traffic and enhance the value of the property.
5. Choose the loan product that suits you.
There are many corresponding loan products for investment real estate. Choosing the right loan project will be of great help to your long-term financial situation.
Investment in real estate loans can be refunded, but some borrowing costs can not be refunded immediately, you should know this. Don't confuse your investment property loan with your residential loan. These two kinds should be handled separately, so that you can maximize your tax refund benefits.
The choice of floating interest rate or fixed interest rate depends on your personal situation, but you need to think carefully before making a choice. Floating interest rates seem cheaper in the long run, but choosing a fixed interest rate at the right time will also benefit you a lot.
Most investment project loans should choose pure interest loans (not just principal and interest) because it can increase your tax refund, especially if you already have a residential loan. The advantage of pure interest repayment is that it can increase your negative tax deduction.
6. Clever use of the net asset value of another property
Using the net asset leverage of your house or other investment real estate is a good way to buy other investment real estate. Net asset value refers to the actual capital held by the house in your hand, which can be calculated by the value of the house and the amount of loan arrears. For example, if the current value of your property is $65,438+$0,000,000, and you still owe a loan of $500,000, the net asset value of your property is $500,000. At the same time, using the net value of your existing property allows you to lend more money to pay for your investment property, which can also increase your tax refund.
7. Negative tax deduction
Negative tax deduction can give investors certain tax benefits (if their investment exceeds their income). Australian law allows you to deduct borrowing and maintenance fees from your gross income. However, only when you earn deductible taxes from the beginning can you enjoy tax incentives. Therefore, when you lose money on real estate, the advantage is that you can use these losses to offset the tax on your total income. However, investors must know that they should not buy real estate just for tax refund.
8. Age and condition of suitable property and facilities.
Even with negative tax deduction, if the roof and water heater need to be replaced a few months ago, it will have a great impact on income. Therefore, it is wise to hire a professional house inspection company before buying (once a year thereafter). They can help you conduct a comprehensive review of the property and eliminate all possible problems.
9. Attracting tenants
Try to choose neutral tones in the kitchen or bathroom. You should remember that the display image of a property is closely related to the quality of tenants. Although this is not absolute. Another point that people often discuss is whether your investment property should meet your own self-occupation standards. Some people think that this consideration will attract better customers. However, consider self-occupied housing and investment housing separately. You should know that this is your tenant's home, not yours.
10. look forward to the long-term future
Remember, real estate is a long-term investment, and you should not rely on short-term price increases. Because the longer you can hold it, the better. Finally, remember that real estate is not like a fund, and you can't sell part of it when you are short of money. In short, careful consideration should also take into account the number of immigrants, the shortage of rental housing and other data, so that real estate becomes a better investment choice than funds.