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question for Fonz
- Thread starter Lao Tzu
- Start date
vinylgroover
New member
Real estate can be a great investment Nordstrom, but it can also be frought with disapoointment if you haven't done your homework.
What are you looking at? Apartment or house. Obviously a house has better long term capital growth prospects, although ongoing maintenance costs will be higher.
What is the prevailing vacancy rate for rental properties in the area you are looking at?
Generally buy property close to established community facilties such as shopping centres, schools, access to public transport etc, no rocket science there, but amazing how many people actually neglect those simple rules of buying real estate.
Are you looking to negatively gear the investment for tax purposes. If yes, can you afford having to dip into your own pocket to cover the differential. You need to be careful with negative gearing and to take advantage of it, you generally need to be in the highest tax bracket and invest in a market with good capital growth prospects.
Make sure you purchase with at least 20% deposit, otherwise, you may be vulnerable to any future Interest rate rises.
Are you looking for a passive investment or the opportunity to add value through development/redevelopment of a property. There are different things to consider when looking at each.
The above just touches the surface.
What are you looking at? Apartment or house. Obviously a house has better long term capital growth prospects, although ongoing maintenance costs will be higher.
What is the prevailing vacancy rate for rental properties in the area you are looking at?
Generally buy property close to established community facilties such as shopping centres, schools, access to public transport etc, no rocket science there, but amazing how many people actually neglect those simple rules of buying real estate.
Are you looking to negatively gear the investment for tax purposes. If yes, can you afford having to dip into your own pocket to cover the differential. You need to be careful with negative gearing and to take advantage of it, you generally need to be in the highest tax bracket and invest in a market with good capital growth prospects.
Make sure you purchase with at least 20% deposit, otherwise, you may be vulnerable to any future Interest rate rises.
Are you looking for a passive investment or the opportunity to add value through development/redevelopment of a property. There are different things to consider when looking at each.
The above just touches the surface.
sermon_of_mockery
Snurd Nurdler
share the wealth then.I'd like to see these "problems" first hand.Fonz said:
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