Novice Property InvestorsWhy Invest In Residential Property?Real estate, compared with most other forms of investment, has a relatively high ratio between security and income yield. The difficulty with most other forms of investment is that they either represent poor security or they provide a very modest and uncertain return. Their ratios, between security and income yield are low. Compared with stocks and shares, the property market has remained relatively stable and has provided a good hedge against inflation. Property assets are tangible and you can take real control of them through improvements or renovations, and there are significant tax benefits and the possibility of 'negative gearing'. In addition, as rent rarely goes down, the returns from your investment tend to be higher. First Time Property Investor?You may have an owner/occupied property and have equity in this property to contribute towards the purchase of an investment property. Or, you may be property buyers who wish to continue renting or living at home and purchase a property for investment. You are probably uncertain if you have sufficient equity to contribute towards an investment property and also unsure of how much the purchase will affect your cash flow and standard of living. Usually you will wish to hold the property for the long term to provide for future wealth - this means not selling your investment property for at least 5-7 years - the average length of the housing cycle. How Can Pfeiffer Finance Help?When it comes to making the most of an investment property, finding the right home in the right location is only half the battle; finding the best finance is other half. There are many options available and the choice of home loan will ultimately depend on your particular investment strategy and the type of property. Our finance specialists look at the best way to structure the finance (in conjunction with your accountant) to gain maximum tax and other financial benefits. We establish a structure that is best for your long term financial benefit - not just a short term fix. We recommend structures that enable the best use of your cash flows - therefore freeing up cash for further investment! Many of our clients are amazed at how little it costs them to own an investment property, due to the help from taxation benefits and rent from the tenant. We can also show you the best way to purchase multiple properties through a structured loan portfolio and using available equity most efficiently. There are also many traps for the first time property investor. These include:
For further information or an obligation free discussion on how we can guide you through the process, contact our experienced advisers on 02 4961 0187 or send us an email to info@pfeifferfinance.com.au |
 |
 |
 |