A friend asked me recently about a property and whether it would be a
good investment.
I asked them what sort of yield they were chasing.
They didn’t know.
I asked them why they were buying it and they replied: “I thought it would
be a good investment”.
I continued, “how long do you want to own it?
After expenses, including repayments, do you want to make money or are
you happy to run at a loss? Why do you think this property will go up in
value?”
They didn’t really know why or whether they could afford it.
This is surprisingly the position of most first-time residential investors.
Anyone looking to get into the property market should have a strategy.
So many people buy investment properties without a well thought out plan.
I recommend speaking with three experts.
An independent loan broker, an accountant and if you’ve got one, a trusted
real estate or buyers agent.
This will tell you how much you can borrow, how much you can genuinely
afford and what parts of the market are moving. An example of a strategy
would be if you purchased a unit over eight years ago.
You should be taking a position on its value, and considering what you
would do with the capital gain if you sold.
Units are hot and they will remain in short supply for a few more years to
come.
So off-loading your investment unit could be an excellent strategy for
those looking to reduce or pay off their home loan debt.
Open-plan living is a staple of Brisbane residential architecture, but filling large, open rooms with bulky, high-backed furniture can disrupt sightlines and restrict foot traffic. Enter the low-slung, modular lounge, the go-to furniture choice for top property stylists across South East Queensland. Here is why low-profile seating is transforming Brisbane living spaces and boosting buyer … […]
Last Saturday, as I drove into The Calile Hotel car park on James Street, I could feel the weight of expectation. It was the first major auction of Spring and the result could help set the tone for the season ahead. After a more cautious few weeks, there was a market inside hoping for something … […]
Cush for Comment – 7th of September
A friend asked me recently about a property and whether it would be a
good investment.
I asked them what sort of yield they were chasing.
They didn’t know.
I asked them why they were buying it and they replied: “I thought it would
be a good investment”.
I continued, “how long do you want to own it?
After expenses, including repayments, do you want to make money or are
you happy to run at a loss? Why do you think this property will go up in
value?”
They didn’t really know why or whether they could afford it.
This is surprisingly the position of most first-time residential investors.
Anyone looking to get into the property market should have a strategy.
So many people buy investment properties without a well thought out plan.
I recommend speaking with three experts.
An independent loan broker, an accountant and if you’ve got one, a trusted
real estate or buyers agent.
This will tell you how much you can borrow, how much you can genuinely
afford and what parts of the market are moving. An example of a strategy
would be if you purchased a unit over eight years ago.
You should be taking a position on its value, and considering what you
would do with the capital gain if you sold.
Units are hot and they will remain in short supply for a few more years to
come.
So off-loading your investment unit could be an excellent strategy for
those looking to reduce or pay off their home loan debt.
Latest News
Grounded Living: Low-Slung Lounges Tailored for Brisbane Floor Plans
Open-plan living is a staple of Brisbane residential architecture, but filling large, open rooms with bulky, high-backed furniture can disrupt sightlines and restrict foot traffic. Enter the low-slung, modular lounge, the go-to furniture choice for top property stylists across South East Queensland. Here is why low-profile seating is transforming Brisbane living spaces and boosting buyer … […]
Read Full Post
‘MEASURED’ BUT THERE IS VALUE IN MORE THAN BRICKS AND MORTAR
Last Saturday, as I drove into The Calile Hotel car park on James Street, I could feel the weight of expectation. It was the first major auction of Spring and the result could help set the tone for the season ahead. After a more cautious few weeks, there was a market inside hoping for something … […]
Read Full Post