Placeholder Image
money when you need it
Intelligent financial engineering  1300 133 350

Investment Property Strategy: Overcoming the Jitters.

Only 20% of Australians have investment property.

Around 20% of Australians invest in property for:

They:

That Leaves 80% without investment property.

Around 80% of Australians don‘t invest in property because they:

Helen Collier-Kogtevs reveals time-tested strategies to help overcome common initial jitters about investing in property. She suggests getting an education from people who are investors themselves is the fastest way. Go to ’THOSE IN THE KNOW‘.

Being comfortable with your debt level and being able to afford the repayments.

Borrowing to purchase income-producing assets such as investment properties is considered by financial experts as ’good debt‘. Rental income is generally used to pay the mortgage and expenses whilst the owner benefits from any capital growth in the value of the property. Bank guidelines also reduce your risk because they simply won’t lend to you if they don’t believe you can repay the debt (and they also allow for interest rate rises).

How to keep making payments on your investment property if you lose your job

Positive cash flow property - This is where your rental income exceeds the mortgage payments and property expenses. Direct the excess rental income into your offset account and hold it there as your ‘rainy day account’ to cover loan repayments if you find yourself unexpectedly unemployed or financially strained.

Negative cash flow property - Negatively geared property is when the mortgage needs ‘topping up’ from your income. Your property deductions/out of pocket expenses may help you to secure a tax refund at the end of the financial year. Save your tax refund as a buffer. Alternatively, your accountant can help you request access to your tax refund as a reduction in tax in your weekly pay. Put this extra amount aside each week and it will help accumulate a buffer to maintain the property in the unfortunate event that you lose your job or your income is reduced.

Risk of not securing a tenant

The best way to mitigate this risk is to carefully select a property with high rental appeal. Only buy in high rental areas where the vacancy rate is consistently less than 3%. It is also sensible to select a property manager before you settle so they can secure tenants immediately.

Possible problem with bad tenants

How do you pay the mortgage if the tenants don’t pay their rent? Or pay for repairs or damage caused if they ’do a runner‘? The answer is landlord’s insurance to cover any losses. The cost of this insurance is minimal when you consider the cost of not having it - and it is tax deductible as well.

Coping with interest rate increases

Changes to interest rates are a fact of life. If you are going to invest in property allow for interest rate increases and only purchase property that you can afford to hold onto even if rates rise.

An exit strategy is your ‘pull the pin’ plan

It is best to put this plan together in the cool light of day before you buy because doing it under pressure can lead to the wrong decision. An exit strategy gives you peace of mind and allows you to sleep at night.

Download a full version of Investment Property Strategy: Are you Sitting on the Fence from the image below.

Investment Property Strategy

Popular Investment Articles:

Pproperty Finance: BRIC and Mortar to Boom

Buying Investment Property: Born Free -Taxed to Death

Investment loans & Articles - Managing your home mortgage and your investments require quite different approaches.

Investment loans & Articles - Managing your home mortgage and your investments require quite different approaches.

Investment Adice: City versus Suburbs

Home Loans Perth: parents helping Kids

ATO payg withholding tax variation for use to reduce the amount of tax your employer deducts from your wages or salary when you own an investment property.

Buying Property Checklist  A very comprehensive checklist to use when buying a property.

Lifestyle Finance Assesment Form to see just how you are tracking and to start your financial strategy.

Equity Finance - Debt versus Equity

Investment Strategy: High fliers or Budget Savvy Investors

Wealth Management - building wealth

Development Finance for property development

An extensive library of Checklists, Forms and Guides can be found in our archive library.

Loans to Lifestyle Home > Services We Offer > Investment Property Strategies
Business Solutions Cash Flow or ATO Tax Debt? Your turnaround solution starts here today.
Placeholder Image
Home Loans & Mortgages When the bank says “NO” - Even with poor credit! Call us for your Low-Doc loan.
Placeholder Image
Farm Loans Safeguard your Farm & Family's Future with our specialist farm loans.
Placeholder Image
Let’s get Social
Personal Finance Home Loans & Mortgages First Home Buyers Fixed or Variable Interest Low Doc Home Loans Home Loan Types Home Equity Loan Home Finance Articles Home Loan Rates Comparison Rates Bad Credit Loans
Business Finance Business Turn-arounds Small Business Finance Car Loans Equipmentr Financing Investment Loans NRAS Wealth Management Financial Review Development Finance
Financial Strategies Financial Analysis Financial Goals Financial Strategy Volatility Finance Options Financial Solutions Reducing Repayments Financial Strategies Equity Finance Commercial Property Investment Property Financial Protection Retirement Planning
Resources Calculators Why Us FAQ's Case Studies Contact Us Privacy Policy Site Map

© Copyright 2012 Loans to Lifestyle All Rights Reserved 81 Smyth Rd, Nedlands WA 6009 Ph: 1300 133 350