Property Investment: Good and Bad Tips

First, some advisers tell investors to buy locally just so they can visit the property.

While it is definitely a plus if you can check your property from time to time, your investment strategy should not be based on being able to visit it. There are many property markets in Australia which have different growth cycles and drivers. You should invest in the best location, not just your location.

Searching for high yield investments is great but a strong cash flow won't likely make you rich.

A high-yield property investment's cash flow may aid you with your investment management but you still have to grow to build your net worth.

While it is not really advisable to invest only in locations near you, it is also risky and hard to manage properties that are too far from you.

Properties from different countries have different market fundamentals and cycles even if they seem so cheap.

Some advisers also tell investors to buy properties they would live in themselves.

There can be well-performing properties which are tenanted consistently but you would not want to live in yourself. You should not base your decision to invest in a property solely because of tax benefits and depreciation because tax rules change.

Another misleading advice is to purchase a holiday home which you can benefit from personally.

This type of investment could have low growth drivers and won't make you rich but at least, you can enjoy a vacation home.

And lastly, buying off the plan may be overrated.

It is difficult to forecast future values and risky to base your finances on a hope for future growth.

PS.

Invest in existing properties that is known for their growth drivers and features. For more information about property investment and taxes in Australia, contact a Specialist to discuss your particular circumstances.

If you like what you are reading, subscribe to our newsletters now at www.chan-naylor.com.au

Disclaimer