Homepage Smartline newsroom


Announcement posted by Smartline 14 Nov 2016

ROCKINGHAM, Western Australia – Smartline Personal Mortgage Adviser
One of the greatest myths about building wealth is that property investing is a surefire way to get rich quick.

Justin Smith, Principal of Smartline Personal Mortgage Advisers – Rockingham, believes the opposite is true. Property investing, although potentially highly profitable, is a long term financial strategy. 

“When you enter the investor market, an investor must understand that they need to look at the long term, not the short term. Historically speaking, property prices generally double in price every 7 - 10 years. There is no quick fix,” Smith said.

With the annual growth rate of property prices in Rockingham at 1.8%, Smith’s recommendation to focus on long term performance appears to be sound advice.

Smith continues, “Investors actually make money when they buy an investment property rather than selling. What this means is the property must be located in a place close to the city or the ocean, have good infrastructure nearby or at least plans for it to be built. You must know all these things before buying. An investor must use his/her head, not heart. They need to remember that they will never live in the house. They are buying the house as investment to make a profit.”

Another common myth that can cause investors pain is that negative gearing tax benefits are a way to guarantee profit. Smith argues that every investment should aim to be profitable.
“Never buy an investment property purely to save tax. Claiming investment properties as a tax deduction is a bonus rather than the reason you do it. You may claim everything on your tax, but you can only ever get back up to 50% of your tax back. This means it's still costing you 50% + out of your own pocket,” he said.

With many online real estate and ‘youtube experts’ spouting property advice in the modern age, it’s important to seek qualified independent advice when it comes to profitable property investing.

Mistakes made at the beginning of an investment decision are almost impossible to recover from.

For the best independent mortgage and property investment advice, contact Smartline Mortgage Advisers. Justin and the team have been servicing Rockingham since 1999 and can recommend strategies appropriate to your personal situation and financial goals.