3 Benefits of Sound Property Investment Advice
Entering the property market or adding to an existing property portfolio can be a daunting prospect. Not only are investors concerned about the possible returns and the safety of such an investment, they are likely to feel somewhat confused by the processes and competition that almost always accompany the purchase of a quality investment property.
When you are buying an investment property in Sydney (or in any other part of Australia), there really is no substitute for seeking and following sound property investment advice. When you seek such advice, you are best placed to buy an investment property that offers the best financial returns and puts you in a favourable financial position.
Specifically then, what are some of the benefits that can come from sound property investment advice?
1: Define your goals
While you may generally understand that you are committed to buying an investment property, you may be less clear about your specific goals. These goals can be divided into long, medium and short term goals that produce financial benefits of different types:
- Long term benefits include capital growth on your property
- Medium term benefits may include increased rental income that is directly proportional to inflation and increases in market rent
- Short to medium term benefits, including: negative gearing, depreciation and a range of tax deductions.
A qualified expert should be consulted to help you understand your entitlements and to help you define your own goals.
2: A better understanding of your own financial position
Many of us have aspirations of owning an investment property. Sydney and other Australian cities are highly desirable locations for buying property, but such cities can also be quite expensive.
By consulting with a professional and accessing sound property investment advice, you will be better able to understand the financial demands necessary and whether you have access to the necessary finance. Ultimately you will feel more confident of whether you are in a position to enter the market or expand your property investment portfolio.
It is important to remember that the purchase of an investment property is completely different to your own home and so it should be treated differently. When you obtain good property investment advice, you will be able to appreciate how such purchases differ and their financial implications for you.
3: Gain insight into the best type of property for you
Sound property advice enables a professional to advise you of ways to make your purchase as lucrative as possible. A trusted advisor will help you to know the price of the property or properties that you can afford and, with them, you may possibly discuss the types of features and attributes that you require in a property in order to attract the best quality tenants and a rental yield that is as high as possible.
A credible and trusted advisor will also assist you to understand the tax deductions and benefits that may be available to you and the ways that these will influence your financial position.
If you are looking to invest in property, it is incredibly important to obtain quality property investment advice. This advice is necessary to appreciate your financial position, the opportunities available and the benefits you may enjoy. With this information you will be able to consider and select the types of properties that are most suitable for you.