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CibbuanoTop Ten Tips for New Property Investors 2/2
August 16th 2006 00:42
This is the second half of the property investment tips for new investors. Yesterday we covered five great tips for those wanting to get started in the property investment market. Today we’ll be looking at five more hot tips to follow for successful investing.
6) When it comes to the financial and tax management side of owning investment property it is always a good idea to seek professional advice from an independent financial advisor. They will be able to direct you in ways of using your investment to maximize returns and minimize personal taxes. The benefits of investment properties and the variety of ways to structure their ownership varies depending on age, income levels and personal situation.
7) Don’t let taxes stop you from investing. Yeah taxes are crappy and no one likes paying them. It always seem like the taxes whittle away your brilliant investment returns to peanuts. Sure at face value its easy to write off an investment based on taxes but the reality is that no matter what the tax rate is a sound investment will always provide a return. Remember you can get taxed into the red.
8) Be weary of over-capitalisation however, do make sure that you keep your property in a good state. If essential repair work is needed, make sure you put some funds aside to make these repairs. Take the effort to really consider how much a renovation, addition or repair is going to add to the value of your property and then make a decision from there. Some home improvement works can cost an arm and a leg with little intrinsic value added to the property. Conversely some minor repairs can really boast the sale return or rental demand of your property. If a property is undesirable in the rental market it will be harder to rent out which will end up costing you in lost rental income. Furthermore, some savvy home improvements can lead to a greater rental price.
9) It is easy to fall in love with a property and become very single minded about purchasing it. This can often lead people to pay a price which is in excess of what they can afford or what the property is really worth. Always purchase with your head and not your heart. If an auction goes beyond your limit exercise self control and do not put yourself in a financially difficult situation. Before you even consider purchasing a property it is important to do a throughout inspection. Take not of any initial repairs or expenditures which will be necessary and truly assess the value of the property and what you can afford.
10) It is easier to manage properties which are in surrounding areas and close to home. Furthermore, it is easier to keep up to date with current trends, local market news and the general maintenance of your property. This is not to say that you should only focus on the property market in your area, there are some great investments to be made interstate or even overseas. However, as a first time investor it would probably be easier to keep you investments closer to home before venturing off into the far reach of the real estate market.
6) When it comes to the financial and tax management side of owning investment property it is always a good idea to seek professional advice from an independent financial advisor. They will be able to direct you in ways of using your investment to maximize returns and minimize personal taxes. The benefits of investment properties and the variety of ways to structure their ownership varies depending on age, income levels and personal situation.
7) Don’t let taxes stop you from investing. Yeah taxes are crappy and no one likes paying them. It always seem like the taxes whittle away your brilliant investment returns to peanuts. Sure at face value its easy to write off an investment based on taxes but the reality is that no matter what the tax rate is a sound investment will always provide a return. Remember you can get taxed into the red.
8) Be weary of over-capitalisation however, do make sure that you keep your property in a good state. If essential repair work is needed, make sure you put some funds aside to make these repairs. Take the effort to really consider how much a renovation, addition or repair is going to add to the value of your property and then make a decision from there. Some home improvement works can cost an arm and a leg with little intrinsic value added to the property. Conversely some minor repairs can really boast the sale return or rental demand of your property. If a property is undesirable in the rental market it will be harder to rent out which will end up costing you in lost rental income. Furthermore, some savvy home improvements can lead to a greater rental price.
9) It is easy to fall in love with a property and become very single minded about purchasing it. This can often lead people to pay a price which is in excess of what they can afford or what the property is really worth. Always purchase with your head and not your heart. If an auction goes beyond your limit exercise self control and do not put yourself in a financially difficult situation. Before you even consider purchasing a property it is important to do a throughout inspection. Take not of any initial repairs or expenditures which will be necessary and truly assess the value of the property and what you can afford.
10) It is easier to manage properties which are in surrounding areas and close to home. Furthermore, it is easier to keep up to date with current trends, local market news and the general maintenance of your property. This is not to say that you should only focus on the property market in your area, there are some great investments to be made interstate or even overseas. However, as a first time investor it would probably be easier to keep you investments closer to home before venturing off into the far reach of the real estate market.
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