12 Steps to Christmas – Property Investment

Welcome to our 12 Steps to Christmas, our guide to advance your financial health by Christmas 2024.

Property investors have ridden the wave of their lifetime over the past decade, and Australia’s favourite wealth creation strategy has paid off for thousands who have taken the next step on the property ladder. 

A good property investment is gold, with the capacity to expand your wealth through capital growth and the potential to maximise your taxation benefits. 

With an expert mortgage broker and a trusted property manager, you can set yourself up for success in residential property investment.

Why invest in residential property?

With property prices growing steadily in most capital cities, along with low vacancy rates, soaring rents and what many say is an overheated share market, many people are looking to property as a sound investment into the future.

Whether you are looking to buy your first investment property, or looking to expand an existing portfolio, our expert team of finance brokers can accurately assess your position and facilitate your investment finance.

Firstly, you must consider your goal when buying an investment property, with 5 concepts you should fully understand before establishing the type of investment you want to put your money into: 

  1. Cashflow – Rental payments from your tenants provide the cash flow income for your property, which can be used to help meet the loan repayments and other expenses of the property, but rent is only one component of your overall investment return. 
  2. Capital Growth – This is where the property value goes up in line with the general property market and history tells us that well located properties will on average, double in value around every 10 years. 
  3. Value Addition – Active appreciation – This is where you add value to your property through either buying at below market value or by renovating and adding more overall value than the cost of the renovation. 
  4.  Negative gearing – Negative Gearing is where the costs of owning and managing an investment property exceeds the rental income received, with the loss claimable as a tax deduction on your taxable income. 
  5.  Positive gearing – Positive Gearing is where the investment property gains more in rental income than the costs of owning the property, becoming a profitable and taxable income stream for the investor.  

There are 3 common pathways to purchasing your next home, all of which a Bernie Lewis Home Loans Mortgage Broker can expertly facilitate for you:

  • Subject to Sale – Selling your existing home to buy your next home.
  • Transition to Investment – Retaining your existing home as an investment and using equity to purchase your next home; or retaining your existing home to live in and using equity to invest in a rental property.
  • Bridging Finance – Buying your next home prior to selling your existing home.

Our property management partner

In late 2023, and of specific relevance to all things property related, Bernie Lewis Home Loans embraced our new sister company – Harcourts Matthews. The Wayville based team share the same family values that we hold dear at Bernie Lewis, and are a group of genuine and trusted professionals. Harcourts are the second largest Real Estate firm in Australia, and represent excellence in both Sales and Property Management.

We would like you to consider allowing Harcourts Matthews to take care of your Rental Property. You trust us to provide sound credit assistance and to manage your mortgages, so please consider allowing our trusted partner to manage your Rental Property investment too.

Harcourts Matthews has a set management structure for Bernie Lewis Home Loans Clients that we believe is best in industry.

  • We believe in delivering the best financial outcome for your property – especially right now, by regularly reviewing your rent and therefore maximising returns.
  • Reporting on your asset, and identifying opportunities for further growth.
  • Respecting your tenant – a happy and respected tenant is a key part of a healthy Investment.
  • Accountability and Protection – keeping your tenant accountable, protecting your investment.

Get started now!

We are proud to be home to a highly skilled team of mortgage and finance brokers who specialise in investment lending.

Bernie Lewis Home Loans have access to a large and diverse range of lending options, which enables us to provide solutions to all walks of life.

To chat about your investment lending goals, simply call 08 8300 8300 or click contact us today.

Important Information

*The information provided in this article is general in nature and does not take into account your personal circumstances. Since everyone’s personal situation is different, this article should not be taken as advice. Market commentary is based on recent economist reporting and references can be made available upon request.

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