Purchasing an investment property, like purchasing your own home, is a huge financial decision. The considerations, however, are not the same as when it comes to purchasing your own home. When you purchase an investment property it is important to try and be more rational and logical about the decision. Here are some tips to help you make a good investment:
- Know what your long term plans are. Typically, people are investing in property for long term growth. This means that you really need to do your homework when it comes to both the type of house and the location. You need to know what areas have shown good growth and are predicted to perform well. You also need to consider if a house versus a unit is going to give you a better long term return.
- Know the numbers. It is vital that you understand all of the costs associated with owning an investment property. Rent is the source of income you will use to cover any costs but what if the property is vacant? You need to consider quite a few costs including the mortgage, property management fees, water and council rates, any strata fees, landlord and building insurance as well as any ongoing costs for maintenance and repairs.
- Find a good property manager: Many people consider managing a property themselves but in reality, this can be much harder than you think. Having a third party that is trained to manage your property has many benefits. They will ensure all rents are collected and will manage all aspects of your property on your behalf. They are trained to handle late rental payments, vacating inspections and other complex matters that may arise.
- Understand the area and what will appear to prospective tenants. Some important things to consider are distance to local schools, access to public transport and local shops. Also consider who your property will appeal to. If it is a small property then you might have a single person or couple whereas larger properties may appeal to families. Remember, you may need to think about whether or not you will allow pets and children.
- Speak to your accountant first. A good accountant will be able to advise you on negative gearing and how this all works. They will help you understand everything that you are allowed to deduct. If the property is new, they can also instruct you on depreciation. It is critical that you seek their advice up front.
- Make the property attractive to tenants. If the home needs a freshen up, don’t be afraid to paint. Also start putting some money aside for ongoing maintenance as over time, things will need attending to, just like your own home.
I hope you have found these tips useful. Owning an investment property can afford you the opportunity to reduce your tax and provide you with a long term investment that may provide you with an income in years to come but be sure you enter in to it with your eyes open. Get advice and understand what your costs will be. Being clear on these things will assist you in making an informed decision.
A strata property is a term that refers a property where the properties in the group are in some way adjoining, typically townhouses or apartments. They may share common areas such as roofs, lifts, carparks, swimming pool, fences and gates, driveways and gardens. These common areas must be maintained by all unit owners collectively and any expenses incurred will be shared. Part of owning a property in a strata complex is paying a levy that will cover ongoing expenses associated with maintaining the common areas.
There are some benefits to owning a property in a strata complex. These include:
- Increased security if your complex has security features built in to it.
- Lifestyle benefits as you are not responsible for property maintenance.
- As the costs are shared, they can be lower for individuals than if they had to personally incur the full cost, especially with items such as swimming pools.
- Living in a strata complex can be more social.
If you are considering buying a property that is in a strata complex, you need to do your homework to ensure you fully understand the cost implications. Typically, the real estate agent selling the property will provide you with a schedule of strata fees. This schedule would include the details of the strata management company, if one is being used. We recommend liaising with the real estate agent to request some further information. You should be aware that a strata management company is unlikely to supply any information directly to you as you are not a registered owner.
Most strata groups meet regularly, typically every quarter and detailed minutes are kept from these meetings. When speaking to the strata management company, request a copy of the minutes from these meetings for the last 12 months. These minutes will provide you with a very clear picture of what is going on in the complex, what ongoing costs there are and what costs the group is considering undertaking in the near future.
With a little bit of homework, you can make a sound decision about purchasing a strata property. Remember, if you are not sure, we are always happy to offer you advice and guidance.
We meet lots of couples who are going through a separation or divorce and this can be a difficult time for all parties. Prior to transferring ownership or selling a property that is in both parties names, it is a good idea to get legal advice. A family lawyer can assist you as they will provide independent advice that will protect your interests. Even when the separation is amicable, it is a good idea to get advice.
When you are transferring ownership and removing one party from the title of a property, as your settlement agent, we will need a court order that has been made by consent under the Family Law Act 1975.
Prior to commencing any transfer of ownership, all of the parties involved need to have come to a clear understanding of the division to take place. It is important that all parties both know and understand this prior to any transfer of ownership taking place. Further, the parties need to agree to this before you start any transfer of ownership. This will ensure that the transfer happens smoothly and without any delays.
With this in mind, it is prudent to have a financial agreement that clearly sets out all of the financial transactions that will occur when a couple is separating. Again, a family lawyer is best placed to assist you with the preparation of one of these documents.
As your settlement agent, we can assist you with the transfer of ownership on your property. Part of our role is to act as your liaison and we can act on your behalf to minimise the contact you need to have with your partner. We will act in your best interest and be available for any guidance or advice related to the settlement or transfer of ownership process.
We find one of the biggest mistakes buyers and sellers make is basing their choice of Settlement Agent only on price. With many of our competitors offering ridiculously low rates for your settlement we are finding that many of our clients talk about the hidden fees that are then added on top of this rate once the settlement contract is signed.
You’re Secure When You’re Supported By Our No Hidden Fee Settlements Gurantee
At Dynasty Conveyancing we are focused on service and quality. Our small dedicated team offer over 50 years of conveyancing experience and we put you, our clients, first, every time with our “No Hidden Fee Settlements Guarantee”. When you choose to let us manage your settlement you know upfront all of the fees involved meaning that ultimately you can confidently progress with settlement knowing you have all the facts. It is quite likely that you’ll end up saving in the long term. We are completely transparent and committed to keeping you informed and feeling confident at what can be one of the most stressful times in life, buying or selling property.
In a recent survey we conducted, 94% of respondents stated that the things that concerned them the most were not understanding the settlement process and getting caught with hidden fees. If you are buying or selling a new home, an investment property, a commercial property or looking to become investors or small time developers in the southern suburbs of Perth then you want to secure an experienced, service focused Settlement Agent who puts you first. Dynasty Conveyancing is your answer.
We offer a no obligation free quote and you can get started right away by completing our online form here. Remember, our quote may look more expensive than others you might receive but it is complete and backed by our No Hidden Fee Guarantee every time.
If you have any questions please don’t hesitate to contact us direct. We’re always happy to help and look forward to successfully managing the settlement process for your next property purchase or sale in Perth’s southern surrounds,
Michelle and the Dynasty Team