Investing Tips


Investing in property is a fantastic long term strategy for wealth creation, offering more security than stocks and shares along with healthy returns and clear capital gains, particularly in high growth areas such as South-East Queensland.

At Amber Werchon Property, we don’t just sell and manage property. We’re there to help our clients define and achieve their property goals, by taking a holistic view of the relationship that goes well beyond the transaction.  Our clients are clients for life.

BENEFITS OF INVESTING IN PROPERTY:

NEGATIVE GEARING:
Most effective on properties that offer good capital growth, negative gearing provides significant tax advantages over the life of the investment. In essence, the costs of holding the property (expenses like interest on the loan, rates, repairs and management fees) are offset against the rental income any losses are then tax-deductible.

EQUITY:
Over time, the price of your investment starts rising, which means you will have built up what’s known as equity in the property. You can access these funds through refinancing and use the money to either increase your property portfolio or for other purposes.

VALUE ADD OPPORTUNITY:
Through renovations, and sometimes even minor cosmetic items like painting, you can increase the value of your asset and thereby increase the income you can achieve from it, via increased rent. Even better, any money spent on any repairs and basic maintenance of an investment property is also tax deductible – and even capital improvements can be depreciated over time.

DEPRECIATION BENEFITS:
With a significant number of Australians underestimating the allowable depreciation costs on their property investment, it’s well worth obtaining a professional depreciation report from a quantity surveyor. For a few hundred dollars (which is also tax deductible!), you can maximise any possible tax benefits from your investment.

LEVERAGE:
The basic principle of leverage is to take the money you have and use it to borrow more, to buy an appreciating asset. If the value of the asset increases faster than the amount you have to repay on the loan, your wealth increases. While lenders insist on higher deposits to buy assets like shares, property purchases can be made with as little as 5% deposit. This is one of the reasons why property has traditionally been so attractive to investors, as it offers better leverage than most other types of investment.

SECURITY:
Lenders always consider what type of security is on offer when an investor is seeking to borrow funds. Most lenders prefer financing property as opposed to other investments because it’s less risky, it’s tangible, prices don’t tend to fluctuate wildly and it’s easy to value.

WE SUGGEST THAT BEFORE YOU BUY AN INVESTMENT PROPERTY YOU DO THE FOLLOWING:

RESEARCH:
Know the area, find out what property is selling for and being rented out for and seek areas with low vacancy rates. Look for high growth areas. For example, consider the impact the future development of the Kawana Hospital Precinct will have on property values and demand for rental space over the next few decades in the surrounding area.

BUDGET:
Find out how much you can borrow and talk to your accountant. AW Money can assist you to find a suitable lender who’ll offer you the most competitive package, tailor made to meet your needs. And best of all, there’s no cost to you!

TALK TO US:
Our agents will help you make the best possible property decisions, providing you with regular market information. When you’re ready to buy, we’ll aim to secure the perfect property for you to meet your investment criteria – the best possible value with the highest possible returns and future capital growth potential.

Once you’ve purchased, we can help you by managing the property on your behalf, finding you the best tenant and ensuring your property is always achieving the maximum rent.