Property Purchase Tips
6 Fundamentals of Property Investing
Along with shares, property is one of the most widely used vehicles for investment. Tens of thousands of properties are bought and sold in Australia every year, many of these for investment purposes. While no single strategy is right for every investor, these six fundamentals are can be adapted to enhance any property investment strategy.
1. Obtain Professional Advice
Any type of property investment strategy requires some level of input from professionals, whether it’s a conveyancer, accountant, or agent. An agent can assist with sourcing appropriate properties, and your accountant will provide essential advice on tax strategies and purchase structures. A conveyancing professional can assist you throughout the entire process, arrange important checks and inspections, and ensure that you comply with all the legal requirements for a valid contract and sale.
4 Secrets of Australia’s Young Property Investors
Along with smaller households or the growth of the single person household, one of the most distinctive trends in the Australian property market is the rise of the young property investor. According to a 2011 study by Mortgage Choice, almost 43 per cent of younger investors are opting to buy an investment property before their first home. We look at some of the investing secrets from Australia’s younger investors.
Australia’s Young Property Investors
Generation Y refers to those born around 1979 to 1995. Savvy and disciplined, these young investors are happy to work a second job, take a higher paying job, make lifestyle sacrifices, and commit for the longer term to secure their first investment property and delay owning their first home. Along with recognising the need to get into the market as early as possible, these younger investors know when to seek the advice of a conveyancer, accountant, or real estate agent.
1. Rent to Live, Buy to Invest
Purchasing Property With SMSF 101
Since September 2007, Australians have been able to borrow to buy property (or other assets) through a self-managed superannuation fund (‘SMSF’). The significant tax and asset protection advantages have made SMSF property purchases a highly regarded method for investment and retirement planning. In this article, we look at how to buy property with an SMSF, the key advantages of doing so, and some of the major SMSF rules to be aware of.
How is Property Purchased Through an SMSF?
The SMSF chooses the property to be purchased, obtains a loan approval (where applicable), and finalises their purchase through their conveyancer as they would with a purchase by a natural person. However, the purchase needs to be in the name of the property trustee as the property is held in trust for the SMSF by the trustee.
Top 5 Ways to Structure Your Property Purchase
When it comes to property purchases, there is no single perfect structure for any situation. Your choice of purchase structure should depend on your personal circumstances and financial goals, and advisers such as a financial adviser, accountant, or conveyancer can assist with providing useful advice on your purchase structure.
Why Structure Your Property Purchase?
A property purchase structure is to be differentiated from ownership structure. The latter usually refers to owning land as a sole tenant, tenants in common, or as joint tenants. The former is concerned with the actual purchase structure and using different legal entities to buy property.
Different property purchase structures can yield specific advantages to the buyer. For example, a company structure may offer asset protection while buying property as an individual reduces costs of compliance. Your accountant and conveyancing professional can assist with specific advice about the benefits of different structures…