8 Critical Property Investment Selection Criteria

8 Critical Property Investment Selection Criteria

What makes this the RIGHT investment property?  Location; multiple industry, close to cities Infrastructure; schools, transport, shopping precincts that will lead to jobs/employment Population movements; how many people are moving into an area compared to those leaving Owner Occupiers V’s Renters Growth levels; strong growth and yield prospects that increase quicker than CPI House and land packages; selections from many Builders (quality, reliability, time), easy to maintain, low costs, builder’s warranty, expert help Depreciation; optimising your schedule. Claiming what is rightly yours Bank valuations; considerations on land and house values. Fair value based on metre square rates...
Beat the taxman and prosper

Beat the taxman and prosper

  For those wanting to really ensure a great nest egg for retirement, being conscious of paying too much tax early on is critical in making the most of your money Superannuation in conjunction with residential investment property are perhaps the most tax effective vehicles that can be used by Australians to build their wealth. With a maximum tax rate of 15% it is enticing for most. This tax rate drops to 0% in the pension phase. Capital gains tax is a major consideration outside of superannuation however a capital gain on a property that has been held for more than 12 months, within a SMSF has a maximum tax rate of 10%; or 0% if in the pension phase. This can potentially save you hundreds of thousands of dollars. SMSF are incredibly favourable for this very reason and a fantastic starting point to get your money working better for you.   About the author; Jason Agnew BHMAcc / Part CIMA / DFS (FP) / GradDip Const. Real Estate Agent Qld – Licence No: 3702512   LYFE PROPERTY   Under the brand of Lyfe Academy, this husband and wife team, Jason & Louise, have grown the Lyfe Group to incorporate financial education, financial planning and property investment. At Lyfe Property our team aligns your goals and objectives with your investment strategy. We educate, support and mentor you through your personal program and ultimately create you long term, sustainable wealth. We take the guess work out of property investment.   Building your family wealth, one property at a time.   The information contained in this article is of a general...
Do you feel in control of your super and the investment decisions?

Do you feel in control of your super and the investment decisions?

Every now and then I wake at midnight wondering what the share market is doing. Do you ever feel that pang of angst and go and check your super or account balance? As super is mostly controlled by fund managers and governed by federal government it’s important to know what’s being decided for your money. Understanding the basics of super can be very helpful. If you do not have these basics in your super, then this is a great place to start … Managed funds are the primary investment vehicle for what the industry calls My Super default accounts and are initially set up under a ‘lifecycle investment strategy’. This means your investment strategy will automatically change in your super according to your age. Is this what you want to have happen? It may be … but if not, how do you take back some control? Getting to select your own investment strategy or portfolio within industry, retail and institutional (wrap) funds whereby a financial adviser can set you up with the right investment portfolio based on your investment risk profile and comfort level is the next stage. Some can include direct shares too. Again is this something you are wanting? Someone else to control your money? Maybe so and that’s great and a good place to be if you are too busy to manage this yourself. But if you’re serious about taking maximum control of your money and financial investment decisions then a SMSF (Self Managed Super Fund) may be a great option, not only because of the flexibility it provides but also as you can acquire and...
Building one brick at a time for long term, comfortable and stable retirement savings

Building one brick at a time for long term, comfortable and stable retirement savings

Residential property is lower risk than most other investments in a SMSF   SMSF ownership is growing rapidly with over 520,000 funds already in existence that control over $540 billion in assets. A large number of users’ balance their asset classes with only direct shares and a portfolio of managed funds. These can provide significant income returns through dividends but tend to be more volatile. If you would like say 50% of your SMSF in a lower risk arena then consider this; Australian direct property along with other cash flow positive investment generating assets. Diversify risk to protect yourself and your retirement! Australian residential property is known worldwide for its robustness. Property is never worth nothing. Companies disappear and investment funds may collapse however in a worst case scenario, if the building on a piece of land collapses, then you still have the value in the land. Time will help iron out discrepancies … history has shown us that this is a long term, low risk strategy.   The Property market will always eventually bounce back It is important that this investment meets your risk tolerance. Refer to a risk profile to determine your comfort levels.   About the author; Jason Agnew BHMAcc / Part CIMA / DFS (FP) / GradDip Const. Real Estate Agent Qld – Licence No: 3702512   LYFE PROPERTY   Under the brand of Lyfe Academy, this husband and wife team, Jason & Louise, have grown the Lyfe Group to incorporate financial education, financial planning and property investment. At Lyfe Property our team aligns your goals and objectives with your investment strategy. We educate, support and...
Top 10 Tips for Investing In Property

Top 10 Tips for Investing In Property

Property seems like the Holy Grail for investing to Australians, but you need to have a well formulated approach to be successful. This list of top 10 tips will help you on your way to property investing success. 1. Get good advice first. If you see a financial adviser first before a broker, real estate agent, the bank and your accountant you will stand a much higher chance of finding the right strategy to implement your property plan (or larger property portfolio). 2. Understand your cash flow now and for the next five years. Without some surplus funds, a steady ongoing income stream and a well-planned out property strategy, your property could be more of a burden than a blessing. So take the time now to consider all the options and map out your cash flow for even the worst-case scenarios. 3. Think about your tax options. Do you need to save tax? If tax is your main motivation, then maybe consider a few other strategies, like salary sacrifice, instead. You need to be sure you are not investing for the wrong reasons and be honest with your reasoning. Tax variations can ensure that your tax refund is paid out to you monthly, which helps ensure that your affordability is in check. You can have this money held in your offset account, helping you make more payments on your mortgage rather than with the tax department until they release it to you. 4. Consider buying off the plan. Depending on your strategy, think about buying off the plan, either in high rise inner city and 6km city radius or...