Investing in Property
We believe selected, correctly researched direct property is an effective asset in our clients’ investment portfolios.
Direct property can reduce volatility in your investment portfolio and provide a range of benefits:
- Capital growth
- Good yield
- Taxation efficiency
Direct property is a store-of-wealth asset. It is less likely to demonstrate the level of volatility than the equities market (particularly in the last seven years!).
Direct property, acquired using an effective research process, will assist you in building a pool of income-producing assets to achieve financial independence.
A research based process should be applied to the selection of a direct property asset. That process includes both macro (big picture) factors and micro (property specific) factors.
The macro-economic drivers that will ultimately determine the success of a direct property investment include:
- Economics and employment
- Population growth and demographics
- Infra-structure spending
- Supply and demand
- Household incomes
The micro-economic drivers that will ultimately determine the success of a property investment include:
- Rental income
Your individual property selection should be made after these key indicators have been considered and the selected asset satisfies these key tests.
More About Property Advice
Ten tips to maximise your returns from investment property:
1. Don’t invest until you understand the numbers.
2. Make sure the holding costs (rental income less outgoings) are manageable.
3. Invest in locations with high population, employment, and mid to long term capital growth.
4. Diversify across lenders to increase your borrowing capacity. Your goal is to own a large asset base.
5. Buy and hold for seven to ten years. Few people grow wealthy by buying and selling continuously.
6. The area must be close to key amenities such as schools and public transport and a sound long term rental history.
7. Choose new or renovated properties to maximise savings and minimise the need for maintenance.
8. Go cross-country. Diversify your property investments to protect your portfolio against markets with prolonged flat periods. Diversification works!
9. Ensure you have a team of property investment specialists with appropriate research to support any investment decision that you make. A team that can provide ongoing support and education.
10. Do not invest in holiday locations! Rent those ones, it will be less expensive!
Tax advantages of direct property
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A wide range of factors should be considered regarding a property before the decision to buy is made.
High up on the list of key issues are the demographics of the area/suburb that you are considering investing into. What are the demographics of the local population? Families, single professionals, above/below median income?
What are the population figures in the area; is the local population seasonaly affected; is it increasing, is it decreasing?
Research and affiliations
Property is researched and sourced through Braxton Chase Licenced Real Estate Agents a related entity of Locumsgroup.
Braxton Chase market data is sourced from a broad range of contemporary information providers including the following:
Affiliations include, but are not limited to the following: