Approach property investment with a business mentality
Property investment is popular in Western Australia and should be approached with a business mentality.
In WA, around 80,000 people own at least one investment property with the state’s growing population seeing higher demand from tenants searching for rental accommodation.
Why invest in real estate?
For people who are looking to invest, property remains one of the strongest options.
The reasons for its popularity are;
- it provides regular rental income
- there is long-term growth prospects
- it is an asset you can see and touch
- it has valuable income tax deductions
Be smart with your investment
Investing in property is a big decision and one that should be thoroughly considered before jumping in.
When you have paid off your home loan or built up plenty of equity, you will be in a strong position to borrow funds for investing.
This is the typical starting point for investors, however it should not be taken for granted that you will automatically receive the loan. Like any other form of investment, property investment should be carefully planned and treated as a business decision.
Before starting your property investment journey:
- Obtain competent financial advice.
- Become familiar with the tax jargon commonly used by investors, such as ‘negative gearing’, ‘property depreciation allowances’ and ‘capital gains tax’.
- Look for areas and properties that would be desirable to tenants.
- Aim to purchase well constructed properties that require minimal on-going maintenance.
- Don’t buy a property simply because you like it. Instead buy the property because it is likely to be popular for tenants and there is plenty of potential for capital growth.
SOURCE: www.reiwa.com.au
