The investors have different financial aims to fulfill.
They are usually based on the cash flow, capital gain, tax minimization and other options. The fund for investment can be from many options such as equity in owner occupied home, equity in investment home, savings, other investment, super, heritage, wind fall,self managed super fund, guarantor, investment partners etc. Different options for properties such as buy land and build, buy and TLC, buy new property under construction etc. Find the location, location and location keeping the potential customer in mind. Facilities the customer may like to have. Investment structures are utilized to maximize the net gain from the investment they can be as individual, family partners, trust, company etc. The other complex structure and options are also considered by investment based on the risk appetite of the investors.
The investment in property also offers many options as investing in land, off the plan, buy new home, buy run down house and renovate, demolish old house and sale developed land, improve land value by development approval, sub divide the land, covert or upgrade to appeal of market, re-zoning and other special consideration of the projects. These all can be applied even to commercial and office space or service based zoned areas in council.
This shows the nature of variety of simple to complex opportunities offered by investment in property.
The level of financial leverage available for commercial property is lower as compare to residential properties and cost are different due to different tax on commercial properties.
The investment in property is generally done to augment the income at multiple levels.
The complex picture of the investment in property can be resolved based on the step by step system followed as below.
1) Develop the list of aims of investment and priority to them
2) Determine fund available with you
3) Put the different options you have and can have for investment structure and how they fulfill your financial aim
4) Do market research to find which type of properties you can use as options based on your financial and person strength (please count only strength which you can put to use).
5) Do financial calculations such as cash flow, capital gain, tax, cost of buying, cost of sale, period of investment and any other options you can put in your model. ( If need read books or engage with knowledgeable persons like real estate person, accountants, depreciation consultants, financial planners)
6) Do few dummy investments over the period of 3-6 months to test you model verify your model, understanding and modify till you get full understanding of your model.
7) Refine your understating of market, your strengths, sort out only one or two path to investments.
8) Do another set of dummy investments over the period of three months with the model developed. This is your uniqueness and strength also this is your winning point in market.
9) Now are ready for investment. It is preferable to have one or two mentors who are not you family members or partners in business.
10) Happy investing.
11) Just remembers to appreciate your mentor, but you own the decision and fruits of decisions you have taken.
Investors are you ready for reducing interest rate & increasing rent yields. Now many properties are becoming positively geared, with long term capital gain also. The right kind of investment will provide you with short term as well long term gains. The options such as self managed super fund (SMSF) is well worth considering from taxation point of view.
We as SLIM MONEY are ready to be your mentor for investment only in aspect of mortgage and help you to identify more experts you may need.