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Looking at buying an Investment Property and have no idea where to start?
Then you're not alone!.
Do you start at a Real Estate Agency window? What about the internet?
Sometimes it's hard to know, who to trust. When buying an investment property it only takes a small mistake at the beginning of the process to end up becoming a financial nightmare down the track.
"At CMA we are still amazed at how much the average Real Estate Agent, Bank, or even Accountant doesn't know about property investment. Sure they might know plenty about their field of expertise, but they lack the knowledge and power that these services have when combined." |
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From our considered opinion an investment in real estate provides many benefits to a property investor;
- We like real estate assets as they are a tangible asset, this is comforting as you can see your investment, you drive past it whenever you like and inspect the property regularly, unlike many share based investments or money at the bank where you are provided with a piece of paper like a bank statement of share certificate;
- Historically real estate has produced sustained capital growth;
- A property can be utilised as security for borrowings which could be utilised for further investment;
- An investment property can provide an income in retirement;
- The tax system in Australia supports property investors with allowances for expenses and depreciation; and
- Your first investment property can be purchased using equity from your home. |
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Now property investment is not for everyone, in fact only 6% of Australians have real estate as an investment and only one quarter of that
6% have two or more investment properties. Clearly as a society many of us are nervous about investment for a variety of reasons,
borrowing money, a limited understanding of the tax system can make us too overly-cautious.
For those who have taken the time to investigate real estate investment, they have been rewarded with an asset that has appreciated and
a saving on their tax.
At CMA we are real estate investors ourselves, we have the benefit of working in the real estate market every day, so we are well placed to
give you a second opinion about an investment property, what is it really worth, what is the likelihood of it growing in value and what are
the likely returns. |
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One of our goals is to teach you how to set up a property portfolio that keeps more money in your pocket on a weekly basis. We have found that by explaining these types of strategies, many would be investors are able to overcome their fears and can potentially own an investment property for as little as $50 per week out of their own pocket. Remember we don't sell investment properties so we are the only ones who can give impartial and independent advice.
Pre purchase advice
So how can CMA help you as a first time or experienced investor, you maybe considering or have seen a property that you are interested in
as an investment, given that most investments are in the hundreds of thousands or millions of dollars, surely seeking a second opinion
seems logical. Quite often we find that investors choose properties without fully investigating the market or the factors that determine overall performance. Drawing upon our experience we are in a unique position to be able to provide you with independent and transparent advice. Our goal is to take the frustration and uncertainty out of purchasing a property for real estate investors.
Self Managed Super Funds
For most of us, superannuation returns since the Global Financial Crisis (GFC) of 2007 have been poor and yet the fees and commissions
charged by our fund managers in many cases have been more than the mediocre returns. Self managed super funds seems like a great oopportunity to take control of your financial future, however bear in mind running your own super fund will take time and effort in order to produce consistent results and make it worth your while. At present self managed funds have around 15% of their funds in real estate assets. At CMA we are in a position to provide a number of services to SMSF's from pre purchase advice, valuations for transfer purposes, for capital gains tax and annual updates for super fund reporting purposes.
Property Investment Planning
Purchasing an investment property is a big step for most of us, building a portfolio of real estate assets can seem even more daunting. However building a portfolio of real estate investments is both achievable and available for most people. With the introduction of the |
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superannuation guarantee fund in 1986 by the federal government, compulsory superannuation was available for all employees, while the
decision at the time was controversial, now it appears to have been a sensible reform of the economy. What this effectively means is that if
you entered the workforce after 1986 you will need to be self sufficient in retirement. Even if you are a diligent saver over a sustained period most of us will have to accept significantly less in retirement than while we are employed.
So what is the alternative, by building up equity in our own home aswell as using negative gearing allowances available under the tax system, investment in real estate and then reinvestment of those capital gains can provide many investors with the ability to retire with greater overall wealth.
At CMA our independence in property advice ensures that if you like honest investment advice your qualified valuer is well placed to provide you with good advice. |
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| Professional, Experienced & Independent |
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