Buying Your First Investment Property John Smith July 1, 2014 Investment After years of hard work and paying off the home mortgage, you’ve finally got a decent pile of savings and a good, steady income. You want to start making your money work for you but you’re hesitant to enter a relatively tumultuous investment arena of stocks. Property might be a more suitable option. Buying your first investment property can be exciting but also confusing. There are a variety of factors at play in the market and many additional considerations that can spring on you if you haven’t done your research. Market As my father used to always say, the property market fluctuates between boom and doom. Sometimes, the high demand of buyers drives prices up, particularly when there are fewer properties on the market – this is a good time to sell. On the other hand, when the market slumps and more people are selling than buying, this is a good time to buy your first investment property. Once you have it, property is more often than not, a safe bet. Particularly in crowded cities like Sydney and Melbourne and cities like Perth that are quickly developing towards greater urbanisation and increasing property prices, it’s good to already have an investment property. Try to find the places that are on the rise. Long-term Property is generally for the long haul. Even during the slumps, the general rule is that a property’s value in the long run will steadily increase, making it more stable than stocks and many other investment types. Expensive The catch is, of course, that property is expensive and buying one will probably take up a decent amount of your savings so you need to make sure you’re throwing it into something worthwhile. Tax On top of this is tax. When you buy investment property, you’re not just buying the land and the house. You’re paying taxes to the government. For example, in NSW, you may need to pay a land tax every year on any property that is not your principle place of residence (your home). This covers investment property but it also covers land like holiday homes, vacant land, industrial units and land where a house, residential uni or flat has been built. Seek Advice There are so many factors that come into play when investing in property. Interest rates, taxes and industry jargon can all get a bit overwhelming, which is why seeking advice from experts like those at Nexia is essential. When done wisely, investing in property can be incredibly rewarding! If you’ve got the funds and the financial stability, now might be the time to branch out! Happy house hunting! Share this:Click to share on TwitterClick to share on Google+Click to email this to a friendShare on Facebook Leave a Reply Cancel Reply Your email address will not be published. Name* Email* Website Comment Notify me of follow-up comments by email. Notify me of new posts by email.