Archive for March, 2016

Why you shouldn’t rely on rental yield

Rental yield is a measurement of potential future rental income on an investment, and is generally calculated as a percentage based on the investment’s cost or market value. Rental yield can be used to compare properties and ascertain which option is better.

In Australia, we’re seeing a rise in rental yields, and while a good indicator on a sound investment, an investor shouldn’t rely solely on … Read more »

Why the Australian economy will stay strong in 2016

In the wake of the Chinese stock market falling, American interest rates rising, and the Australian dollar falling, some commentators have predicted weak property performance for 2016. Commentary about facing a recession or similar economic circumstances to the global financial crisis are running hot.

However, as Ross Gittins, Economics Editor at the Sydney Morning Herald, has suggested this ‘doom and gloom’ is in fact overstated. While … Read more »

How to benefit from your property’s depreciation

As a property investor, it is important to become familiar with the tax benefits available to you. When a property is being used for investment purposes, the Australian Tax Office allows investors to claim the decline in value of the building by way of a tax deduction. The total amount that can be deducted is calculated on an individual basis.

The most efficient way to claim … Read more »

How to build a multi property portfolio

72 per cent of investors only own one property in Australia. This represents a lost opportunity considering the best way to unlock the financial benefits of investing in property is to own multiple assets. The key to building a strong portfolio is tapping into your equity, which can be converted into cash for deposits for future investments. But starting this process can be overwhelming, often discouraging investors to … Read more »

Why it’s a good idea to diversify your property investments

Diversification is a common strategy used by property investors looking to grow their portfolio. The strategy involves investing in properties that differ in price, location, and style – ultimately minimising risk whilst maximising growth opportunities. A diverse portfolio will help balance external factors – both positive and negative – that the market may endure over a long period of time. By having assets spread across a number of … Read more »