The buy-and-hold property investment strategy is the most commonly used among Australian investors due to its simplicity, passive nature and reduced risk compared to other strategies.

Adam Grocke at Smart Property Investment explains the investment strategy.

A buy-and-hold property investment strategy requires less investment knowledge, less risk and less deposit, making it a great entry level investment. The key to this strategy is to simply purchase a property and retain it until you have … Read more »

Many investors believe renovation projects are the best way to increase their rental returns. Yet simple DIY improvements can also push up the rent you receive at a fraction of the cost. Industry experts reveal their top tips for higher rental rewards in an article in Smart Property Investment.

1. Scope out the competition

Before embarking on a home improvement mission, investors need to understand how their property measures up to those of their … Read more »

When it comes to investing in property, you might have come across the term ‘negative gearing’, but do you fully understand what negative gearing actually is? Mark Mendell at iBuyNew discusses his thoughts.

What is negative gearing?

Negative gearing is where your rental income from your rental tenants is not enough to cover your mortgage repayments and other associated property costs, like property management fees so you end up making a loss. In order to … Read more »

When it comes to investment myths, one of the main ones we hear is that all investment properties double in value every seven to 10 years. This is simply untrue. Although in some instances it may play out for some investors, it is by no means a rule on which you should base your investment decisions. RBA chairman, Glenn Stevens, says that ‘property today won’t deliver the same capital growth … Read more »

The equity homeowners have in their property is likely the biggest untapped source of available capital for property investment. The real estate market in cities like Sydney, where prices rose nearly 16 per cent last year, is well and truly booming. Yet many homeowners who have benefitted from rising sale prices face the question of leveraging equity with deep trepidation.

Have idle equity? Here’s what to do.

With sound financial planning … Read more »

One of the key pillars to smart property investment is finding suburbs likely to experience capital growth. Savvy investors have been lucky enough to invest in suburbs on the cusp of a boom and have reaped the rewards of rising property values.

When looking for suburbs with capital growth potential, it is critical to ensure that that growth will be sustainable. Some suburbs present short-term capital growth opportunities which don’t always … Read more »

Interest rates are at record lows, what should I do to take advantage?

On the back of this month’s RBA announcement the Australian lending landscape has entered uncharted territory with the official cash rate now sitting at 2%!

If you haven’t checked recently there are some fantastic opportunities available to restructure your finances, potentially saving you thousands in interest costs and most importantly set yourself up for the next investment opportunity.

Whatever the reason, now … Read more »

Many expenses relating to investment properties are tax deductible. With the end of financial year in sight, property investors should be planning to maximise their property investment tax deductions. By claiming the available tax deductions, your rental profit can reduce and ultimately reduce your taxable income.

Deductions apply for any property you own that is available for rent, hence excluding your home or personal holiday accommodation. Listing with agents can help … Read more »

What happens when a real estate market stops performing? Do you leave the money there to stagnate, or do you move it to a better market? Money Migration – what is it?

In 2003, the Perth market was booming. Properties were selling for as little as $200,000. Within just three years, property values doubled! Many people enjoyed fantastic profits… but then the market plateaued. Investors had the choice of sticking with … Read more »

For investors, finding that golden opportunity to invest in a suburb before it booms is the holy grail.

So, how can you predict if a suburb will have boom potential?

In order for a suburb to boom it must have:

Potential for better-than-average capital growth over the next five years
Be undervalued
Have a median house/unit price that is affordable for most first-home buyers

What determines Capital Growth?

The potential for capital growth is based on a … Read more »