April 07 2022
"Choosing the right investment property can lead towards financial freedom, so get it right!"- Miguel Nitorreda
Recent forecasts might suggest that Australian housing prices are holding at record highs, however, experts believe that opportunities are still available and ongoing demand will only ensure greater return for the individual investor.
Real estate can be a solid asset to add to any personal financial suite and one that can unlock financial freedom down the line – if it’s the right investment.
With property’s capacity to be a complicated and stressful endeavour, it’s worth leaning on advice from real estate’s best.
Enter Gavin Rubinstein, multi award-winning Sydney agent and principal at the Ray White Group, and most recently, H&R Block’s property ambassador.
Rubinstein shares his decades of real estate wisdom with Nine, outlining five key areas you need to consider in order to choose the ideal investment property.
“Capital growth is a significant factor to consider when it comes to investment property,” says Rubinstein. “You want to know and look out for areas that are rapidly expanding in terms of population, economy and infrastructure.
“More often than not, you’ll find said locations to be driven by aesthetics – buy within close proximity to beaches, town hubs, or landscape views to ensure demand is maintained.”
Forward Thinking
“Investment properties have to be approached with intention, and that intention is to own and never sell,” says Rubinstein.
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“It’s a long game that can offer financial freedom later in life, but know those benefits take their sweet time to accumulate and meet your return on investment.”
Maintenance
“Look for a property that is fit to rent out immediately, unless you have big plans to add value via renovations,” he says.
“For example, houses with big pools and sprawling gardens require a lot of care, whereas a similar home on a smaller block can exist in your back pocket relatively hassle-free.”
Management
“Find a good property manager and let them do their job. They are someone who can keep things in order for you and for your tenant, provide ongoing property advice, and ensure you get the best possible value from your investment.
“If this is not your domain, or perhaps your first foray into property investment, property managers are the best possible resource to keep you accountable for all rights and responsibilities incurred as a landlord.”
Money
“Once you own an investment property, it can be quite inexpensive to keep it, because you earn rent and get a tax deduction on many of the expenses associated with owning,” explains Rubinstein.
“Seek advice from a tax professional to ensure you best understand stamp duty, capital gains and land tax, as these all need to be taken into account for maximum return each financial year.
“Use a trusted property taxation expert, such as H&R Block, as this will keep you on top of every single tax concession related to home ownership and property investment for your individual case,” he says.
Bonus tip: A support team of experts are gold
“Buyers are often rocked by just how much there is to know about property investment, before taking the plunge. It is crucial that you can have a support network of professionals that you can turn to for trusted advice, at any stage of the investment process,” admits Rubinstein.
“An investment property should be about increasing your wealth and securing your financial future, which is why it remains one of Australia’s favourite ways to invest.”
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
Source: Domain
Rubinstein, G. (2022, April 1). Gavin Rubinstein: How to choose the best investment property. Domain. https://www.domain.com.au/news/gavin-rubinstein-how-to-choose-the-best-investment-property-2-1128656/