Please use the menu below to navigate to any article section:<\/p>\n<\/div>\n
If you\u2019re looking to get into property investing or move up to the next rung of the ladder, here are some words of advice on how to invest in property.<\/strong><\/p>\n Property investment<\/em> is simple, but not easy \u2013<\/em> and that\u2019s not a play on words.<\/p>\n In other words, it\u2019s not something you should enter into lightly, but for some reason, that\u2019s what a lot of people who have dreams of making millions with real estate do. They think,\u00a0\u201cI can go out, buy a house somewhere, stick in some tenants to pay the mortgage and make a killing! How hard can it be?\u201d<\/em><\/p>\n<\/blockquote>\n The fact is, most property investors fail.<\/p>\n Why do I say that?<\/p>\n Well, the stats show that around 50 per cent of people who buy an investment property sell up in the first five years, and of those who stay in the game, 90 per cent never get past owning one or two properties.<\/p>\n These statistics suggest that in fact, many Australians don\u2019t know how to invest in property effectively.<\/p>\n So if you want to achieve a better result than the average property investor this Guide is for you\u2026<\/p>\n Emotions are running high at the moment, aren\u2019t they?<\/p>\n FOMO (fear of missing out) is a common theme around Australia\u2019s property markets.<\/span><\/p>\n Auction clearance rates remain high, prices are continuing to rise and supply remains constrained.<\/span><\/p>\n And we are being played with by the media, who are whipping up a frenzy with emotive headlines, causing some homebuyers to worry that the housing market is running away from them, while they worry others by speculating that interest rates are about to rise creating mortgage stress which will lead to a market slowdown or even a crash.<\/p>\n Considering the strong growth of many locations have experienced over the last year some investors are worried that it\u2019s too late to get into the property market.<\/p>\n Of course the fact that we respond to these headlines is normal.<\/p>\n After all, we\u2019re human and the desire or aspiration of buying our first home or upgrading our existing home, or getting onto the property investment ladder is normal.<\/p>\n It\u2019s hard not to get caught up in the emotional turmoil considering we are continuously bombarded with property news in the media.<\/p>\n While emotion has its place in everyday life, it should not have a place when it comes to investing.<\/p>\n You\u2019ll find various examples of the following chart all over the Internet showing the rollercoasters of investor emotion over an investment cycle.<\/p>\n \u00a0<\/p>\n The simple answer \u2013 NO it\u2019s not too late.<\/p>\n Of course it would have been nice to buy a property 10,15 or 20 years ago.<\/p>\n And yes it would have been great to buy a property 12 months ago at the beginning of the current cycle but it is likely that well located properties will continue to increase in value for the next few years, but not at the same frenetic growth experienced over the last year.<\/p>\n Remember\u2026there is not one \u201cAustralian property market\u201d and even within each state there are multiple markets, divided by geography, type of property, price point etc so in this detailed article I\u2019ll explain what our research suggests is ahead for Australian house prices.<\/p>\n This seems wide consensus among all bank economists that property values will grow by 6- 8% over 2022 and this cycle will eventually be slowed down by either rising interest rates or intervention by APRA in 2023 0r 2024<\/p>\n Currently, home prices are surging around Australia, auction clearance rates remain high, and the media keeps reminding us we\u2019re in a property boom.<\/p>\n The result is emotions are running high at the moment, with FOMO (fear of missing out) being a common theme around Australia\u2019s property markets. One of the leading indicators I watch carefully is finance housing approvals, and even though these have slipped from record levels experienced earlier this year, they are still very high suggesting that more Aussies are looking at getting into property and we will have strong ongoing demand from owner-occupiers and investors as the year moves on.<\/p>\n It\u2019s clear that we are entering into a \u201cCovid Normal\u201d world and consumer and businesses confidence is rising.<\/p>\n And our savings war chest will continue to fire our economy\u2026.<\/p>\n Australians have been stashing their cash and it is likely this money will be spent over the next few years, providing continued economic momentum as a good chunk of this money will find its way into consumer spending.<\/p>\n Some of it will go to paying down debt and some will go into buying assets.<\/p>\n We\u2019re already seeing this in retail spending and in our property markets<\/p>\n With borrowing costs lower than they ever have been, the reassurance that interest rates won\u2019t rise for some time yet, and increasing confidence that we\u2019ve got this \u201cvirus thing\u201d under control, it is likely that buyer demand will remain strong throughout next year.<\/p>\n In fact, this is a self-fulfilling prophecy\u2026<\/p>\n As property values increase and the media reports more positively about our property markets, FOMO will mean more buyers will be keen to get in the market before it prices them out.<\/p>\n While last year there were many first-time buyers (FHB\u2019s) in the market, buoyed by the many incentives being offered to them, I can see demand from FHB\u2019s fading due to increasing competition as investors re-enter the market and property values rise.<\/p>\n You see\u2026typically investors compete for similar properties to FHB\u2019s.<\/p>\n Of course over the last few years, investor lending has been low, but with historically low interest rates and the prospect of easing lending restrictions, it is likely that investors will re-enter the market with a vengeance.<\/p>\n At the same time the federal government\u2019s HomeBuilder scheme and other FHB incentives have disappeared.<\/p>\n While many factors affect property values, the main drivers of property price growth are consumer confidence, low interest rates, economic growth and a favourable supply and demand ratio.<\/p>\n And now that our international borders are open and the government is suggesting they will allow in 200,000 skilled migrants, this will place extra demand on our housing markets.<\/p>\n As always, there are multiple real estate markets around Australia, but in general property values should increase strongly throughout 2022.<\/p>\n If Coronavirus taught us anything, it was the importance of living in the right type of property in the right neighbourhood.<\/p>\n They will look for things such as shopping, business services, education, community facilities, recreational and sporting resources, and some jobs all within 20 minutes\u2019 reach.<\/p>\n Residents of these neighbourhoods have now come to appreciate the ability to be out and about on the street socialising, supporting local businesses, being involved with local schools, enjoying local parks.<\/p>\n While most property markets around Australia have performed strongly so far this cycle (other than the inner city of high-rise apartment market), it\u2019s important to realise that moving forward we are likely to have a 2-tier property market.<\/p>\n In other words, not all property markets will continue growing strongly moving forward.<\/p>\n Properties located in the inner and middle-ring suburbs, particularly in gentrifying locations, will outperform cheaper properties in the outer suburbs.<\/p>\n While the outer suburban and more affordable end of the markets have performed strongly so far, affordability is now becoming an issue as the locals have had minimum little wages growth of the time when property prices have boomed.<\/p>\n In these locations, the residents don\u2019t have more money in their pay packet to pay the higher prices the properties are now achieving.<\/p>\n More than that, Covid19 has adversely affected low-income earners to a greater extent than middle and high-income earners who are likely to recover their income back to pre-pandemic levels more quickly, while many have not been hit at all.<\/p>\n Also, high-rise apartment towers in our CBDs, which were already suffering from the adverse publicity of structural problems prior to Covid19, will now become the slums of the future as they are shunned by homeowners and investors.<\/p>\n And as we start to emerge from our Covid Cocoons there will be a flight to quality properties and an increased emphasis on livability.<\/p>\n As their priorities change, some buyers will be willing to pay a little more for properties with \u201cpandemic appeal\u201d and a little more space and security, but it won\u2019t be just the property itself that will need to meet these newly evolved needs \u2013 a \u201cliveable\u201d location will play a big part too.<\/p>\n To many, liveability will mean a combination of:<\/p>\n Whilst some caution that you shouldn\u2019t put all your eggs in one basket, many Australians prefer to invest in real estate because of its distinct advantages over other asset classes.<\/p>\n Investing in shares may yield attractive long-term returns, but it is considered to be more volatile and unpredictable than the property market.<\/p>\n Hence, it doesn\u2019t sit well for low-risk takers, especially those who have no idea how the share market works.<\/p>\n Though you can study the share market, it still requires specialist expertise to know how to invest and invest wisely.<\/p>\n This can be very costly. It\u2019s also possible to make huge losses virtually overnight in the share market, whereas property is a more consistent asset class.<\/p>\n Investing in term deposit savings accounts entails low risk, but it also yields minimal rewards.<\/p>\n One of the big benefits of investing in residential real estate is that the market is dominated by non-investors (homeowners) who don\u2019t think like investors and add stability to residential real estate prices.<\/p>\n Knowing how to invest in property is the key. You can profit from real estate in one of four ways, and if you get the combination right you\u2019ll make money from bricks and mortar.<\/p>\n They are;<\/p>\n Compared to other forms, property investing is a safe and proven method for growing your wealth.<\/p>\n Pros:<\/strong><\/p>\n Cons:<\/strong><\/p>\n Property investments are not all rainbows and lollipops, there are some cons associated with investing in real estate:<\/p>\n When learning how to invest in real estate, it\u2019s important to understand the three stages of building wealth through property from the get-go, which are:<\/p>\n When it comes to real estate investment you\u2019ll often hear two somewhat conflicting philosophies being bandied around.<\/p>\n A common question beginning investors ask is \u2013 which is better?<\/p>\n Firstly, there is the \u201cCashflow<\/strong>\u201d followers; they suggest you should invest in property that has the capacity to generate high rental returns to achieve positive cash flow.<\/p>\n In other words, you want rental returns that are higher than your outgoings (including mortgage payments), leaving money in your pocket each month.<\/p>\n Then there\u2019s the \u201cCapital Growth\u201d <\/strong>crew.<\/p>\n Their favoured\u00a0strategy is to invest for capital growth over cash flow.<\/p>\n In other words, you need to buy property that produces above-average increases in value over the long term.<\/p>\n Investment properties in Australia with higher capital growth usually have lower rental returns.\u00a0 In many regional centers and secondary locations, you could achieve a high rental return on your investment property but, in general, you would get poor long-term capital growth.<\/p>\n Having said that there\u2019s no doubt in my mind that if I had to choose between cash flow and capital growth, I would invest in capital growth every time.<\/p>\n It\u2019s just too hard to save your way to wealth, especially on the measly after-tax positive cash flow you can get in today\u2019s property market.<\/p>\n So the first phase of wealth accumulation is the stage of asset accumulation.<\/p>\n And in today\u2019s low-interest-rate environment, the cost of holding property is the lowest it\u2019s ever been.<\/p>\n My advice for budding investors is to understand that wealth from real estate is not derived from income\u00a0because residential properties are not high-yielding investments.<\/p>\n Real wealth is achieved through long-term capital appreciation and the ability to refinance to buy further properties.<\/p>\n If you seek a short-term fix with cash flow positive properties, you\u2019ll struggle to grow a future cash machine from your property \u2013 it\u2019s just that simple.<\/p>\n But here\u2019s the trick\u2026 You can\u2019t turn a cash flow positive property into a high growth property, because of its geographical location.<\/p>\n But it\u2019s all about knowing how to invest in property that can achieve both high returns (cash flow) and capital growth by renovating or developing your high-growth properties.<\/p>\n This will bring you higher rent and extra depreciation allowances, which converts high growth, relatively low cash flow properties into high growth, strong cash flow properties.<\/p>\n This means you can get the best of both worlds.<\/p>\n Put simply\u2026 cash flow keeps you in the game while capital growth gets you out of the rat race.<\/p>\n As you can see any investment property strategy<\/a> involves some level of risk. One way of minimising their risk is to have a financial buffer in place (with funds in an offset account) for your personal needs as well as for any unexpected investment expenses.<\/p>\n This will allow you to keep their properties well maintained and cope with any unexpected maintenance or vacancies.<\/p>\n All property investors should also consider taking out income protection and life insurance as well as landlord\u2019s insurance to protect their interests.<\/p>\n Of course, the reason behind this recommendation is that one of the most important factors in an investor\u2019s ability to keep growing their property portfolio is the ability to service their loans and use their income to supplement the rental shortfall in the early years.<\/p>\n Without an income, you may not be able to hold on to your properties.<\/strong><\/p>\n Similarly, if you die, you would need to consider how your spouse would be able to continue holding the investment properties.\u00a0 So, I suggest you need to make sure they have insurance to sufficiently cover mortgage repayments if the worst should happen.<\/p>\n I\u2019d also recommend that you seek advice from an accountant before purchasing an investment real estate to ensure you buy it in the most tax-effective manner.<\/p>\n Once you\u2019ve bought your investment property you\u2019ll need to arrange an\u00a0investment property\u00a0depreciation schedule<\/a> to ensure you claim the most in deductions.<\/strong><\/p>\n And no matter your age, it\u2019s wise to consider estate planning because, while we never like to talk about it, it\u2019s important to plan to look after your family after you\u2019re gone.<\/p>\n This means you should see a solicitor and prepare a will, choose executors, and organise a power of attorney.<\/p>\n Finally, it\u2019s important to treat your investments like a business and regularly review your portfolio with your property strategist to track its performance, ensure you have the right loans and best interest rates, and assess when you\u2019re ready for your next acquisition.<\/p>\n There are several real estate investment types in the market that you can choose from as an investor.<\/p>\n One of the most popular is the freestanding house<\/strong>, which serves as a great home for tenants looking to raise a family.<\/p>\n A moderate-sized family home in the right suburb that is pet-friendly and with a fenced backyard often commands a high price in the rental market and delivers consist ant capital growth because it is in strong demand by owner-occupiers.<\/p>\n However, our changing demographics mean more families are trading their backyard for a balcony, so if you want to target singles, couples, students, young professionals, and retirees, you could invest in a unit or <\/span>apartment<\/strong> that best suits their busy lifestyles.<\/span><\/p>\n The location is of utmost importance in these properties, as tenants prefer a place that is close to their university or workplace\u00a0and is easily accessible to public transport.<\/p>\n While some people invest in a holiday home<\/strong>, in my mind these make poor investments as they are in seasonal demand and may remain untenanted for long periods of time, and their values fluctuate considerably depending upon the general economic cycle.<\/p>\n You see\u2026when times are tough no one really wants to (or can afford to) buy a holiday home.<\/p>\n There are also:<\/strong><\/p>\n Understanding the market for each type of investment property is the key to knowing how to invest effectively. It\u2019s also worth seeking market updates from a real estate agent and investment advice from a buyers agent<\/a>.<\/p>\n As an investor, it\u2019s important to understand that location does most of the heavy lifting for your real estate investment success.<\/p>\n Around eighty percent of your property\u2019s performance will be due to buying in the right location and the balance by owning the right property, an \u201cinvestment grade\u201d property that suits the fundamental demographic in that location.<\/p>\n That\u2019s why I suggest following my advice of a strategic top-down <\/strong>approach to finding a property that will outperform the general market.<\/p>\n So how do they know which is the right property to buy?<\/p>\n My property investment advice is to follow the 6 Stranded Strategic Approach.\u00a0<\/strong><\/p>\n By following my 6 Stranded Strategic Approach,<\/em> I minimise my risks and maximise my upside.<\/p>\n Each strand represents a way of making money from property and combining all six is a powerful way of putting the odds in my favour.<\/p>\n If one strand lets me down, I have four or five others supporting my property\u2019s performance.<\/p>\n When you look at it this way, property investment strategy takes a lot of time, effort, research, and something most investors never attain \u2013 perspective.<\/p>\n This is invaluable in knowing how to invest in real estate.<\/p>\n What I mean by this if you can gain a lot of knowledge over the Internet or by reading books or magazines but what you can\u2019t gain is experience.<\/p>\n It takes many years to develop the perspective to understand what makes an investment-grade property.<\/p>\n That\u2019s why I recommend employing a property strategist<\/a> to guide them.<\/p>\n By the way\u2026 this is not a buyer\u2019s agent, even though a buyer\u2019s agent will be involved eventually to purchase the property.<\/p>\n In fact, in today\u2019s challenging environment is more important than ever to have more than just a property strategist, but a team of advisors who take a holistic approach to your wealth.<\/p>\n By the way\u2026that\u2019s what we specialise in at Metropole.<\/a><\/p>\n We take a macro view on your needs and will build you a customised, personalised Strategic Property Plan<\/a>, and then we will help you implement this strategy by coordinating the various consultants including a buyer\u2019s agent.<\/p>\n While timing the market is not the be-all and end-all, it certainly helps to understand how the property market moves in cycles.<\/p>\n Following the herd and buying when everyone else is on the property bandwagon doesn\u2019t always work.<\/p>\n That\u2019s often when the market is near its peak.<\/p>\n On the other hand, you have more chance of nabbing a good deal in a buyer\u2019s market, when property is out of favour.<\/p>\n That\u2019s why Warren Buffet said, \u201cBe fearful when others are greedy and be greedy when others are fearful.\u201d<\/p>\n Having said that, over the years I\u2019ve changed my view on timing the market, especially if you\u2019re an established investor.<\/p>\n If you\u2019re into real estate for the long haul (and that\u2019s really the only way to play the property game) then time in the market<\/em> (owning a property that will outperform the averages in the long term) will trump timing the market<\/em> (making a one-off capital gain, but then often missing out on strong, long term growth because you\u2019ve bought in the wrong location.)<\/p>\n As you can see from the graphic below, if your $500,000 investment property increases in value by 7% per annum, it will be worth almost $1.4 million in 15 years\u2019 time, but almost half of this capital growth will occur in the last five years.<\/p>\n This means the sooner you start your real estate investment journey the better because you\u2019ll have time and compounding working longer for you.<\/p>\n Over the last few year houses have outperformed apartments so many are wondering are apartments still a good investment<\/p>\n But these are big picture \u201coverall\u201d stats \u2013 some apartments, especially family friendly low rise apartments in lifestyle neighbourhoods have still performed well while high rise CBD apartments have performed very poorly with significant vacancies (up to 30% in Melbourne), falling rents and falling values with few buyers interested in these<\/p>\n If you can afford a house in a good location, then that\u2019s probably the way to go.<\/p>\n But if your budget doesn\u2019t allow you to buy a house in the right location<\/em>, I\u2019d rather own a \u201cfamily friendly\u201d apartment in a good suburb, than a house in the outer suburbs.<\/p>\n I\u2019ve already explained that around 80% of your investment\u2019s performance will be due to its location and about 20% due to owning the right property in that location.<\/p>\n For many investors, apartments offer an affordable entry point into the property market.<\/p>\n Recently financial advisor Stuart Wemyss conducted a performance review of investment-grade apartments<\/a><\/p>\n He concluded:-<\/p>\n Just like the houses vs. apartments<\/a> debate, old and new properties each have their own benefits.<\/p>\n Let\u2019s face it, when it comes to buying big ticket items we all love new, shiny things, but without a doubt, for the majority of investors, established properties will always offer far better capital growth potential than a new build for a whole number of reasons.<\/p>\n So let\u2019s take a look at the benefits of old versus new.<\/p>\n A BETTER DEAL \u00a0<\/p>\n VALUE ADD POTENTIAL<\/strong> \u00a0<\/p>\n BETTER THAN AN EDUCATED GUESS<\/strong> \u00a0<\/p>\n STRONGER PERFORMER IN A SLOWER MARKET<\/strong> Is there any point where purchasing a new build makes more financial sense?<\/p>\n To put it bluntly, not in my opinion (unless you develop them yourself.)<\/p>\n Some proponents of new properties will argue that you forego numerous depreciation benefits when you buy older homes.<\/p>\n In response, I would argue that buying an established property and undertaking renovations creates (\u201cmanufactures\u201d) additional depreciation benefits and more to the point; you should never buy an investment property for perceived tax benefits, it should always come down to the long term capital gains.<\/p>\n Investing is really a game of finance so, when it comes to good property investment advice,<\/a> a sound financial strategy is just as important as a sound investment property strategy.<\/p>\n Without a well-rounded understanding of how to maximise your borrowing power, use equity to buy your investment, build your portfolio and maintain a financial buffer to see you through the difficult times that we all ultimately face, you\u2019re setting yourself up to fail financially.<\/p>\n![\"house](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/11\/39653963_l-300x210.jpg\")
<\/p>\n\n
Is it too late? Have I missed the boat?<\/span><\/h2>\n
![\"Cycle](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2020\/03\/Cycle_of_Market_Emotions_graphic-new-1160x589.png\")
<\/p>\n5 property trends that I think will occur in 2022.<\/span><\/h2>\n
1. Property demand from home buyers is going to continue to be strong<\/h3>\n
![\"Melbourne](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/08\/melbourne-property-300x225.jpg\")
<\/p>\n![\"First](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2019\/11\/First-Home-Loan-Deposit-300x210.jpg\")
<\/p>\n2. Investors will squeeze out first home buyers<\/h3>\n
3. Property Prices will continue to rise<\/h3>\n
4. People will pay a premium to be in the right neighbourhood<\/h3>\n
![\"Australia](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2020\/05\/australia-suburbs-300x200.jpeg\")
In our new \u201cCovid Normal\u201d world, people will pay a premium for the ability to work, live and play within a 20-minute drive, bike ride or walk from home.<\/p>\n5.\u00a0We\u2019re in for a 2-tier property market moving forward.<\/h3>\n
\n
Why choose investment property instead of other asset classes?<\/span><\/h2>\n
![\"Property-Investment-Portfolio](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2017\/04\/Property-Investment-Portfolio-300x199.jpg\")
<\/p>\nThe\u00a05 ways you make money through property investment<\/span><\/h2>\n
\n
Pros and Cons of Investment Property<\/span><\/h2>\n
\n
![\"property](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/09\/40242504_l-300x220.jpg\")
<\/li>\n![\"bank-savings-house-couple-save-property-meeting-budget-300x199\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/04\/bank-savings-house-couple-save-property-meeting-budget-300x199-300x199.jpg\")
<\/li>\n\n
![\"stress](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2017\/02\/35478370_l1-300x200.jpg\")
<\/li>\n\n
The 3 phases of your investment journey<\/span><\/h2>\n
\n
\n
\n
Capital growth or cash flow \u2013 which is better?<\/span><\/h2>\n
![\"capital-growth\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2017\/04\/Growth-300x198.jpg\")
<\/p>\n![\"graph](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/08\/40327469_l-300x200.jpg\")
<\/strong><\/p>\n![\"proeprty](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/06\/52041438_l-300x257.jpg\")
<\/strong><\/p>\nWhat are the risks<\/a>?<\/span><\/h2>\n
\n
<\/strong>The property market moves in cycles and at times there are external factors that cause a market-wide slowdown or downturn.
Investors who focus on a long investment time horizon weather these storms as capital city markets eventually correct and recover.
However, at this stage of the property cycle, it is likely that the value well-located capital city properties is likely to keep increasing with little general market risk for A grade homes and investment-grade properties.<\/li>\n<\/ol>\n\n
<\/strong>Liquidity is the ease with which you gain access to the money you have within an investment. One disadvantage of real estate investments is the lack of liquidity compared to other types of investments. Your situation may change abruptly due to a change in life circumstances, but you may be stuck with your property for several months or years, depending on the local market cycle and your financial situation\/requirements.<\/li>\n<\/ol>\n\n
<\/strong>A rise in interest rates will affect variable-rate mortgages, meaning the cost of your debt can increase as interest rates climb, putting a strain on your cash flow.
However the risk of interest rates rising over the next couple of years is very unlikely considering the firm \u201cguarantees\u201d given by Dr. Philip Lowe governor of the RBA<\/li>\n<\/ol>\n\n
<\/strong>Most properties are not \u201cinvestment grade\u201d and if you didn\u2019t do enough due diligence and buy the wrong property in the wrong area at the wrong time, you could face years of slow or no growth or worst, no income due to a high vacancy in the area.<\/li>\n<\/ol>\n\n
<\/strong>If your tenant leaves and you could face a cash flow squeeze for a short while and if you lose your job you may be unable to top up you\u2019re rent to meet your mortgage repayments.<\/li>\n<\/ol>\n\n
<\/strong>Foreign buyers who are investing in property in Australia are also subjecting themselves to currency risk, which is dependent on the movement of the Australian dollar.<\/li>\n<\/ol>\n\n
<\/strong>There are also sovereign or legislative risks in the property market, as any unfavourable government action can result in investment losses. A good example of this is the possibility of changing negative gearing rules \u2013 which seems to come into discussion each year around budget time \u2013 a move that would substantially investor confidence.<\/li>\n<\/ol>\nRisk minimisation<\/span><\/h2>\n
![\"risk\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2017\/03\/risk-300x199.jpg\")
<\/p>\n
So knowing how to invest means knowing how to minimise these risks.<\/p>\n![\"market](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2017\/02\/ChartPack16-300x300.jpg\")
<\/p>\nThe different types of investment property<\/span><\/h2>\n
![\"Property-Investment-Checklist-300x199\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/08\/Property-Investment-Checklist-300x199-300x199.jpg\")
<\/p>\n\n
The right location does the heavy lifting<\/span><\/span><\/h2>\n
\n
\n
\n
![\"property](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/06\/13533896_l-300x300.jpg\")
<\/li>\n![\"Top](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2020\/07\/top-down-approach-1160x790.jpg\")
<\/a><\/p>\nUnderstand the market moves in cycles and learn how to invest in property<\/span><\/h2>\n
![\"property](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/09\/17034015_l-300x200.jpg\")
<\/p>\nTime in the market is what delivers the most capital growth<\/h4>\n
![\"500K](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2017\/04\/500K-Property-Increases-by-7-over-15-years-1024x582.png\")
Should you invest in houses or an apartment?<\/span><\/h2>\n\n
![\"lose](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2015\/07\/piggy-bank-broke-bank-money-lose-saving-300x224.jpg\")
<\/p>\n\n
New or old \u2013 Which are the best property investments?<\/span><\/h2>\n
<\/strong>![\"icon2\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/08\/icon2.jpg\")
When you buy a new investment property, you\u2019re not only paying for the property, you\u2019re also handing over a premium to the developer for their profits and marketing costs. Essentially, you are handing your first few years\u2019 worths of capital growth straight to the developer! With established properties on the other hand, when you buy right you end up paying below intrinsic value cost<\/p>\n![\"icon7\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/08\/icon7.jpg\")
Obviously, when you buy a new property everything is already done for you and while this might seem appealing, it is actually a huge disadvantage. The problem is you have sacrificed the potential to add value, or \u201cmanufacture\u201d capital growth, that comes with an established house or apartment.Art Metropole, the ability to add value is one of the primary attributes we look for in an investment property.<\/p>\n![\"icon1\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/08\/icon1.jpg\")
One of the most critical factors when it comes to investing advice in real estate is to know your market. However, a new building doesn\u2019t come with a track record of property price growth to help you make an informed decision when it comes to pricing. And don\u2019t pay too much attention to what other inexperienced investors have already paid to buy into the complex \u2013 most will have overpaid and lost out in the long term.<\/p>\n![\"icon3\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2016\/08\/icon3.jpg\")
One of the big issues with new and in particular off the plan properties is that when the market slows, so too does your rate of growth. New apartments and houses are often the first to see prices soften when the overall market loses momentum. Often though, established homes will either maintain their value or experience a very minimal adjustment.<\/p>\nSo are there any disadvantages to buying established?<\/span><\/h3>\n
Money, money, money\u00a0<\/span><\/span><\/h2>\n
![\"repairs](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2017\/04\/property-maintenance-300x199.jpg\")
<\/p>\n![\"tax\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2017\/04\/Property-Tax-300x183.jpg\")
<\/p>\n