The hidden costs of property investment that nobody talks about

 

Are you considering investing your money in an investment property and becoming a property investor?

If yes, you need to know what costs are involved and how to establish the best ownership structure for your asset. As many newcomers find out – it is not always a simple process to make an investment, especially in property, and it can be even more challenging to find the best ownership structure that fits your needs and requirements whilst minimizing your long-term costs.

To avoid any unpleasant surprises, it is advisable to do some research first and become well aware of the hidden costs that nobody talks about:

• If you have never invested in any kind of real property before, it may come as a surprise that you will need to have financial means to cover more than just the price of the property.
• There are certain costs that must be managed by you, as the investor, so you need to be prepared. The lender’s mortgage insurance is one possible cost if you are intending to obtain a loan to cover a high percentage of the property’s price.
• There is also the loan application fee, which may be a few hundred dollars, and the stamp duty and registration fees, which is probably one of the largest fees you will need to pay and will possibly amount to thousands of dollars.
• Other costs may include building inspections, pool inspections, pest inspections, accountancy fees, a property manager, maintenance and insurance, and hiring a trustworthy and experienced solicitor to help you with the legal part of the purchasing process.

Considerate planning.

There are some items in the checklist which need your careful consideration when you are planning to invest in property and work out affordability.

When deciding to proceed with investment in property, you should also think about the structure of the ownership. Again, the choice depends very much on your set goals, ability to take risks, financial strength, and other aspects. So, you need to put in balance several options and see which one suits you.

Get advice and guidance.

Matters such as your ownership structure offer quite a few options to consider. Individual or joint ownership, ownership through a company, partnership, or trust, or ownership via your Self-Managed Superannuation Fund each carry associated risk and reward profiles.

Each structure has pros and cons for your unique scenario, so you will need to look at each option and make the correct choice for you. Doing this in the correct manner right from the start will help you manage your risks and will get you closer to the investment goals you want to reach. Since investing in property involves a considerable amount of money, you are well-advised to do things the right way from the start.

In all this process, there is one part that is often very challenging for most investors. Even if you are an excellent business person and have great management skills, the legal chapter may be hard to tackle. That’s why you need an experienced property lawyer you can trust.

Aylward Game is a Brisbane, Gold Coast and Sunshine Coast legal practice with a great reputation and key knowledge in the property law area. Our professional staff is experienced in all aspects of buying and selling a property, both commercial and residential.

Speak with us today on 1800 217 217.

For more information on selling, buying and vendor finance please visit our Brisbane law news section.

To speak with an expert in the area, contact 1800 217 217 to arrange a consultation.

Contact
United Service Club
Level 4, 183 Wickham Terrace, Brisbane QLD 4001

Free: 1800 217 217
Phone: 07 3236 0001
Fax: 07 3236 0005
Email: mail@aylwardgame.com.au

Article Source: Property investment

What To Look For When Purchasing An Investment Property In Brisbane

Making the decision purchasing an investment property, particularly an investment property in Brisbane will be one of the most important purchases you will make.

Whilst purchasing and owning an investment property can be a very rewarding experience, there are key items to consider when you make the decision to start your investment journey:

Location, Location, Location

Consider the location of the property and any amenities close by. To attract a broader range of tenants, whether it be families, couples, singles or tenant share, depending on the type of property you are purchasing, location is the key selling point. For a large family home, being close to schools and shops will appeal to families. Being close to public transport such as bus stops and train stations can appeal to most and are often considered highly desirable by prospective tenants when they are deciding on which area to live in.

It is also a good idea to do some research on the predicted growth for the area. If you are buying through an agent, they should know the area well and be able to provide you with information on any new developments in the area, including shopping centres, housing developments, etc. Particularly if you are looking at keeping your investment property in Brisbane for a while.

High maintenance vs low maintenance

Properties that are very high maintenance should be avoided. An aging property that requires immediate work on painting, carpets, and appliances will cost you more in the short term and may be more difficult to lease. High maintenance gardens can also be problematic as not every tenant has a green thumb and it is quite easy for gardens to become out of control if they are not maintained on a regular basis.

Presentable Properties attract tenants

A neat, clean & low maintenance property is more attractive to tenants. You are also more likely to attract good tenants who will look after the property if the property presents well.

Property Manager vs Self Manage

Self-managing your property can quite often be more work than you think. The legislation surrounding managing tenancies is ever-changing and unless you are completely up to date with your rights and obligations as an investment owner, including correct procedures to follow, correct notice periods for tenancy related issues, and correct paperwork that needs to be prepared, completed, and lodged or stored, you should consider a professional Property Manager to take care of this on your behalf.

Most importantly, Property Managers have the ability to look into a tenant’s previous rental history, which is valuable and not necessarily something you will be able to do accurately if you self-manage. A good Property Manager will negotiate on your behalf, they will collect rent, lodge bond monies, chase tenants for arrears, prepare all necessary tenancy related documents, take complaints from the tenant and provide you with the resources and information on how best to deal with any situation that arises.

Find a good property lawyer or conveyancing solicitor

It is recommended that you engage a solicitor prior to signing the contract. We can assist you with your purchase from the very start. Please contact us for more information.

Don’t forget to check out more information on Vendor Finance and Conveyancing matters.

Article Source: Investment Property In Brisbane 

The hidden costs of property investment that nobody talks about

Are you considering investing your money in an investment property and becoming a property investor?

If yes, you need to know what costs are involved and how to establish the best ownership structure for your asset. As many newcomers find out – it is not always a simple process to make an investment, especially in property, and it can be even more challenging to find the best ownership structure that fits your needs and requirements whilst minimizing your long-term costs.

To avoid any unpleasant surprises, it is advisable to do some research first and become well aware of the hidden costs that nobody talks about:

• If you have never invested in any kind of real property before, it may come as a surprise that you will need to have financial means to cover more than just the price of the property.
• There are certain costs that must be managed by you, as the investor, so you need to be prepared. The lender’s mortgage insurance is one possible cost if you are intending to obtain a loan to cover a high percentage of the property’s price.
• There is also the loan application fee, which may be a few hundred dollars, and the stamp duty and registration fees, which is probably one of the largest fees you will need to pay and will possibly amount to thousands of dollars.
• Other costs may include building inspections, pool inspections, pest inspections, accountancy fees, a property manager, maintenance and insurance, and hiring a trustworthy and experienced solicitor to help you with the legal part of the purchasing process.

Considerate planning.

There are some items in the checklist which need your careful consideration when you are planning to invest in property and work out affordability.

When deciding to proceed with investment in property, you should also think about the structure of the ownership. Again, the choice depends very much on your set goals, ability to take risks, financial strength, and other aspects. So, you need to put in balance several options and see which one suits you.

Get advice and guidance.

Matters such as your ownership structure offer quite a few options to consider. Individual or joint ownership, ownership through a company, partnership, or trust, or ownership via your Self-Managed Superannuation Fund each carry associated risk and reward profiles.

Each structure has pros and cons for your unique scenario, so you will need to look at each option and make the correct choice for you. Doing this in the correct manner right from the start will help you manage your risks and will get you closer to the investment goals you want to reach. Since investing in property involves a considerable amount of money, you are well-advised to do things the right way from the start.

In all this process, there is one part that is often very challenging for most investors. Even if you are an excellent business person and have great management skills, the legal chapter may be hard to tackle. That’s why you need an experienced property lawyer you can trust.

Aylward Game is a Brisbane, Gold Coast, and Sunshine Coast legal practice with a great reputation and key knowledge in the property law area. Our professional staff is experienced in all aspects of buying and selling a property, both commercial and residential.

Speak with us today on 1800 217 217.

For more information on selling, buying and vendor finance please visit our Brisbane law news section.

To speak with an expert in the area, contact 1800 217 217 to arrange a consultation.

Contact
United Service Club
Level 4, 183 Wickham Terrace, Brisbane QLD 4001

Free: 1800 217 217
Phone: 07 3236 0001
Fax: 07 3236 0005
Email: mail@aylwardgame.com.au

Article Source: Property Investment