Your in off plan property st vlas Information
We have mentioned before that investment property in Australia is like any other form of business and a business plan should be written to make sure that you stay focused on what you are doing. That is an all encompassing statement because a good business plan for property investing should have absolute detail in it so that you are searching for a particular type of property.
The final goal
I am often asked, “How many rental Australia investment properties are needed to enable a person to retire?” The answer is not the number of properties, but the income from the properties that you own which is the important thing. It could be 1 or it could be 10 depending on what the return is from each property and on its leveraging.
So, what is your goal? • Is it to have no job and financial freedom before retirement age, or
• to have enough money to live on in retirement
the answer to these questions is very relevant because it will affect how you put your business plan together.
No job and financial freedom
to be able to grow your rental income at a rate that is fast enough for you to be able to live off the income requires, in most cases, that you leverage your initial investment. By purchasing low and selling high you are leveraging at a faster rate and by doing this several times and increasing your capital faster, you will over several years, grow your total wealth much faster and it should allow you to become a full-time property investor. This way, if all should go to plan, you will be able to give up your job and work fully on growing your investments.
Retirement income
the strategy for investing to eventually live off your property income is a strategy that uses the buy and hold method of investing. Over time an Australia investment property portfolio is built up using the capital growth of each property to purchase another.
You can see that the two different attitudes and goals will relate directly back to your business plan.
Article author: mark tait
Some would say that if you are buying and selling properties to make your income, that you are not a property investor. That would seem to be a debateable question.
What is a property investor?
I think we would all agree that a person who buys property and holds it, would be considered a property investor.
A person who buys and sells property to make their income would, in most cases, still say they are a property investor because they still have to invest and risk money in property in order to make their income. One could call this ‘short term investing’.
Personally I don’t know of any particular definite clarification at this point but it is worth pursuing, more from an interest point of view.
This argument is one that is bandied around the share market where an investor is considered to be a person who buys and holds whereas a person who is in for the short term trade is considered to be a ‘share trader’.
So with property, is one called a ‘property trader’?
If you have been a buy and hold property investor and consider becoming a buy and sell investor then you will need to go through quite a different mind shift.
The two property investment strategies are quite different from each other.
Some buy and sell investors do just that, buy and sell. Buy low and sell high, whereas others like to be involved in renovating to make their profit. These are two different strategies again and each needs their own set of criteria in a business plan.
Generally a ‘buy low’ purchaser would be looking for sales which have to be sold for a particular reason like:
• mortgage foreclosure
• deceased estate
• divorce dispute
• severe illness
If a buyer is cashed up and purchasing in these particular situations, a very good price can often be negotiated.
Article author: mark tait
When it comes to buying property there are several ways in which this can be done. The most obvious and common of which being through your estate agents. However in recent years many people are turning to swap ways of getting their dream property, one of which is the option of buying you property at auction.
When thinking of an auction you start to picture antiques and painting being sold, the fact that you can bid on a property or piece of land hardly ever comes to mind first but statistics show that 90% of cheap property is sold through auction.
The type of property that you can buy through auction can be anything from houses through to unused shops or even warehouses. Most of the property that appears at auction is merely just the shell of the property meaning that the interior will need restoration to turn the property into your dream home or business. For more details www.auction- entrepreneur-kit.com .This should especially be noted within older property; you should anticipate anything from it.
Although, unlike an estate agent, you don’t get as much choice of property at an auction, you do get something that is a little bit different and a property that has its own exceptionality. Properties that appear at auction will more than likely require a form of renovation which is why it is highly important that if you do decide to pursue the idea of buying a property at auction then you must be prepared with a clear knowledge of exactly what you want from your property.
It is really tempting to go to an auction and purchase something that doesn’t fit your needs or requirements. You need to make sure that you don’t purchase something from an auction for the sake of buying. This is why before you visit an auction make sure that you decide the sort of property you want i.e. number of rooms, location and size of property as well as setting yourself a budget of how much you are intend on spending whilst at the auction. For more details www.mining-auction-gold.com By sticking to guidelines such as these you will stop yourself from attempting to take on more than you can handle. You should also research into what certain auctions are going to be holding; not all of them will be submission property for you to bid on. Preparation and planning will ensure that you get what you need from the auction.
If you do decide to go ahead and purchase property
from auction then you need to ensure that you have the time and money to make any necessary repair work that may need to be carried out such as plastering, electrical re-wiring or any plumbing work that may need doing before the property can be used. This renovation work can be very time consuming so it is important that if your property is going to be used as a home, that you have an alternate form of accommodation until the work is completed.
http://www.auction-words.com
http://www.auction-professional.com
Just ensure that when you buy property from auction that you plan and prepare for every possibility as it could be the line between success and failure.
Article author: RICHA SOOD
