Title: Tips & tricks to investing in property
Author: Groshan Fabiola
Property investment has a lot of potential benefits, and it can
help you build up a substantial wealth, in time of course.
However, property investing has some risks, and no one can
gurantee that everything will go ok and that the money will
Less risky than shares, property investment attracts many people
and has two major benefits : the tax advantages from negative
gearing and the capital growth. Negative gearing in property
investment means buying with money that came from a loan that
has the annual 'rent' less than the loan interest and the
expenses paid for the property's maintenance together. Doing
this brings benefits from taxes and the most important thing is
the interest of your mortgage. Capital growth represents the
money made from the value of your properties. This is not
guaranteed, because you have no guarantees that the value of a
property will raise.
If you plan on starting to do some property investing you don't
have to start by investing in a place where you also live in.
You can for example buy an apartment that you can then rent out.
Furthermore, property investment that's done in a place which
you are not going to occupy takes some of the stress and emotion
of what and where to buy. One of the first things you must
consider after you've decided do perform a property investment
is where to buy. It is recommended that you try to buy in a
growing area that provides everything a tenant is looking for:
shops, transportation and leisure. Another useful tip if you
plan on renting is to choose an apartment instead of a house
because they are easier to maintain and a great part of the
expenses are shared with the others.
A risk in property investment is that the value of the property
you bought may decrease, and you may be forced to sell the
property quickly, so consider this when buying and try to pick
an area where you know you can always sell the property with no
And the last advice about buying and renting a property is that
before doing the property investment you can ask a little about
the history of tenancy in the area, if there are many tenants,
if there are periods when the apartments aren't occupied.
After doing the property investment in a property that will be
rented you can pay your 'rent' for the loan from the bank, if
you got one, and when the 'rent' is finished you will no longer
be negatively geared, but positively geared. This way you've
made your property investment pay for itself. Not being
negatively geared anymore makes you lose the tax advantages, but
you should still be able to make profit. If you want to get into
property investment but you feel that you don't have the time to
manage and take care of everything, you can hire a property
manager that will take care of the property management for you.
The fee for such a thing is somewhere around 5% of the profits,
but it has many advantages, you save a lot of time and you will
benefit from the experience and knowledge property managers have
in this domain. These people deal with rentals and tenants daily
so they know a lot about this. Another thing you need to do is
trying to keep up with all the changes that occur in property
investment and property investing taxation laws.
These are the basic things you should know about property
investing, if you want to start investing into property
About the author:
This article is one of Groshan Fabiola finest work as a result
of a detaliated research on Property investment. Of course this
is only a concentrated report on what Property investment really
means. So if you would like to find out more useful information
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