| Real estate prices are on the rise, and a shortage of | | | | their resources. Those who invest more will own |
| rental properties makes it a prosperous time to | | | | more value in the house than those who invest less. |
| invest. Before making the leap, take time to develop | | | | If you choose to invest with others, be sure to have |
| a winning strategy to ensure that your investment | | | | your solicitor draw up a contract to clarify who pays |
| properties will be as sound as they are profitable. | | | | what and for how long. The contract should also |
| Property is a long-term investment. Home prices go | | | | define how much stake each investor will have in the |
| up and down. You'll need to cover initial investment | | | | house value after the mortgage is paid. |
| costs, make repayments on the loan, weather the | | | | Finding The Right Loan |
| cycles of property prices and tenancy changes, and | | | | There are many mortgage products on the market |
| make sure there's enough money to cover | | | | from which to choose. You have the option of an |
| expenses, even when rental properties are vacant. | | | | interest-only loan or a principal-and-interest loan. You |
| Tax-Savvy Investing | | | | can chose a fixed or variable interest rate. There are |
| When property income exceeds expenses, or rising | | | | 100% and 110% loans. A shorter term loan will cost |
| house prices allow for increased rent, your earnings | | | | less, as will property purchased with a larger deposit. |
| will be taxable. Should you decide to cash in on rising | | | | Select a mortgage with features that work with your |
| property prices by selling, you'll owe capital gains tax | | | | current situation. You can refinance your loan later, |
| on the profit. | | | | especially if real estate prices rise and you want to |
| Should mortgage payments and maintenance costs | | | | use the equity. The mortgage market is competitive; |
| exceed income on a property, the net loss can be | | | | new loan products are offered all the time. Mortgage |
| applied to other income to reduce overall taxes. | | | | Choice offers a free and helpful service called Home |
| Annual interest and maintenance costs on investment | | | | Loan Health Check to learn about other loans that |
| properties are also tax deductible. | | | | might work better in the future. |
| The Informed Investor | | | | Buyers' Agents And Property Finders |
| Keep up-to-date about real estate prices and market | | | | Buyers' agents and property finders are invaluable |
| developments in your area. Take time to research | | | | sources of information about local property prices |
| typical rental yields, service costs and availability, and | | | | and the most profitable real estate investments in |
| average house value increases over the last few | | | | the area. They're familiar with home prices and can |
| years. The Real Estate Institute of Australia is an | | | | share suggestions and expertise to help you find |
| excellent resource. Doing your homework will help | | | | profitable properties. Agents are also skilled at |
| you to choose the most profitable properties. | | | | negotiating with sellers and other agents to obtain |
| Investing With Equity | | | | the best property prices. |
| If you can manage the repayments, using the house | | | | Accountants And Investment Advisers |
| value equity from another property is one way to | | | | Accountants and investment advisers can help you |
| start investing. Equity from a current property can | | | | make certain your investment is sound. They can |
| give you a significant deposit and reduce your new | | | | catch details you might have overlooked and help |
| mortgage and interest costs considerably. | | | | you to plan ahead. An investment adviser can help |
| Investing With Partners | | | | you maximize your financial position, while an |
| Real estate can be purchased jointly to reduce | | | | accountant can help you to evaluate whether |
| individual costs. You can even divide the expenses | | | | expenses will be manageable. |
| unevenly so that all partners can invest according to | | | | |