Why the Time is Right for Home Owners With Equity to be on the Lookout for Investment Properties
If you have equity stored away in your home, now is the perfect time to tap into that for an investment property and begin your journey towards financial freedom!
We’ve talked before about equity
What is equity
It’s the difference between the value of your home and what you owe on it.
So, if you have a property worth $500,000 and you only owe $200,000, then you have $300,000 equity.
Timing is right
The first reason that the time is right is that property prices have flattened across most of Australia in the wake of global uncertainty.
But key indicators in the United States now point to a recovery there, which our market is likely to follow, especially given our strong economy.
So, not only is now a buyers’ market, but there is a good chance of capital growth in the first few years of ownership.
Interest rates are low
The second reason, interest rates a remarkably low.
After the most recent drop in official rates, there is strong speculation they will continue to remain low, for quite some time to come.
The third reason, we still have a housing shortage here in Australia, which continues to drive low rental vacancy rates.
This means good properties rent easily.
Good quality investment properties
The fourth reason, we specialise in good properties, in growth areas, with the infrastructure families are looking for.
So renting properties sourced by Key to Australia means quality, happy, long term tenants.
Every landlord’s dream!
I have equity so how do I start?
Together with this team of highly motivated professionals, with years of experience in their chosen fields, will see you turning that equity into your very own money tree.
Some decisions you will need to make include…
Capital gains or rental returns?
You will need to determine what fits best for you, do you want strong rental returns or decent capital growth over the next several years on your investment?
If you are in a high tax bracket and looking to create a tax advantage through investment, then capital growth is probably your choice.
First-time investors can add equity
First-time investors looking to establish a portfolio of properties would also be aiming for capital growth.
This will easily establish equity for the next property purchase.
Some investors are not in a hurry for capital growth and prefer their properties to be cash flow neutral or positive from the start.
Potential for both.
Right now, is the right time for both.
There’s potential for decent capital growth and good rental returns for property investors who chose the right property in the right location.
Finding the right property… we do all the leg work for you!
Number one rule in property investing
The number one rule is to invest in property with your head and not your heart.
Easier said than done.
That’s where we come in, we will always have your best interests in mind.
We know that you want a property that is:
1. Close to public transport and other amenities, like shops, schools, especially “in demand” schools that only accept students in their local catchment areas.
2. Brand new, low maintenance, high quality builds.
3. In areas with potential for capital gains.
4. In areas with low rental vacancy rates.
Another common piece of advice is to “stick to familiar areas”.
With us by your side from the start, and all through the journey, leave it to Key to Australia to source the properties with these most important 4 contributing factors.
You don’t need to live close to where you invest, as long as you have us by your side, investing just got a whole lot simpler, easier and by far, a more well-informed decision on your part.
Managing your investment and your tenants
Now let us tell you about Key to Rentals, our property management company.
The team that will ensure you have quality tenants and your property is maintained, managed and looked after regardless of where you live.
At a very competitive rate, Key to Rentals will advertise and then interview prospective tenants, giving you a “short-list” of only the most suitable applicants for your final decision.
The team will also make sure the rent is paid on time, arrange for any repairs and maintenance and recommend appropriate rental increases.
You can even authorise what repairs/maintenance can be carried out automatically, and what needs your approval first.
We pride ourselves in being your complete “one-stop-shop” when it comes to property investing, and our team of highly motivated professionals will ensure that your journey is smooth flowing, rewarding and exciting.
Exciting enough for you to purchase another investment property in as little time as you feel confident and comfortable doing so – because at Key to Australia, it’s what we do best!