What Is Your Property ‘Astrology’ Sign?
Just like astrology (if you read into it) we are all compatible with someone from the same or a different star/moon/sun sign. Now I look at this stuff from time to time, don’t understand half of it, look for the stuff that makes me feel good and then press on with my life forgetting about what I read 15 minutes earlier. I know you’re thinking the same thing!
The one thing that is very relatable with all of that stuff is that it can be applied to many aspects of our life – what suits ME best? And today, like any other day I am going to compare it to property investing and help you figure out where your stars align for you.
Investing into an already existing property has many advantages for all first time and seasoned property investors. Why? Because it’s the oldest method in the book, and has been proven to work for decades here in this country. Buy, hold, re-invest the equity and repeat. Now there are a lot of people that have not entered the property market within the Millennial generation and at times can unfortunately fall into the trap of buying ‘off the plan’ because it’s new, glamorous and full of bragging rights. Well think again amigo, it’s affordable (within an unaffordable market) for a reason – there is a LOWER demand for it. Not saying you will not make money, but for someone starting off, you need a solid equity producing asset at the start that is going to do the heavy lifting for you to further leverage into more income producing assets.
If you are making a sh*tload of money and don’t want to pay the government almost half of what you are making – then ‘off the plan’ and ‘land house packages’ are the one for you! Now not all of us fall into that category at the beginning because not everyone is making $180K per year to fall into the highest tax paying category. The benefits here are tax depreciation, and for those who are confused about it all like I was some years ago, you can claim up to 20-25 years worth of depreciation (which will vary year by year) – this is quite beneficial to people who own there own businesses as well – reducing what you pay in tax is always a good thing. There is a stronger rental yield most of the time as well, dependant on where you build and for what price. It is all relevant to the city you build in.
Now this is just a beginners guide for those who are still chipping away at saving up for their first property. It is very basic advice and something that if you want to discuss more with me I am happy to talk over the phone, email, in person or whatever else you prefer 7 days a week. Start with basic knowledge and understanding of what is going to suit you FIRST before you follow your mate from down the road… You are not missing out on anything now while still searching to get into the market, you will be missing out when you make the wrong purchase for yourself and don’t see the returns or achieve the goals you anticipated to achieve because of poor decision making.
Contact me anytime, available 7 days a week – 0438 836 248 // marc@luxland.com.au