Tuesday, April 25th, 2017

Looking for an investment guide

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real-estate-investorAre you interested in investing your savings in the real estate business? Well that is good idea! However, you do need a good guide for that. So to help you, Real Wealth Australia is always ready. Real Wealth Australia is one of the leading real estate investor in Australia.

With the help of Real Estate Australia you can create your financial freedom without compromising on your daily lifestyle. You must be thinking you will not be able to make your profits as there is a lot of competition in real estate investment. It is true that there are a lot of people investing in this field to gain their financial freedom, but most of them do not have a proper plan. To make your own profit you need to have a good plan.

Real Wealth Australia has a program called 10 Properties in 10 Years to help you create your own strategies in planning your real estate investment. Along with this, there are investors available all the time to help you.
So how the ‘10 properties in 10 years’ strategy work?

The ‘10 properties in 10 years’ strategy is all about balance. Generally, people buy properties for positive cash flow or capital growth. But capital growth properties are the ones which are located in areas where there is constant growth and increasing demand for the property and accommodation.

By definition, capital growth properties will increase their value at a faster rate when compared to their regional counterparts and the buyers usually pay an extra premium to access the growth. Thus the cost you pay to own a property is often more than the actual rental income which you receive. The cost you pay will also include council rates, mortgage interests and other expenses. So you will have to pour some money from your own pocket every month. This is called as “negative gearing”. This negative gearing is mostly because of all the extra costs that you incur which are not covered by the rental income. This can be claimed as deduction in opposition to your income tax.

Whereas positive cash flow properties are the literal opposite of these negatively geared properties. Positive cash flow properties are usually located in regional towns. These types of investment are the ones which actually generate high amount of income than the cost you spend on them for maintenance.

So here you can see that the type of property you invest in will have a huge blow on your payment and in turn on your lifestyle. For example, if you buy three negative geared properties, you will have to pour few extra dollars to fund your property portfolio every week. That is definitely not a stress-free idea.

But, if you buy a positive cash flow property, you can enjoy the immediate benefits of extra income, although you will have to pay tax on whatever extra you earn. So basically you need a positive portfolio and also capital growth property. This “10 properties in 10 years” will help you create that portfolio which will include both negatively geared and positive cash flow. This will create the balance you require to achieve your financial goals.

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