Why purchase property?
Residential Property has long been a good asset class providing income (rent) and capital growth not aligned (low correlation) to other assets classes such as shares. As such they make a good investment asset class for long term wealth accumulation for those who can afford it and where it is appropriate.
Commercial property has long been a chosen investment asset class for small business owners such as Dentists, Doctors, Medical specialists, Pharmacists, Solicitors and Accountants. The certainty that ownership of their business property provides to their business and often the fact that purchasing the business premises results in lower repayments than leasing the property is an added advantage. Many small business owners end up selling their business when they are ready to retire but retain the commercial premises it operates out of and continue to receive the rental income from their old business. Combining this strategy with purchasing the business premises within a self managed super fund can result in income tax free rent in retirement (pension phase).
When should you purchase property?
The timing of a property invest is important, as the timing determines to a large extent the rate of growth of your asset and the rate of growth of the portfolio of properties. Over a very long term horizon, it is less important, but getting the timing right can result in fast results that enable you to build up your portfolio of properties faster than purchasing at the wrong time.
Supply and Demand are the main drivers of property capital growth and interest rates and employment/economic growth also contribute towards a rising property prices. Since most people borrow money for a property purchase, interest rate policy is a key driver. Due to the high transaction costs (stamp duty, agents commissions, searches, inspections and legal fees) involved in buying and selling a property, buying a property should never be a short term investment decision.
Contact our office today on Ph. 1300 5050 565 for a complimentary consultation to discuss whether purchasing an investment property today is appropriate for your situation.
Self Managed Super Fund Property v's Family Trust Property
What is the best structure (legal entity) to purchase a property through, a self managed super fund or a family trust?
The answer depends a lot on your personal circumstances, your super fund balance, the value of the property you intend to purchase, your assets outside of super and whether or not you need to borrow and extent of borrowings needed to complete the property purchase.
Both legal structures offer great asset protection, superannuation a little more than family trusts, but family trusts are generally a more flexible structure and you may have more control over the property and future development/renovation potential.
For a complimentary consultation to discuss which one is more appropriate for you, contact the founder of Navigate Property and Navigate Wealth- Peter Alvarez on 1300 505 565.
Investment Property Advice
Buying a property is a large commitment and investment, and as such it is crucial you get unbiased advice from a professional that knows what they are talking about and that does not have a vested interest in their discussions with you. We help our clients gain clarity with regards to the following questions;
-Should I buy a property with a 10% deposit or 20% deposit or more?
-Should I buy a unit or a house?
-Should I buy a new property or a used property?
-Should I buy a property as "tenants in common" or as "joint tenants"
-In whose name should i buy a property, mine, my spouses or jointly?
-Should I buy a property outside of super or inside of super?
-Which state am I better off buying a property in?
-Where will I get the best rental returns?
-Is it best to aim for income or growth in a property purchase?
-How do I build a property portfolio of multiple properties on my income?
-Can I afford this buy this property and live in it, without affecting my lifestyle and my other long term objectives?
-What are the consequences of buying this house now?
We can answer these questions, as all of our Property buyers agents are also licenced financial advisers (independently owned) who operate under their own Australian Financial Services License (Navigate Wealth 332417) and as such are not tied to a bank or super fund.
Contact Navigate Property's Founder, licensed buyers agent and financial adviser Peter Alvarez on 1300 505 565 for a complimentary consultation today.
We are independent property buyer's advisers and buyers agents. We do not receive commissions/payments for/on loans or from any other party (developers, vendors, estate agents, spruikers). We work for you, get paid by you and work at all times to get you the best results possibly available in the market. All of our buyers agents are also licenced financial advisers (via sister company Navigate Wealth AFSL 332417) so we can talk to you if we believe now may not be a good time to purchase property or if there is a better way to structure a property purchase than originally thought. Our fees are fair, transparent, and are structured in a manner that best leads to a positive outcome for you. We work closely with external (independent to us) professionals such as accountants, mortgage brokers, solicitors and quantity surveyors to make the purchasing process seamless and as stress free as possible.
Contact the founder of Navigate Property and Navigate Wealth-Peter Alvarez on 1300 505 565 for a complimentary consultation to discuss your needs.