The Building and Pest Inspector

Wednesday 9th February 2011 1:51pm

The purpose of this article is to examine the relationship of the building and pest inspector when finding the right team to facilitate your real estate investments.

In most cases, the sale of a property within Australia will be conditional upon the execution of a building and pest report. Not only does this safeguard the investor by making sure the property is structurally sound before the purchase is concrete, but it also safeguards the lending institution, ensuring they do not loan money on a home that is possibly in dilapidated condition. Whether or not the property is brand new, or several decades old, a well-qualified building and pest inspector will need to carry out an evaluation of it before the sales transaction can be finalized. Even new properties can have serious building and pest issues, especially if the materials used were inappropriate for the construction, but used as a cost cutting mechanism by a shanky developer. Older properties in

…

---

The Real Estate Agent

Monday 7th February 2011 11:44am

The purpose of this article is to identify the role of the real estate agent as part of your real estate investment team of experts.

Anyone who has more than a passing interest in real estate investment will have heard horror stories about real estate agents, their dirty tricks and the ways in which they attempt to trick buyers on a daily basis. Sure, there are some real estate agent sharks out there that cause havoc in the market and use their position as illegal leverage to get back door property deals that undercut the market.  But rest assured there are also some very trustworthy agents in the market also and there are a few tips and tricks to help you find them. The first trick is to deal only with the most experienced agent in the office when looking for your next real estate buy.  This agent knows their business inside out, they have negotiated top deals and usually sell the properties in the higher end of the market -- this is the agent yo

…

---

The Buyer's Agent

Tuesday 1st February 2011 1:38pm

The purpose of this article is to determine the role of the buyer's agent when considering the right real estate team of professionals to surround yourself with as a real estate investor.

 

A buyer's agent is, in essence, an advocate for the buyer when they are trawling the market in search of a property to add to their investment portfolio.

 

Not only can the appointment of a buyer's agent save you time and money in conducting property searches yourself, but these experts are also usually very well connected to industry contacts and have their ear to the ground when a not-to-be-missed bargain comes onto the market.

 

A buyer's agent will take the details of the property you are searching for, the money you have to spend and the time-frame in which you want to buy and set about matching a property to suit your needs and wants.

 

The agent can save the serious real estate investor a considerable amount of time searching for properties and act as the middle man betwee

…

---

Six Ways to Maximize Your Property Investment Tax Benefits

Monday 24th January 2011 1:26pm

1. Mortgage Expenses 
Mortgage Interest is usually your biggest deductible tax expense. As a landlord you can deduct mortgage interest payments on all your borrowing expenses as well as stamp duty bank fees. This also includes loans to improve your investment property and interest on credit cards for goods or services related to maintenance and other rental costs. 

2. Depreciation 
Depreciation is the decrease in value of your property’s fixtures and fittings due to wear and tear, and is an eligible property investment tax deduction. 

3. Insurance 
All the insurance premiums you pay for your property investment including your landlords’ liability insurance and employee workers compensation insurance are legitimate tax deductions. 

4. Maintenance and Repairs 
Maintenance costs and repairs to your investment property are claimable. These include body corporate fees, land tax rates, gardening and landscape maintenance. Maintenance repairs can includ

…

---

Market fundamentals - New Zealand versus Australia

Thursday 20th January 2011 1:37pm

The purpose of this article is to compare the real estate investment environments in Australia and New Zealand and highlight some of the differences which apply, particularly in connection with taxation laws and Government charges on property transactions.

A significant advantage in the New Zealand property market is the absence of a capital gains tax (CGT). In Australia, although the family home is exempt from CGT, investment properties are not and this tax can take a large bite out of the sale proceeds from an investment housing asset. There is a concession in that CGT is levied at 50% of the net proceeds provided the asset has been held for more than 12 months.  Of course, nothing lasts forever and New Zealand is one of the few developed countries without a CGT. The introduction of some form of CGT in New Zealand has been raised from time to time.  New Zealand property investors are also advantaged by higher allowable rates of depreciation on

…

---

The Solicitor versus the Conveyancer

Tuesday 18th January 2011 4:49pm

The purpose of this article is to compare a solicitor to a conveyances when discussing the right members of your real estate team.

 

Somewhere along the line in a property transaction you will require a qualified legal professional to arrange settlement of the property.

 

While DIY conveyancing is a trendy thought for many amateur investors, those who take their real estate investments seriously, and see a future within the investment sphere, must use qualified solicitors or conveyances to get the job done.

 

A solicitor is a generalist legal professional who may or may not specialize in property transactions.

 

A solicitor has completed a legal degree at university and has been admitted as a legal professional who is able to practice law.

 

Quite simply, the only reason you would use a generalist solicitor to facilitate your buying and selling transactions is if they have completed a conveyancing certificate and have extensive property market experience.

 

…

---

Fundamentals of debt - Borrowers equity required and Loan to Value Ratios (LVR’s)

Tuesday 18th January 2011 4:45pm

The purpose of this article is to consider Loan to Value (LVR) ratios and their impact on borrower's equity when entering debt.

 

Equity is your friend when you enter the world of real estate investment.

 

Quite often, getting your first mortgage is the hardest part, but once you have some equity within your assets you can usually move on quite smoothly as an investor.

 

Loan to Value ratios are one consideration when you are first starting out in property investment.

 

A Loan to Value ratio (LVR) is the amount of a mortgage when compared to the value of the property it has been taken out on.

 

If you want to borrow $130,000 to buy a house valued at $150,000 then the LVR is 87% - meaning you are borrowing 87% of the value of the property - this would still be considered a good debt.

 

A situation such as this would see the borrower in "instant equity" before the new home has even been christened with a champagne toast, the borrower has borrowed only 87% of

…

---

Why Invest in Real Estate – Capital Requirements

Tuesday 18th January 2011 4:44pm

The purpose of this article is to explain the capital requirements of real estate investment.

 

Buying some shares in a company can be achieved with the investment of just a few hundred dollars. And you can start a bank account with just a few cents, so what is the capital requirement of investing in real estate?

 

Most real estate investments require a far greater initial outlay than other investment options.

While a mortgage is a loan that ensures you do not have to have every dollar of the asking price available in order to purchase real estate, in order to be granted a mortgage loan you usually have to present a deposit and proof of income information to convince the lender you will meet your mortgage repayments.

 

The good news for most Australians is that these days you can make the repayments on many mortgages for the same price you would fork out to rent a similar property -- making the prospect of seeking approval for a mortgage a lot less daunting.

 

While

…

---

Why Invest in Real Estate – Able to add value

Tuesday 18th January 2011 4:40pm

The purpose of this article is to explore the ability to add value to your real estate investments.

 

Very little effort will often bring about substantial gains when adding value to your real estate investment.

 

Something as simple as clearing up the garden, a coat of paint, modern bench top in the kitchen or building a car port can easily add value to a property with the goal to either increase its rental yield or its selling power on the market.

 

Many real estate investors enjoy how tangible their investment is, and the control they may have over increasing its capital growth potential by making small value adding changes to its look, feel or functionality.

 

Investors who are able to add value to their property may also do so while enjoying the benefits of tax deduction. If expenditures on your rental property's other income -- reducing the amount of money on which they pay tax.

 

Value-adding can also increase the property's cash flow potential - for eve

…

---

• 1