Posts Tagged ‘real estate’

What is Negative Gearing?

 

When it comes to investing in property, you might have come across the term ‘negative gearing’, but do you fully understand what negative gearing actually is? Mark Mendell at iBuyNew discusses his thoughts.

What is negative gearing?

Negative gearing is where your rental income from your rental tenants is not enough to cover your mortgage repayments and other associated property costs, like property management fees so you end up making a loss. In order to … Read more »

Fact or fiction: all investment properties double in value in seven years?

When it comes to investment myths, one of the main ones we hear is that all investment properties double in value every seven to 10 years. This is simply untrue. Although in some instances it may play out for some investors, it is by no means a rule on which you should base your investment decisions. RBA chairman, Glenn Stevens, says that ‘property today won’t deliver the same capital growth … Read more »

How to best leverage the equity in your property

The equity homeowners have in their property is likely the biggest untapped source of available capital for property investment. The real estate market in cities like Sydney, where prices rose nearly 16 per cent last year, is well and truly booming. Yet many homeowners who have benefitted from rising sale prices face the question of leveraging equity with deep trepidation.

Have idle equity? Here’s what to do.

With sound financial planning … Read more »

How to find suburbs with sustainable capital growth potential

One of the key pillars to smart property investment is finding suburbs likely to experience capital growth. Savvy investors have been lucky enough to invest in suburbs on the cusp of a boom and have reaped the rewards of rising property values.

When looking for suburbs with capital growth potential, it is critical to ensure that that growth will be sustainable. Some suburbs present short-term capital growth opportunities which don’t always … Read more »

Why property investment is the best vehicle to build wealth

The best way to build wealth, of course, is to have wealth in the first place – not a particularly useful piece of advice for those of us who arrive in the world sans silver spoon. Property investment is the next best choice.

With low interest rates and booming demand, the time is certainly right. Property investment is a vehicle that is widely available to investors starting out, and it provides … Read more »