The Reserve Bank meeting in early December declared that the cash rate will remain at 2%. Most of the experts on the panel agreed that Australia’s improving economy will be the most likely reason to keep the cash rate as it is.

However, commentators are suggesting that 2016 will be much more difficult for both borrowers and lenders.

“It’s going to be tougher for households next year and it’s not just borrowers … Read more »

To keep a grounded view of the market and ensure you don’t lose quality tenants, consider following some simple steps to maximise your rental returns.

One step is to regularly review your rents and ensure they are at market levels, while giving tenants ample prior notice of rental increases. This will assist you in keeping your tenants content living in your investment property.

Multiply the average rental yield of comparable properties in … Read more »

Before starting to look seriously at a property, most investors work out the yield on the property to see if it makes their shortlist. Although some investors buy property for other reasons – such as land banking, infrastructure potential or lifestyle reasons – most are mainly concerned with its current return and potential yield.

A yield is a measurement of future income on an investment. It is … Read more »

Equity offers investors a golden opportunity to leverage profits from one property into a deposit for a new purchase. As the value of your property increases, the equity you build becomes a resource to help you create long-term wealth and security through investment.

The amount of equity you have in your property is the difference between its market value and the amount of any mortgage finance secured against the property.

Read the … Read more »

Investing in property is one of the best strategies for building wealth. While there is no definitive right and wrong approach, there are a few things you should consider before investing in a property to minimise risk and maximise your returns.

Infrastructure

Infrastructure such as roads, bridges, telecommunications, transport access, and amenities can impact on the value of a potential investment. A location with sound infrastructure is likely to offer more predictable … Read more »

The buy-and-hold property investment strategy is the most commonly used among Australian investors due to its simplicity, passive nature and reduced risk compared to other strategies.

Adam Grocke at Smart Property Investment explains the investment strategy.

A buy-and-hold property investment strategy requires less investment knowledge, less risk and less deposit, making it a great entry level investment. The key to this strategy is to simply purchase a property and retain it until you have … Read more »

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 »

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 »

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 »