By: Andrew Date
Investing in property for your financial future: featuring Dean from Industry Insider Back
At Industry Insider, we firmly believe in the power of property as a foundation for building your financial future.
And we’re not alone, with roughly 2 million Australians investing in property as a financial strategy.
With the low-interest rates we’ve enjoyed over a stretch of years, as well as steady demand for rental properties, it’s no wonder this very tangible ‘bricks and mortar’ investment area continues to rise in popularity.
As with all investments, solid preparation is the key to long-term success. So how can new investors push their property goals in 2018 and beyond? Industry Insider Adviser Dean Munro provides a few of his own insights from his professional and personal investment experience. Dean is a quantity surveyor and property investor who has steadily built an impressive portfolio of 8 properties – all while still in his 20s.
Investigate the financial benefits for you
Many investors spend their investment dollars on property believing the growth in capital gains will steadily increase their wealth.
Capital growth is a major factor that makes a serious impact on your wealth over time. Even with a small, affordable investment property, with a solid capital growth of 5-10% over a number of years, you’ll likely be looking at a significant return on your investment – setting you up for even more lucrative investment options.
Consider the benefits of tax offsets related to the costs of renovating and making changes to your investment property. Once you’re able to make a start, these benefits can be a helpful boost, allowing you to take gradual steps towards greater wealth as an investor.
To be in a strong position with your financial decision-making, talk to someone in the know – preferably an Industry Insider, or experienced financial adviser. They’ll make sure you’re aware of the grants, benefits and tax concessions available to you over the course of your property journey.
Create another income stream
For many of us, relying on our salaried 9-5 job as our only source of income is a thing of the past – such as the impact of smart property investment and property ownership.
Dean from Industry Insider has used property ownership (he now has a portfolio of 8 properties in and around Melbourne) to springboard options for added income and freedom. Being flexible with where and what he buys, as well as stints in share houses, has helped him cement his place on the property ladder.
The most obvious income benefit of property investment is the rental yield it can deliver. This is where Dean strongly suggests keeping potential tenants front-of-mind with every property investment decision you make.
Take advantage of the sharing economy
Like Uber and Deliveroo, Airbnb has become part of our economic landscape, shifting us into a new digital reality and disrupting whole industries. This is particularly apparent when looking at how Airbnb has altered the tourism industry since its introduction to Australia.
Without the overheads of traditional accommodation, travellers can opt for alternative, ‘local-style’ accommodation that suits their needs, whether it’s for a few nights or a month-long visit. It’s a trend that everyday property investors are quickly catching up with – including Dean.
Dean currently lists a property through Airbnb as a short-term rental through their listing platform. His earnings from this subsidise his mortgage, offsetting his initial investment outlay and providing that all-important cash flow.
Would it work for you? If the property is conveniently located, in a great condition and you’ve got the time or resources to service it through cleaning and maintenance, this could become a brilliant second income to support your property investment goals.
No matter what stage of the property buying journey you might be at, Industry Insider is always at hand to point you in the right direction. Contact us on 1300 181 997.