Is investing in property for me?

Aussie’s love talking about real estate, and we have a reason too… in 2021 the market keeps moving ahead. CoreLogic figures reveal the average dwelling price rose 10.6 per cent annually across the nation (as of May 2021). 

I want part of the action… but should I invest in property?

Buying property is a long-term, strategic decision that you have to feel comfortable with.

In the words of Robert Kiyosaki (author of Rich Dad, Poor Dad), “Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.”

So, where do I start?

You could start with internet searches, talk with friends and attend weekend auctions but your time and finances are a limited resource. Property investment needs to be part of your overall wealth strategy – not a haphazard decision! It pays to have a team of experts behind you to get the process right. At Triple Zero Property we focus on the key elements of successful property investments – starting with finding the right area that is growth focused.

This is how we are helping clients, like Josh and Wendy:

  1. In 2018, Josh and Wendy contacted me about purchasing a second investment after the success of their first property a few years earlier. Their initial property now has over $350,000 in capital growth and was positively geared from day one. The rental yield was 5.8% when they purchased the property, but it is now over 8%.
  2. To find their second property, we used our industry knowledge and independent research to find an area that was affordable with great rental yields.
  3. On behalf of Wendy and Josh, we liaised with the local government to understand what was planned for the area for infrastructure, jobs and population growth.
  4. Through our networks we spoke with industry experts and began conversations with developers about specific house and land packages.
  5. I discussed with Wendy and Josh the location we had been researching and presented the facts that supported why we were bullish with this particular area. They purchased a house and land option with one of our trusted panel builders and settled on the land in May 2019 – a 507m2 block for $138,000.This month we received the latest land release:A 508m2 block is now $285,000 = a $147,000 increase in land value. Their land value has doubled in 2 years – that is over $1400/week. 
  6. Fast forward to 2021, Wendy and Josh have now contacted us to look at an option for their third investment property. Again, we are looking at an area with good growth, high demand, and increased infrastructure spending. Another smart buy aimed at future-proofing their property investment portfolio.

Are there still opportunities to build a property portfolio in 2021?

We are still sourcing great opportunities in this insane market and I would love to help you do the same as Josh and Wendy.

If you live in your own home, it has likely gone up in value in the last 12 months – great news! Consider if now is the time to use the equity in your home to expand your property portfolio?

The hardest thing in real estate is doing the right thing for YOU. It is about your budget, age, family, and retirement plans.

We work to get the best result in a highly competitive property market at no cost to you. Book your obligation-free consultation today on 1300 897 000. 

Visit triplezeroproperty.com.au or email us at invest@triplezeroproperty. com.au for a free location research report on where you would like to buy. 

This content is general information only. Your situation is specific and individual; as such, you should always consult a registered and qualified professional within the particular area of advice needed. 

Is buying an investment property in my SMSF a good idea?

To make smart, growth-focused property decisions, you need to surround yourself with an expert team. Your professional team is critical when considering buying an investment property through your Self-Managed Superannuation Fund (SMSF) because of the complex rules and regulations surrounding superannuation.

According to the Australian Tax Office (ATO), the SMSF sector comprises nearly 600 000 funds with an estimated total value of $755 billion in assets. This amount is almost a third of Australia’s total super assets.

Many investors consider buying a property through their SMSF too complicated to be bothered! However, there are many benefits to getting it right in the long-term.

What you can do:

  • Invest in residential property
  • Invest in commercial properties
  • Small business owners may benefit from being able to occupy the property they operate their business out of and pay market-rent back to their SMSF.
  • There are tax deductions available, but they can only be deducted from the fund.

What you can’t do:

  • Transfer an existing residential investment property to a property held under an SMSF
  • The property cannot be acquired from a related party of a member
  • It can’t be lived in by a fund member or any fund members’ related parties 
  • It must not be rented by a fund member or any fund members’ related parties.
  • If an SMSF uses a loan to purchase a property, there are restrictions on the types of renovations that can be made. 

Other regulatory requirements include meeting the sole purpose test. Trustees can face severe civil and criminal penalties if the fund is seen to be contravening the sole purpose test. For example, leasing the property at market value to a related party.

Can I borrow money to invest in property through my SMSF?

Yes! You can borrow under strict borrowing conditions called a ‘limited recourse borrowing arrangement’ (LRBA). An LRBA is where your SMSF takes out a loan from a third-party lender for the investment property held in a sperate trust called a ‘bare trust’. The LRBA can only be used for a single asset.  

Proceed with caution!

You are ultimately responsible for running your SMSF. Get good advice from an SMSF professional to make sure your property investment complies with the law.

The Triple Zero Property team has helped many clients purchase a property through their SMSF once legal, accounting and financial advisers have set-up necessary structures. 

Please call 1300 897 000 to make an appointment so we can help you reach your property goals. 

Disclaimer: The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek expert legal advice before you make any decisions regarding SMSF’s. 

Should I buy property in 2021?

Last year may have changed the way we do a lot of things.

One thing has remained the same: buying the right property at the right price remains a solid long-term investment for you and your family.

Whether it is a property to live in or as an investment, now is a great time to take that all important first step. Interest rates are extraordinarily low and appear to remain so for some time and the property market is tipped to be red hot this year.

Here is a snapshot of what is happening overall in the property market:

  1. First-home buyer activity is at record levels, stimulated in recent months due to the low-interest rates and government stimulus.
  2. A shift to what has been labelled the ‘exodus to affordable lifestyle’ resulting in regional housing value rising at twice the pace of capital city markets.
  3. House values have risen by 3.5% over the past six months while unit values are unchanged, according to CoreLogic February 2021 research. 
  4. According to CoreLogic, every capital city witnessed a rise in housing values in February 2021, reaching a new record high as values continue to rise across the country.
  5. Rental vacancy rates are at an all-time low in many areas (except for some inner-city units), which are putting pressure on increasing rents. 
Sunshine Coast Duplex

So how do you buy the ‘right property’ in 2021?

  1. Formulate a plan: understand what you want to achieve and then make decisions accordingly – buying property should be a long-term investment.
  2. Be cautious: you’ll find everyone is going to give you advice. Rather than listening to well-meaning friends, it’s important to only listen to people who have achieved the success you are looking for.
  3. Research, research, research: mortgage rates, the area you want to buy and who to build with – please don’t go and buy the first property you see!
  4. Focus on what matters: Glossy brochures and the latest interior design trends are nice but investigate your builder’s structural quality and financials. Not everything that glistens is gold!
  5. Gather an independent team of experts: Conveyancer, mortgage brokers, developers, builders – there are a lot of moving parts in the process.

Now is the time to take action and set yourself up for the opportunities that will present themselves in 2021 – the market will move on!

If you want to build your property portfolio or take the first step into the market, the Triple Zero Property team can guide you to make smart decisions for you and your families’ future.

With no cost to you, we work to get the best result in a highly competitive property market.

In the current growth focused market anyone can make money through purchasing property, however, at Triple Zero Property we want to future-proof your investment and maximise your cashflow. Call 1300 897 000 so we can help you meet your property investment goals for 2021.

This content is general information only. Your situation is specific and individual; as such, you should always consult a registered and qualified professional within the particular area of advice needed.

DBA Property

DBA is committed to helping Australians reach their financial goals through property investment. For over 15 years, the DBA team has helped hundreds of clients build successful property portfolios.

DBA has been built on recommendations from loyal customers and referrers. We have even had many clients who have bought an investment property to encourage their children and family to buy their first home or invest with us….our favourite referrals!

Why? Because they have witnessed first-hand an investment property that is a quality build, has been well managed and received great rental returns and outstanding capital growth.

Our team have a proven track-record in independently sourcing properties to match each client’s affordability, investment profile and time framework. We pride ourselves on our in-depth research to provide strategic support on decisions we believe will deliver substantial long-term capital growth.

Your success is our success!

Overtime, DBA has merged with our other property arm, Triple Zero Property whose focus has been supporting frontline, emergency services and charities. We also support women in law enforcement (through the ACWAP conference), local charity SunnyKids and Uniforms 4 Kids (community-based service assisting emergency services to give away hand-made clothing). Both DBA and Tripe Zero Property have the same focus, helping you build wealth through strategic property investment.

At DBA/Triple Zero Property, we believe that when you create wealth, it is not just for yourself but for the benefit of those in your community and beyond.

Whether you are a seasoned investor or just beginning your investment journey, click here to find out how we can assist you.