how to invest in property
“How you can own an investment property in Parkville (Melbourne) from as little as $27 a week”
Dear Investors,
Have you ever dreamed of achieving financial freedom, escaping the rat race, being able to spend more time with the family, and going on holiday when you want to?
If you are considering investing in property but are unsure as to when is the best time to invest—now or in the future—I can tell you that the best time is NOW.
I’m going to show you how you can finally own an investment property in Parkville (Melbourne) that could cost you from as little as $27 a week.
This is not a theory, this is a reality.
As interest rates are currently very low and rental returns are very high, on buying a property now you can almost cover your interest rate charges plus your outgoings. You can also get money back from tax benefits when you invest in a property.
Let me explain further…
Despite the financial crises in America over the last 4-5 years, property prices have gone up in Australia due to high demand and shortage of supply. And, because of the financial crises in Europe, more and more people are seeking residency in Australia—this increases the population in Australia and therefore increases the demand for housing.
Despite some job losses, the unemployment rate is about 5.3%. This is considered a very low figure compared to other countries like America and Europe.
Many people are fearful at the moment, but it’s not that they don’t have the money to buy property to live in or invest in: They are just scared, waiting for the property market to pick up before they enter into the market. However the longer they wait, the higher the price they will have to pay later than people who buy in today’s market.
When people are fearful, property prices drop and this provides a window of opportunity for investors in 2012. The Melbourne housing market is likely to increase again either in 2013 or 2014. But the best time to buy is when the market is low, not when it’s high.
There are always great opportunities to buy in any market. In the property market, look for locations that have high demand, a shortage of supply and are easy to rent out.
Property has a cycle—it goes through a low period but then it will pick up again. So if you want to catch the next wave, then now is a good time to invest!
The second richest man in the world Warren Buffett said, “Be fearful when others are greedy, and be greedy when others are fearful.”
What he means is that when everyone is buying and the market is booming, you should be wary of entering a market where demand and thus prices are at their highest. But when people are scared of entering a market and demand is low and prices are low, then take advantage, step in to buy and “be greedy.”
But before you buy, let’s check out the fundamentals of property investment to see if it’s safe to buy now:
- Increasing population
= Increasing demand for housing - Shortage of property supply
= Rent goes up - Land price increases
- Material costs increase
- Inflation goes up
So, if the population is increasing, there is a shortage of properties, material costs go up, labour costs increase and there is a shortage of land, then property prices go up over the long term. It’s the simple economics of supply and demand.
Another thing to consider is that Melbourne property is still very affordable. People are still able to buy a property in Melbourne.
Try buying a house in Sydney for $320,000 – $360,000. You just can’t buy one at that price any more. But in Melbourne you can buy at that price. Many first time home buyers or starter investors enter into the market at this price range or a little higher.
Try buying a new quality apartment in Sydney within 5km of the centre for $360,000. You won’t be able to find one—but in Melbourne you can.
So when there is a strong demand and property is affordable, there is a lot of room for it to go up in value.
When is the wrong time to invest in property?
Firstly, if you look back at the history of property growth in Australia, on average it has doubled every 7-10 years (source: ABS statistics). The best time to invest was 20 years ago, 10 years ago, 3 years ago. But the past has gone, we can only focus in the future and take action in the present.
Secondly, the interest rate is at one of the lowest it’s ever been at 6.6% and it’s going to go down by at least another 0.25–0.5% this year. If you are not getting this rate with your bank, let me know.
Thirdly, the fixed interest rate at the moment is about 5.8%, so going forward towards the end of the year, it may come down further to 5.5%. You could consider fixing the interest rate when it’s at the lowest point for the next 3-5 years to give you peace of mind. This means that your property rental return of 5–5.5% could cover your fixed interest rate of about 5.5% (towards the end of 2012). PLUS you also get a lot in tax benefits for investing in property, which could amount to between $3,000-$7,000 a year.
And, if you fix the interest rate for the next three years, it means the cost to hold the property for this time is almost nothing. So, you gain the house’s appreciation amount over these three years through paying almost nothing! This is a dream come true for a property investor! In doing this you will fast track your financial future, and in three years’ time when you look back, you will see it was the smartest decision that you ever made.
So, let me know if you would like me to show you how you can own an investment property in Parkville (Melbourne) that costs you from as little as $27 a week.
I will provide you with the calculations to show you exactly how to kick start your investment property portfolio.
How would you best spend the $27 that you have in your pocket right now? Can you think of a better way than invest it in property to give a better financial future for your family?
“The best $27 a week you will ever spend.”
If you want to give yourself and your family a future of financial security; if you want to get the right advice to buy the right property; if you are keen to learn how to get started with property investment today; then read on…
And if you want peace of mind when investing, we can also help you to:
- get finance
- advise you on when to fix the interest rate
- help you to get tenants, and
- recommend you an accountant for tax benefit purposes.
We are with you every step of the way—for the long term.
So if you want to get ahead and want to become financially better off in the years to come, NOW is the time to plan ahead and 2012 provides the window of opportunity for you.
No one is going to look after you financially in the future—the government is not looking after you, superannuation is not enough nor can you rely on your pension when you retire. I’m pretty sure you don’t want to work super hard until you’re 60-65 years old. And I’m sure you want to spend more time with your family and be financially better off in the next 7-10 years. If you agree, then property investment is the best vehicle to use to secure your and your family’s financial future.
“If you fail to plan… then plan to fail.”
How much are the apartments?
- 1 bedroom apartment from $360,000 – $390,000
- 2 bedroom apartment from $540,000 – $585,000
Off the plan, significant stamp duty savings.
10% deposit (of the purchase price) is require, nothing to pay till settlement mid 2013.
Very high rental yield.
Register below for more information where I can assist you further. My advice is free and there is completely no obligation.
