Investor Support Services - Homes4Rent Clients
Who is Peter?
As a valuable member of our team Peter brings a wealth of knowledge from 45 year’s experience in a number of areas within the property industry, working & leading teams in real estate, financing, financial planning, property development, town planning, project marketing and building.
Whether you’re an astute investor with all the boxes ticked or you’ve just started growing your portfolio, there will be benefits in connecting with somebody like Peter.
Peter monitors the market closely and if you’re considering selling or buying he suggests you may need to consider some of these topics:
- Future growth patterns
- Capital gains tax strategies
- Depreciation over time
- Leveraging safely
- Varying mortgage strategies
- Where are the best location’s?
- What is true cash flow of my property?
How can Peter help?
Email Peter
What are Your Future Goals
When an investor first starts out to building a portfolio, their ideals and original goals can often get knocked off track? When should you grow your portfolio and when should you reduce? What are the top 10 mistakes people make when setting goals around property investing?
Managing Finances
Successfully having a property portfolio is not just about property, one of the key areas is making sure you understand the financing options available to you and that you concentrate on not only on building wealth through capital gain but look where possible to reducing your debt as quickly as you can.
Taxation
Getting tax breaks is what many investors want when first getting an investment property, but many don’t follow through and maximise their tax returns and this can largely depend on your accountant. Peter has a top 10 checklist of things that you must consider to be fully getting the best tax breaks possible and will not in any way conflict with what your accountant, but it will be a great conversation starter for next time you do your tax return.
Which phase of investing are you in?
It is suggested there are just two phases which include wealth building and income generating but a fine balance between the two should always be considered, but where are you positioned or where should you be positioned?
Which is your loan type?
If you absolutely need to have a positively geared or cash flow positive property, you can look at an interest-only loan for a term. When you mortgage an investment property, you can choose between a principal and interest loan (where you pay down both simultaneously), or an interest-only loan (where you only pay the interest portion).
Find the best loan
It might seem obvious, but it’s amazing how many investors don’t get the best deal on their loan from the beginning. Lenders are willing to negotiate to get your business, so don’t settle for the first offer, and don’t go straight to a bank for a quote. Use an independent mortgage broker with a large pool of lenders who can source the lowest interest rate, potentially have fees waived and a few bonuses thrown in for you.
Understand Cash Flow
POSITIVE CASHFLOW – is when the rental income is more than the expenses of the property (like mortgage, property management fees, and ongoing maintenance costs). This is money in your pocket each week.
POSITIVE GEARING: – is when the expenses exceed your rental income, but the tax benefits ultimately bring in a profit. This is a lump-sum of money in your pocket at the end of the financial year.
Benefits Of A Positive Cash Flow Property:
SUSTAINABLE: – the property won’t be a liability that you have to prop up out of your own savings, which means less chance you’ll have to sell it if your circumstances change
SCALABLE:– you can save the positive portion of the rental income to build a deposit for your next property
BORROWING BOOST: – more income makes you look better to lenders, who will be more willing to bump up your borrowing power for your next purchase
