If debt levels are an issue holding back further property portfolio expansion, there are ways to hasten the paying down of debt.   Reducing debt is crucial on several levels. Whether you have one property or five, rising interest rates can hit hard. If debt levels are an issue holding back further property portfolio expansion, there are ways to hasten the paying down of debt. As well as reducing interest expenses, banks will also factor in debt levels when lending, so reducing debt is crucial on several levels. Six strategies to pay off a property portfolio faster 1. Use an offset account: An offset account is like a savings account, the only difference being it is linked to your mortgage balance. Funds can be withdrawn every day when needed. Many mortgage holders are wary of offset accounts and don’t want to put all their money into the account for fear […]

With property purchasers now taking the driver’s seat during real estate transactions, an expert provides strategies on how to bag the best deal in a buyer’s market.  According to Lloyd Edge, the founder and managing director of Aus Property Professionals buyer’s agency, the housing market’s shift into a buyer’s market comes following years of operating as a seller’s market.  “[We] saw many years of the increasing property prices and properties flying off the market for eye-watering prices during the recent seller’s market,” he recalled.  But he pointed out that sellers are now taking the back seat, and the market’s pendulum is swinging back in favour of buyers.  He noted that the market has now moved into a phase characterised by property purchasers having the upper hand over sellers during price negotiations.    “During a buyer’s market, you will see real estate become more affordable because market supply is increasing and […]

By following five key strategies, it’s possible to build a future-proofed property portfolio while investing in a declining real estate market. Building a property portfolio that is not entirely reliant on capital growth will help deliver longer-term cash flow and benefits. As many markets around the country are now entering into a buyer’s market it will be a good time to be buying property But if you bought in the past two years, you may be worried you have paid too much for your property and concerned how you are able to grow your portfolio in a declining market. Many investors will grow a property portfolio by using the equity gained in one property to assist in purchasing their next property. By pulling out the equity in one property they can use this for the deposit of the next purchase and continue this process to grow a solid property portfolio. […]

It may not necessarily be a daily priority, but the set and forget approach to property management is bound to come unstuck for passive real estate investors.   A key principle to ensuring capital and income preservation is a commitment to social responsibility from rental providers. We often hear property described as a passive investment, which it is when compared to buying and operating a small business. However, it’s definitely not an exercise in set and forget. While there’s a lot of work involved in saving, identifying and securing a good quality residential property asset, there remains more to do after the purchase celebrations subside. Property investors must set the right post-purchase plans in place to ensure a trouble-free journey, which, in this day and age, can mean over many years. My colleague, Richard Wakelin, has long advocated where possible that property (providing you select the right asset) is a […]

Investment grade properties have the potential for capital growth but they are scarce, so how exactly do you go about finding and securing them?   It is important to perform due diligence around the location and attributes of the property being considered as an investment. There are more than 15,000 suburbs in Australia, and at any one time there are around 600,000 house and units for sale. But be cautious – not every property for sale will make a good investment. Only around 1-2 per cent of properties for sale are what would reasonably be classed as an investment grade property. What does that mean? Experts will talk about properties that make excellent investment opportunities as investment grade, which ultimately means these properties have attributes that allow for wealth creation. In comparison to other properties, investment grade properties will have the potential for capital growth. Investment grade properties may also […]

Young buyers aspiring to purchase their first property have arguably never had it tougher, as new data shows, but many are pondering whether falling property prices now offer an opportunity to enter the real estate market.   The challenge faced by Millennials trying to enter the property market is greater than that which confronted earlier generations. For first-home buyers locked out of the property market in far greater numbers than earlier generations, the possibility of property prices falling significantly is an enticing prospect. Young buyers today are faced with property prices that soared during the Covid years when many of them were forced out of employment, lost work hours or saw their savings depreciate against rampant inflation. Data released Thursday (20 October) by the Australian Bureau of Statistics has revealed that more than half (55 per cent) of Millennials (25–39 year olds) are homeowners compared with 62 per cent of Generation […]