Invest for Real Estate Success.

Ignite your financial future with these simplified tips for investment success!

Don't Split It

With a million-dollar budget, aim high. Focus on prime locations. Buy the best property you can afford in the best area within your budget. This strategy maximizes potential gains and offers a strong foundation for your investment journey.

Quality Over Quantity

When it comes to property investment, think like a connoisseur. Prioritize quality over quantity. Invest in properties that have the potential for enhancement. This not only boosts the property's value but also maximizes your returns. Always aim for the best location and highest-quality property you can secure.

Leverage Your Assets

Forget the endless cycle of selling and buying. Instead, leverage your assets to set off a snowball effect of success. The power of time in the market cannot be overstated. Holding onto quality investments allows for compounding growth, turning your initial investments into substantial gains over time.

Dream Big

Don't limit yourself to small dreams. Embrace ambition and let your investment goals inspire you. By leveraging assets and focusing on quality investments, you can create a legacy of financial success. Time in the market, combined with strategic asset management, can turn dreams into reality.

This is general advice and does not take into account your personal circumstances or individual needs. Always seek professional advice before making any investment decisions.

Save these tips so you can revisit and refine your strategy as you embark on your investment journey. Dream big and invest smart!

Days on Market

Days on market is an undervalued tool or indicator that can be used to assist in the negotiation and purchase of property. It’s and indicator as to the market conditions and could assist with your next real estate purchase negotiations.

Days on Market:

• This is a crucial metric used to determine the state of the real estate market. A low number of days on market indicates a sellers' market, while a high number of days indicates a buyers' market. The 'Days on Market' is often used in conjunction with other key metrics to leverage the best outcome for a property sale.

Lead Indicator:

• 'Days on Market' is considered a lead indicator, meaning it can be used to predict future price movements. By analyzing this data, you can determine if the market is favorable for buyers or sellers, and make informed decisions about your property sale or purchase.

Leverage:

• The number of days a property has been on the market can help you understand the leverage you have as either a buyer or a seller. A short time on the market indicates a strong position for the seller, while a longer period can give buyers more leverage.

The Numbers:

• The information provided suggests that less than 30 days on the market indicates a sellers' market, 30-70 days is a neutral market, and 70+ days is a buyers' market. These numbers provide a clear indication of the state of the real estate market, allowing you to make an informed decision about your property sale or purchase.

Remember, these are general guidelines and it's always best to seek professional advice before making any decisions.

The value of a depreciation schedule in property investing!

Depreciation is a common term in property investment, but its significance is often overlooked. It's a valuable tool that property investors can use to reduce their taxable income. This can result in substantial savings over time. However, not all properties are eligible for depreciation, and the rules can be complex. In this post, we will discuss the triggers for when a depreciation schedule would add value for a property investor, including new builds, properties built after 1987, and significant renovations.

New Builds

One of the triggers for when a depreciation schedule would add value for a property investor is when the property is a new build. New builds offer the advantage of maximum effective life for depreciation purposes. The Australian Taxation Office (ATO) allows property investors to claim depreciation on new buildings, which is calculated at 2.5% of the original construction costs over a 40-year period. This can result in significant tax savings for the property investor.

Properties Built After 1987

Another trigger for when a depreciation schedule would add value for a property investor is when the property was built after 1987. This is because, under ATO rules, residential investment properties built after 16th September 1987 are eligible for a Building Allowance. This can be claimed as a tax deduction over a 40-year period. The Building Allowance is calculated at 2.5% of the original construction costs, making it a valuable source of depreciation for property investors.

Significant Renovations

A significant renovation, typically defined as a renovation in excess of $40,000, can also trigger the need for a depreciation schedule. The ATO allows property investors to claim depreciation on significant renovations, which can be spread out over a 40-year period. However, it's important to note that not all renovation costs can be depreciated. Only capital works can be depreciated, which include structural improvements and modifications.

Seeking Professional Advice

While a depreciation schedule can provide valuable tax savings, it's not suitable for all properties. Each property is unique, and the decision to use a depreciation schedule should be based on the specific circumstances of the property. Therefore, it's always advisable to seek professional advice before making any decisions.

A depreciation schedule can add significant value to a property investor. It's a tax-efficient strategy that can help reduce the taxable income and increase the cash flow from the investment property. However, the decision to use a depreciation schedule should be based on the specific circumstances of the property, so it's always best to seek professional advice before making any decisions..