Since the BRW Rich List was started in 1984, there have been nine Australian property developers who have featured every time. And given that there are only 19 people overall to achieve that feat, it appears property can be a winning formula.

Frank Lowy leads the charge, listed currently as Australia’s second richest person with $6.87 billion to his name. The rest of the ‘big nine’, in descending order, are Harry Triguboff ($4.95 billion) and John Gandel ($3.7 billion), followed by Stan Perron, Maurice Alter, Alan Rydge, John Kahlbetzer, Bruno and Rino Grollo and John Longhurst.

Further evidence of the earning potential of the property market can be seen in this year’s list. Of 36 billionaires featured, 15 earned a significant amount of their wealth as a result of the local property boom.

Despite the continued presence of the nine seasoned property moguls hinting at the lucrative potential of the real estate market, there is a relative dearth of property investors in the Young Rich List compared to the full list. Eight out of 100 in the BRW Young List predominantly made their earnings in property as opposed to 55 of 200 in the full Rich List published last year. This indicates a disproportionately small amount (approximately 30 per cent) of property investors in the Young Rich List.

Property Investing in Perth

If you are keen to get into the property investment market but are unsure of where to start, getting the right property investment & development advice is essential. To find out more about property investing, speak to the experts at Rass Global Investments.

The basic premise of Mortgage Planning is:

  • Debt elimination options
  • Future leasing of owner occupied home (or homes)
  • Non-cross securitisation of more than one property per mortgage
  • Provision for automated repayments
  • Allowing for future equity and investments as well as retirement needs
  • Cash flow needs without disrupting loan repayments
  • Consideration for further borrowing.
  • Investment loans
  • Development loans
  • Construction loans

Lenders don’t always have the necessary understanding and expertise in dealing with advanced loan structuring. Banks have a tendency to lock properties against all mortgages, which places them in an advantageous position of needlessly holding all securities, often to the detriment of the investor.

People with multiple investment properties, in particular, should seek out specialised professionals to gain the flexibility they require in mortgage planning their loans.

Property Investment Company in Sydney

For more advice on Mortgage planning, property investment, property development and management in Sydney or Perth, contact Rass Global Investments. Not only can they help you start an investment portfolio, they can manage your investment properties for you too.

Unprecedented low interest rates, combined with moderate pricing, tax deductions and relaxed superannuation rules has seen many property investors jumping at the idea to reap the many financial benefits of property investing.

Investment Opportunities

Within the past year, Australian property prices had been steadily falling and spending was minimal. The Reserve Bank of Australia (RBA) drastically cut interest rates and now we find ourselves in a state of recovery with house prices on the rise and auction sales flourishing. The bulk of the market activity, however, has been driven by investors, rather than home buyers, looking to capitalise on the opportunities.

Investor loans have leapt by 16 per cent in the past 12 months according to ABS figures. Meanwhile loans to occupiers have also increased but at a much slower rate – 6.6 per cent.

Aside from the helpful nudging coming from the RBA, property investment is soaring due to a perceived lack of safe options in the wake of the GFC. Investors are still gun-shy when it comes to intangibles and they don’t want to be burnt again. And with population unrelentingly on the rise, the demand for housing is a secure constant.

Investors Versus Home Buyers

While this has led many to declare an end to the two year property slump, it appears we are gradually shifting towards a nation of investors rather than homeowners. And the current rise in house prices is not what prospective home buyers will want to see.

Investment Property in Sydney

If you would like to get your foot in the door with an investment property in Sydney, or need more advice on how to manage your current investment portfolio, contact Rass Global Investments..

The local real estate climate has improved markedly in recent months. Lower interest rates and a steadying global economy have both contributed to a rise in consumer confidence throughout the property sector.

“We’re now seeing a lot more activity around sales compared with this time last year,” said RP Data’s Tim Lawless. The flurry of activity is encouraging for vendors and property investors alike, with a vast majority of property sales recording healthy profits.

According to figures from RP Data, 87.3 per cent of homes sold (58,677 in total) during the March quarter recorded gross profits on their previous purchase price. And it’s the higher end of the market (properties above $1.5 million) experiencing the significant growth during the past six months, increasing by 4.8 per cent in comparison to 3.2 per cent at the lower end. Mid range properties also performed strongly with a 4.6 per cent rise.

This can be attributed, at least in part, to a flow-on effect from share market growth. “We are starting to see profits taken from the share market being channelled into the more expensive housing markets,” Lawless said.

Time of ownership did play a part in these statistics. The likelihood of making a gross profit or loss is quite different based on the length of time a property has been owned. Homes purchased before the GFC in 2008 were far more likely to turn a profit this quarter.

Property Investing in Sydney

If you’re ready to make the first move in property investing but are unsure of where to start and who to talk to, contact property investment experts, Rass Global Investments. today.

If you’re investing in property, it’s important to do so the right way. And while investing in a unit or apartment can be a good financial move, there are some serious traps to watch out for.

Age

Older apartment and unit blocks, particularly the kind that were put up in large numbers in the 1960s and 1970s, can be a good entry point for first-time investors. But make sure to get a thorough building inspection, as these types of units can suffer from potentially expensive structural problems.

Size

Again, if you are a first-time investor, you might consider buying something quite small to begin with. Do your research on the capital growth potential of a studio or a small one-bedroom, as this may be proportionally smaller than that on, say, a two-bedroom apartment.

Block Size

Are you buying a unit in a block of 10 or a tower of 500? Remember that value is based on scarcity, so—especially if you are buying off the plan—buying in a smaller block will make you less prone to a sudden glut in the market, as well as allow you to offer a more unique option to potential tenants.

Which Floor?

When it comes to apartment blocks, property experts differ on whether a top floor, ground floor, or mid-level apartment is the better option. Ground-floor units can offer greater accessibility for those who need it, but may be less secure than those higher up. On the other hand, it’s hard to beat a top-floor apartment with a great view. The best choice will depend on a range of factors such as the size of the building, its location, whether it has a lift, and so forth. Weigh up these factors carefully.

Property Investing

For specialist property investment advice, contact Rass Global Investments.

Those investing in property will want different things from their investments. For some, property investing provides extra earnings on the side, while for others it’s their main source of income. What you get out of investing will depend on how you approach your investments and how much of your own time and money you are able to put towards them.

Property Investor

You have a full-time income, and probably already own or have a mortgage on your own home. Investing is a way for you to leverage a portion of your income to create a return for yourself through rents, to build an asset base for your retirement years, and possibly to take advantage of property depreciation rules to decrease your tax burden.

Property-leasing Business Owner

You own multiple properties and most of your income is rental income. A substantial part of your day-to-day work consists of management tasks related to your portfolio of properties.

Property-trading Business Owner

You buy properties in order to sell them for a profit in the short term – sometimes referred to as ‘flipping houses’. You are constantly on the lookout to buy properties that will yield significant growth as fast as possible, either because of fluctuations in the market as a whole or because of the changing character of particular suburbs. You may also look for properties where there is potential to add value, such as by renovating a dated bathroom or kitchen, in order to sell the property for a profit.

One-off Investor

You aren’t engaged in an ongoing property-trading business, but are undertaking essentially the same activity on a one-off basis. Taxation rules for this can vary depending on the scale of the undertaking.

Remember that the Australian Tax Office will treat your investment income differently depending on which of the above categories you fall into.

Property Investment Advice

For specialist advice on all aspects of property investing, call Rass Global Investments.

Looking to pay off the mortgage on your home or investment property faster? Here are a few tips that can help you be debt free as soon as possible.

Increase the Frequency of Your Repayments

Mortgage interest accrues daily, so making payments as soon as possible can decrease the interest accrued, even though you are still paying the same amount in total towards the mortgage. Try rearranging your payment schedule to fortnightly rather than monthly.

Make Lump Sum Payments

When you find yourself with an unexpected cash lump sum, put it towards the mortgage. Check with your lender about their rules regarding lump sum payments, as there may be limits to the amount you can pay off in this way without penalty.

Arrange a Mortgage Offset Account

A mortgage offset account is a transaction account linked to your home loan. For the purposes of calculating interest, funds in the account are offset against the value of the loan. This can save you a substantial amount of interest, especially if you are also saving for a large purchase such as a car or a holiday. Generally, there should be a minimum amount in the account at all times for an offset account to work in your favour.

Take out a Loan with Yourself

When you get a raise at work or if interest rates go down, don’t see this as extra disposable income. Instead, aim to keep putting the same percentage of your income towards the loan. This will allow you to be debt free sooner over the long term, and won’t mean any drop in your existing quality of life – it will just mean continuing to live as you have been rather than indulging in new luxuries.

Property Investment Coaching

Add a granny flat to pay off your mortgage in approx 10 years.

Do a development and pay your mortgage off in 1 year.

For more property investing advice, contact Rass Global Investments.

In this recent video from Australian Property Investor magazine, investment specialist Chris Gray talks about current trends in the Sydney property market.

The Sydney Market

In the video, Chris says that the Sydney property market is, in general, doing quite well. He says that his own investments have increased in value a little over four per cent in the last 12 months, and singles out Sydney’s eastern suburbs as an area that he personally chooses to buy in, as it’s many apartments are in constant demand.

The Impact of Interest Rates

The current low interest rates and high levels of consumer confidence are good for property investors. With the rates being at a surprising low, he says now is definitely the time to buy.

Predictions for the Near Future

For the rest of the year, Chris predicts that the market will continue to grow. The market is healthy but not booming, and Chris expects another boom in the near future because of low interest rates encouraging a lot of investors and homebuyers to get into the market.

Advice for Investors

When asked what advice he would give investors, Chris says that investing is a matter of balancing the need to be well informed about the market with the need to jump in. As Chris puts it: “If you wait for perfect knowledge, you’re never going to get it, so at some point, just jump in”.

Investment Property Advice

Worried about jumping into the deep end with property investing? Contact the investment professionals at Rass Global Investments for property investment coaching.

There are two distinct investment options open to you when you decide to put your money in property: commercial or residential. There are benefits and downsides to each, so you need to be able to assess the potential hazards and rewards, and what kind of investment risks you’re willing to take.

Investing in a Commercial Property

In general, commercial property asks you to take higher risks but offers greater financial rewards. The tenants for a commercial property will be businesses and this means that the rental value is dependant on the health of the economy as well as the quality of the tenant.

When one tenant leaves, it can also take a long time to find a suitable replacement, meaning your investment could sit empty for a long period. Buying a commercial property also tends to be a more complex process and renovation costs are higher.

Residential Property Investments

The risks are normally much lower for residential property investments, as you are more likely to be able to fill your space quickly. You might find that your property is empty for a few weeks between tenants here and there, but high demand for residential housing means it’s unlikely to be empty for a prolonged period.

While residential properties are a lower risk investment, you will find it harder to pass on costs such as rises in utility bills when you’re bound to a rental agreement, and the return tends to be much lower than for commercial properties. However, buying in a popular area can drive your profit to higher levels.

For specialist advice on all aspects of property investing, including the pros and cons of residential and commercial lets, contact Rass Global Investments.

“If you are going to be thinking anyway you might as well think BIG!”

In this video Donald Trump shares how his experience of “Thinking Big” has changed his life!

Thinking big can be applied in any aspect of life but is particularly relevant to us because Trump looks at Thinking Big from the perspective of a builder.

His top 10 tips to thinking big include:

1. Being thorough

2. Having momentum

3. Staying focused

4. Looking at a solution

5. Seeing opportunity

6. Knowing everything you can and what you are doing

7. Being lucky and being passionate

8. Seeing yourself as victorious

9. Being smart

10. Never giving up

Let Eurobodalla Real Estate assist you in thinking big and achieving your goals through our property investment advice.