First Time Property Investors and Negative Gearing

Related posts:

==> Taxation, Negative Gearing & Investment Property Explained  (includes property gearing tax calculator)
==> Negative Gearing Explained
==> Building an Investment Property Portfolio

Most first-time investors agree that negative gearing and property investing can be an intimidating proposition. Issues such as where to buy, how much to borrow, how much rent to charge, where to find tenants, should I use a property agent to let my investment property, how should I structure ownership of the investment property,how to structure the investment property finance, how will negative gearing help me as well as other complicated legal, financial and taxation issues can become overwhelming for some investors.

To combat this, property experts recommend that the first step for first time property investors on their
forthcoming investment journey is always to ‘research, research, research’, then research again.

Here are some issues that first time property investors need to consider:

  1. Sit down and think about the type of property you are attracted to investing in and where the growth areas for these properties are. 
  2. Are these properties ‘over the back fence’ or interstate? 
  3. Popular types of research include studying magazine real estate articles and the business and real estate pages in your local and daily newspapers, talking to local real estate advisors, other investors or financial experts, and investigating property investment sites such as Investment Property Wise.
  4. Talk to your accountant or research online sites like this one - there is a lot of FREE information available on the internet to help first time investors get a feel for the topic.
  5. Realestate.com.au is an excellent source of information. To research an area it is a simple task to set up alerts and receive notifications of new listings in any area on a regular basis - daily, weekly or monthly. 
I personally use these methods when looking to acquire a property - particularly the realestate.com.au alerts. In doing so I get a really good feel of the area, types of property available, prices, median house prices for the area/suburb, recent sales data and how quickly/slowly properties are moving.

Copyright 2014. My Tax Zone.