While securing a high performing investment property in a place that provides demand is integral to achieving a profitable gain in real estate, there are also the formalities that need to be unpacked at prior.
One of them is to get an appropriate ownership structure when buying an investment, because the bad one can end up upsetting the large increase in your cash flow . As it sounds true, it's not just what you buy but how you buy it.
Wayne Jessup, real estate investment coach and director of The Property Bloke, says he regularly sees investors failing to structure their loans properly, and in a way that will work in their favor.
"People don't realize the tax benefits with certain loan structures and how they can be if they are misconfigured, they can be very difficult to break down and restructure", Jessup shares in s & # 39; sitting down with Sarah Megginson, editor of Investment Property magazine, for the latest YIP Talk podcast.
Jessup emphasizes what investors should focus on when it comes to laying the foundation for a profitable investment, and he says that the ownership structure does an integral part of your overall wealth creation strategy – no matter how many properties are sweeping your portfolio.
"Once you are in [a certain structure] you can't really change it. It is really difficult to change the owner. You have to sell the property and that comes with many other complications," says Jessup , also guiding readers through the various structures and how it can determine the amount of tax they will have to pay.
In some cases, and depending on your situation and the real estate structure in which you buy, "you may have a lot more money to invest in the next property or development or subdivision, [or] whatever you decide to do, "Jessup explains in the podcast.
For those planning to buy property, the manager says they should plan up to six months in advance.
Jessup says, "When you are really ready to enter the market and buy a property, once you have done your research, done your studies, you are 100% ready and you don't miss an ideal opportunity . "
In addition, borrowers now having to jump into higher circles in order to get loan approval, the way the loan structures and accessibility essentially work is more concrete than ever .
Jessup compares the current real estate climate to "a great funnel of opportunity".
“[Investors] really has to find what he needs for his plan. It depends on your age, it depends on what you need, what your income needs … so having an education and a plan of attack is definitely the way they will be set up in 2020 ", explains Jessup.
To learn more about how to prepare when you plan to buy your first or next investment property, listen to Wayne Jessup's full interview on the YIP Talk podcast.
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The Pelvis
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queens park
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Woolloongabba
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East victoria park
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Lockridge
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