Tuesday, July 8, 2014

Making Money in Property

There are four ways to make money out of property investments. To get the top performance from your property you should have a balance of all four elements, namely:- 1) Passive Appreciation: This occurs when you purchase a well-positioned property with a good location and it increases in value along with the general property market over time. 2) Active Appreciation: This happens when you take an action to increase the property’s value by renovation or redevelopment. 3) Rental Return: This is the most common source of return on investment, since it provides cash flow. 4) Tax Benefits: Property is probably the best investment for tax benefits due to negative gearing and depreciation allowances. It’s important to keep all four of the income-producing qualities in mind when investing in property. One reason is that well-located residential properties have inherently high growth rates. Most successful property investors over the long term do so safely without speculating. They buy quality properties in good locations and hold them over the long term, allowing them to grow in value. The main reason they purchase property in the first place is for strong capital growth. It is probably the golden rule of property investing to buy the best quality property you can in the best location you can find and which you can purchase within your budget. Then never sell the property. We at Professionals Logan Lifestyles can assist you on all aspects of real estate. If you have any questions about any sale, purchase, letting or other real estate matter do not hesitate to call me Noel Thompson on 0418517525 or call in to our friendly offices at Browns Plains for a talk.

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