Wealth Creation Via Real Estate

Investing in real estate remains one of the most

practical vehicles for wealth generation available

today. Australians have a well-established love

affair with property as it provides the opportunity

for a passive income stream with the added bonus

of capital growth appreciation.

More info on:

http://www.chaseedwards.com.au/

Putting a roof over our heads is one of the basic

necessities of life, meaning that we all depend

upon the residential property market in some way,

shape of form. As an investor you should seek to

capitalise on this market from a wealth generation

standpoint.

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http://www.chaseedwards.com.au/

Capital growth

Rental income

Tax incentives: negative

gearing and depreciation

remain powerful

investment tools that

will reduce your tax

obligations.

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http://www.chaseedwards.com.au/

Real estate provides a cushion against inflation

Intergenerational transfer of wealth: For your

children, property will remain an asset with

income-generating potential or practically as a

residence.

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http://www.chaseedwards.com.au/

Contemplate this: if you are

paying $2000 per month in rent

for you and your family, this

would amount to $600,000

over a 25 year period. The

worst part of this equation is

that rental payments are wasted

money, given you will always

see a zero return on your

investment.

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http://www.chaseedwards.com.au/

In some suburbs, the cost of renting has actually

surpassed the value of mortgage repayments.

With these type of metrics available it has

become much easier to make a decent return on

your property investment via rental income.

More info on:

http://www.chaseedwards.com.au/

The old real estate adage: ‘location, location,

location’ remains extremely important in this

scenario. Having easy access to amenities,

transport, schools, employment centres and other

lifestyle factors such as the beach will have a direct

impact upon your ability to find a tenant for your

investment.

More info on:

http://www.chaseedwards.com.au/

Banks and non-bank lenders in

Australia can loan up to 90% of

the value of an investment

property. As an investor,

capitalising on higher loan to

value ratios represents a

significant opportunity for you

to tie up less of your own cash

in property and thereby reduce

the amount of ‘skin in the

game’. More info on:

http://www.chaseedwards.com.au/

For existing property owners

it is also possible to unlock

the equity available in your

own home to invest in further

wealth-generating property.

Later purchases can draw

upon the equity in your home

and investment property to

buy additional investment

properties and build up a solid

portfolio.

More info on:

http://www.chaseedwards.com.au/

For many investors purchasing a house on a large

plot of land within striking distance of a capital

city’s CBD will remain financially out of reach. You

should only purchase what you can afford, meaning

that a property should be the correct fit in terms of

rental returns and cost in order for it to stack up as

an investment opportunity.

More info on:

http://www.chaseedwards.com.au/

Apartments by comparison possess the advantage

of providing a lower-cost entry point for investors

seeking to capitalise on the strong rental markets

present across inner-city locales. Given the pros

and cons of each property type it makes sense to

have a mix of apartments and houses in your

investment portfolio.

More info on:

http://www.chaseedwards.com.au/