The risk profile of a property investor

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If you’ve ever been to see a Financial Planner before, chances are you’ve heard the term risk profile been thrown around, but what does that mean for a property investor? We have a different risk profile that we use for property investment through our property investment arm of the business.

Knowing and understanding your risk profile, is one of the single most important steps you can take before you invest, it is crucial.

What it means is how you feel about risk. It ...

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The Proposed Negative Gearing Changes and what they mean to Albury Wodonga Investors

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The big news for this week! Negative Gearing potentially scrapped on existing dwellings.

In case you haven’t heard, Bill Shorten leader of the Australian Labor Party (the ALP) has announced a proposed reform to the negative gearing tax concession presently available in Australia.

Should the ALP win the next federal election and pass its proposed reform through Parliament, then from 1 July 2017 investors will only be allowed to negatively gear brand new properties. Also included in the reform package is a proposed reduction in the Capital Gains Tax discount from 50% to 25%, for property ...

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Depreciation! What is it and how does it help you…

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Depreciation is the property investors secret weapon. This can make a negatively geared property positive cash-flow. Giving you tax deductions without you needing to fork out money for that financial year.

When you buy an investment property one of the first jobs you should do once the property has settled is organise a quantity surveyor to come do a depreciation schedule for you. At a cost of about $600 this is a worthwhile investment. A depreciation schedule will outline the amount ...

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The 6 Negatives of Property Investment

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Negatives of Property Investing

 

Property investment isn’t all risk free and rosy. There are potential downfalls to investing in property and any successful property investor needs to know and understand the negatives.

  1. Long-term Investment– Property isn’t a buy/sell short-term investment. To be a true property investor you need to be in this for the long haul. I always advise my clients to only consider property investment if they have at least a 10 year investment time period. This property is going to be ...
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The Sweet Spot of the Property Investment Cash Flow Cycle

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Cash Flow Cycle

 

When you buy a property you begin the first step of your property investment cycle. This diagram shows the different stages of cash flow.

the sweet spot

The costs for holding a property over time remain relatively stable despite occasional maintenance hiccups. The rent for a property in theory should be increasing year on year.

Stage 1 –The Hurt Locker

 

Most properties to begin with ...

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