Featured Properties
ParkTrent Properties Group provides our clients with a large range of quality properties at the best prices available on the market. Complete with incentives and bonuses, we can source properties before they even hit the market. Ask us how we can assist you with your property needs.
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Why invest in property?
Property investment can be daunting, especially if you’re a first-time investor. If you’re contemplating going it alone, prepare yourself for a steep learning curve, plenty of sleepless nights and the potential for big financial losses. Why go solo when ParkTrent is here to help?
We’ve been lending a helping hand to first-time property investors for more than 35 years. We have all the tools, tips, advice and guidance to get you started on the right foot.
Why invest with ParkTrent?
ParkTrent is Australia’s largest privately owned real estate company. We provide a full range of services from buying an investment property through to property management and growing your investment portfolio.
As you move through the investment process you may find you need access to specialised services like solicitors or financial advisors. This is where ParkTrent excels – we work with a network of real estate professionals who are on hand whenever you need them. We can organise everything for you, saving you time and frustration.
We take the financial future of our clients very seriously. Our research-based approach has helped thousands of clients make smart property investment decisions to achieve a secure financial future. How can we help you?
Benefits of investing in property
Investing in property is one of the safest investments you’ll ever make. You can guarantee your success If you do your research, stick to a long-term plan and seek out expert advice.
Need some persuading? Here are five reasons investing in property is a smart decision.
- You don’t need a degree to get started in the property market. Buying your first investment property is simple, especially when you partner with an expert like ParkTrent.
- Lenders love property. Borrowing for residential development is the backbone of our banking industry, so getting finance for your investment property is straightforward.
- You can tailor your property investment to suit your budget. There are many different types of property to choose from, ranging from inner-city apartments to houses in regional areas across Australia. ParkTrent will help you choose the best property for your budget and property investment goals.
- Property investing in Australia means taking advantage of tax breaks and benefits. These may come in the form of negative gearing, capital gains tax and depreciation.
- Investing in property means you are in control, not a stockbroker or financial advisor. What you do with your investment property – whether it be renovating, extending or redeveloping – is in your hands.
The ParkTrent Property Investment Plan
At ParkTrent we are renowned for our knowledge of the Australian property market. We know when and where to invest and we’ve been sharing this knowledge with investors for more than 35 years.
Our proven 3-step real estate investment plan is why we are so popular with investors. It’s also the reason why clients keep coming back. Here’s what we can offer you:
- Attend a free property investment seminar.
Our free property investment seminars are the best way to get an introduction to the market or, if you are an experienced investor, to get a refresher. We share the most up-to-date and innovative methods for property investment success and we’ll show you how you can grow your investment property portfolio on any budget.
- Speak to a ParkTrent property consultant.
After you attend one of our seminars we will put you in touch with a ParkTrent property specialist. They will be able to provide you with an array of real estate opportunities tailored to your property needs.
- View properties that have been selected for you
After you have received your plan and met with your investment consultant, we invite you to view the properties or real estate investment plans we’ve found that best suit your needs. If the property is located nearby we can even organise an inspection.
After-sale service and support
Our service doesn’t stop once you’ve purchased your investment property. We’ll introduce you to your Account Manager, who will be on hand to help you grow your investment property portfolio. If you have any questions or comments you can speak to your Account Manager or call our Customer Service Team on (02) 4225 2440 Monday to Friday from 9am to 8pm EST.
Want to attend one of our investment property seminars? Visit our Seminars page for the most up-to-date list.
Buying off the plan
Buying an apartment off the plan is a common form of property investment. It is attractive to first-time investors because an apartment is generally a cheaper option than a house.
Want the lowdown on why you should purchase off the plan? These are the 5 most important reasons:
- Off the plan properties tend to achieve higher rental return in comparison to older properties.
- Depreciation will be higher for an off the plan apartment than a house of relative value. The higher the depreciation, the less tax you’ll pay.
- You’ll only need to pay a portion upfront as a deposit and the balance upon completion, which can be 18 months or more.
- Maintenance is lower.
- Buying off the plan allows investors to pay a proportion of the stamp duty that is due on the full price. This means extra leverage on your investment.
Buying off the plan is an affordable way to enter the property investment market. It’s an option well worth keeping in mind. Want to know more about buying off the plan?
Property investment for women
Property investment is not just for men. Over the past decade we’ve seen an increase in the number of women choosing property investment as the foundation of their financial future. It’s our mission to ensure that would-be property investors, male or female, receive genuine support and guidance to grow their investment property portfolio.
We’re proud to be a part of investment success stories that feature women as lead characters. Want to create a story of your own? How can we help?
We’re here to help
Are you interested in property investment in Melbourne, Sydney, Brisbane, Darwin, Perth, Adelaide, Canberra or Hobart? Are you a first-time investor thinking about making the move into the property market? We can answer any questions you have about property investment opportunities and building your financial future. Call us on (02) 4225 2440 or send us an online enquiry.
Investing in property is one of the best ways to create wealth. As an experienced investor, you’re already aware of the advantages that property has over other forms of investing. If you’re looking to build upon the financial foundation you’ve started, and you want to partner with experts, choose ParkTrent.
If you’re considering adding another property to your investment portfolio you probably have a lot of questions, like:
- Which suburb should I invest in?
- Should I buy an apartment or house?
- Can I afford to purchase another investment property now?
- Who will help manage my property and find good-quality tenants?
We have the answers to all of these questions, and many more.
Put simply, ParkTrent helps experienced investors find, acquire and manage investment properties that perform well. We achieve this by providing solid, research-based advice and practical steps that you can take to increase your returns. We take the guess work out of increasing your property portfolio.
6 ways you will benefit by investing with ParkTrent
- Expert knowledge – we share our extensive knowledge of property investment and understanding of the current Australian property market with you. We know the answers so you don’t have to.
- Experienced staff – our team has helped thousands of property investors find the best properties and locations to invest in for the past 35 years. There’s nothing we don’t know about property investing.
- Thorough research – all of our property investment strategies are based upon extensive market research. We also take into account factors that could influence the future of your property, including past sales values and proposed developments in the area.
- Stress less – we know that the property market can be a confusing, stressful place, even for the most experienced investor. Choosing to partner with ParkTrent means that we act for you in finding the best investment for your financial goals. We also have access to solicitors, building and pest inspectors, mortgage brokers, quantity surveyors, property managers and insurance brokers. Choosing ParkTrent means choosing a comprehensive investment solution.
Want to get started?
Do you want to increase your investment property portfolio? Would you like to discover new markets and possibilities for creating wealth? ParkTrent is the industry leader in providing up-to-date property market research and investment strategies encompassing all cities and regional centres across Australia, including Sydney, Melbourne, Hobart, Adelaide, Perth, Darwin, Brisbane and Canberra.
If you are an experienced Australian or overseas investor interested in expanding your property investment opportunities, we invite you to attend one of our free property investment seminars. If you’d rather speak to one of our team members, please call us on 1800 652 224 or send us an online enquiry. We look forward to helping you grow your financial future.
Whether you’re looking to purchase an investment property or migrate to Australia, ParkTrent can help. Here is an overview of the buying process.
Speak to a ParkTrent Property Consultant
The best place to start is by speaking with a ParkTrent property specialist. They will be able to provide you with an array of real estate opportunities tailored to your property needs and provide a more details overview of the buying process. Your ParkTrent property consultant can also answer any questions you may have.
FIRB Approval
Non-residents wishing to purchase property must firstly obtain permission from the Australian Government Foreign Investment Review Board (FIRB). You can apply directly to the Australian government through their online application process which can take 40 to 130 days to receive a response. If the process seems a little too complex, ParkTrent offers migration services as a licensed migration agent. Whilst you are waiting for your application to be processed, you may begin your property search in your desired location.
If you’re looking for an investment property, non-resident foreign investors cannot buy existing dwellings, you can buy properties in new developments so long as not more than half of the development is sold to foreign owners. In practice, this means that you will have to invest in an off-plan or recently completed flat, but the good news is that most Australian flats come with lifetime ownership so there’s no lease that’s running down.
Exchange
Once you have found a property, the contract for sale is drafted. Before this is signed, you still have the option to cancel the transaction if you change your mind. Please note, the seller also has the same rights. If both parties wish to proceed, the contracts are signed and exchanged. A deposit of around 10% of the property purchase price is typically required at this stage.
Once the contracts are signed and exchanged both parties are bound to proceed with the transaction. In most states however there is a period of time known as a “cooling off” period where the buyer can change their mind without losing their deposit, although there may be an administration charge or penalty for this. This varies from state to state and ranges from 3-10 days after the date the contract was signed. This is typically not available for properties bought at auction.
Settlement
Once all the sale conditions have been met the sale can be settled, i.e. completed, and the balance of the purchase price paid. The property is then formally transferred to the buyer and will be registered in the relevant land ownership register.
You can then move into your new home or if you’ve purchased as an investment, ParkTrent can assist with finding tenants.
Finances
Foreign investors can borrow up to 70% of the property value through an Australian home loan. ParkTrent can refer you to a qualified mortgage broker who will source the best home loan to suit your needs and assist with the whole application process.
Additional costs on top of the purchase price of the property will apply and varies from state to state. On average you should budget for an additional 5-7% of the property purchase price. Costs will include: taxes, legal fees and land registry fees.
Building a successful property investment portfolio means different things to different investors. Perhaps you want to develop a nest egg for retirement, or maybe you’d like to create a better financial future for your family. Whatever the reason, bricks and mortar is considered by many to be a sound investment.
We believe that investing in property in Australia is a secure way of developing future wealth. If you use the advice given by ParkTrent, you’ll be in a better position than most.
Why invest with ParkTrent?
At ParkTrent we’ve been helping property investors build a secure financial foundation for more than 35 years. As one of Australia’s most trusted privately owned real estate companies, we place a high value on strong market research; it’s the cornerstone of all our property investment plans. It is our business to know the market inside and out, and it is this knowledge that we put to work for you.
We take great pride in being a leader in our field. If you’re considering purchasing an investment property, the ParkTrent team will be with you every step of the way.
Four key benefits of property investing
If starting an investment property portfolio is something you are considering, the ParkTrent team will guide you through the process. We know that investing in property works for creating future wealth.
Historical growth
In most cases, Australia property prices have doubled every ten to 12 years. For example, if you purchase a property today for $350,000, it could be worth $700,000 in ten years. As ParkTrent CEO, Ron Cross, often asks new clients, “Knowing what you know today, how many investment properties would you have purchased ten or 20 years ago?”
Property investment won’t take up a lot of your time
Owning an investment property can be very rewarding for long-term thinkers. Investors who hire a property management company to take care of the day-to-day running of the property don’t have to spend much time working on the property at all. Hiring a property manager means you can sit back and watch your investment grow.
Investing in property is easier to understand
Houses are familiar to us because we live in them. This familiarity is one of the reasons why property investment is so popular. Compared to the share market, the property market is straightforward. Using ParkTrent as your guide to the property market means that we’ll do all the hard work for you.
You are in control of your property investments
While we may formulate an investment strategy, locate potential investments for you and assist with property management, you are still in control of your property investments. You can choose who lives in your property, when repairs are made and when to sell it or move on. We may provide advice, but the ultimate power to say ‘yes’ or ‘no’ is in your hands.
Taking advantage of current market conditions
The property market in Australia is currently experiencing very favourable conditions for investment property owners. If you’re considering entering the investment property market, we urge you to consider making your move sooner rather than later.
Why invest now?
- Interest rates are at a 60-year low and they look like they’ll be staying at this level for some time.
- With immigration boosting our population there is increasing demand for more housing in capital cities.
- The value of existing stock in capital cities is expected to rise to reflect growth in underlying demand. Demand is driving these prices higher.
Investment property tax benefits
As a property investor your goal is to maximise your investment. In order to help you achieve this we can take advantage of some tax deductions, benefits and different structuring of loans.
Some of the most common deductions that property investors can claim include:
- advertising for tenants
- bank charges
- body corporate fees
- cleaning
- council rates
- electricity and gas
- garden maintenance
- insurance
- interest in loans
- legal costs
- repairs and maintenance.
Prepaying interest
One of the greatest expenses associated with having an investment property is interest accrued on the investment loan. Did you know that the amount of interest paid on a loan can significantly reduce the amount of tax paid? If you can afford it, we suggest pre-paying the next year’s interest on your loan. Here’s why:
- You may be able to claim interest paid as a deduction. This is especially beneficial if your income increased in the year that the interest was paid.
- You don’t need to worry about fluctuating interest rates affecting your monthly interest payments. Pre-paying interest means you have a better idea of cash flow, which helps with budgeting.
- It saves time. One payment means less paperwork and less stress.
Need more information about property investment tax deductions? We invite you to attend one of our free property investment seminars. Alternatively, if you’d like more information about your property investment options view our property investment evaluation page.
Making the most of government grants
If you are a first home buyer and your goal is to build income outside of your wage or salary, investing in residential property provides an ideal foundation.
Purchasing residential property can provide considerable benefits aside from the actual value of the property. These benefits include:
- subsidies afforded by local government grants for first home buyers
- capital growth
- tax benefits
- secure income stream
- prospect for adding additional value, which in turn offers further capital growth.
Local government grants for property buyers
The states and territories offer a range of grants for home buyers. The details for these grants differ from state to state. Find out the grants you are eligible for in New South Wales, Victoria, Queensland, South Australia, Tasmania, Australian Capital Territory, Western Australia and the Northern Territory.
It doesn’t matter if you are a first-time home buyer or experienced property investor, our friendly team can give you the information you need to make property investment a reality. Call us on (02) 4225 2440 or visit our property investment seminars page to register and attend one of our wealth changing seminars.
If you are looking to invest in property within the next six to twelve months, we suggest meeting with a ParkTrent Property Consultant to discuss the current market and your long-term objectives.
During your complimentary one-on-one property investment consultation you’ll learn:
- New and traditional ways to reduce your income tax
- Explore upcoming property hot spots around the country
- Understanding market trends and what we can expect in the future
- Demonstrating how to cut years off your mortgage
- Identifying the benefits of positive and negative gearing
- How to secure your own and your family’s future
ParkTrent’s Property Consultants come to you so discussions are held in the comfort and privacy of your own home.
Consultations run for approximately one hour depending on the number of questions you may have.
Book a Property Investment Consultation
To meet with a Property Consultant complete the form below and a ParkTrent representative will be in touch to arrange a suitable appointment time. You can also call us weekdays between 9am and 5pm on (02) 4225 2440.
ParkTrent is one of Australia’s most trusted privately owned real estate groups. Each year we help hundreds of Australians, from all walks of life, achieve their dream of investment property ownership.
Who we help
ParkTrent Properties Group is a full-service firm. This means that we can assist you with all aspects of buying and selling properties, property management and property investment. Thanks to our close relationship with our network of professionals we can also organise services from solicitors, financial advisors and industry experts on your behalf, saving you time.
At ParkTrent we provide comprehensive property investment services for every type of investor. Over the past 35 years we have helped everyone from first home buyers to retirees find investment properties that suit their individual circumstances and future financial goals.
Our proven 3-step real estate investment plan will get you started on the investment property path. Here’s what we can offer you:
- Attend a free property investment seminar.
Our free property investment seminars are the best way to get an introduction to the market or, if you are an experienced investor, to get a refresher. We share the most up-to-date and innovative methods for property investment success and we’ll show you how you can grow your investment property portfolio on any budget.
- Speak to a ParkTrent investment consultant.
After you attend one of our seminars we will put you in touch with a ParkTrent investment specialist. They will be able to provide you with a comprehensive real estate investment plan that is tailored to your situation.
- View properties that have been selected for you.
After you have received your plan and meeting with your investment consultant, we invite you to view the properties or real estate investment plans we’ve found that best suit your needs. If the property is located nearby we can even organise an inspection.
Property investment services we provide
We know that no two investors are the same, which is why we tailor each of our investment strategies to your unique circumstances. Our property investment services include:
- Industry-leading knowledge of the Australian investment property market.
- Access to thorough property investment research which identifies where you should invest and what you should invest in.
- Direct access to real estate industry experts like solicitors, insurance brokers and quantity surveyors.
- In-house investment property management services.
- Sourcing of property that meets our benchmark investment criteria.
Our property investment services will help you secure your financial future. Get started by requesting an in-home appointment at your convenience on 1300 652 224 or visit our property investment evaluation page for more information.
Got an investment property? You need a depreciation schedule
As your investment property and the items within it get older, their value depreciates. When your investment property is bringing in an income, you are allowed to claim a rental and investment property depreciation deduction. This deduction essentially reduces your taxable income, which means you will pay less tax. Here’s what you need to know about depreciation:
- New properties offer the maximum depreciation benefit.
- Elements in your property, including parts of the building itself, eventually wear out and need to be replaced.
- Fixtures and features like carpets and curtains depreciate in value too.
- A lot of these items are recognised by the Australian Taxation Office, making it easier for investors to claim tax benefits for them.
Benefits of an investment property depreciation schedule
It is estimated that thousands of dollars go unclaimed by investors who ignore depreciation. Don’t be one of them. There are countless benefits of having a depreciation schedule drawn up, including:
- You will pay a lower rate of tax than you would otherwise pay.
- Weekly or monthly PAYG tax is reduced, increasing your take-home pay.
- Having a depreciation schedule drawn up incurs a once-only cost.
An investment property depreciation schedule is an important consideration for any property investment strategy. Our team can help you maximise the benefits of your depreciation schedule. Call us on 1800 652 224 or send us an online enquiry for more information.
NRAS investment properties
In 2008 the Australian Federal Government implemented the National Rental Affordability Scheme (NRAS) with the goal of making housing more affordable to low- and moderate-income families. Overseen by the Department of Families, Housing, Community Services and Indigenous Affairs, the aim of the program is to approve the building of 50,000 homes, mostly in the nation’s capital cities.
For owners of approved NRAS investment properties the tax benefits can be very rewarding. Landlords can receive rents of up to $12,500 per annum without paying traditional income tax on the amount.
Owners of NRAS properties agree to offer rental agreements at a rate that is a minimum of 20 per cent below average rates in the surrounding area. The key to benefitting from the NRAS is to select properties where the tax saving is such that you can still profit while charging discounted rental fees. This is something that ParkTrent can assist you with.
Property investors should note that:
- Eligibility to participate in the NRAS scheme is subject to restrictions.
- There may be fees associated with purchasing, tenanting and managing properties purchased from NRAS-approved participants.
- To receive the full financial incentive, investors may need to remain in the scheme for a number of years.
Please contact us for more information about NRAS.
Customer service and sales
Our customer service and sales team have been the backbone of our company for the last 35 years. Each and every member of the team works hard to ensure that our clients are happy.
Our customer service and sales team can help you with many things, including:
- rescheduling an appointment
- organising a flight to view your new investment property
- answering enquiries from our website or monthly newsletter
- organising a depreciation schedule to maximise your tax benefits
- checking on the progress of your property
- providing information on properties and the current property market.
Get in touch
If you have suggestions about ways we can improve our services, we would like to know. Our customer service team is located at our corporate office in North Wollongong and is available Monday to Friday from 9:00 a.m. to 8:00 p.m. by calling 1800 652 224.
Customer service representatives are also available during business hours on Twitter and Facebook and via email.
We want to provide you with the best service possible. Please let us know how we can assist you.
Are you thinking about investing in Australian property? Not sure where to start? We’ve answered some of the most common questions that we are asked by our real estate property investors and seminar attendees. If you have a question about property investment that you’d like answered, please let us know.
This is one of the most common questions we’re asked and the answer is that it depends on your investment goals. There are some investors who purchase their dream home as an investment and then rent it out. They have an eye on a future date and are happy for tenants to be paying off their home. But in our experience most investors don’t live in their rental properties at all. Viewing a property as a pure investment, rather than a future home, enables you to make smart business decisions.
In order to create a sound real estate investment strategy it’s important to plan for possibilities like losing your job, being made redundant or having your hours reduced due to ill health. While we all hope these situations don’t eventuate, it’s important to plan for them just in case.
Losing your job or having a reduction in income doesn’t necessarily spell disaster for your investments. Advanced planning and careful risk assessment at the outset means many of our clients can meet repayments if their income stops or is reduced for a time. We also remind investors to factor in rental returns and tax benefits.
ParkTrent’s EasyPlan Financial Services can assist when planning for possible financial contingencies. We can also put you in touch with insurance specialists who can organise protection in the event of a changing employment situation.
There are a few things you need to keep in mind regarding interest rates and your investment properties.
- Locking in a fixed rate means you know what your repayments will be. This makes budgeting easier. You may consider fixing on all or part of your investment loan.
- Any interest paid on your property investment loan may be deductible from your taxable income. The greater the increase in interest rates the higher the potential tax deduction.
- If interest rates rise, investors generally increase the rent to cover the shortfall.
It is important to consider interest rates when establishing your property investment strategy. This is something ParkTrent can advise you on.
A successful investment property strategy involves finding good-quality tenants. By following the ParkTrent plan and purchasing the right property in the right location, you’re well on the way to achieving this.
It’s the job of your property manager to get tenants through the door. In some cases a reduction in rent or including extras like garden maintenance or monthly lawn mowing may be warranted. Your property manager is mindful that your goal is to generate as much income as possible, so they will always act with that in mind.
To be extra covered, some investors budget for a buffer of four vacant weeks a year as a worst-case scenario.
The great thing about partnering with ParkTrent to manage your investment property is that we take care of all the hard work associated with finding high-quality tenants.
Our property management team assesses applications, conducts the necessary checks into applicants’ renting past, checks and calls references and culls the list. We’ll then present you with the short list of applicants so you can make your decision.
Absolutely! A lot of people choose to invest in property while they are renting. Some property investors would rather be paying tax-deductible income on their investment property than non-tax deductible interest on their home.
Keep in mind that your financial capacity to invest is subject to a range of factors, including your income from your job and any other investments, your assets and your debts.
You may be surprised to learn that a deposit isn’t always necessary to secure an investment loan. If you have been paying off a mortgage on your own home for a few years, you’ve probably built up sufficient equity. This will eliminate the need for a cash deposit, making it easier to get a loan for an investment property.
It’s important to note that the structure of your loan is paramount to getting finance for an investment property. So it’s a good idea to speak to an expert first.
Many self-employed people are eligible for tax concessions depending on their financial situation and business structure.
Self-employed business people need to keep in mind that they have an extra responsibility for planning for their retirement because they don’t have regular employer contributions to a superannuation fund.
Even if the taxation benefits are reduced, it is the combination of rental income, capital appreciation and taxation concessions that make property investment a secure investment option.
According to property market experts (like George Tharenou, UBS Economist) housing is actually more affordable now than it’s been at any time over the past decade. In fact, the market is starting to show a slow, but steady, rise. The International Monetary Fund (IMF) expects that the Australian economy will outpace all major advanced economies over the coming year.
Unemployment is low and the population is growing. Interest rates are historically low and predicted to fall even further. There is a chronic housing shortage in many markets, meaning tenants are fighting for good properties and prepared to pay high rental prices. There is currently significant infrastructure spending around the country. All these factors combine to mean property prices are good value for the return you’ll receive on your investment.* (April 2015)
Please keep in mind that past performance is not a reliable indicator of future performance.
If you’re a newcomer to property investing, you may be a little confused by the industry jargon. We’ve compiled a list of the most common terms used for your reference. Have we missed a word? Please let us know.
Appraisals/valuations – The process of valuing your property. This consists of a written report detailing the estimated value of the property. An appraisal/valuation is prepared by a valuer.
Building approvals – The number of dwellings approved to be constructed in a given month, quarter or year. You’ll often come across this term when reading property market updates.
Capital growth – The profit made from the sale price of your investment property, minus the purchase price. For example, if you bought a property for $200,000 and it’s now worth $350,000, you’ve potentially made a capital growth of $150,000.
Cash flow positive – If your monthly rent is more than monthly expenses (including things like taxes, mortgages, repairs and maintenance) you have a cash flow positive property.
Capital gains tax – If you sell an investment property, and you’ve made a profit, you may need to pay capital gains tax.
Depreciation – Over time your investment property decreases in value – this is called depreciation. It’s important to get a depreciation schedule prepared to cover wear and tear, particularly for things like blinds, carpets and air conditioners.
Equity – The current market value of a home minus the outstanding mortgage balance. If your home is worth $500,000 and your outstanding mortgage balance is $350,000, you have equity of $350,000. Equity is built up through mortgage payments and appreciation.
Median – The median house price is the middle price for all property sales in an area over a set period of time.
Negative Gearing – Negative gearing occurs when you borrow money to purchase an investment property but the accrued interest and combined running costs add up to more than the income generated by the property. As long as these costs are more than the rental income, the Australian Taxation Office will let you offset the loss against your income.
Off the Plan – The purchase of a property that hasn’t been built – you’ve seen plans only. There are often savings associated with purchasing property off the plan.
Passed in – The highest bid fails to meet the reserve price of a property at an auction. Consequently the property does not sell.
Portfolio – The number of investment properties owned by an individual, group or company.
Positive Gearing – When the income generated by the investment exceeds borrowing costs (fees and interest), resulting in a positive cash flow.
Property Cycle – A sequence of recurring events reflected in factors such as fluctuating prices, vacancies, rentals and demand in the property market.
Rental Yield – How much cash a rental property generates each year as a percentage of the rental property’s value. For example, if the rental income for the investment property is $350 per week, and the purchase price is $400,000, then the yield is (350*52)/400000 = 4.55%.
Stamp Duty – The tax placed on the transfer of assets or property. It is calculated on the value of the investment property.
Supply and Demand – The number of properties on the market at any time versus the demand from buyers for it.
Vacancy Rates – The vacancy rate is expressed as a percentage and lets us know how many properties in a particular area or region are untenanted. This figure helps property investors assess the strength of demand for rental properties in a particular area. It can also be used historically to gauge long-term performance in a particular area. A low vacancy rate signifies high rental demand, requiring new properties to fuel this demand. A high vacancy rate shows the market has more stock available than is required for the demanding renters.
If you’re considering a move into property investment, one of the most important things to do is research, and lots of it. The internet has a wealth of knowledge available but it can get a little overwhelming. We’ve put together our list of must-read pages.
Have we missed a link? If you have a suggestion please let us know.
Research and Government
Australian Bureau of Statistics – http://www.abs.gov.au
Australian Taxation Office – https://www.ato.gov.au
CoreLogic (previously known as RP Data) – http://www.corelogic.com.au
Residex – http://www.residex.com.au
Real Estate Institute of Australia – http://reia.asn.au
New South Wales – Fair Trading – http://www.fairtrading.nsw.gov.au
National Rental Affordability Scheme – https://www.dss.gov.au/our-responsibilities/housing-support/programmes-services/national-rental-affordability-scheme
BIS Shrapnel – http://www.bis.com.au/home.html
Due diligence checklist – for residential property buyers – http://www.consumer.vic.gov.au/duediligencechecklist
Real Estate Institutes state by state
Real Estate Institute of Australian Capital Territory – http://www.reiact.com.au
Real Estate Institute of New South Wales – http://www.reinsw.com.au
Real Estate Institute of Northern Territory – https://www.reint.com.au
Real Estate Institute of Queensland – http://www.reiq.com
Real Estate Institute of South Australia – http://www.reisa.com.au
Real Estate Institute of Tasmania – http://reit.com.au
Real Estate Institute of Victoria – http://www.reiv.com.au
Real Estate Institute of Western Australia – http://reiwa.com.au