Getting into the housing market can be an incredibly profitable opportunity. But when you’re new to the property sector, you might not know where to start. Property investment for beginners can be a challenge. Which is why the Investment Specialists at No1 Property Guide are here to help you out. We specialise in finding and creating stable investment opportunities and helping you build your property portfolio across Australia.
Darren Walters has more than 20 years of experience in property, finance, and lending policies and utilised that to develop his no or low deposit new home system. His system has helped thousands of people get into their own home and escape the rental nightmare.
Now, utilising that same experience, No1 Property Guide is working to help you build your property portfolio. The first step is to fill out our pre-qualification form. From there our Investment Specialists will be in contact to discuss your factual options and then guide you through your property investment journey.
Using Equity to Buy – Property Investment for Beginners
Utilising equity is a popular method used by property investors to build their portfolios. Your home’s equity is a valuable resource when it’s used correctly. As it allows you to leverage the value of your existing properties to achieve your investment goals.
What Is My Home’s Equity & How Do I Calculate It?
Calculating your home’s equity is fairly simple. Let’s say you own a home valued at $600,000 and have $400,000 left to pay on your mortgage. In this case, you’ll have $200,000 in equity to use to finance your new property.
If you would like a more in-depth explanation, feel free to read our article What is Equity?
Utilising Capital Growth for Financial Success
One of the greatest advantages of investment properties is the benefit of capital growth. As the value of the housing market continues to rise, so will your available equity. Our Investment Specialists utilise the capital growth of your properties and the increasing equity to help you build your property portfolio and your wealth.
We’ll take the time to analyse your position and find out your factual options. By using Darren’s unique pre-qualification form, our team will be able to help you make the most of your equity and guide you through the investment journey from start to finish.
Self-Managed Super Fund Property Investment for Beginners
What Is a Self-Managed Super Fund?
You can use your superannuation to invest in the property market by creating a self-managed super fund (SMSF). An SMSF is a way of saving for retirement that lets you choose how to invest your money. This allows you to utilise your Super, which you normally can’t access until you’re 60, to invest in the property market today.
An SMSF is a great option if you’re looking to diversify your investment methods or want to take back control of your Super. By using your existing Super, combined with contributions and rental income, you can pay off your investment
SMSF Property Rules
There are some rules and restrictions that you should be aware of, including:
- The purpose of the property must be to benefit the fund members in retirement
- Properties can’t be purchased from a relative
- The property can’t be lived in by any fund members or relatives
- Can’t be rented to fund members or family members
- It can be leased to a relative for commercial purposes, but it must be done at market value
Setting up an SMSF can be a complicated process. If you don’t follow the proper procedures, you could set up the fund incorrectly. Or find yourself on the wrong side of the tax department. Our Investment Specialists have experience setting up SMSFs for our clients and understand the ins and outs of SMSF.
Using our experience in SMSF, combined with Darren’s proven system, our Investment Specialists can find investment solutions that fit your investment goals and needs. We’ll work with you to go through your factual options and guide you through the process of creating and managing your SMSF from start to finish.
We even handle everything for you. From finding the perfect block of land and organising the new builds, to securing finance and eventually handing over the keys. Fill in our pre-qualification form and one of our Investment Specialists will be in contact to discuss how we can help you achieve your investment dreams.
How to Make Money with Property Investment
There are a variety of ways you can make money through investment properties and each has its benefits. It will come down to your investment strategy and the type of property you own to which is best. Of course, if you have multiple properties, you can diversify your strategies to maximise your returns.
Rental Property Income
Renting out an investment property is probably the most common investment method at the moment. With strong capital growth and a good rental yield, a well-planned rental property can pay for itself and end up turning a profit over the years. You can consider this a slow-burner investment strategy of sorts, as you won’t see huge profits upfront. But over the years they’ll add up.
You’ve got a couple of options on how you choose to rent out your house. Firstly, you can choose to rent out the whole property to a tenant or family. This is a great option for properties in family-friendly suburbs.
Alternatively, you can create a share house and rent individual rooms. The perfect option for properties in areas popular with students or younger renters who may not have a family, or friends to rent with.
If you want to be able to utilise your investment property occasionally, whether as a holiday home or just a change of scenery, then services such as Airbnb are the ideal solution. Renting out the property for short, set periods, you won’t need to commit to renting out your house for long chunks of time.
If you’re a bit more confident in your investment skills, a great option is flipping property. Property flipping is essentially buying a house, to then either fix up and renovate, or hold for a short period, before reselling at a higher price.
Many experienced property developers will utilise this method to make quick profits off homes they can renovate affordably. Or by finding deals in areas where they expect property prices to increase dramatically in a short period. There are some potential risks to this, like the renovations not adding as much value as you thought. Or the market dipping instead of rising.
But if you understand the market and invest carefully, it can be a great option for making a healthy profit in a short period.
How No1 Property Guide Helps You Become a Property Investor
At No1 Property Guide, we specialise in getting clients approved when big banks or traditional lenders would refuse to help. Our Investment Specialists will analyse your situation to discover all your factual investment options. We can also advise you on any changes that need to be made to improve your financial situation if your borrowing capacity is lower than you’d like.
We have helped hundreds of clients across Australia build their property portfolios. Darren’s proven system makes getting your new investment property easier than ever. The first step is filling out our pre-qualification form. From there, our Investment Specialists will be in contact to walk you through the process of getting your new investment property.