‘Tis the season to be jolly, and what better way to celebrate than by taking a moment to reflect on your property investment strategy with Capital Properties? As the year draws to an end and a new one about to begin, it’s the perfect time to evaluate your property investments, set new goals, and make any necessary adjustments so you can hit the ground running in 2024.
In this blog post, we invite you to join us for an end/start-of-year review to help secure your financial future for the years to come. So, grab a cold one and let’s explore why a property investment check-up is the best way to close out your year.
The Capital Properties team live and breathe property investment for ADF members, and it’s our mission to make sure we help you achieve your property investment goals to reach future financial security. Our FREE Capital Properties Discovery Session is a great place to start, and we have tools and strategies to help you every step of the way.
Before we welcome in the new year, it’s only natural to look back at the past one and reflect on the successes and challenges we’ve faced. In 2023, Australian Defence Force (ADF) property investors encountered plenty of opportunities and challenges in the Australian property market. From the highs of unprecedented rental demand in some areas and attractive government initiatives, to the lows of building supply issues and soaring interest rates, we’ve had a hell of a ride.
Capital Properties clients have used our proven property investment strategies to weather the storms and stay ahead of the game with growing portfolios and strong capital growth across all their investments. And we want to see you continue to succeed in 2024 and beyond. That’s why we encourage you to take advantage of a Capital Properties end-of-year review and make sure you stay on the path to financial success.
The comprehensive Capital Properties end-of-year review will allow you to:
It’s easy to get busy and bogged down in the craziness of day-to-day life, especially if they involve training, exercises, and deployments. So, it’s important to speak to someone with an objective view to make sure you are still in line with your goals.
Together we can analyse your current property investment(s), assess their performance, and make sure they still align with your financial and lifestyle objectives.
We’ll make sure you stay on track by working with you to optimise your property investment strategy to maximise returns and minimise risks.
The Australian property market is constantly evolving. The Capital Properties experts will help you discover new opportunities that may be worth exploring in the coming year.
According to the Australian Taxation Office (ATO), 9 out of 10 rental property investors make errors in their tax returns, especially when it comes to interest deductions. The Capital Properties team can help you ensure your investments are structured in a tax-efficient manner to avoid facing the wrath of the ATO when it comes to tax time.
As well as making sure you have a clear vision of your goals and the strategy you need to get you there, our end of year review will cover some essentials such as:
We’ll re-evaluate your investment property(s) cash flow position and comparative market analysis, including:
We’ll look at the options available to you, whether you’re ready to grow your portfolio, or make changes to get you closer to that point. Our finance team will confirm your new borrowing capacity and discuss the next steps. If it suits you better, we can do all, or most of this, over the phone. Your options might include:
Option C. Consolidation – We can help you work out if you should consolidate your finance, find better interest rates, and reduce your investment/personal debt.
We know that the unique demands of Defence life mean you don’t always have time to stay updated and make sure your investment(s) is working the hardest for you. We created the Pinnacle Support Program to make sure you’re supported the whole way through your property investment journey. And we believe the end of the year is the perfect time to evaluate your property investments and set the course for the year ahead.
It’s also a chance for us to say thank you for your continued trust in our team. Your support is greatly valued, and we look forward to celebrating your successes in the years to come.
Get in touch now to book your end-of-year review and make sure you’re still on track to reach your financial and lifestyle goals.
If you’ve got some time, you can check out our FREE Property Investor Tools and Apps and download a copy of our book, Property Investment SOP – essential reading for all property investors and first home buyers.
Are you ready to take your property investment journey to the next level?
At Capital Properties, we understand that achieving success in property investment requires a strategic approach. That’s why we’re excited to introduce you to the Capital Properties Property Investment Planner.
This 4-in-1 planner is designed to help you reach your goals of successful property investment for future financial security so you can create the life you dream of.
Invest in your future with the Capital Properties Property Investor Planner, the best 4-in-1 planner for property investors in Australia! Then come along to our FREE Capital Properties Discovery Session where we’ll help you put these plans into action.
Our Property Investment Tools & Apps and Capital Properties Pinnacle Support Program will support you every step of the way.
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The Capital Properties Property Investment Planner was developed by seasoned property investors who understand the challenges and opportunities in the Australian property market, as well as the barriers and opportunities you’ll experience as ADF members.
Marcus Westnedge, the founder and director of Capital Properties, brings a wealth of experience to the world of property investment. He joined the Royal Australian Navy at 17, bought his first property at 19, and built a multimillion-dollar portfolio before leaving the Navy.
He created a 7 step to successful property investment strategy that’s helped thousands of ADF members get on top of their financial literacy and use their disposable income to build generational wealth.
And because Marcus is passionate about helping others achieve property investment success, he’s developed this unique Property Investment Planner to get you started.
It’s not just another generic planner; it’s a roadmap to help you navigate every step of property investment.
This comprehensive planner is packed with tools, tips, and strategies to make sure you stay focused and learn to prioritise goals and tasks like a seasoned property investor. It covers everything you need, including:
Like every well-executed plan, you need to measure what matters. That’s why our planner is designed to prevent procrastination and keep you focused on your end goal. Here’s why it’s your key to success:
Your journey to property investment success starts here. With our Switched-On Strategy Series and Capital Properties Pinnacle Support Program you’ll have the full support of our experienced team.
So, make the first move and make sure you don’t miss out on this opportunity to take control of your property investment future. Purchase your copy of the Capital Properties Property Investment Planner today and set yourself on the path to success.
Everything you need to know about property investment in a nutshell
It’s been proven time and time again that property investment is a sure-fire method of making the most of your Australian Defence Force (ADF) wages for future financial success. With informed decision-making, a solid understanding of the basics, and a proven investment strategy, property investment can provide an additional income and long-term wealth.
In this Property Investment 101 blog post, the experts at Capital Properties will cover all the basics you need to know about property investment in Australia. We’ll discuss why you need a savings plan, what your minimum savings amount should be and how and why you need to get pre-approval. As well as why you should engage a Buyers Agent, and lots of other vital information you’ll need before you can move forward with property investment.
Come along to a FREE Capital Properties Discovery Session that’ll take you through Property Investment 101 in the most efficient way. Our team works with ADF members who are just starting out, all the way through to helping our clients manage multi-million-dollar portfolios. The best time to start is now.
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Why do you need a savings plan?
It’s essential to have a well-structured savings plan in place before you can even begin to think about where and when to invest.
As an ADF member, using your steady income to build your savings with the goal to invest is key to creating the future of your dreams. A savings plan helps you set realistic financial goals so you can know when you’ll have enough for a house deposit.
How to start a savings plan?
How much of a deposit do you need for property investment?
As a general rule, banks will only lend first-time property investors money if they have between 5% to 20% of the purchase price of the home in genuine savings.
At Capital Properties, we recommend that potential investors save a minimum of 10% of the purchase price of the property to get started. 5% to cover the minimum deposit required to secure the home loan and the remaining 5% should cover the additional fees, such as legal fees, property inspections and potential renovations.
The more savings you have to invest, the better. One, it means you’ll pay less interest over time. And two, with a deposit of 20% or more, you won’t have to pay lenders mortgage insurance (LMI).
Australian Defence Force (ADF) financial benefits for property investment
Australian Defence Force (ADF) members are often eligible for financial benefits that can be used towards property investment. For example, the Home Purchase Assistance Scheme (HPAS), Home Purchase or Sale Expenses Allowance (HPSEA) and the Defence Home Ownership Assistance Scheme (DHOAS).
These benefits/incentives can help you secure a loan with lower interest rates and fewer fees. We’ve discussed these in more depth in the blog post: “Buying a house while in the Defence Force”.
Why you need pre-approval
We’ve written a whole blog post on pre-approval before: “Why being finance ready pays dividends”. In summary, pre-approval is confirmation from a lender that you’re eligible for a certain loan amount based on your financial situation, credit history, and ability to repay the loan. Getting pre-approval for the loan before you start searching for your ideal investment property will save you time, money and heartache.
The benefits of pre-approval
How to get pre-approval
Working with a Buyers Agent
Navigating world of property investment can be overwhelming, especially for first-time investors and time-poor investors. This is where a Buyers Agent can provide invaluable help. Finding a Buyers Agent who understands your unique challenges as an ADF member and someone who specialises in investments (in regional and local area markets) are worth their weight in gold.
Why working with a Buyers Agent is a smart move:
Research: Location & property.
Thorough research is the cornerstone of successful property investment. Before making any decisions, take the time to research various locations, property types, and market trends. Factors to consider include:
Look for areas with strong rental demand, infrastructure development, and potential for capital growth. Proximity to amenities, public transport, schools, and employment hubs can significantly impact a property’s desirability. Think about trends driving the market, for example the recent push towards “Lifestyle and the property decision making process”.
Consider the type of property that will appeal to your ideal tenant. Houses, units and townhouses all offer different advantages and potential challenges. Think about the number of rooms required and look for properties with features like air conditioning, off-street parking, and modern appliances that’ll appeal to those tenants. The ADF property buyer checklist will help with some of these decisions.
Calculate the potential rental income in comparison to the property’s purchase price. A higher rental yield = a more financially viable investment.
Research the capital growth of the area to determine its investment potential. While past performance won’t predict future results, it can provide insights into the market’s behaviour. Access the Capital Properties Australian Property Market Report for up-to-date property statistics.
Before you make an offer on an established property, make sure you get a building inspection. It’ll give you a clear idea of the property’s condition and leverage for negotiation if there’s any issues. Our blog post “Why use a building inspector when constructing” is a great place to start.
Property investment financing options
It’s essential to have a good understanding of your financing options. Different loan types can impact your cash flow, tax deductions, and overall financial position. Some common loan structures include:
In a P&I loan, you make regular payments that cover both the principal amount and interest, gradually reducing your outstanding debt over time.
With an interest-only loan, you just pay the interest on the loan for a specified period (usually 1-5 years). This can free up cash flow for other investments but won’t reduce the principal amount.
Fixed rate loans offer more certainty around repayments, while variable rates can fluctuate with market conditions.
An offset account is a savings or transaction account linked to your home loan. The balance in the account offsets the loan principal, reducing the interest payable on the loan.
Property Investment cash flow and tax implications
As with any source of income, property investment comes with legal and tax implications that you need to be across. During a Capital Properties Strategy Session, we cover everything you need to know about managing cash flow and tax implications, including:
Tax considerations:
Where the rental return is less, the same as, or more than your expenses and its effect on your annual tax return. Read more in the post “Property cash flow or gearing, negative, neutral or positive”
A state-based tax on property transactions which depends on the property’s value and location.
CGT is payable on the profit made from selling an investment property. The rate depends on your income and the length of time you’ve owned the property.
Ongoing Property Investment strategy
It’s essential to monitor and adapt your property investment strategy on a regular basis. You must be aware of tenants’ requirements, property maintenance, market trends, and keep on top of all incomings/outgoings associated with the property
As your financial situation evolves, you can start leveraging your existing property portfolio to expand your investments. This could involve refinancing to access equity or diversifying your portfolio with different property types or other locations.
If you’re still wondering where to start with property investment, the Capital Properties team can help you navigate the entire investment process. Start by booking into our free Discovery Sessions. This property investment 101 will help you make informed financial decisions, so that you can confidently navigate the property market and make the most of your investment opportunities.
Check out our FREE Property Investor Tools and Apps and download a copy of our book, Property Investment SOP – essential reading for all property investors and first home buyers.