Property Investment

At JPG we fully understand the challenges faced by Investors when buying a residential investment property or a home in Perth. We have been assisting Investor clients for the last 15 years. We have the experience and the knowledge to ensure that your project runs smoothly for you.
There are many benefits of property investment including;
  • Generating wealth though rental income and/or capital growth
  • Tax advantages through depreciation, after-tax tax losses and the resultant reduction in your personal tax paid
  • Helping you to create financial security and create long term wealth
  • Allowing you to leverage your equity and borrow against your property to buy more property and grow your portfolio over time
Whether you want a home for your own use, for your children's education or simply for investment, we are here to help you.
 
Building a team to work with
 
Raising the initial capital to buy into real estate can be difficult. Forging long-standing relationships with people you trust very early on in the piece and seeking advice before you start making conditional offers on properties will save you money and mistakes in the long run. JPG’s highly experienced team of professionals provides all the expertise you will require for all your property investment planning needs. We work in partnership with all our clients to achieve their financial goal and reduce their investment risk right from the start.
 
Some of JPG's Property Investment Planning steps include:
 
1) Selecting a property investment strategy
 
Successful real estate investors rarely become so by chance, but are usually savvy, hard-working people who conduct lots of research, take calculated risks, and keep their ultimate goal in mind at all times. Before you embark on your property investment journey, you need to select a strategy that best suits your current circumstances. For example, do you want to invest in property to;
  • Generate a new income stream to live off?
  • Create long-term capital growth to help fund your retirement?
  • Generate relatively quick profits through buying renovation properties and on-selling them?
  • Create larger potential profits through development projects?

Next, you will need to work out how much, in dollars, you will need to achieve this goal. For example;

  • How much equity and/or cashflow do you want from your portfolio in order to keep you happy in your retirement?
  • How much income could you happily live on if it was derived solely from real estate investment and you were debt free?
 2) Finding the right location
 
The location that you choose will depend on the property investment strategy you are pursuing. 
 
For example, if you are looking for cashflow properties that can provide an income stream, we will tend to search in higher yielding areas where the demand for rental property exceeds supply.
 
If you are looking for a discounted property that has potential for future capital growth, we will need to consider other factors such as;
  • Population growth
  • The ripple effect
  • Future zoning and development plans
  • Statistical indicators
  • Levels of supply and demand
The Team at JPG know how critically important it is to perform thorough research of any location. The more time and effort invested in researching the suburb or location, the less risk you will be taking.
 
3) Narrowing the search and shortlisting properties
 
The type of property targeted will depend on lots of factors, including your property investment strategy;
  • Price range
  • Projected rental yield
  • Capital growth potential
  • The ability to add value
  • Potential to buy at a discount
Other factors to consider include –
  • How long the property has been on the market for
  • Its on the market history; any changes in advertised price since it was placed on the market
  • Its sales history i.e how much the previous owners bought it for
  • The median sales price for similar properties in the area and historical capital growth rates of the location
  • How much comparable properties are selling for (and renting for if you plan to let it as an investment property) 
  • If you are planning on renovating the property then selling it on quickly, how much similar properties are selling for that already have the features you intend to add
  • An estimated market value
Whilst it is hard to generalise, all of these factors will influence your property search during your investing career.
 
4) Due diligence
 
Depending on the type of property targeted, the following is then undertaken;
 
1. An Analysis of the initial costs of the property;
  • Purchase price
  • Stamp duty
  • Your time and travel
  • Building and pest inspection
  • Legal costs
  • A depreciation schedule
2. The ongoing costs of the property;
  • Utility bills
  • Repairs and maintenance
  • Renovations and capital improvements
  • Property management
  • Interest on your loans
  • Insurance
  • Rates
  • Body corporate
  • Unplanned vacancies
3. An evaluation of the costs and benefits of the investment over the life-time of the investment
 
4. Consideration of your ability to service the loan that is needed to finance the investment
 
Accurately forecasting all of these factors will give an investor a pretty decent idea of whether or not their investment is going to be viable.
 
Next Steps –

JPG’s service does not stop there, we are with you every step of the way and will continue to assist you with any of the following depending on your investment strategy:

 
Contact us or register your interest to find out more about how JPG can assist you with your property investment planning needs.
Copyright 2014 © Johnson Property Group