Hello Property Investor!

So let’s look at how successful property investors win every time!

A property that pays for itself is one where the rent and tax return received from the property exceed the costs of holding the property such as loan interest, rates, insurance etc. 

Never buy properties that don’t pay for themselves. 

Obviously, an investor can own an unlimited number of properties that pay for themselves, but will soon run out of money if they have to tip in their own cash to make up the difference. 

It is important to remember also that any property can be made to pay for itself by reducing the amount of money owed against it, and thus the interest charged against the loan. Also, all negative properties will eventually start paying for themselves as the rent increases and if the loan decreases. 

The only true way to tell if a property is going to pay for itself is to add up all the expenses and compare them to the rent and tax return received. 

A word of caution when it comes to property investment and Financial Advisors. ‘Financial Advisors’ don’t really advise you on all things ‘financial’. They normally only deal in shares and insurance. As such they most likely try to steer you away from property (because they don’t get paid for it) and into something they deal with. The only problem is that, as any experienced property investor will tell you, it’s very hard for anything else to compete with property once you consider the effect of leverage and tax benefits. 

[There are some Financial Advisors who are property savvy though and we can help you find one if you need one. Just email us at info@integrityx.com.au]

To Fix or Not Fix your interest rate? That is the question!
I will finish off this series with this burning question answered tomorrow.

~Daimien Patterson

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Legal Disclaimer: This information ('the information') is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. All investments involve risk and potential loss of money. If you require advice in any of these fields you should contact a suitably qualified professional to assist and advise you. Your personal individual financial circumstances must be taken into account before you make any investment decision. We urge you to do this in conjunction with a suitably qualified professional. Daimien Patterson, IntegrityX Enterprises Pty Ltd, and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. Daimien Patterson, IntegrityX Enterprises Pty Ltd and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers disclaim all liability for your purchase decisions. You should do your own independent due diligence and seek the advice of qualified advisors before making any investment decision.