Cashflow
1: Strong Rental Demand
A typical vacancy rate below 3%. This ensures that the supply is very tight for rental properties. Property income will remain steady to repay the interests on the loan.
Not having a clear process in place is one of the main reason people fail to grow their wealth. There is no guesswork in our research. We have identified a formula that includes 4 key ingredients to guarantee a strong cashflow and 7 variables to maximise growth potential. All properties we source for our clients aim to follow those criteria to guarantee long-term success. Achieving financial freedom through property investing is all about maintaining a steady cashflow while maximising and recycling equity.
Don't roll the dice, we source opportunities that set you up not set you back!
A typical vacancy rate below 3%. This ensures that the supply is very tight for rental properties. Property income will remain steady to repay the interests on the loan.
Measure of how much rental income is being collected or the yearly return on investment. This does not consider capital growth and is only a measure of cashflow before tax. Typically dual income houses, units, and townhouses offer a better return than detached single houses.
Depreciation is the tax break for investors who own investment properties. Typically the cash tax back is maximal for properties purchased brand new, this result in thousands of extra dollars after completion of a tax return.
As an investor, it is critical to reduce any unexpected repair and maintenance. Newer properties tend to offer a much higher quality of workmanship and materials in order to adhere to the latest stringent construction standards. Tenants also prefer newer property and are happy to pay a premium to live in one. This in return helps to minimise any unforeseen expenses and improve the rentability of an investment property.
Looking at the Capital Growth over last 10 years is a strong indication on how in demand properties are in the area. Typical growth of 5% annual average is a strong sign that there has been no oversupply of stock and that this is a safe hotspot for long-term investors.
Immediate access to public transport such as a short walking distance to a train station, tram stop or bus exchange increase dramatically the attractivity of a location.
Using the latest population statistics forecast from local councils. The potential growth is maximised when population increase and there is a lagging shortage of dwellings available. The latest population statistics forecast from local councils is a valuable source.
Proximity to employment hubs are key to provide long-term sustainable capital growth, business parks, hospitals, large shopping centers, are all favoured by potential tenants and landlords.
Proximity to new infrastructure such as new metro station, or upgrade of an existing precinct, train station.
Investing in the proximity of university campuses or well ranked schools will attract demand from families and push prices higher over the years.
Trendy cafes, restaurants or close vicinity of a beach, golf course are unique attractive features. Strong demand from lifestyle seekers maximise the growth potential.