What to consider before you buy an investment property
Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 17 September 2021. Lockdown continues in the ACT, so Luke can’t be in the studio. Luke joined Leon by phone. This week’s topic: Buying an investment property – What do you need to consider?
Key highlights include:
- With record low interest rates and increasing property prices, investing in property is becoming an attractive option for many right now
- But why are you investing in property? What’s the goal?
- What structure will you buy the property in? Yourself, joint names, your superfund (in some circumstances) or a family trust.
- When might you buy an investment property in a superfund?
- There are costs you need to think about if you’re going to use a self managed super fund
- Make sure you think about all the expenses in owning a property – strata fees, rates, insurance, agents fees – they all impact your overall investment return.
- What about Air BnB? Remember you need to be actively involved in managing arrivals, departures and cleaning so don’t forget about those costs too. There might also be body corporate issues.
- If you’re going into debt, have a financial plan to pay it off – make sure you do you homework in case of an interest rate rise.
- Luke share’s his tips about thinking about buying an investment property.
- Everyone has different goals and financial planning advice can help you achieve them more effectively, especially when you link different strategies.
Listen to the Podcast right now
Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’
Do you need advice around investment?
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. Financial planning and investing can be complicated but the good news is you can make an appointment to speak with Luke about your specific situation, goals and options.
Make an appointment to confidentially discuss investment, super, retirement and insurance. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.
Luke will return to talk about financial planning on 2CC next Friday. You can also catch up with The Strategy Stacker – Luke Talks Money podcast. We look forward to your company again.