Enquire about Loans
or other Services...







Property Investment

 

Property investments can be a great way to create wealth. There are many important factors to consider before you invest in property. Property may be purchased in many forms such as commercial (office, retail and industrial), residential, indirectly (syndicates and listed /unlisted property trusts), and overseas (such as the current USA property opportunities).

There are many considerations that need to be addressed before purchasing property.

Where do I buy property?

Far too often we seem to buy property with emotion.  Birchcorp will help you stay on track with a well thought out property  selection. The most unfavourable house on the best street has always been our philosophy.  This idea coupled with several other factors such as:

  • close access to schools, shops and transport
  • proximity to parks and beaches.

There is a specific skill in selecting a property location and  attributes. Please ask Birchcorp to address this issue on your first  consultation.

 

Capital growth

 

Many investors see their property’s value increase over time. You will pay capital gains on the increased value of the property when you sell, but the tax benefits along the way can be quite significant. However, capital gains on your own home are tax free. Please speak to your Taxation Consultant for current tax laws and interpretations. We may help with many strategies to significantly reduce your tax liabilities.

 

Rental income returns

 

As with most investments and appreciating assets, rental income increases over a period of time. The annual increase rental premiums can significantly reduce the cost of property investments and can turn a negative geared property into a positive geared property. A careful selection of a property location is important to provide long term wealth. Birchcorp is happy to advise our clients on the requirements and needs in selecting high growth real estate for your long term gain.

 

Tax Advantages With Negative Gearing

 

Obtaining tax advantages from being negatively geared is when you deduct the non-capital costs of owning an investment property from your overall income. The biggest part is the interest portion of your mortgage, but you may also claim property management fees, some loan costs and costs for non-capital repairs. The benefits of negative gearing become apparent when the property is costing you money. Structuring your loan correctly is a very important aspect of gaining the best possible tax deduction. Our Mortgage Brokers are Financial planners that have dedicated their life to wealth creation strategies. Tax deductions may have a significant impact your cash-flow.

 

Positive Gearing

 

This is an effective way to place money in your pocket. The strategy often involves being creative or selecting the property that is often swept under the carpet. Many rural areas also offer positive geared properties. Positive geared properties often carry significant risk as they may be in mining towns, low socio-economic areas and other towns that are the predicted next 'hot-spot'. Ultimately, positive geared properties may be good for an SMSF (long term with high yield), or to balance out your property portfolio to improve the balance of positive and negative geared properties. Particularly where the portfolio is highly geared.

 

What to buy

 

There has been a changing culture in Australia in recent years. Property will always be valued on the basis of the land that  it supports (hence houses will always be the ultimate possession). That being said, Australia has seen a trend of units becoming very popular in specific areas. This may be a culmination of life style factors, time poor society, smaller families, higher population growth or simply a change in mindset and culture. Units are typically easier to maintain and also provide a way to ease the pain of land tax. When things go wrong in a unit complex, expenses may be shared among the other owners.

The bottom line for your decision making should be a combination of:

 

  • What you can afford.
  • What rent you expect to charge.
  • What capital growth the property is likely to achieve.
  • What area you are researching.
  • What is your target rental market.
  • Your expected investment timeframe (years to retirement).
  • The available time you have for the investment (work life balance).

 

Investing in property requires the same amount of research and focus as buying your own home.

 

Property Consultation Service - A complimentary service offered by Birchcorp Mortgage Brokers and Financial Planners

 

The purchasing of real estate requires the services of various legal bodies and institutions.This may be a daunting task. Birchcorp has introduced a Home Purchase Service. The home purchase service is a consultation that answers all your questions and guides you through the pitfalls of a home purchase (personal or investment). We hold your hand from initial contact (what investment vehicle or business structure is required for the purchase) through to settlement. 

 

This service suits investors from the first timer through to the sophisticated investor. This is a rather unique service that Birchcorp will provide as a complimentary process of each property purchase using our Financial Planners / Mortgage Brokers. 


Property in your SMSF - Beware

SMSF and property investments: This is NOT for everyone. Although many property spruikers stand before you and sell the concept that everyone must buy a property in your SMSF. Birchcorp is here to say that there is much time and effort required for an investor to decide to embark on this complicated arrangement. Although Birchcorp is happy to say the process is as easy as 1,2,3... it is not a process that should be taken lightly. We are professionals and have processed these SMSF establishments and ongoing services many times. A complacent trustee can easily com... Read More

Insurance

Birchcorp can show you how you may purchase your Insurance with no out of pocket expense.

Unlike other Financial Planning firms, Birchcorp is happy to show you how and why you can decrease your Insurance coverage... Read More

© Birchcorp 2017. -- All Rights Reserved

Birchcorp Pty Ltd ABN 56 132 775 654 is a Corporate Authorised Representative (No. 339299)
of Dover Financial Advisers Pty Ltd ABN 87 112 139321, which is the holder of an AFSL No. 307248. Birchcorp Pty Ltd is an Accredited Member of the FBAA with an ACL No. 376718.