Using your Equity
You may have equity in your home and using that equity you could be able to purchase an investment property. Utilising the equity to buy a new investment property to make money to build your wealth is a WIN – WIN situation.
Property investment expert Danny Buxton of Triple Zero Property Group says new builds offer good tax depreciation, low maintenance costs and lower periods of vacancy. With new properties investors can claim more of the upfront costs and expenses including bank costs, as well as depreciation on the building and fixtures & fittings which could be written off over ten years. “In the first 5-6 years there is increased depreciation which will give really good cashflow,” Buxton says.
His three tips for working out the best location for investment is to look at:
· current and predicted population growth,
· infrastructure spending, and
· Local facilities and amenities such as schools, medical facilities and shops.
“Make sure that you don’t buy with your heart, you buy with your head,” he says. “Investing in property is all about numbers, it’s about understanding the data and having the right team around you.”
The big news is that regional Australia has people looking for somewhere to live but can't afford to buy, and vacancy rates in the Hunter Valley are under 1%. The Lower Hunter Valley ticks all the boxes on Buxton's list:
· Current growth – 2% to 5% year on year, and Future growth of 14.5% expected by 2041 (131,000 people)
· infrastructure spending: Government funding New Schools, New Maitland Hospital and Road upgrades.
· Many local facilities, and shops, with private enterprise like McDonalds, Supermarkets and Bunnings are also entering and expanding in the area.
On the Northern Central Coast (which is also identified as a regional centre) people are also looking for good quality homes to rent, and this is reflected in the 1% vacancy rates in the Warnervale/Wadalba area. The Warnervale / Wadalba area also ticks all the boxes on Buxton’s list.
· Current population Growth is expected to increase by 75,000 people before 2036 after already increasing in the last 3 years.
· Infrastructure spending is strong with the Wyong Hospital at Hamlyn Terrace upgrades, the new Tuggerah Lakes Private Hospital recently opening, the new school at Warnervale and the Kangy Angy train maintenance facility
· Local facilities include all major supermarkets, Tuggerah Westfields and the improved sporting complex to name just a few.
We at Oliver Myers have been around for over 30 years and we specialise in locating property with high capital growth potential. We have been able to help many clients build more wealth for their retirement.
Tony took his time to meet my requirements
When looking for a property for my parents, I was introduced to Tony. After I described my requirements, he took the time to show me areas that fulfilled my requirements, and then specific locations, floor plans and similar new homes that he believed, based on my criteria, would be suitable. Thank you Tony.
Nothing but wonderful!
My venture into my first home on the coast was made easy by the support from Tony and his team. They were nothing but wonderful!
Willing to go the extra mile
Tony and his team were willing to go the extra mile to show us properties in new and growing areas that would be suitable to include in our investment portfolio. Following our earlier success in securing a new build on land in the Newcastle region, we were keen to investigate other locations which would provide capital growth and good rental return with a low vacancy factor. His team thoroughly researched all those requirements and provided great options.
- Roger Smith
Making Life Easy for us Landlords!
Tony and his team assisted us in buying a new off-the-plan home for investment purposes. We were given plenty of information on the location and trends in the area, and the types of properties that were popular with tenants. Tony has many trusted contacts in real estate and associated industries, and referred us to a quantity surveyor who has helped us claim a lot more depreciation than we thought we could, and to a great property manager that is making our life easy for us as landlords. It’s been a very successful relationship!