Buying & Investing


“Property for financial security.” is our message . It is the purpose of many who started out buying and investing.

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2. ” Begin with the end in mind.” The 7 Habits of Highly Effective People : Stephen Covey.

To have Properties to provide for one’s financial security, begin with the end in mind.

Ask the question : How much income do I need for my financial security. How many properties do I need to have to generate that income.

3. Take action. Start with what you have. If you do not have any properties, start with the first. If you already have properties, plan to add more.

4. To buy your first or next property . Consider these :

  • How much deposit do I have to put towards a property ?
  • How much equity do I have in my present property/ies ?
  • How much cash per week can I put towards maintaining a property?
  • How much can I borrow?

– Based on these questions, determine what property you can buy. ASK SMARTPROP 

5. “Life is based on leverage. The more you know how to leverage life, the more successful you will become.” Author : Ehab Atalia
Think ‘ Leverage ” :

  • getting a mortgage ( as much as you can ? ) is leveraging the banks to help you buy
  • then, leveraging the tenants to “pay” your mortgage : collecting rental income
  • income tax savings by collecting a tax refund  from deductions arising from your investment property : a leverage of negative gearing rules

6. ” Lesson #1 : Make your Money work for you.” Robert Kiyosaki

Make your money work very hard for you , by :
– Using a small deposit to buy a property. The property starts to earn rental income for you and make capital gains for you.
– Start saving on tax. Your investment property gives you tax deductions to save you tax on your overall Australian income.

7.” In our experience the most important thing is, get the structure right, and then your empire will build itself, effortlessly.” Jacqui Franco. Partner Deloittes.

a.  Structures include Borrowing and Cash Flow, Tax Planning and Buying Well.

b. Check List to Buying Well ( adapted from Matusik ) :

  • New / recently renovate: maximise depreciation/ tax savings/ gross rental return
  • Development attractive for rental and resale
  • Strong location: high existing amenities, great walk score, potential for above average mid to long term capital growth
  • Limited new dwelling supply compared to underlying demand.
  • In an area with high demographic, high employment, wage growth
  • Within 5 minutes of hardcore infrastructure: major work nodes, schools, entertainment precincts, public transport, rails
  • Delivered by a proven team
  • High quality design, materials and construction. Low maintenance
  • End prices under $500,000 to $600,000. Yield more than 5% gross rent.
  • Newly built infrastructures such as major highways access , major shopping centres.
  • Present prices are still suppressed , however  their immediate neighbouring suburbs are experiencing higher prices and tighter supply.

c. Cash flow Analysis. Please ask  Smartprop for a Cash Flow, Tax Savings and Property Investment Analysis based on your scenario. ASK SMARTPROP