Annie McCarthy
Chelsea Lansdown
Niki Peinke
Chelsea Peinke
We know more. We do more. We get more. THE PROPERTY EXCHANGE
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“SWEET 16” AND HARD TO RESIST….. Okay, so now we’re into a new year and 2016 could not be sweeter for anyone thinking of buying into the Property Market… in fact how could you resist? Prices are at their lowest for the last 10 years. Interest rates are at their lowest, and people looking for property is at its lowest. Crazy! Seems like it’s only the smart fish that are out there buying property right now…are the others waiting for property to go up before they buy? Anyway, the question is not whether to buy property right now as that’s a “no brainer”, it’s what sort of property to buy right now that is going to benefit your individual circumstances. Here is my list of people who should be buying and why: 1. People looking to upgrade or upsize their current home There are some really excellent buys in the more expensive price ranges, and now is the time to leap on those. So if it’s an upgrade you’re looking for do it now, because the chances are that what you’re selling has not been affected by this downturn nearly as much as the one you are buying has been. 2. Couples planning to downsize in around 5-10 years Buy the downsizer now, and rent
it out until you are ready to move. Who knows what prices will be in like 5 years’ time, and you could save yourself a couple of hundred thousand if you do it now – plus it provides you with an income to help pay it off in the meantime. 3. First Home Buyers
to pay off your properties for you as soon as possible! 4. People paying too much tax Why pay it to the tax man when you can put that money into a property you own? This is where negative gearing can really work for you but hurry up before they
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The question is not whether to buy property right now, it’s what sort of property to buy right now that is going to benefit your individual circumstances.
Well, why wouldn’t you? Just because there’s no grants anymore (which by the way, only drove prices up so you didn’t save a thing), doesn’t mean it’s not the perfect time to buy your first home. If you haven’t got a stash of cash, then buy something that will give you a 5% return or something close – so if you buy something for around $400,000 you have to be able to get $400 per week for it. Start getting other people
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close off this avenue also! This is where you want a large gap between rent in and mortgage payments out – (unlike the scenario above with First Home Buyers). The bigger the difference, the greater the tax break. 5. People with equity in their own home If you have equity in your home and you are not using it for anything, you are losing out on many opportunities that could
produce another income for you. Buy something with those available funds that will produce an income that will then pay for itself! Remember, it’s always other people’s money that will make you wealthy, very rarely your own, because you certainly can make good money in Australia – you’re just not allowed to keep it (unless you’re smart about it). On that note…. please invest in a good financial advisor who does not receive commissions on what he sells you, but rather guides you on a path to prosperity, whilst minimising any risk or exposure you might have. Disclaimer: Every person’s circumstances are different and the above recommendations are only a guide and not to be taken as specific individual advice that I am not qualified to give. Always seek advice from a trusted professional who is aware of your personal circumstances before taking any financial leaps.
NIKI PEINKE
REAL ESTATE LOCAL E
PERT
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