Get practical, valuable money and time saving tips on what works well and how to avoid common mistakes.
Property
Property Wealth Creation Sydney
Property is one of the best known vehicles for creating wealth in Australia.
Find your dream home or investment property with a local expert on your side.
Our team of experts will search, negotiate and secure your ideal property at the best price. Access off-market property, get independent valuations and save time and money. We can help you drastically reduce stress, save you time and reduce costs involved in buying property or with your next property investment purchase.
We make smarter property decisions by providing independent advice on locations, property types and the negotiation process. We have the insider knowledge and expertise to find you the best property that fits your individual criteria.
Property Management
We have collaborated with the best in the industry to bring you easy, convenient and cost saving solutions when it comes to your golden nest eggs.
Our collaboration with DIFFERENT gives our clients the best of property managing service and an additional 2 months free management fees.
How To Find The Right Wealth Creation Strategy For You
Wealth creation is the process of curating high value investments with the aim of massing a long term, substantial return. A high-yielding portfolio can consist of any number of financial ventures like real estate, investments or business ventures. The end goal of wealth creation is to increase your standard of living.
Wealth creation strategies:
- Stock Portfolio:
Stock portfolios can be a great way to invest your money because they are such a diversified investment. By putting your money into a lot of different stocks you are minimising risk and maximising your return potential.
New programs give you the ability to monitor your investments in real time and adjust your strategy as soon as the market changes. Of course, stock trading is like gambling, the more risky the bet the higher the return potential. The market is volatile, and even “safe” stocks can plummet at the drop of a hat.
- Owning a Business:
Starting a business with the aim of wealth creation can be a fantastic venture. Businesses form the backbone of society and are relied on by pretty much everyone. Businesses tend to be much more efficient than other types of investments, such as stocks or real estate. This means that you can earn a higher return on your investment in a shorter period of time.
Owning a business gives you a lot of control and means you can adjust your investment and output at any time to suit your needs and goals. This venture allows you to reinvest the profit of your investment back into the success of it. This can add value to your wealth creation portfolio because it strengthens your assets while adding value to your investment.
Owning a business also unlocks a number of tax breaks on motor vehicles, real estate, travel, salaries and more.
If your business is profitable, it is easy to sell off to another investor because people are attracted to the idea of inheriting the success and reputation you built.
- Real Estate:
At BMA Consulting, we specialise in creating wealth with property investments. It may surprise you to learn that just 15.7% Australian taxpayers own an investment property. It seems like a largely untapped market for an investment strategy that is widely considered to be a “cautious” investment.
Integrating real estate into your wealth creation strategy is attainable. Most property investors earn way below $100,000 per year, with 45% earning less than $50,000.
Nothing is a safe bet, but real estate offers a number of advantages that make it the ideal investment vehicle for those starting out. From high returns, leverageable capital and potential tax breaks to high demand, security and flexibility, the benefits of investing in real estate are endless.
When venturing into property-based wealth creation, there are several things that need to be considered in order to secure your investment.
- The investment strategy:
There are two main types of strategies: value investing and income investing. Value investors purchase properties that they believe are undervalued and have the potential to appreciate in the future. Income investors, on the other hand, purchase properties that generate rental income
- The property:
There are two main types of real estate investments: residential and commercial. Residential properties include stand-alone homes, apartment units, townhouses, duplexes, terraces and semi-detached houses; commercial properties include office buildings, retail centres, warehouses, and industrial parks.
Not all properties are created equal, and some will be better suited for your needs than others. When selecting a property, you’ll need to consider a number of factors, including the location, property condition, potential rental return, mortgage repayments and property taxes.
- The location:
There are many factors to consider when deciding where to buy an investment property in Australia. The most important thing to remember is that location is key. You’ll want to choose a property in an area that has strong potential for capital growth and rental demand.
Another thing to keep in mind is your budget. Be realistic about what you can afford and be sure to factor in all the associated costs of owning an investment property, such as Stamp Duty, body corporate fees and renovations.
- The expenses
Expenses like property taxes can bring a lot of investors undone because they are regularly underestimated. These taxes may include stamp duty, land tax and rates. Australia offers concessions for first home buyers that can help you to break into the real estate market without accruing huge fees. In New South Wales, for example, first home buyers can get exempt from stamp duty when they buy properties under $550,000.
- The funding:
There are several ways to get funding for your real estate investment business. You can use your own personal savings, take out a loan from a financial institution, or raise money from private investors.
If you have good credit, you may be able to get a loan from a bank or other financial institution. However, the interest rates on these loans can be high, so it’s important to shop around and compare offers before deciding on a lender.
You may also be able to raise money from private investors. This can be a good option if you have a solid business plan and are confident in your ability to make a profit on your investment. However, it’s important to remember that private investors will want to see a return on their investment, so you’ll need to be prepared to offer them a percentage of the profits from your business.
To qualify for an investment property, you’ll need to have good credit, a steady income, and enough cash on hand to cover the down payment and closing costs. Investment properties typically require a higher down payment than owner-occupied properties, so you’ll need to save up before you start shopping. Once you’re ready to start looking for an investment property, be sure to work with an experienced real estate agent who can help you find the right property and negotiate the best price.
This is going to blow your mind. There is a way to use your super to buy an investment property. This is a little more complicated than it seems and cannot be done through industry or retail funds that most people are members of. To achieve this you will need a self-managed super fund (SMSF).
A self-managed super fund (SMSF) is a superannuation fund where the members are also the trustees. This means that the members have complete control over the management and investment of the fund’s assets.
An SMSF can be established by any group of people who meet certain eligibility criteria, including being over 18 years of age and being an Australian resident for tax purposes. The members of an SMSF must also be trustees of the fund or directors of the corporate trustee.
SMSFs are subject to strict regulations set by the Australian Taxation Office (ATO). These regulations cover everything from how the fund is run and operated, to how it is taxed and what investments it can make.
Superannuation can be a great way to finance your investment property purchase. Just make sure you understand all of the rules and regulations before you dive in.
- The timing
Most people will tell you that if you can afford to pay off your home loan, you should do it as soon as possible. After all, a home loan is a very large debt that can take years to repay, and the sooner you get rid of it the better.
However, there are also a number of good reasons to keep your home loan and use the money to invest in other assets instead. Let’s take a look at some of the pros and cons of each option.
If you pay off your home loan:
– You’ll no longer have a large debt hanging over your head. This can be a huge weight lifted off your shoulders, and it can free up money each month that you can use for other things.
– You’ll likely have a lower interest rate on your home loan than you would on other types of loans or debt, so paying it off can save you money in the long run
– Once your home loan is paid off, your monthly expenses will be lower and you’ll have more disposable income each month.
If you invest in other assets instead of paying off your home loan:
– You can use the money you would have used to pay off your home loan to invest in other assets that have the potential to earn you a higher return. This could include stocks, bonds, real estate, or even a business venture.
– By investing in other assets, you’re diversifying your investment portfolio and protecting yourself against potential risks. For example, if the real estate market crashes and your home loses value, you would still have other investments in different areas to fall back on.
– You can use the money you make from your investments to pay off your home loan early, or you can keep it invested and let it grow over time.
So, which option is right for you? There is no easy answer, and it ultimately depends on your personal financial situation and goals. If you’re comfortable carrying a large debt like a home loan, then investing in other assets may be the better option for you. On the other hand, if you’re looking to become debt-free as soon as possible, then paying off your home loan may be the best choice.
There is no easy answer to this question. The current market conditions in Australia are unique and ever-changing, so it can be difficult to say definitively whether or not now is a good time to invest in property. However, there are a few key factors that you can consider when making your decision.
First and foremost, you need to assess your own financial situation. Can you afford to make the initial investment? Do you have the capacity to sustain the expenses that come with owning a home and could you weather any potential market fluctuations? If you’re not confident in your ability to stomach any losses, then investing in property may not be the right move for you.
It’s also important to research the current market conditions. Are prices on the rise or falling? What is the rental market like? These are all important factors to consider before making any investment. A financial advisor can help you to navigate these factors and let you know if they believe real estate would be a suitable strategy for you.
There are several ways to get funding for your real estate investment business. You can use your own personal savings, take out a loan from a financial institution, or raise money from private investors.
If you have good credit, you may be able to get a loan from a bank or other financial institution. However, the interest rates on these loans can be high, so it’s important to shop around and compare offers before deciding on a lender.
You may also be able to raise money from private investors. This can be a good option if you have a solid business plan and are confident in your ability to make a profit on your investment. However, it’s important to remember that private investors will want to see a return on their investment, so you’ll need to be prepared to offer them a percentage of the profits from your business.
Key Questions to Ask Before Investing in Property
- What is the expected rate of return on investment?
- What are the risks associated with this investment?
- What are the costs associated with this investment?
- What is the timeline for this investment?
- What are the exit strategies for this investment?
- What are the tax implications of this investment?
- What are the legal implications of this investment?
- What are the environmental implications of this investment?
- Is this a good time to invest in this property market?
There is no magic combination for wealth creation but working with a financial advisor will enable you to make choices that are based on opportunities, market trends and proven results.
Formulating your investment portfolio can be influenced by your current assets and liabilities, budget, goals and more.