Property investment can be a stable and reliable asset, offering long term security.
Whether commercial or residential, Withani can help you secure an investment property that will reward you financially over time.
Investing in a property can reward you with capital growth as well as a steady rental income. A property can be an effective asset to invest in either through a managed investment (listed property trust, managed fund, syndicate etc.), or directly into a residential or commercial property.
We can assist in areas such as:
- Commercial Properties
- Residential Properties
- Available options to fund a property
- Setting budgets to reach goals
With Direct Investment, you are putting money into a property asset that you have control over. Whether it’s the right choice for you comes down to individual circumstances. It is essential to look at what realistic returns you will get after taking all fees and costs into account, and what possible risks you may encounter, and if the returns are sufficient to justify the potential risks taken.
There are a range of pooled investments available which offer an alternative to direct property investments. The upfront capital required is smaller, as your funds will be pooled with other investors. This provides the ability to access a number of different properties (diversification) managed by people with broad professional skills in property investment. You will pay a fee to the manager and as with any investment it is essential to look at what realistic returns you will get and what possible risks you may encounter, and if the returns are sufficient to justify the potential risks taken and the fees involved.
We are here to help you with assessing the potential benefits of a property investment and, if applicable, recommend structures and strategies to help mitigate any risks and maximise the benefits that are available to you.
If you are considering a direct property investment, you may also find the following checklist helpful
Why do I want to purchase a property?
Does it fit into my long-term investment goals?
Am I borrowing too much?
Can I afford the loan repayments even during times when my cash flow is tight or the property is vacant?
Am I buying at the right time?
It is always better to buy in a market trough and sell at a market peak.
Do I have a stable job?
With stable or increasing cash flow?
Have I got the right insurance cover?
Consider landlord insurance, building insurance and income protection insurance. If buying through a SMSF, what insurances does the fund need to protect its investment – consider above plus life, TPD and even trauma.
Where have I got my advice and information from?
What conflicts of interest do they have – what drives their advice? Have I been pressured by anyone to buy an investment property or a particular house/property?
Have I gone over my budget to make sure I can afford the purchase?
Have I received independent advice about the different ways of holding the property?
– own name, as a trust, company or SMSF – and the advantages and disadvantages associated with each structure? Am I able to make a proper judgement about the “best way” to hold the property?
If I am using a structure how am I going to fund the purchase – get money in to buy and service any borrowing?
Have I considered estate planning?
What happens if I die or become disabled and unable to look after myself? How is the property going to be transferred when I die?
Have I left myself enough liquidity in cash and investments?
– unexpected expenses, vacancy, ongoing expenses over and above expenses associated with the property?