Adelaide | Onyx Realtors

How to kick start your property investment journey in Adelaide?

By Rishabh Dhall

Investing in property can be extremely lucrative, but it’s also incredibly daunting to start with – there are so many things to consider, such as the type of investment you should make and whether your financial situation is suitable to deal with these sorts of decisions. But don’t worry, if you’re getting into the property market for the first time, this guide will walk you through all these considerations and more, so that you know what to do when you’re ready to go through with your investment in Adelaide property.

Where to Start

There are so many avenues and opportunities out there that it can be difficult to know where to start. So, we’ve prepared a little handy guide on what you should do if you’re thinking of getting into property investment and hope that it helps. But remember, there is no one right way.

How much can I afford? And how much will it cost me? A great place to start your planning process is by working out exactly how much money you have available for investments, as well as spending and lifestyle costs.

What Are Capital Gains Tax, Depreciation, Income Tax, and Division 7A?

While income tax generally refers to tax paid on an annual basis, capital gains tax (CGT) refers to any profit earned from selling your assets – including property. But what is CGT? And how does it work? In Australia, CGT applies once you have owned and used an asset for a minimum of 12 months. When you sell that asset at a higher price than when you purchased it, you pay tax. Before we begin discussing CGT in more detail, let’s first consider two other important terms: depreciation and Division 7A. Division 7A allows taxpayers who use the property as their business or trade to claim deductions for ‘expenses’ associated with owning or running that business or trade.

Should I Buy or Lease My Property?

When buying a property, there are three main ways of financing it. You can finance it through a loan from your bank (using savings or by taking out a mortgage), you can use the equity in other assets you own, or you can try and buy for less than what it’s worth – known as ‘buy low, sell high’. This third option is called equity sharing. Think of it as getting someone else to share any potential increases in property value with you.

Tips For Finding A Good Rental Home/Investment Property

Finding a good rental property takes a bit of time and patience. Once you know what kind of properties you’re looking for, it’s time to get looking for them! Set aside at least an hour or two every weekend to drive around your desired neighbourhood. If a house looks nice from the outside but doesn’t have any indoor amenities such as heating or air conditioning, don’t rent it!

Risks And Rewards of Investing in Real Estate

There are several risks involved when investing in real estate. The biggest one is simply location: Is it a good area for investment? It’s important to look at these risks and weigh them against your goals. Are you looking for something that will let you $5,000 a year (or more) on average? In that case, market risk won’t matter as much as you think—if it’s not a complete disaster.