Welcome to Eazy Capital Group Pty Ltd
Investing in property will not give you quick access to cash — unlike stocks, it takes a longer time to sell a property. You cannot expect to cash in your investment if you have an immediate need for funds in case of emergency.
One of the biggest hurdles hindering many Australians from investing in property is the heavy financing involved. A deposit alone can cost in the tens to hundreds of thousands of dollars.
Investing in property requires ample planning and preparation because of the costs involved. Mortgage repayments, council rates, maintenance and renovations expenses, and insurance are just some of the ongoing costs associated with owning a property. Because of this, it pays to have an investment strategy where the income from your property outweighs all ongoing expenses.
Dealing with bad tenants can be a nightmare for landlords. Not only do bad tenants cause emotional stress, but their actions can also result in financial losses, especially if they regularly fail to pay rent or cause damage to your property.
A property’s location has a major impact on the rental demand, tenant quality, and rate of return. If the property is in a high-growth market, rental price, tenant quality, and the property’s value will likewise increase. Some good indicators of a high-growth area include a large and increasing population, proximity to public amenities, a vibrant job market, good school zones, low crime rate, accessibility to public transportation, favourable taxes, and affordable insurance rates.
When selecting a property to invest in, it is advisable to conduct a thorough home inspection to know if the property is in a sturdy condition and tenant-ready, as repair and maintenance expenses can eat into an investor’s funds and can have a huge effect on cash flow.
An area with a low number of listings and vacancies shows a strong rental market. Low vacancy rates also allow landlords to raise rental prices to boost returns.
An investment property should be able to generate a strong positive cash flow every month. This means the income a property generates is more than enough to cover everything that an investor puts into it.
Apart from cash flow, investors should be able to generate profit from the property. The most common metric used to determine profit is cash on return because it factors in how the investment property is being financed. Experts say a good investment property can make cash on a return of about 8% or more.
As Australia’s fastest growing mortgage broker, Eazy Capital Groupl is proudly independent. You’re our #1 priority – our brokers work for you – not the bank, not the vendor and not the estate agent.
