Cliff Hollings has
wide experience in dealing with investment property for clients, both
from a taxation perspective and as an investment program.
We do not sell real estate but are able to help
clients understand the principles which are essential for long-term
benefits.
You no doubt have heard the saying regarding
real estate - "Position, position, position!" and that is important as
to the location of a property, but there are a lot of other matters to
be considered also.
As a general rule, investors usually do
better if they concentrate on the median or lower price ranges for any
area being considered. Some years ago we had a client who bought a
property costing $1.2 million in a suburb close to a capital city. At
the same time they could have bought four properties for a total cost of
$1.2 million in a growing community and the rental on those four
properties would well have exceeded what they were getting on the luxury
property. Plus the four properties would have doubled in value
over the last 4-5 years. Many luxury properties have actually
reduced in value in that same period.
In Australia we have an increase in the
birth rate, we are living longer and the government wants to continue to
increase the rate of migration. This all leads to the inevitable rise in
home values in much of Australia.
Our advice to clients is to thoroughly
research the property market. For example:
- Houses or units, new or second-hand
- What state or area
- Price range
- Commercial, industrial or residential
- Student accommodation
- Subsidised accommodation supported by
the Federal Government
We have lots of clients with real estate
investments, some for many years. However, if this is a new area for
you, then you might like to consider property in the future.
