2019 might be a great time for you to finally realise your dream of property investment. The market is dropping, making it an even more attractive time for buyers – especially those with an eye to the long term. Here’s two ways you can become a property investor.
- Investing in real estate with rental properties
This is the most common form of real estate investment and, if finances are calculated correctly, works well because your tenants helping to pay off the mortgage of an asset that is (historically) going to appreciate considerably over a 5 – 10 year period.
Investing in real estate with long-term rentals requires you to have an eye on your cash-flow as you may be required to make repairs or cover the mortgage through periods of vacancy. Knowing the right area and property to buy makes investing with rentals more manageable.
- Investing in real estate through a Self-Manage Super Fund (SMSF)
As more and more people have become focussed on how they will manage in retirement, SMSFs have increased in popularity. These funds allow you more control over the money in your superannuation, and you can invest in property using this money.
There are a number of rules in setting up a SMSF but once it has been done, as a trustee (or a director of the corporate trustee) you can select the property, manage rent income and choose when to sell. In some cases you can even borrow funds to assist in the purchase of the investment property.
As with any superannuation, it is advisable to get advice from professionals who can examine your situation and help in selecting and setting up the most suitable superannuation fund.
If 2019 is your year for investing, then Accrue Real Estate Melbourne are here to help. With expert knowledge of the general property market and long experience with the Melbourne market specifically, they can provide you with the support needed to make your investment goals a reality.