A Step-by-Step Guide to Creating a Dynamic Property Investment Plan

Success in property investment requires careful planning and a strategic approach. In this step-by-step guide, we’ll walk you through the process of creating a dynamic property investment plan tailored for your own financial goals and lifestyle. 


1: Define Your Goals

In order to succeed in property investment, it’s important to establish clear, attainable goals. Do you want long-term wealth accumulation, rental income, or a combination of both? Decide on your financial objectives, timeframe, and tolerance for risk.


2: Assess Your Financial Position

Take a look at your current financial situation. Make sure you are aware of your assets, liabilities, and funds available for property investment. Establish your borrowing capacity and create a budget that shows your property investment affordability.


3: Market Research

Conduct thorough research on the Australian property market before embarking on your property investment journey. Look at past trends, current conditions, and future forecasts. Focus on specific locations within Australia that align with your property investment goals. The AllianceCorp Research and Acquisitions team spend thousands to access all the leading data insights on every key investment location across Australia.



4: Seek Professional Advice

Property purchases are the biggest purchases you will ever make yet most buyers buy without consulting a professional. They consult their Accountant regarding tax returns and speak to their Mortgage Broker before investing $10,000 in shares, but when it comes to spending half a million dollars on an investment property, they proceed without really knowing whether they have made the right decision or not. In recent times, more and more buyers are realising the benefits of engaging a team of Independent professionals such as AllianceCorp, to help build their property portfolios. They do this for convenience, time-saving, expertise and to save thousands when negotiating.



5: Develop a Strategy

What most people don’t understand is that one or two investment properties will barely make a dent in their long term financial goals. The main reason that clients come to AllianceCorp is that they recognise that their income alone will not enable them to achieve their financial dreams and they need to put in place a property investment strategy. Property investors that are truly successful and can live off the rental return of their portfolio in retirement have built a large portfolio of investment properties over a number of years.


6: Structure Your Finances Correctly 

Successful property investing has more to do with how you structure the finance than the actual property itself. Historically, property has gone up (providing you hang onto it long enough, however, if you don’t structure the finance correctly, you can put yourself in a risky position and limit the growth of your investment property portfolio.


7: Obtain Finance

Price increases in residential property over the last couple of decades in Australia have allowed many investors to accumulate substantial equity. There are plenty of investors that have sufficient equity to put down large deposits to purchase more property, but servicing the loan poses a greater difficulty. Here we outline the best strategies to ensure that you are able to continue to service investment loans if you find yourself in this situation.

Some of these might include: 

  • Increasing Your Cash Flow 
  • Diversifying Lenders 
  • Increasing Your Perceived Income 


8: Property Selection

Your investment property should be carefully chosen. The location, potential for growth, and the rental yield/demand should all be taken into account. 


9: Legal and Tax Compliance

Capital gains tax is incurred when you make a capital gain after selling an asset such as an investment property. It is calculated by identifying your net gain, (after capital expenses) and then dividing the gain by 50%. That figure is then applied to your marginal tax bracket. On average it may equal approximately 25%. To avoid this process you could set up a Self-Managed Super Fund (SMSF).


10: Diversify Your Portfolio

Creating multiple streams of income is the most effective way to achieve long-term financial stability.


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