Why Property
Why would you invest your hard earnt money in property? - Access to immediate tax savings
- Property gives you the ability to multiply your return on investment using OPM (Other Peoples Money)
- Property has out performed shares, bonds and bank interest for over 40 years
- You don’t have to have a cash deposit
- Best of all it is estimated that 98% of the world’s millionaires made their money through property*
At KEY2 we believe you should investigate before you invest, so we have put together a list of 5 KEY questions we would ask when dealing with a property investment company. 1. What makes this property a good investment for me? 2. What standard of quality is the development, how big is the development and what is supporting the value of the properties being offered? 3. What is the company's track record in the property market and are the staff active property investors themselves? 4. What fees are involved and who pays them? 5. Can I speak to any of your clients? Here are a further 5 questions you may want to ask 1. Can I secure my preferred property under a due diligence period before I commit to purchasing? 2. Is the company controlled by any professional governing body or acts of legislation? 3. What other types of properties does the company offer? 4. Do they offer access to purchase properties before they are released to the general public? 5. Can they assist me if I need to sell my property? These are not the only questions you should ask but they will certianly help you find out more about the property you are looking to purchase and the company you are dealing with . To talk to a KEY2 Property Specialist follow this link Or call us on 0800 KEYTWO (539 896) Here are some Frequently Asked Questions that may help you in your decision making process... How much debt is too much? This will depend on a number of factors including current income, age and personal comfort level. At KEY2 we generally do not recommend leveraging beyond 80%. Should I be focused more on rental yield or capital growth? Again this will depend on your income and age, i.e. when you are younger with a high and/or rising income you can afford to be more focused on capital growth. As you grow older, yield (cashflow) becomes more important. At any stage KEY2 believe in developing a balanced portfolio of both high capital growth properties and higher yield properties. What type of property should I invest in? KEY2 deals in a broad range of property to deliver a balanced long term wealth creation portfolio. The range can be very broad from apartments to home and incomes and everything in between. If it fits the preset criteria for your plan, buy it. Which area should I invest in? Again the response is similar to what type of property. Different areas provide different buying opportunities, both in type of property and growth prospects. If it fits your plan, do it. What if I can't get a tenant? This is a rare occurrence, especially in residential property. A well located and maintained property will always have a ready tenant market. Especially when utilising the services of an experienced property manager who is incentivised to maintain a high occupancy rate. Should I put any spare cash into the investment property? Part of a good investment plan is being tax effective. Spare cash should be used firstly to pay off non income producing assets, namely the family home, credit cards, etc. Once these are paid off then consider either increasing your investment asset base or reducing debt, depending on your long term plan. How many properties can I buy? This will depend on a combination of your income, assets (typically property) and time. When taking these factors into account we can assist you in establishing a long term property investment plan to achieve your retirement goals and the implementation of that plan is sourcing the right properties and the right time. What does KEY2 charge? Our service when purchasing property is at no cost. Should you require any of your property to be sold, an industry standard real estate agency commission applies. When is the right time to buy? This is the most common reason people are put off entering the property market. There is a saying that you will only know when the market has hit its peak or trough in any given cycle after it has occurred. At KEY2 we believe now is the right time to be investing for the long term rather than speculation for the short. It is also said it is time in the market, not timing of the market. Do I need to own a property to be able to invest? Not necessarily. We have started clients on their long term investment plan by using other investments as their deposits. We also have parents assisting family members by using the equity in the family home to purchase their first investment properties. To talk to a KEY2 Property Specialist follow this link Or call us on 0800 KEYTWO (539 896)
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