Frequently Asked Questions
Here are the questions our One Haven team are regularly asked. If you have any other questions, contact us!
While many experts suggest property buyers save for 20% of the price of a house, it is possible to enter the market with as little as an 8% deposit, plus money for costs. As an investor you’ll require a 12% deposit plus costs. More money may be needed to get the property in rentable condition, and you’ll need a cash reserve to cope with emergency repairs and occupancy gaps. It takes careful planning and plenty of research, and help from experts like us to buy the right property and make it pay.
Are you feeling like you’re ready to get the ball rolling? You came to the right place. There are steps you will need to follow to begin your property investment journey. Property investing isn’t as hard as it may seem. That being said, it is important you consult professional advice. At One Haven we hold the expertise to be able to guide you through every step along your property investment journey. So don’t wait, speak to our team and kickstart the process straight away.
Finding the right property in the right place takes comprehensive research. Property performance is driven by many key pillars such as population, infrastructure, employment, education, migration, liveability, supply, vacancy rates, location, developer/builder quality and much more. Seeking assistance from a professional at One Haven who can cover this research and analysis before proceeding with an investment will ensure you make the right decision.
If your cash is tied up in investments or equity and not readily accessible, there are ways that can help you buy your next home sooner. You may be able to use a guarantee from your spouse or family (supported by a mortgage over their property, or a term deposit) as equity to assist you with your home purchase. Speak to us to determine the best approach for you.
Simply put, equity is the difference between the current value of your property and the amount you owe against it. For example, if your property is currently valued at $700,000 and your mortgage is now down to $400,000, you now have $300,000 in equity that you can potentially access. Equity takes time to build but there are a few things you can do to ramp it up quickly. You can do renovations to significantly boost the value of the property. A new kitchen or bathroom and a lick of paint could dramatically lift the value of your property. Just make sure that you plan and budget well to avoid overspending and over capitalising. You can also look at making extra repayments to reduce your mortgage quickly. The more you pay, the more equity you build in your property.
Yes, and this is common strategy to create wealth through property. There are a few other factors to consider so it is always recommended that you speak to your financial planner and broker. The team at One Haven and moneylab will be able to provide you with suitable advice.
Outgoings against your investment property are a tax deduction, negative gearing is a deduction, you can also claim depreciation benefits for tax which are mainly appliable in new properties. See the ATO website for more details and a full list of deductions here. It is recommended that you speak to a financial planner regarding your personal situation and tax implications.
Property investors have the ability to gain leverage on their capital and take advantage of substantial tax benefits. Although real estate is not nearly as liquid as the stock market, the long-term cash flow provides passive income and the promise of appreciation.
9 years is a long time to retirement and if you buy well, we have seen clients who have come close to doubling their retirement funds in this period and continue to grow wealth. Speaking to professional is important here to be clear on your finance, budget and strategy being this close to retirement.
It is important to get the right advice when it comes to investing with your Super fund. You’ll need to seek the advice of a financial planner who is experienced and licensed to provide you with Superannuation advice. This may be suitable for you, but you will need to understand the pros and cons (after being properly advised) before making your decision.
Yes, due to multiple factors such as low interest rates, location of asset, type of property and key investment data, these opportunities are available in the current market. We’ll work with you to establish your property investment goal and then fulfil them.
Property performance is driven by many key pillars such as population, infrastructure, employment, education, migration, liveability, supply, vacancy rates, location, developer/builder quality and much more. Seeking assistance from a professional at One Haven who can cover this research and analysis before proceeding with an investment will ensure you make the right decision.
Choosing whether to buy a house or an apartment is a personal decision, so it depends on your situation and what you’re looking for out of a property. If you’re buying a property to live in straight away, it makes sense to consider your own lifestyle and requirements when choosing between an apartment or a house. On the other hand, if you’re buying an investment property, it’s most important to consider the state of the market and what other tenants and buyers are looking for in your area. Both can perform well in your portfolio, historical data shows that both opportunities will perform in the market over time.
There are pros and cons for both but its dependant on the client’s strategy and goals, are you looking for positive cashflow, tax deductions, growth or yield? Are you an owner occupier or investor? Are you buying for lifestyle? Are you looking to renovate (and increase the equity in your property)? These and plenty more factors impact on whether you buy new or old. Establishing your goals best suited to your circumstances is important, seeking professional advice is key.
Yes, owning more than one property means greater passive income and also greater increased income over time, as you have multiple rent amounts increasing your monthly cash flow (instead of just one rental income). The consideration of buying more than one investment property at a time will be dependent on your finance and wealth strategy, which should be done through a professional. Our team will be able to discuss and advise you on this.
Yes, unless circumstances in your life require you to sell then “buy and hold” is a smart strategy, creating wealth through property is a long-term commitment.
How much money you can borrow will depend on four things: Your personal financial situation, the property you want to buy, the amount of mortgage repayments you’re comfortable making, and what advice you receive from professionals. It’s important you are comfortable borrowing the amount you decide upon, and are able to make the necessary repayments each month. If you’re ready to get an estimate of your borrowing power for a home loan, you can use our helpful home loan borrowing calculator. Every client’s position is different, so we suggest you meet with a mortgage broker to go through a full assessment to determine your borrowing capacity. Speak to us and we will put you in touch with the right mortgage for you.
Dealing with a bank directly limits you to their current policies and interest rate which may not be the best fit for you. Mortgage brokers have access to multiple lenders and will put you with the right lender that suits your current circumstance to obtain the best result with finance. The brokerage team at moneylab will be able to provide you with suitable advice.
Any question even remotely related to property investment is a good question as far as passionate property investor Hamish McIntosh is concerned.