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Investment Properties
Investment properties have always been the most sound way to invest your money and the most evident way to look at this is the ever-increasing property value. In the past seven years property value has increased by an approximate 184%, this is definitely proof that you do not get a better secure investment. Although investment properties are not a get rich quick scheme you are almost always guaranteed of getting money back from your investment.
Investment properties can include a variety of different properties such as buy-to-rent houses, office buildings, shopping centers and such like. Other investment properties could include older houses, this might work out pricier but if you enjoy renovating you can get unbelievable returns on these types of properties.
Advantages to owning your own investment properties:
investment properties generally are assets that increase in value, therefore if you sell your property you will make a profit,
in the case of investment properties for personal purposes, the money that is used to pay off your home loan is used to pay for your accommodation as well therefore its one payment and not double,
renovations and improvements made to the property will increase the value of your property,
you will receive income tax deductions for general operating expenses of your investment properties,
you can use your investment properties as security to raise funds and
the money that you receive as monthly rental from your various investment properties will go towards paying off a mortgage and in many cases will show a profit.
Disadvantages to owning your own investment properties:
initial costs of investment properties can be high as there are many 'hidden costs',
there are several direct cost that are incurred by investment properties that are rented out such as maintenance, property insurance and commission to letting agents,
all rental payments that are received from tenants in your investment properties are to be declared in your “gross income” for tax purposes,
cost of the acquisition of investment properties, improvements thereof and and transfer costs are not relevant for income tax deduction and
some properties will not generate a high enough monthly rental income to cover the monthly bond repayments in cases such as this you need to determine whether or not the investment is still worth your while and whether or not you have the funds to cover the remaining costs.
The advantages and disadvantages of investment properties is something that you individually need to weigh up but in most cases the advantages outweigh the disadvantages. If you do decide to purchase investment properties the one thing that you will need is a partner in negotiating the best rates for your mortgage that you will require as there are few people that can pay for properties cash.
CKM Home Loans is just such a company who partners you and assists you in your mortgage applications. This company will provide efficient, professional and fast service that will make mortgage application a 'walk in the park'. The staff are friendly and enthusiastic all originating from various banking backgrounds and staying abreast with the latest bank rules and regulations. CKM Home Loans is the perfect partner to facilitate the acquisition of your investment properties.
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