The best property investment advice you can receive is to always consult those who have experience or specialized skills in property investment.

The property market is a popular way to create a tidy nest egg for retirement but it is not just a matter of buying a property and selling it later down the track for a healthy profit. There are tax considerations, properly location, and tenant selection, not to mention cash flow projections before any decision is made. Despite the large number of reports produced by the media, property investment should be a carefully constructed professional strategy that takes into account your personal needs and goals. For example, buying property via a Self Managed Superannuation fund can be an extremely tax effective way of investing.

In other words, it is not just simply a matter of deciding when to buy an investment property based upon interest rates. There are so many other considerations it would be foolish to generalise one way or the other as to whether it is a prudent decision to borrow money when rates are high or low.

On the one hand, if rates are at an all-time high, it could be argued that the upward cycle may be over and that the downward trend is likely to follow. Similarly, when rates are low, it could be argued that the cycle is about to move into an upward trend. It is self evident that no one can predict the future of interest rates with any degree of accuracy as has been demonstrated over the last two years.

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There are always areas growing in values despite rate cycles and putting of investing due to rates being 1% higher and then purchasing a property for 15% greater cost in 2 years time is not a wining approach.

Economists offer differing opinions almost every day of the week with varying degrees of accuracy but more often than not in conflict with each other.

In the property market, professional investment strategies are not based upon such a simplistic approach however. The hallmarks of a good investment strategy include the following

Your ultimate long-term financial goal.
Analysis of your income and likely changes over the foreseeable future.
Short-term financial priorities, including things like children’s education expenses or overseas holidays.
Understanding your risk profile.
Taxation and estate planning.
Investigation of property purchase options including in-depth analyses of locations throughout Australia highlighting past trends and possible future market directions.
Arranging flexible and appropriate finance packages to suit your strategy and cash flow.
Regular reviews of your situation and adjusting the strategy accordingly.
Using superannuation wherever possible to minimise taxation and to augment property investment purchases.

A professionally designed investment strategy will not only incorporate all these issues but will also give you the peace of mind you need to move forward. In many cases, a worst case scenario is used as the bottom line for future plans so that any unforeseen circumstances such as interest rate rises will not catch you off guard.

Once again, it is clear that in order to plan successfully for your financial future, you cannot rely on one or articles in the media or from anecdotal evidence provided by your friends or family.

The most successful property investment strategies only come after consultation with industry experts who carefully plan and monitor your plan to fruition.

www.PartnersForInstantProfits.com Brad Wozny, the founder of Partners for Profits, has a tip for how you can get investment property financing. Experts are predicting that 68% of all commercial investment properties will not be able to get refinanced. Now if you are somebody who is looking to get refinanced or are an investor who is looking for financing here are a few tips on what you can do. One is to look at investment portfolio lenders in your state or county, secondly is to connect with an investment property financer and the last is to look for Investment property financers. Now if you are somebody who is either looking for refinancing or looking for financing to invest check out the partners for profits website and get some more in depth advice on how you can get investment property financing.
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Question by greengo: Should I sell this house and invest the money? What should I do help?
My father in law has dementia and he needs nursing home care. I need an extra $ 2,500 dollars per month (over and above all of his pension money) to take care of him. I am figuring he will live another 20 years (he is young but demented).
He has a house where he used to live before we put him in the home. He paid less than 50 thousand for it many years ago, it is now worth around $ 300,000 because it is in what is now a really good location. If I sell it now there will be no capital gains tax, because you get a 2 year grace period once you move out of the house before it gets considered “investment property.” So assuming we sell the house and we get maybe $ 275,000 out of it, is there a way to invest it where the money will give interest anywhere close to $ 2,000 per month? Or should we just put it in CDs and cash them out every year? I do not know how to invest money, and I want to plan it so the house money will last. If I need an extra 25 thousand to take care of him every year, this will only last for 11 years and then what will we do? I am very afraid we will run out of the money and we can’t take care of him any more.
Another option is to rent the house, we would net about $ 1,000 a month on it and then would only need to raise $ 1,500 per month. But then if we sell it later, will be taxed heavily as a capital gain.

Best answer:

Answer by Karin
try this site (i’ve used it): http://topfin3.notlong.com/0AAHswt

Know better? Leave your own answer in the comments!

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Question by SFB: Should I refinance first or buy a house first?
I have a house that I use as a “second home” and I’d like to refinance that for a lower interest rate. Additionally, I’d like to purchase a house for use a primary house. Ideally I’d refinance the house first and take some money out for more down payment on the new house (but even after that it will be 70% LTV). But I could get by without doing that.

Will the refinance affect my credit in qualifying for the house purchase? Is it better to purchase first, and refinance second?

A secondary question – I rent out the “second home” about 10 months a year, can I still call it a “second home” for the purposes of the refinance or is it an “investment property”? My goal is to eventually move into the “second home”, but that’s at least a few years away.

Best answer:

Answer by Denny
if the 2nd home was originally financed when it was your current (primary) residence, i wouldn’t touch it. your interest rate will be alot higher if you try to refy a seconed residence. just concentrate on the main home for now.

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When Should You Renovate An Investment Property?

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Are you looking to get your feet wet in real estate but don’t know how to begin. If you ask the more creative and experienced of investors, they would suggest that you look for financial institutions that finance investment property. That is, the golden rule of real estate is to use other people’s money to leverage your investments.

Seasoned investors advise against investing scads of money on a single real estate asset, even if you have the funds to do it – simply because it is too risky a proposition. Moreover, you forego the benefits of leveraging.

Nowadays, several reputable lenders offer finance for up to 95% of the purchase price of the property. The most alluring feature of such schemes is that they cut back on your out of pocket costs when acquiring an investment property. Moreover, the finance is typically available in the shape of a single loan, which can be used to invest further in other properties.

The benefits of financing can be better understood with an example. Let’s assume that you purchase an investment property, without financing, for $150,000. If your expected yield from the property is 10%, then you would get returns of $15,000, which is a 10% return on your investment. On the other hand, if you get your property financed up to 95%, then you would effectively make the same profit on a mere investment of $7,500, which amounts to be an overwhelming 200% return on your investment.

Lenders that finance investment property up to 95% normally offer loans with a 15-year or 30-year term. These loans may either be fixed-rate or adjustable-rate. Lenders verify your credentials, such as your income source, savings and credit score, prior to offering finance. Though low credit scores are permissible by many financial institutions, a healthy credit score does help acquire finance at low interest rates.

While choosing a financial institution that will finance investment property, ensure that you are thorough with the terms of the finance agreement. Although financing your investment property seems like a profitable option, you may not be able to acquire finance for just about any property you desire. Reputable lenders offer finance for no more than 5 investment properties. And this too can be rather tough to accomplish. You need to be eloquent enough to persuade the lender into offering finance.

All in all, it is prudent to seek lenders that finance investment property. Financing empowers you to leap ahead in your real estate career at a rapid pace. It helps you augment your investment portfolio, which leads to significant profits in the long run.

Copyright © 2006 Joel Teo. All rights reserved.

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