With the new financial year right around the corner, now is a better time than any to start planning for the year ahead, according to the CEO of the Real Estate Institute of Victoria (REIV).
Gil King, CEO of the REIV, has said right now is a good time to review existing property you own, and if you are looking to expand your portfolio, you should be taking the time to make a plan now.
“The purchase of property is still, for most people, the most significant expenditure of their lives and there are many challenges and considerations in making a decision that will have long-term consequences,” Mr King said.
“Buyers must balance their own circumstances with the realities of the market and this is not an easy task given the many variables involved, especially income, property availability, property prices and interest rates.”
Potential buyers should be taking the time out to making sure they have the best interest rates and loan conditions, he continued.
“Those with investment properties might consider making extra payments to lenders, to owner’s corporations and to local government before the end of June if there are tax advantages in doing so,” Mr King said.
“People seeking to buy should consider whether they need to readjust their sights. Has the market, and the tighter lending rules, priced them out of areas?”
If an investor is set to live in a particular location, Mr King said it was worth considering rentvesting instead, a decision that should be made with online research and discussions with agents to help figure out local trends, the current stock available, the level of returns available and begin creating a plan.
“Preparation is very often the key needed to unlock the ‘right’ choice in the real estate market,” Mr King said.
“Accountants and financial advisers can provide advice tailored to personal circumstance, which should assist in making decisions where the heart can often interfere with the head.”