What on earth is the 'property ladder' and how do I climb it?

By Adrian Stagg

adrian tnMade popular by the British TV show of the same name a few years back the term 'Property Ladder' has no specific meaning when it comes to property ownership or investing in property.

Blogger: Adrian Stagg, Embark Intelligent Property Investment

Really it’s a term that was coined to form a visual idea in the viewer’s mind to signify upward progress when it came to making smart property investment.

One of the most interesting aspects of the TV show was not so much the success stories but the stories that depicted  people that got themselves into trouble as they often did. Some of those people were investing in property near to home and some sought to buy investment property in far flung overseas countries where English was barely spoken such as Spain and Italy.

As they say, it takes all types to make a world. However, if you want to be an intelligent property investor here are 6 smart steps you could take.

The 6 Steps:

1. Research! Remember that knowledge is power so get to know your market thoroughly.

2. Be Tax & Structure smart. Understand the differences between such things such as Positive & Negative gearing, the advantages of family trusts and so forth.

3. Go for ‘Capital Growth’ in preference to “Income” – not that income is bad, but it is 100% taxed  - that’s double that for capital gain. Identify growth drivers.

4. Invest for the long term. Whilst ‘timing’ is important property markets like any others are characterised by peaks and troughs and time in the market helps to even those out and costs of jumping in and out of property investments can be prohibitive.

5. Add value. Look for a property that can be inexpensively improved or has potential for subdivision or further development such as townhouses. A fresh coat of paint can not only add value but may also increase your rental.

6. Location Location. Haven’t we all heard this before! Seek out properties close to both essential and desirable facilities such as transport nodes, shopping, schools, cafes etc. Not only will these rent more easily for higher rents but they will also produce the most sustained capital growth.

About Adrian Stagg

Adrian Stagg  is a director of Embark Intelligent Property Investment and has been actively involved in the property industry in one way or the other since the 1970’s.

His first foray at an unusually young age was as an investor. Since then he has worn the hats of Real Estate Agent, Renovator, Builder, and Property Developer and of course, home owner.

He has witnessed several cycles in the property markets during that time and now guides clients looking for ‘an edge’ in their journey through the property investment maze.

What on earth is the 'property ladder' and how do I climb it?
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%