Investors should think outside the square
Investors who don’t investigate “lesser known paths” to successful investment may well be missing out on valuable opportunities, according to Australia’s largest independently-owned mortgage broker.
Popular, more ‘mainstream’ strategies include using interest-only loans, buying with ‘tenants-in-common’ and tapping into home equity.
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However, “some lesser known paths to property investment can be quite rewarding once understood,” according to Mortgage Choice spokesperson Kristy Sheppard. “Many Australians could be missing out on building their property portfolio simply because they are unaware of simple, successful solutions.”
Choosing a less traditional approach is the trick to reaping financial rewards, Ms Sheppard said.
One such method is to build a secondary dwelling, such as a granny flat. This increases the property’s future resale price and brings in rental payments that can then be re-invested. It may also provide a shield against depreciation.
For negatively geared investors, varying income tax is an under-used method to improve immediate cash flow by reducing the tax rate applied.
Choosing a line of credit with a global limit can also free up funds and give more control over the management of each account.
“Making strategic property investments is half the battle,” Ms Sheppard said. “The subsequent steps seasoned investors make, thinking outside the square, sees them achieve goals faster and with less hassle,” she said.
