Perth property investment buyers rushing to seal an end-of-year deal should enlist a qualified helping hand to meet the June 30 deadline, according to Real Estate Institute of WA president David Airey in a column in The West Australian (March 30, 2013).
“While purchasing property should never be a rushed affair, if anybody is considering the purchase of an investment property before 30 June, then they should be sorting out their finances and looking at suitable properties now,” he said in the article “ This is particularly the case for first-time investors.
“Most people, however… have not had adequate time to properly research the market in terms of price, rental returns, availability of stock and so on. If you are a first-time investor, perhaps encouraged by news about our strong economy, population growth and buoyant housing market, then now is the time to be talking to professional financial advisers about your aspirations and budget.”
We agree. Investors hoping to cash in on property-induced tax breaks need to act now to reap end-of-financial-year rewards. Many real estate buyers leave it too late to search for the right property to suit their financial situation.
Buyers planning to buy before the end of the financial year and prepay the interest will need to settle before June 30. But settling quickly can be difficult as the end-of-financial year approaches because so many people wait until May or June to start looking for a property, then want it settled in June.
Investors hoping to improve their tax position must still keep the basic investment principles in mind amid the rush to gain a late tax break.
Be savvy and think about the long term, don’t just jump in to beat the June 30 deadline. The prospect of a tax break can be very enticing, but buyers need to keep their wits about them. Keep the critical questions in mind – does the suburb have a good extended growth history, will the growth continue, will the property need maintenance and will tenants want to live there?
And importantly, get advice from your accountant, tax advisor and property experts.
Mr Airey said buyers should already be considering the areas in which to invest and plan to inspect suitable properties, and finding the best place to invest depended entirely on your budget and what you want your investment property to do for you.
It is important to know your property investment goals before you purchase, he added, and suggested investors ask themselves the following questions before proceeding: Are you focused on rental returns, capital growth, land prices, development opportunities or tax deductions, and how long do you intend to hold this investment?
What matters is that you follow the best ways to invest… getting competent financial advice from professionals to determine your budget and loan, and then talk to some REIWA agents about opportunities in the areas that suit your portfolio plan. If you are pressed for time but want to purchase before 30 June, or just lack confidence as an amateur investor, then you may want to consider engaging the services of a Buyer’s Agent to assist you.
If you have an interest in building your wealth through property, then call us on (08) 9381-7450, or request a FREE Starter Pack.