BMT’s top 5 tips for New Property Investors

Your Property Investment Journey Made Easier

Starting your journey as a property investor can feel overwhelming, especially with the abundance of information and differing opinions available. At BMT Tax Depreciation, we draw on nearly 30 years of expertise to provide you with five essential tips to simplify the process and set you up for success.

1. Define Your Investment Strategy:
Establishing a clear investment strategy is crucial for your success. While your approach may evolve over time, having a solid foundation is key. Consider whether you aim to purchase multiple properties within a specific timeframe, diversify across different locations, or build a portfolio that supports your retirement goals. Clarity in your strategy will guide your decisions and help you stay focused.

2. Conduct Thorough Research:
Understanding the property market you’re entering is vital. Start by analyzing the local area to assess potential returns and identify your target tenant demographics. Look into property trends, supply and demand dynamics, and economic indicators such as employment rates. Tools like PropCalc can help you project cash flow and compare different property options, ensuring you make informed choices.

3. Adopt a Rational Approach:
When making investment decisions, prioritize practicality over personal preferences. While it’s tempting to select properties based on personal taste, focus instead on factors that guarantee consistent rental demand. Tailor your property selection to attract your ideal tenant profile—whether singles, couples, or families—to maximize occupancy rates and rental income.

4. Build Your Support Network:
Surrounding yourself with a competent investment team can significantly ease your journey. Start with an accountant and a property manager who can optimize your tax position and manage your properties effectively. Additionally, consider engaging a specialist quantity surveyor to prepare a tax depreciation schedule, maximizing your available deductions and enhancing your investment returns.

5. Understand Depreciation Benefits:
Familiarize yourself with property depreciation and its advantages for investors. Depreciation refers to the natural wear and tear of your property and its assets over time, which can be claimed as a tax deduction. A comprehensive depreciation schedule outlines all depreciable items, aiding in tax planning and optimization. At BMT Tax Depreciation, we offer expert guidance on depreciation, helping you uncover potential deductions for your investment property.

As you embark on this exciting investment journey, use these tips to navigate the property market with confidence. For personalized assistance, reach out to BMT Tax Depreciation, Australia’s leading provider of residential and commercial tax depreciation schedules. Simply request a quote to get started.

Contact Information:
Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA)
Chief Executive Officer, BMT Tax Depreciation
Call at 1300 728 726 or visit bmtqs.com.au for Australia-wide service.

The information provided in this article is of general use only and should not be used as a quote or advice. BMT recommend consulting an accountant before making financial decisions. Contact BMT for a specialised tax depreciation schedule.

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