Business Telegraph

.

3 real estate hacks you can use to grow your portfolio in 2019

  • Written by News Company
Is one of your 2019 new years goal to buy more property? The founder of Wise Real Estate Advice Mark Ribarsky lists the top 7 ways people can get into the market or leverage a tight financial circumstance.

Your Own Back Yard:

If you live in an established suburb there is a high chance your current property has the ability to add a second dwelling. How do you find out if this is possible? Talk to an architect that is local to where your property is located. They propose this kind of dwelling to a local council on a regular basis and they understand local building code and what a local council is looking for.

Many second dwellings can be subdivided and sold off or even used as a rental property to increase cash flow.

Knock down your property and build two or three:

If your property is old and in need of a major renovation, this is a great option considering the savings on stamp duty when buying a new property. If you spend approximately $1M on a new property, the stamp duty bill can amount to over $55,000.

Don’t forget the renovation of the old property, many people spend more money on renovating on an old place than buying a new one.

These saving can take you a long way when knocking down your property, then sub-diving it into lots.

Buy property with your superannuation:

If your superfund bank balance is healthy, setting up a self-managed super fund could be a great way to add to your property portfolio.

Borrowing additional funds is harder to obtain and setup costs can be high. There are also annual fees involved in owning a fund so do your homework.

Speak to a buyer’s agent.

These are real estate agents that source property for their clients, a property buyer. Buyer’s agents spend a lot of their time in the property market, looking for great deals on and off the market. They have a trained eye to spot a deal and are great negotiators.

If you have a limited budget, give them a call and ask them what they can do for you.

Buying property from a developer when land tax is due.

Many developers offer big discounts when their annual land tax bill is due. Why? Usually, they have invested tens of millions of dollars with very little return to get their product to a point of sale. If sales are slow and the developer owes money to the state revenue office, you will find a developer that never negotiates is suddenly more likely to do so.

Buy property off the plan.

For a developer to sell a property off the plan there has to be an incentive for a buyer to act as this is a higher risk in the purchase this type of property. Usually these properties are cheaper than market value and offer a great stamp duty saving, depending on what stage of completion the project is at.

Buy low and sell high.

This is every investor’s strategy but unfortunately when people are buying low the product they’re buying has little demand and is not as attractive as when people are scurrying to purchase.

An example of this is buying and apartment in Melbourne. Currently, sales are slow and prices are dropping due to an over supply of apartments. Remember, the market will turn and it could be a great buying opportunity you will look back on in years to come. We all have the ‘I should have bought when…’ conversations at a friend’s barbeque.

Entrepreneurs & Leaders

20ft Shipping Containers as a Sustainable Choice for Construction Projects

There is a sharp increase in the demands for sustainable building materials in modern architecture. Among the newest...

Benefits of Reverse Cycle Split Systems for Years of Comfort

Without the need for ductwork installation split system air conditioning provides an effective means of cooling part...

Top 5 Tax Benefits of Novated Leasing for Businesses

Offering novated leasing as part of a salary package can provide significant benefits for businesses beyond just impro...

Understanding Root Canals: When and Why They Are Necessary

Amongst the common dental treatments of infections in the pulp of a tooth is the root canal. The pulp of the tooth i...

Seasonal Maintenance of Anti-Bird Netting

Installation of bird netting is one of the measures that can be taken to ensure birds do not set foot in your proper...

Custom Kitchens Reflect Individual Personality and Lifestyle

Custom kitchens in Penrith have turned into a popular decision for property owners looking for special and practical...

Minimum Wage Entitlements for Casual and Part-Time Workers in Australia

The minimum wage in Australia stands as a crucial right for all workers, regardless of whether they are casual, part-t...

How Expert Removalist Companies Handle Heavy Furniture with Ease

Moving heavy furniture is tough and challenging. It requires special skills and tools to move large items safely without...

7 Questions to Ask Before Hiring a Local Moving Company

Hiring a local removal company is essential to make your move smooth and stress-free. Whether you’re moving to a new h...