Want to make money from property investment?
It is a rather known fact that property investment is secure and one of the best forms of investment. The simple reason for this is that people tend to understand the property market much better than
the stock market and its functioning. No one can deny the increased demand of property all around the world, especially in the Melbourne. So here are some ways to make the most out of this increasing demand.
Purchase and rent it out:
The easiest way is to purchase a propertyand then put in on the market for rent. You can consult with one of the many Melbourne property investment companies to get you on the right track with choosing an investment property. From there you can rent it out to tenants. The popularity of this option can be calculated from the fact that, in the Melbourne almost 1 million properties are rented out by 100,000 property investors. Majority of the investors who are serious with their choice rent out multiple
properties at one time.
All you have to do is find a good location which can yield a positive cash flow. With a good location, you can keep your hopes high on receiving good rental rates. Even if the property is cheap, the
location will make money for you. Such areas in the country where short-term
accommodation is needed can also prove to be profitable for you. You have to
keep one thing in your mind that whatever money is generated through rent, it will
serve as your income, and you have to pay off the taxes.
Buy, renovate and sell:
You don’t have to stick to one approach only; you can surely have a different one. So another option for you could be to buy, renovate and sell. Now the term says it all. If you are in search for a
good bargain in the market, then what you can do is look for such properties
which can be sold on a good profit.
This often refers to purchasing such a property which requires a healthy renovation, in order to be sold in the market at a good price. For this, you should know the process of DIYs. If not, then
you need to have a number of experienced traders on your speed dial. Only then
will you be able to make the most out of this option.
You will not have to deal with issues related to tricky tenants at all. All you have to do is doll up the house in the best possible way and put it on the market. The only thing is that capital gains
will have to be paid during the process of selling this property.
Indirect investment option:
If you do not feel attracted towards any of the above-stated options then you can go for this one. In this method, you yourself do not have to purchase a single piece of brick. All you have to do is
invest in a property of your own choice indirectly.
Or you can simply invest money in a fund that has been created to collect investment for the property market. It is possible that you may think of this option as a little bit off trick but it is
actually an investment which you are able to make, in an asset of your own
liking. You can experience what a hands-down investment feels like.
Though there are a couple of special taxations that you as an investor need to have knowledge about.
The trusts which have been created for real estate are divided into two parts. One being the property management service and the other is cooperation of tax-exempt of the business. The profits which
are generated in the first group are treated just like an investment. While on the other hand, the latter enjoys the same status of tax as a regular property investment.
So you can definitely take any of the above-stated options into consideration according to your comfort level.