Last week the Calla Property Team went to Brisbane for the week. We met with property clients as part of our due diligence and are very pleased to report that we have some more fantastic investment stock for our clients. We visited a number of sites and show rooms ranging from small boutique developments of 20 apartments to full master planned, beautifully landscaped, amenity rich developments. I am very excited to be able to offer this new stock to our valuable clients.
We’ve all heard lots of advice about property investing but there are a few common phrases that keep coming up and recently I’ve had a bit of time to reflect on them.
It would seem that there are many clients who are still wary about buying ‘off the plan’. This seems to come largely from a number of developers who were unscrupulous during the boom period prior to the GFC. By and large, the GFC has flushed out the unsavoury operators. The businesses that were able to withstand the assault of the GFC, especially in the construction industry, for the most part, were good businesses prior and are still strong businesses today.
“9 years ago I took the plunge in buying my first Sydney property, a modest 2 bedroom apartment in Alexandria. I remember procrastinating for at least 2 years before I made that decision, thinking I didn’t have enough deposit and coming up with all sorts of excuses. In 2012, I sold the apartment, but I regretted delaying the decision to buy as all my fears back then turned out to be completely unfounded. If you’re looking to buy your first home and you have some doubts, I suggest you talk to the experts to get a different perspective and to demystify potential misconceptions.”
– Chen, aged 40
The structure of your loan is really important if you have a view to long term investing.
You may or may not have heard of cross collateralisation or cross securitisation, however it is one of the fundamental structural concerns to get right from the outset.
So what is it?
When it comes to investing in property there are two main areas to consider – how much will it cost to hold (holding costs) on to and how much will it grow (capital growth) over the time you plan to hold it?