NEW

If It Ain’t Broke, Don’t Fix It

This age old saying in the vernacular also works with mortgages. But why? Fixed interest rates on a home loan are often higher than variable rates, but it’s all dependant on the global bond market. Fixed rates are funded by the global bond markets, meaning the bank...

Why Haven’t Prices Plummeted?

We’ve got Covid, a recession and had lockdown all over the place, but property remains strong and seemingly getting stronger?We all remember the dire predictions in the press this time last year with most property pundits espousing everything up to a total collapse of...

How Many Property Booms Have You Missed So Far?

You can count them on this graph.Personally, I haven’t missed any since 1998. Can you guess why that is? The reason is because I bought my first property in 1998, so I’ve had my toe in the water ever since then. Sure, there have been a couple of slower periods in that...

How Fast is Your Dream Slipping……Ahh…..Powering Away From You?

Have you been keeping a close eye on the market lately? Haven’t we all! It’s hard to believe some of the crazy things going on at the moment. This makes it all the more important to take action so you don’t see your dreams like you see a jet fighter…………disappearing...

The Cheap Money Boom!

Are we really in a property boom period just now? Maybe, but is it really a property boom? What I believe we are seeing just now is the largest, most concentrated cheap money boom that I for one have ever seen in my entire life and I’ve lived a lot of my life, so...

Perfect Urban 5 Bed Oasis

522Have you got a ‘Brady Bunch’ family? Are Mum and Dad living with you?If either of these are true, this is the house for you. If you’re up for dual occupancy as an investment strategy, this works as well. The original home as a renovated self contained granny flat ...

Are You Positive that You’re Negative?

Jehoshaphat, “Negative gearing is the best property investment strategy”. Geraldine, “Are you positive?” Jehoshaphat, "Huh???" OK, so we’ve all heard about positive and negative gearing with regard to property investment. But which one is the best strategy? Put...

To Be or Not To Be……….a Rent-vestor.

It seems it was easier back in the olden days. Remember back when you were a kid? More to the point, remember back when I was a kid, back in the 60s and 70s. You either rented or you bought your own home. It seemed that there were only the privileged few who could...

5 Bedroom Brand New Near Elite Schools and Walk to the CBD

52 2The selling agent has made this property is available for PPBA to buy for you. Elevated position, literately brand new, yet retaining the classy Colonial look is this colossal 5 bedroom residence mere walking distance to CBD and surrounded by a number of the best...

If It Seems Too Good To Be True, It Usually Is!

Often forgotten words, but at the heart of the ‘get rich quick’ schemes is this well-known assertion. When was the last time you saw a ‘wealth coach’ spruiking the benefits of some new real estate wealth scheme? Last time you looked at your email inbox or your...

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Home Ownership

Dec 13, 2020 |

Our Services

“You don’t buy our services; you buy a home; we just make it easy”.

We provide a complete service designed specifically for you in finding the property you want at the lowest price possible.

Our service, depending on your requirements, may include:

Initial meeting to establish your requirements.
Source, inspect and review properties that meet your requirements
Discuss price offer and negotiation strategy with you
Exchange contracts
Project manage renovations.

Confirm buyer’s agent agreement
Conduct buyer accompanied viewing where required
Place the offer to the vendor and conduct negotiations on behalf of the buyer
Monitor settlements

Home Ownership

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Buy and Hold

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Negative Gearing

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Positive Gearing

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Renovation or Flipping

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Passive Property Development

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Active Property Development

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CONTACT US

PHONE

0490 020 801

EMAIL

[email protected]

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Phone Number

0490 020 801

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Email Address

[email protected]

Buy and Hold

This is usually a long term strategy. You buy the property, be it residential or commercial and rent it out. If you have done your research well, the property will not only increase in value over that time, but during that time, you will have earned a significant amount of money in rent. This can go towards costs of owning the property, such as mortgage, rates and insurance etc. These costs also provide you with tax deductions which your accountant can advise you on. The rent however, doesn’t always cover the entire costs of owning the property.

This will depend on the property being positive or negative geared.

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Negative Gearing

Negative geared property is used as a growth strategy. In areas where good capital growth is acquired it is difficult to find rental income that covers property ownership costs. In this respect, the amount of money to hold the property needs to come from elsewhere, usually your pocket.

Negative geared properties can become positive geared over the longer term by means such as paying down the mortgage in time, possibly decreasing the payment amount with refinancing, rents increase over time increasing income or you provide a larger deposit decreasing the borrowed amount. These are however usually longer term options.

The main goal with negative geared property is that it is in a high growth area and will increase significantly in value over time. When considering this strategy, particular attention must be paid to Capital Gains Tax on sale as this can be a significant amount.

If your portfolio overall is highly positive geared, a negative geared property can be used to balance the tax effect on earnings, thereby providing not only tax incentives, but a property with good growth prospects.

Positive and negative geared properties used in union are a very effective strategy.

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Positive Gearing

Generally speaking, positive gearing as a strategy is used specifically to generate revenue. Whilst the property may also increase in value over time, this is not necessarily the main aim of the investment. It does however make a very handy benefit to this type of strategy.

One of the most significant advantages of this strategy is that the rental income pays for the entire costs of owning the property. Extra income can therefore be used to pay down the mortgage, to reinvest in the property by way of capital improvements or for you to use to live on or improve your lifestyle. With enough of this type of investment, your oceangoing cruiser, or that classic HSV Club Sport might be looking good.

Some investors consider this type of investment as a poor option since it does not provide tax incentives. The opposite applies in fact. This type of investment requires you to pay tax on the income earned. However, any good property accountant can advise you on ways to minimise tax.

At PPBA, this is a preferred investment option. We consider that if you are paying tax, you are earning money. Negative geared property must lose money to earn tax incentives and growth.

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Renovation or Flipping

Renovate for a Profit or Flipping

There are basically two types of renovation strategies: Cosmetic and In-depth renovations. A popular type of renovation which you find on most TV renovation programmes is cosmetic renovations. Simply put, a slightly neglected property is purchased, given a coat of new paint often updating colour schemes, a garden makeover and any other simple inexpensive renovations. The property is then put on the market at a higher price. If done well, the new look property can provide significant profit in a reasonably short time, often as little as a few weeks. Once completed, the renovators then move on to the next property and repeat the process.

Although this can lead to significant profit, PPBA highly advise that significant due diligence and research should be conducted into renovation procedures well prior to purchasing any such property. There are many pitfalls in renovation that, if not handled well, can lead to monetary loss.

Renovate to Rent

This strategy is similar to renovating for profit, however the property is held for rent rather than renovated for quick sale. It is a strategy whereby a negative geared property may be turned into a positive geared situation.

It is likely that the property may have been initially a negative geared property. Once upgraded, the property can be used to command increased rent turning it into a positive geared property. In this calculation, costs of purchase, renovation and tax claims etc should be considered.

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Request A Call

Passive Property Development

This strategy if for those who enjoy the idea of property investment, however don’t have the time to put into research, due diligence and self-education about property investment.

Generally, this type of investment is handled by well experienced property developers who use invested funds to develop a property. Once developed, investors receive a return on their investment. Such companies usually use investor funds for stable developments and go on to manage funds in further projects dependant on the investor inclusion contract. Such investment requires little input by the investor apart from funds. The investor doesn’t wholly own the development, but owns a share of the development.

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Request A Call

Active Property Development

The opposite of passive property development, active property development requires a much greater effort on behalf of the investor. Being active in the investment could mean that you might take on a much greater role in discussions related to the development such as with vendors, lawyers, accountants and construction companies etc.

This is very much a full time job and is usually a strategy used by experienced investors who have built a portfolio from the ground up and have taken to development as the next step.

Start Your Search Today

Request A Call

NEW

If It Ain’t Broke, Don’t Fix It

Why Haven’t Prices Plummeted?

How Many Property Booms Have You Missed So Far?

How Fast is Your Dream Slipping……Ahh…..Powering Away From You?

The Cheap Money Boom!

Perfect Urban 5 Bed Oasis

Are You Positive that You’re Negative?

To Be or Not To Be……….a Rent-vestor.

5 Bedroom Brand New Near Elite Schools and Walk to the CBD

If It Seems Too Good To Be True, It Usually Is!

Home Ownership

Our Services

Home Ownership

Buy and Hold

Negative Gearing

Positive Gearing

Renovation or Flipping

Passive Property Development

Active Property Development

CONTACT US

PHONE

EMAIL

Recent Posts

Recent Comments

Phone Number

Email Address

Buy and Hold

Start Your Search Today

Negative Gearing

Start Your Search Today

Positive Gearing

Start Your Search Today

Renovation or Flipping

Start Your Search Today

Passive Property Development

Start Your Search Today

Active Property Development

Start Your Search Today