Replace your income through positively geared properties. Follow our property investment rules below.
Rule 1) Purchase Under Market – Accessing off-market properties enables us to purchase without any competition and for less. 72% of our residential properties and 30% of the commercial properties that we purchase for our clients never make it online or are seen by the public. By paying less than the market value, you’re already ahead, ready to leverage your next property.
Rule 2) Find the ‘Gems’ – Years of personal and professional experience means that we know just where to look for those ‘property treasures’. It’s a balance of purchasing off-market + in high-growth areas + in a rising market, and of course, always positively geared.
Rule 3) Investing all over Australia – We look beyond Sydney and Melbourne, focussing on rising markets at the beginning of their cycles. We then look deeper into these sub-markets to secure the highest yielding commercial and residential properties within these markets.
Rule 4 ) Land is Important – We buy houses with land, not apartments. Land appreciates and also gives you the ability to add value down the track though development, renovations, subdivisions, etc.
Rule 5) Positive Gearing – We purchase the highest yielding, positively geared properties. A positively geared property means that the rental income you receive from tenants is higher than your property’s mortgage repayments and expenses.
Rule 6) Dual Occupancy Properties – We often source (and build) granny flats, duplexes and unit-blocks, which accommodate more than one tenant. The golden rule? More tenants equals greater rental income.
Rule 7) Consider Commercial – The commercial properties that we purchase for our clients are the highest yielding properties on our books boasting 7, 8 and 9% net. They hold long leases by secure tenants who also pay all your outgoings. Adding a commercial property (currently garnering the highest yields), to your portfolio is the best way to diversify, lock down solid capital growth and improve cash flow.
Director – Rethink Investing & Rethink Financing