HERE IS YOUR
10 STEP CHECKLIST TO INVEST IN HIGH YIELD PROPERTIES
Discover how to take control of your finances and achieve long-term security. Our comprehensive guide provides actionable insights and proven strategies to help you grow and protect your wealth.
Do You Qualify Yet?
ARE YOU READY TO INVEST?
What Kind of Loans Can Your Income Service?
Do a loan calculation and understand your debt-to-income ratio. Use this Link to get your calculation.
What Is Your Current Equity Position?
Calculate the current properties you own to find out the equity position you have. This is important to understand how much you can rely on this equity for leveraging into new properties.
Use the calculation - best to calculate each property separately. (Total value of the portfolio (X) 0.8 (-) Mortgage owing)
What Asset In Your Portfolio Will Positively or Negatively effect Investments?
List out any loans, credit cards, debits, Businesses, or Credit history you might have that could look like a risk to the bank. Having these listed and identified can save you time in not having shocks come up later in the investing/funding process.
MAPPING YOUR FUTURE
Finance meeting
Understand where you want to be and where you are now. This will affect how you can achieve your portfolio goals. Remember that over-leveraging your investment can slow you down in the future, so finding the right investment for where you are now is critical for growth.
High Income can go straight into wealth-creation properties with high capital growth.
Others may need to look into foundational properties to assist with income and cash flow for the serviceability of loans.
The two main options for investment are:
Build Equity or Wealth investments Create Cash Flow investment
UNDERSTANDING THE CURRENT LANDSCAPE
The Australian financial market is an ever-changing landscape and it is recommended to work with a financial advisor to make sure your financial investments are best suited for your capabilities.
What to have ready before speaking to a financial advisor or loads broker so educated and prepared?
Educate yourself about mortgage basics like interest rates and loan types.
Gain an understanding of mortgage basics to make informed decisions; this includes learning about different types of loans and interest rates.
Know your credit score and review your credit report for accuracy.
Verify the accuracy of your credit report and understand your credit score as it significantly impacts your loan options.
Assess your financial situation, including income, debts, and what you can afford.
Before engaging with a mortgage broker, it's crucial to have a clear understanding of your financial health. Assess all aspects of your finances, including your stable income sources, ongoing debts, and any other financial obligations. This helps in determining how much you can realistically afford to spend on a new home without overstretching your budget.
Gather necessary documents such as pay slips, tax returns, and bank statements.
Prepare all necessary financial documents well in advance. This includes your most recent tax returns, pay slips, and comprehensive bank statements. Having these documents ready can speed up the mortgage application process and also provide your broker with the necessary information to find the best mortgage products suited to your financial situation.
Define your home buying goals, including desired location and property type.
Be clear about your housing needs and preferences. Whether you’re looking for a single-family home, a condo, or a specific location, having these goals defined helps your mortgage broker understand what you’re looking for and tailor their advice accordingly. Consider factors such as your long-term living plans, the size of the property, and any specific amenities or local services that are important to you.
Research mortgage brokers to find reputable and experienced professionals.
Take the time to research potential mortgage brokers. Look for brokers with good reputations, solid experience, and positive client testimonials. A well-chosen broker can provide invaluable guidance through the mortgage process, offer access to a wider range of products, and negotiate better terms on your behalf.
Prepare a list of questions about loan options, interest rates, and the approval process.
Compile a comprehensive list of questions to ask your mortgage broker. These might include queries about the types of mortgages available, the implications of various interest rates, the overall costs involved in securing a mortgage, and any potential issues that could arise during the application process. Well-prepared questions ensure that you gain a thorough understanding of your mortgage options and the steps involved.
Understand your budget limits and lifestyle needs to discuss with the broker.
Accurately budgeting for your new home is crucial. Beyond just the mortgage payments, consider other financial commitments like property taxes, home insurance, maintenance costs, and utilities. Discuss these factors with your broker to ensure that the mortgage you consider is sustainable in the long term based on your financial outlook.
Consider getting help from a buyer’s advocate if needed.
If you’re unfamiliar with the property market or if you're making a significant investment, consider hiring a buyer’s advocate. These professionals can guide you through the buying process, offer advice on property values, and help negotiate deals. Their expertise can be particularly valuable in competitive markets or if you are buying in an unfamiliar area.
Select a broker who specialises in your specific needs, such as first-time buying or commercial properties.
Depending on your specific needs—such as buying a commercial property, investing in real estate, or being a first-time homebuyer—it might be beneficial to work with a mortgage broker who specialises in these areas. A specialist broker will have a deeper understanding of the particular challenges and opportunities associated with different types of property transactions.
STRATEGY
CUSTOM STRATEGY & SUCESS MATRIX
Now that you have an understanding of your current financial capabilities and idea of what you want to achieve. Now you can choose which strategy will best suit you in achieving your goals.
Where to buy that will get the best yield & growth?
Suburbs like Melbourne CBD and regional areas like Kerang in Victoria show high rental yields of 7.3% and 6.1% respectively, making them attractive for investors looking for good income potential. Moreover, Sydney, having improved its national ranking across several metrics like sales volumes and rental growth, presents promising growth opportunities (Read More)
What does property 1 look like and how does that get us to property 2?
Starting with a high-yield property like a Melbourne CBD apartment can provide the cash flow necessary to leverage into a second property with potential for high capital growth.
What are the pros & cons of each style of property and what city that property is in?
Townhouses and Apartments: Generally offer higher rental yields and are easier to maintain, but may appreciate in value slower than detached houses. They are common in urban centers like Melbourne and Sydney.
Detached Houses: Offer potential for higher capital growth but come with higher maintenance costs and may have lower rental yields compared to apartments and townhouses.
Commercial Properties: Can offer higher yields and longer lease terms for stable income, but are riskier with larger initial investments and can be impacted more by economic downturns. Read More
Are you going to invest in NEW vs Existing? NDIS, Townhouses or apartments. Have you got the capability to invest in commercial?
Investing in new properties, such as NDIS-compliant homes, can offer tax benefits and stable rental incomes due to government-backed tenancies. However, these investments require knowledge of specific regulations and tenant needs. Commercial investments offer potentially higher returns but require greater initial capital and an understanding of the commercial market dynamics. Read More
RESEARCH
NAVIGATING THE MARKET
Yield and average property prices in Australia
Disclaimer: This table is for informational purposes only and should not be construed as financial advice. The super investment strategy data has been sourced from general sources, and the property rental data has been sourced from Source. Always seek professional advice before making any investment decisions. See More
State Wise Average
Queensland
| Type | NDIS | Apartment | House | Town Houses | Rooming Accommodations |
|---|---|---|---|---|---|
| Average Price | $450,000.00 | $550,000.00 | $850,000.00 | $650,000.00 | $350,000.00 |
| Average Rate Of Return | 11% | 5.39% | 9.70% | 10% | 6.00% |
| Yearly Income | $49,500.00 | $29,645.00 | $82,450.00 | $65,000.00 | $21,500.00 |
| Minimum Upfront Cost - 25% of the Price | $112,500.00 | $137,500.00 | $212,500.00 | $162,500.00 | $87,500.00 |
| Risk Level | Medium | High | Low | Medium | High |
Disclaimer: This table is for informational purposes only and should not be construed as financial advice. The super investment strategy data has been sourced from general sources, and the property rental data has been sourced from Source. Always seek professional advice before making any investment decisions. See More
Victoria
| Type | NDIS | Apartment | House | Town Houses | Rooming Accommodations |
|---|---|---|---|---|---|
| Average Price | $350,000.00 | $419,000.00 | $916,000.00 | $825,000.00 | $600,000.00 |
| Average Rate Of Return | 13.50% | 5.50% | 9.70% | 8.43% | 6.25% |
| Yearly Income | $47,250.00 | $23,045.00 | $88,852.00 | $69,547.00 | $37,500.00 |
| Minimum Upfront Cost - 25% of the Price | $87,500.00 | $104,750.00 | $229,000.00 | $206,250.00 | $150,000.00 |
| Risk Level | Medium | High | Low | Medium | High |
Disclaimer: This table is for informational purposes only and should not be construed as financial advice. The super investment strategy data has been sourced from general sources, and the property rental data has been sourced from Source. Always seek professional advice before making any investment decisions. See More
New South Wales
| Type | NDIS | Apartment | House | Town Houses | Rooming Accommodations |
|---|---|---|---|---|---|
| Average Price | $500,000.00 | $665,000.00 | $895,000.00 | $750,000.00 | $800,000.00 |
| Average Rate Of Return | 12.50% | 4.69% | 11.76% | 12.84% | 4.33% |
| Yearly Income | $62,500.00 | $31,188.50 | $105,252.00 | $96,300.00 | $34,640.00 |
| Minimum Upfront Cost - 25% of the Price | $125,000.00 | $166,250.00 | $223,750.00 | $187,500.00 | $200,000.00 |
| Risk Level | Medium | High | Low | Medium | High |
Disclaimer: This table is for informational purposes only and should not be construed as financial advice. The super investment strategy data has been sourced from general sources, and the property rental data has been sourced from Source. Always seek professional advice before making any investment decisions. See More
Australian Capital Territory
| Type | NDIS | Apartment | House | Town Houses | Rooming Accommodations |
|---|---|---|---|---|---|
| Average Price | $550,000.00 | $530,000.00 | $975,000.00 | $720,000.00 | $700,000.00 |
| Average Rate Of Return | 11.00% | 5.00% | 3.70% | 4.51% | 5.20% |
| Yearly Income | $60,500.00 | $26,500.00 | $36,075.00 | $32,472.00 | $36,400.00 |
| Minimum Upfront Cost - 25% of the Price | $137,500.00 | $132,500.00 | $243,750.00 | $180,000.00 | $175,000.00 |
| Risk Level | Medium | High | Low | Medium | High |
Disclaimer: This table is for informational purposes only and should not be construed as financial advice. The super investment strategy data has been sourced from general sources, and the property rental data has been sourced from Source. Always seek professional advice before making any investment decisions. See More
Tasmania
| Type | NDIS | Apartment | House | Town Houses | Rooming Accommodations |
|---|---|---|---|---|---|
| Average Price | No Data Available | $450,000.00 | $615,000.00 | $595,000.00 | $500,000.00 |
| Average Rate Of Return | No Data Available | 4.56% | 3.97% | 4.28% | 4.56% |
| Yearly Income | No Data Available | $20,520.00 | $24,415.50 | $25,466.00 | $22,800.00 |
| Minimum Upfront Cost - 25% of the Price | No Data Available | $112,500.00 | $153,750.00 | $148,750.00 | $125,000.00 |
| Risk Level | Medium | High | Low | Medium | High |
Disclaimer: This table is for informational purposes only and should not be construed as financial advice. The super investment strategy data has been sourced from general sources, and the property rental data has been sourced from Source. Always seek professional advice before making any investment decisions. See More
South Australia
| Type | NDIS | Apartment | House | Town Houses | Rooming Accommodations |
|---|---|---|---|---|---|
| Average Price | $450,000.00 | $385,000.00 | $569,000.00 | $520,000.00 | $300,000.00 |
| Average Rate Of Return | 13.50% | 3.69% | 4.52% | 4.95% | 5.40% |
| Yearly Income | $60,750.00 | $14,206.50 | $25,718.80 | $25,740.00 | $16,200.00 |
| Minimum Upfront Cost - 25% of the Price | $112,500.00 | $96,250.00 | $142,250.00 | $130,000.00 | $75,000.00 |
| Risk Level | Medium | High | Low | Medium | High |
Disclaimer: This table is for informational purposes only and should not be construed as financial advice. The super investment strategy data has been sourced from general sources, and the property rental data has been sourced from Source. Always seek professional advice before making any investment decisions. See More
Western Australia
| Type | NDIS | Apartment | House | Town Houses | Rooming Accommodations |
|---|---|---|---|---|---|
| Average Price | No Data Available | $400,000.00 | $543,000.00 | $450,000.00 | $380,000.00 |
| Average Rate Of Return | No Data Available | 3.00% | 5.26% | 6.00% | 6.56% |
| Yearly Income | No Data Available | $12,000.00 | $28,561.80 | $27,000.00 | $24,928.00 |
| Minimum Upfront Cost - 25% of the Price | No Data Available | $100,000.00 | $135,750.00 | $112,500.00 | $95,000.00 |
| Risk Level | No Data Available | High | Low | Medium | High |
Disclaimer: This table is for informational purposes only and should not be construed as financial advice. The super investment strategy data has been sourced from general sources, and the property rental data has been sourced from Source. Always seek professional advice before making any investment decisions. See More
Northern Territory
| Type | NDIS | Apartment | Single-family Home | Town Houses | Rooming Accommodations |
|---|---|---|---|---|---|
| Average Price | No Data Available | $350,000.00 | $560,000.00 | $450,000.00 | $389,000.00 |
| Average Rate Of Return | No Data Available | 4.50% | 5.57% | 6.35% | 6.41% |
| Yearly Income | No Data Available | $15,750.00 | $31,192.00 | $28,575.00 | $24,934.90 |
| Minimum Upfront Cost - 25% of the Price | No Data Available | $87,500.00 | $140,000.00 | $112,500.00 | $97,250.00 |
| Risk Level | No Data Available | High | Low | Medium | High |
Disclaimer: This table is for informational purposes only and should not be construed as financial advice. The super investment strategy data has been sourced from general sources, and the property rental data has been sourced from Source. Always seek professional advice before making any investment decisions. See More
PROPERTY SELECTION MEETING
Choosing the Right Property: Selection Criteria and Decision-Making
Now that you have done your research and you have found the area you want to invest in and the style of property. It's time to begin assessing a list of options and narrow down the numbers of each one..
You can use this framework to assess the numbers of each property so you are comparing options on stats not feelings.
CONTRACT SIGNING
SECURING YOUR INVESTMENT
Understanding and Signing Contracts
Choosing the right solicitor is crucial when venturing into real estate investments, especially in complex scenarios like building projects or demolitions. It's essential to select a legal professional whom you trust deeply, as they play a pivotal role in navigating through the intricacies of real estate transactions and protecting your interests from potential pitfalls within the industry.
Investing upfront in legal and professional services can safeguard your investments significantly. A competent solicitor will ensure that all necessary surveys are conducted meticulously, including land, structural, and environmental assessments, depending on the project's nature. These surveys are indispensable as they reveal crucial information about the land's condition and suitability for your intended projects.
Moreover, your solicitor will assist in verifying that all statutory checks are thoroughly completed. This involves ensuring that the property's documentation is in order, from title deeds to planning permissions. Understanding the property's history through these documents can provide insights into any previous disputes or issues that might affect your ownership.
Project Management
PROJECT OVERSIGHT
KEY POINTS
The selection of a skilled project manager is critical in the real estate development process to safeguard your investment and ensure the project progresses smoothly. A competent project manager acts as the backbone of the project, coordinating between various stakeholders such as builders, developers, and local authorities, while strictly adhering to budgets and timelines. Their role is vital to prevent common pitfalls that can derail a project, such as construction errors, regulatory non-compliance, or budget overruns. By efficiently managing resources and maintaining rigorous oversight, a project manager ensures that the investment retains or increases its value, rather than suffering from costly mistakes or delays. Therefore, investing in a reliable and experienced project manager is indispensable for keeping your property project safe and on track, thus maximising your return on investment.
Completion / Project Management
Finding the right project manager to keep the property safe and on track. Don’t let your investment slip value due to mistakes from builders or developers.
6TH MONTH REVIEW
EVALUATING PROGRESS
Biannual Investment Portfolio Reviews
Finding the right property manager to keep the property safe from damages or missed rental yield. Don’t let your investments slip value due to mistakes from tenants or oversights in managing your properties.
Disclaimer
The Property Investment Calculator provided by Wealth Grade is intended for informational and educational purposes only and is not a substitute for professional financial advice. While we strive to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the calculator or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
The results generated by this calculator are based on the input values you provide and general market assumptions that are subject to change. These results should not be considered as precise forecasts or guarantees of future performance or results. The actual outcomes of your property investment could vary significantly based on various factors including but not limited to market conditions, economic shifts, changes in interest rates, and property-specific issues.
Before making any decision to purchase, sell, or hold an investment property, we strongly recommend that you consult with a financial advisor, real estate professional, or attorney to obtain appropriate professional advice specific to your situation. Wealth Grade does not accept any liability for any loss or damage whatsoever caused in reliance upon such information or services.
Please ensure that you are fully aware of the risks involved and, if necessary, seek independent financial advice. Remember, past performance is not indicative of future results.
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