Investment Property Masters have alliances with quality managing agents and can recommend someone in the area of your property investment. We also explain some of the insurance products that are available to ensure ‘you sleep at night’ and are fully covered in case of tenants defaulting, damages etc. We take care of everything.
Real estate agents earn commission based on the sales price of the property they sell. This means that they will earn more if they can sell at a higher price. Their interest and loyalty is with the vendor, not the property investor. Investment Property Masters is a property investment company. This means that we focus solely on the interests of the property investor and are there to support you as you buy investment property, as well as being with you for the long term. We are paid a referral fee by the builder, irrespective of the price of the property. We organize for you to purchase the land directly from the vendor or developer. We negotiate the best possible price on the land and receive no financial benefit from that transaction. We simply go and handpick the best blocks available and you purchase these directly from the seller.
Property investors benefit financially from capital gains with rising house prices, as well as rental returns. Money in the bank only receives interest payments, which are subject to tax. Inflation means that the buying power of money in the bank tends to erode while property prices increase.
Shares are a more volatile investment than property investment. Over the last year, the value of shares has declined by over 40%, while overall national property prices declined only 2.9%. The other thing to remember is that with real estate you have the safety of bricks and mortar, so even if prices fluctuate with the property cycle, you don’t have to sell until you are ready. This contrasts with companies on the share market which can go bust, leaving share holders with share certificates that are worthless. (Refer article from The Australian - Fixation with Real Estate gloom distracts from Share Market doom.)
Rental income and the use of negative gearing to reduce tax means many people find their investment property pays for itself, or results in minimal out of pocket expense for the investor. Many property investors have an annual income of less than $40,000.