Frequently Asked Questions

Is There A Good Or Bad Time To Buy Property?

There is never a bad time to buy property. Property is very flexible and is a very safe, forgiving form of investment. (That is why the banks will lend more against a property than any other asset class). It pays to have properties in various locations around Australia to take advantage of the different stages in the property cycles. The ideal situation is to buy just before a rise in a property cycle , but if you should miss out, buy well located property anyway, just add a little time to the equation, and watch your portfolio grow. That is why a “buy and hold” philosophy is fundamental to wealth creation in property.

I Have Been To My Bank And They Have Said “No” To My Investment Loan. What Do I Do?

Our brokers works closely with lenders who specially understand property investment strategy. These lenders, including the major banks give our brokers the ability to source the best possible deal for you.

Should I consider using equity in any property I own for future property investment?

Using the equity in your own home or equity from another property investment, is a great launching pad for purchasing investment property and thus creating an investment portfolio. For example if you home is valued at $600,000, you owe $200,000 on your mortgage and you want to invest using 10% of the equity ($40,000) you can do so providing you are able to meet the repayments.

I don’t have a deposit for an investment property?

If you mean you have no cash, deposit cash is not needed if you have equity in your own home. If you have regular income and security for an investment loan in the form of equity in your home, you can often borrow 110% of the purchase price of the investment to cover fees and stamp duty.

Would I Lose My First Home Buyer’s Grant By Buying An Investment Property?

When you buy an investment property, and place a tenant in it, you do not lose your first home owner’s grant. In fact, buying an investment property before buying your own home has become a preferred vehicle for many to build sufficient equity to use as a basis for the deposit for their first home.

What Happens If Property Prices Level Out?

Population increases in high density areas push prices up. Historically property doubles every 10 years, and in well located areas it can certainly exceed that. The greatest returns in property investing are made with a “buy and hold” strategy due to leverage and compounding. Our extensive research locates where this is happening, or is anticipated to occur for the best possible returns. Prices are driven up by demand exceeding supply. Click here for our 20 point criteria link to current site

Is It More Important To Look For Good Rent Return Or Growth?

Generally the equity made from increased capital growth of well located property far exceeds the benefits from a possible higher rental yield in a lesser growth area. Properties with the highest capital growth are in a rising market with the rents yet to catch up. In these areas, property will usually become cash flow neutral (or even positive) inside a few years.

Location, Location, Location? Is It True?

Yes, property closer to CBD, waterfront or other prime areas will generally have more capital growth.

What Does Great Investment Properties Get Out of This?

The maximum Great Investment Properties fee is 6% of the purchase price + gst. This fee is paid by the vendor and not you. The bulk of these funds are used to provide the extensive support to Great Investment Property members. We negotiate with the sellers to ensure the property price will provide market, or better-than-market price, and rental return.

Can I Check Out The Properties You Are Recommending?

Absolutely, and we encourage it. Take your time. Google it. Check the prices out against other comparables in the area. Visit if you like. We do not place any pressure on you, EVER. Whilst no-one can predict the future, using our 20 point selection criteria gives you the greatest chance of getting the right property. We use expert research from the Australian Bureau of Statistics, the Valuer-General, Ministry for Planning, Real Estate Institutes to select properties with the strongest likelihood of achieving the returns in rent and capital growth desired.

Why Do You Concentrate On Selecting Property Mainly in Brisbane, Gold Coast and Melbourne?

We monitor all areas constantly. All these cities are forecast to have better than average population influx and high economic growth in the mid to long term. Current prices are still affordable with high demand for rental accommodation. High demand and limited supply should ensure rising prices.

Are Townhouses and Apartments Better Than Houses?

Strategy of investing in residential real estate is to maximize the use of other people’s money and tax deductions. As these properties do not have a high land content, rent returns and depreciation are often greater, thus helping cash flow. But as you build your portfolio, we encourage you to diversify your classes of property. In general unless you are going to buy a house and land package in a developing suburb the average investor will not want to pay the hundreds of dollars a week required to maintain an established home in the suburb where they live.

I Don’t Have The Time To Look After a Property. How Involved Do I Need To Be?

One of the marvels of property investment is that it is passive. Property will earn you capital growth while you sleep! You don’t even need to visit your properties, because all the leg work can be in the hands of the appointed managing agent, which gives you peace of mind.

I was brought up to believe that borrowing money is bad. Was I misled by my parents?

The golden rule of borrowing money is to borrow for assets such as property that goes up in value over time. Don’t borrow for things that depreciate in value. Our parents were right in telling us not to borrow for cars and clothes etc which ultimately are worthless. However, no one told them that debt, if used for appreciating assets such as investment property, is a most powerful way to build wealth for retirement.

What If Interest Rates Rise?

In an inflationary period when interest rates may rise, the demand for rental properties increases, and your rents may go up more than usual, thus reducing the negative effect on your cash flow.

With Interest Only Loans, Will I Ever Own The Investment Outright?

You are using the properties as a vehicle for wealth creation and don’t need to own them outright to do so paying interest only loans reduces your payments and increases your ability to purchase more property. Also only the interest component on your investment loans is tax deductibilty not the principle. As your equity grows, you use it to fund deposits on further properties. If you paid the principal off it would reduce your disposable income and the tax savings you would otherwise enjoy. The only loans you should pay off whilst building wealth are the non-tax deductible ones – such as a loan on your own home , personal loan for cars and credit cards.

What If Negative Gearing Is Abolished?

When the Hawke Government did this in the 1980’s rents went sky-high, unemployment in the building and allied industries soared, and there was more demand for public housing. After 18 months they brought it back in again. The Governments recover more in tax from the properties we buy than the amount we save. They also encourage us to make ourselves financially independent thus eliminating ‘handouts’ from their ever-depleting resources.

Why Hasn’t My Accountant Told Me About Property Investing?

Accountants must maintain expertise in accounting and taxation affairs and the many hundreds of changes that take place each year. Most have insufficient time to keep abreast of specific aspects of property investment.

Why Shouldn’t I Ever Sell?

When you sell you need to pay capital gains tax and agents fees and marketing. Worse, you lose an asset with the potential to appreciate and the opportunity of ‘harvesting’ that property’s equity growth providing tax-free money. You wouldn’t cut down a fruit tree that harvests the fruit, would you?

What if l buy an investment property, but can’t get a tenant?

This seems to be the biggest concern of most potential property investors, current vacancy rates for rental properties are low. Make sure you allow for vacancy in your budget and remember that there are generally only two things that lead to a vacancy, the property is run down or too expensive.

What’s The Catch?

There is no catch, but if you could find one, would you let that stop you from becoming RICH? The only catch is that is requires you to take action.

What Will Happen If I Lose My Job?

Great Property Investment is conscious of the need to provide a safety net to Great Property Investment members. We can show you some strategies that are invaluable in these unfortunate circumstances. The main strategy is the ‘line of credit’ facility needs to be large enough to cover shortfalls in income caused by loss of rent or interest rate rises. Therefore the loss of your job should not impact your investment strategy whatsoever. Income from your job should only be used for paying off your own home and for lifestyle purposes. For those of you seeking additional peace of mind mortgage protection insurance can assist.

What Happens When Inflation Is Low?

Historically, property capital growth is between 2% and 4% above inflation, whether its low or high. Since 1970, the median property price in Melbourne has grown by about 8.5% pa compounding, and in Brisbane by about 9% pa compounding. Our extensive research locates suburbs that could achieve these results.

Land Tax Is Increasing In Some States So Is IT Still Viable To Invest There And Get Positive Cash Flow?

Great Property Investment is unique in that is can provide a range of properties in most states of Australia. You can ‘leverage’ your purchases by buying some in Brisbane and/or the Gold Coast where no land tax is payable until you have comparatively large holdings. The spread to other states if buying will minimise tax and ensure that tenants pay most, if not all, of the bills. Weigh this up against land tax.

For further information, please Contact Us today.