Managing Investment Cash Flow with Property Portfolios

Managing Investment Cash Flow with Property Portfolios

Managing Investment Cash Flow with Property Portfolios

It’s critical when managing a portfolio to cashflow properties so your borrowing capacity isn’t hindered. 

When we buy negatively geared properties you can limit the amount that you can buy very quickly. This could hold you back when it comes to building the portfolio size that you want. 

When we acquire high-income properties, not only does it remove some of the risk of having to fire sale, as the asset looks after itself. But most importantly, it allows us to expand into more assets easier and faster. When we have more assets, we leverage harder. The compounding effect is enhanced further and we can make more moves. 

Unfortunately, I see people investing in property without understanding the numbers all of the time. They buy old property on land that comes with minimal depreciation, increased maintenance issues, and lower rent. This ends up putting extra pressure on their financial position as opposed to making life easier (which is the goal). They go to their accountant at the end of the year and lodge a tax return – and only then do they find out what it costs to hold that property (usually more than they think).

This is back to front, you need to know the numbers from the start – then work backward from there. When we acquire properties that achieve positive cash flow, not only does that provide the ability to increase income and reduce other debts (bad debts) faster, but it makes life easier – not harder. 

So where do we acquire high-income properties? Where do these properties exist? Especially in a high-interest rate environment 🧐 (even more reason to buy them). That is where the skill and experience come in.

The Buyfair Multi Liv Range was designed to do exactly that, design and provide high-income properties in areas with strong growth potential. Why does it need to be one or the other? It doesn’t is what we say. 

With our worst rental crisis in history happening right now. With hundreds of people attending single viewings to lease a basic home. We need to supply more people with homes. Why does that need to be a whole house to one tenant? It doesn’t. With our specially designed homes you can achieve well above the normal rent on a traditional investment. While helping more people afford a place that they can call home.

To learn more about this new approach, we welcome you to make time with our friendly team of experts below.

https://calendly.com/buyfairpropertyandpurchasehomes/discoverysession

You can also visit our Multi Liv page to learn more.

https://buyfairproperty.com.au/multi-liv-range/

Happy Investing,

 

Matt Ellul
Director – Buyfair Property Group

Book discovery session

Land Contracts Explained

Land Contracts Explained

Land Contracts Explained

BuyFair Property Group’s second educational article ‘Land Contracts Explained’ is now available on www.openlot.com.au. This edition focuses on residential land contracts and is available in English, Simplified Chinese, and Hindi. A big thank you to our collaborators Colin Biggers & Paisley and Openlot.com.au for making this article possible.

You can read the article here;

https://www.openlot.com.au/news/land-contracts-explained

BuyFair Property Group prides itself on transparency and education, which is why our translated articles are by NAATI Certified practitioners.

To find out more, please click here https://www.naati.com.au/certification/

Happy Investing,

 

Matt Ellul
Director – Buyfair Property Group

Book discovery session

House prices in Australia

House prices in Australia

House prices in Australia

House prices in Australia, like in many other countries, are influenced by a complex interplay of various factors. These factors can change over time and are subject to economic, demographic, and policy shifts. Below we discuss some of the most influential factors affecting house prices in Australia and some considerations for how they may continue to impact prices moving forward:

 

  1. Interest Rates: The Reserve Bank of Australia (RBA) sets the official cash rate, which influences mortgage interest rates. Lower interest rates tend to stimulate housing demand, as they make borrowing more affordable. In response to economic conditions, the RBA may raise or lower rates, impacting house prices. In the last 3 months we have seen rates held stable at 4.1%, this is no doubt leading towards more positivity with sentiment for home buyers of all types.

 

  1. Supply and Demand: The balance between housing supply and demand plays a critical role in pricing. Factors such as population growth, immigration levels, and housing construction rates can affect this balance. With a 900,000+ person boost to the Australian population expected over just the next 2 years, there is no doubt that this places pressure on an already short supply number and could create upwards pricing in the future. Following those two years the ABS have forecast a whopping 200,000 people increase in our population per year for decades to come.

 

  1. Economic Conditions: The overall health of the Australian economy, including factors like GDP growth, employment rates, and consumer sentiment, can impact people’s ability and willingness to buy homes. Unemployment rates have remained low for 2 years following lockdowns which is likely to lead to more housing activity in the near future.

 

  1. Government Policies: Government policies can have a significant influence on housing prices. For example, incentives for first-time homebuyers, tax policies (like capital gains tax and negative gearing), and zoning regulations can impact both supply and demand. Currently state governments are having a big impact on certain industries within the property landscape and will continue to contribute towards how various sectors perform.

 

  1. Foreign Investment: The level of foreign investment in Australian real estate can affect prices, especially in major cities like Sydney and Melbourne. Government policies regarding foreign property ownership can influence this factor. In recent times we have seen a huge decline in the performance of residential real estate in China, which has led to a new surge of international investors entering our markets again. This puts more pressure on local buyers to compete against cashed up investors.

 

  1. Urbanization and Infrastructure: Infrastructure development and urbanization trends can affect housing prices. Areas with improved transportation links, amenities, and employment opportunities tend to see increased demand and rising prices. Major arterial projects like the West Gate tunnel can have short term implications and medium term outcomes that support house owners. Following infrastructure investment can be wise if done correctly.

 

  1. Consumer Sentiment: Consumer confidence plays a role in the housing market. When people feel optimistic about the economy and their financial prospects, they are more likely to buy homes. This comes down to household savings, employment stability, state of the market and equity in their homes.

 

  1. Global Economic Factors: Australia’s economy is influenced by global economic conditions. Events like global recessions or financial crises can have spillover effects on the Australian housing market. Major events like war, natural disasters and stock market happenings can all affect the way that house prices fluctuate.

 

  1. Housing Affordability: The ability of average citizens to afford homes is a crucial factor. High prices relative to incomes can lead to decreased demand and potentially slower price growth. Since 1930, the cost of a house compared to your average income has changed dramatically. Hence the need for more affordability with homes and social housing.

 

  1. Speculation and Investor Activity: Speculation in the housing market, driven by investors looking for capital gains, can lead to price bubbles. Government policies aimed at curbing speculative activity can influence prices also.

 

Moving forward, it’s essential to keep in mind that the real estate market is dynamic, and factors influencing house prices can change over time. Economic conditions, government policies, and global events can all impact the housing market. Therefore, it’s advisable to consult up-to-date sources and experts in the field to gain a more accurate understanding of the current and future factors influencing Australian house prices. We always say that having a long term approach to investing in major areas with lots of driving forces is the way to go. Speculating with high risk property investment is not our approach and can lead to damaging outcomes.

To learn more about working with us, please book a time with our team on the link below.

Happy Investing,

 

Matt Ellul
Director – Buyfair Property Group

Book discovery session

NDIS and Co-Living Investments: Unlocking High Yields in a High-Interest Rate Environment

NDIS and Co-Living Investments: Unlocking High Yields in a High-Interest Rate Environment

NDIS and Co-Living Investments: Unlocking High Yields in a High-Interest Rate Environment

In an era of fluctuating interest rates, investors are constantly seeking opportunities to make wise decisions that yield substantial returns. While traditional investment avenues may offer modest returns, it’s essential to explore innovative options that can outperform the market. Just as Uber Eats revolutionized the food industry, Buyfair Property Group is revolutionizing property investment with specially designed homes that offer the potential for yields of 10% or more. In this blog, we will delve into the significance of high yields in a high-interest rate environment and how NDIS and Co-Living investments provide new and lucrative avenues for smart investors.

Understanding the Importance of High Yields:

In a high-interest rate environment, investors face the challenge of generating returns that outpace inflation and bank interest rates. Traditional investment vehicles like savings accounts and bonds often fall short of delivering substantial gains. This is where high-yield investments become crucial. A yield of 10% or more can significantly amplify your investment returns, helping you build wealth and achieve your financial goals faster.

NDIS (National Disability Insurance Scheme) and Co-Living Investments:

Investors looking for opportunities with high yields should consider the emerging markets of NDIS and Co-Living investments. Let’s explore how these innovative investment options offer attractive returns while addressing the evolving needs of society.

  1. NDIS Investments:

The NDIS is a government initiative that provides support and funding for individuals with disabilities. Investing in NDIS properties allows you to contribute to a socially impactful cause while enjoying robust financial returns. Specially designed homes cater to the unique requirements of NDIS participants, ensuring their comfort and well-being. By partnering with Buyfair Property Group, you can tap into the growing demand for NDIS housing and secure rental income with yields that often exceed 10%. This socially responsible investment not only offers attractive returns but also helps provide stable, long-term accommodation for individuals in need.

  1. Co-Living Investments:

Co-Living is a modern housing concept that emphasizes community living, shared spaces, and affordability. With rising property prices and an increasing preference for flexible and cost-effective housing options, co-living has gained immense popularity. Buyfair Property Group’s specially designed co-living homes offer investors the opportunity to capitalize on this trend. By creating purpose-built properties with carefully planned shared spaces and amenities, these investments provide high rental yields while catering to the changing needs of young professionals, students, and other demographics seeking affordable and social living arrangements.

The Buyfair Property Group Advantage:

Buyfair Property Group is at the forefront of revolutionizing property investment. Their focus on specially designed homes sets them apart from traditional real estate offerings. These properties are carefully crafted to maximize rental income, occupancy rates, and overall investment performance. With a meticulous understanding of market trends and an innovative approach, Buyfair Property Group is transforming the way investors generate wealth through property investments.

Making Wise Investment Decisions:

Investors need to adapt to changing market dynamics and embrace new investment opportunities that offer high yields. NDIS and Co-Living investments present a chance to capitalize on social trends while enjoying impressive financial returns. By partnering with Buyfair Property Group, investors gain access to a groundbreaking model that optimizes property investment for maximum profitability.

Conclusion:

In a high-interest rate environment, it’s crucial to seek investment avenues that offer high yields. NDIS and Co-Living investments provide investors with the opportunity to achieve yields of 10% or more, outperforming traditional investment options. With Buyfair Property Group’s innovative approach to property investment, investors can participate in the revolution that is transforming the real estate landscape. Embrace the future of property investment and unlock the potential for substantial returns while making a positive impact on society.

To make a time to speak with one of our industry experts, click the link below and follow the prompts.

https://calendly.com/buyfairpropertyandpurchasehomes/discoverysession

Always room to learn more about building a property portfolio

Always room to learn more about building a property portfolio

Always room to learn more about building a property portfolio

While it is a serious topic, Buyfair Property Group have adapted a residential property to transform it into an educational but fun tool for prospective property investors.

Australian residential property is the most popular investment vehicle Australians employ to build their wealth.

This was evident in recent data released by RP Data showing real estate almost tripled the value of the second most popular asset, superannuation, with assets collectively worth just under $10 trillion.

There was, however, a recent decline in property values and combined with the rise in the cost of living and interest rates, strategies around the timing and composition of a property portfolio have become more complicated.

“Every man and his dog seems to know best when talking about the property market, but understanding where to source your information is probably what matters most” Matt Ellul, Director, Buyfair Property Group, said.

“Unfortunately for most, filtering through pages of headache inducing data and online real estate listings is not an attractive or even viable option, with the result being many people feel more confused and discouraged than when they began the research.

While real estate values sit near all-time highs, ownership rates among multiple-property investors are low.

Only 6.3 per cent of Australians own an investment property, with only 1.7 per cent owning two and 0.5 per cent owning three.

With life expectancy and time in retirement increasing, it’s important to acquire assets that will offer retirement security.

With life expectancy forecast to exceed 90 years old within the next 50 years, Australians have been encouraged to keep a close eye on how long they’ll be able to support themselves without just relying on superannuation and a potential pension.

While it is a serious topic, Buyfair Property Group have adapted a residential property to transform it into an educational but fun tool for prospective property investors.

Aimed at informing mum and dad investors and first home buyers through a fun and easily digested medium, five rooms have been turned into learning centres focused on different aspects of property investing.

Even the kids are invited to join in the fun, with cartoon character hunts and a play corner to make sure everybody in the family is engaged during the experience.

“We wanted to create an environment that made property fun again while averting jargon or hard sale techniques,” Mr Ellul said.

The five rooms utilise visual, static and audio lessons to deliver a journey through the property buying landscape.

The History Room

Understanding how property prices have performed in line with interest rates, recessions and population growth is a great place to begin when looking at our market. There are certainly historic property cycle trends that can inform future planning.

The Retirement Room

Understanding how you are positioned for retirement is one of the key focuses of the Buyfair Investment Centre. Our world is changing, and so are our lifecycles. This means starting work later, retiring earlier and living longer, all while our taxpayer to retiree ratios decline. This translates into more stress on governments and employers to support individuals for longer.

The Strategy Room

Learn about strategy and what institutional investors look for when making acquisition decisions. The Buyfair team talk about 10-plus years planning, the importance of property performance and whether to buy new or established homes. Each individual position is unique, so applying the correct strategy is crucial to achieve financial security.

The Money Room

We all know the importance of using money to generate wealth through investment. The money room is dedicated to exactly that – money. Find out what lending options may exist for you while gaining an understanding of how leverage can catapult your property investment journey faster than imagined.

The Seminar Room

Join the Buyfair team in the seminar room with a theatre-like experience including video lessons and presentations to complement the journey.