Growth Property F.A.Q.s
Why should I invest in property?
Property has shown to be a steady performer and it provides the opportunity for massive leverage, meaning you only need a relatively small amount of deposit to be able to control a high value asset. The great thing is that equity builds on the full value of the asset, not on what your initial contribution is. A study from Massey University shows Australian property has returned an average of 15% pa (Capital growth and rental return) since 1929.
A $400,000 property that grows in value by 10% pa compounding for 10 years will be worth over $943,000. If you’ve paid interest only and kept the loan at $400,000 then you will have more than $543,000 in equity. By this time rents will most likely have risen enough for the property to be of minimal cost, or no cost, for you to hold on to.
Property has the potential to generate its own supporting revenue streams via rental income, government grants, depreciation and other tax benefits.
Property is less volatile than shares, you own and control something tangible, you can, lease it, live in it, add value to it and borrow against it.
Why should I use Growth Property?
Because we have developed a unique system that takes care of a massive volume of research, due diligence and sourcing work and we present our information online and in a format that is quick and easy to read, understand and navigate around. Through our capacity to focus, form networks and achieve leverage with developers we can bring our clients the best properties in the best areas in Australia and provide trusted 3rd party supporting information.
Why can’t I just do this all myself?
Because researching the whole Australian market to find properties that have the highest capital growth prospects is time consuming and expensive. Why would you try and do it yourself when we only charge a small membership fee.
Where do you get your Median price figures from?
There are a number of different sources that supply Median House/Unit statistics. We have chosen to use Residex Australia's Median Value figures rather than other sources Median Price figures. What's the difference you ask? The two names sound the same but they are actually quite different in definition. This is because, the median sale price only tells us about the houses that sell! To really understand what houses are worth and what values in an area are, we need information about all the houses in the area, not just the ones that sell. It is a bit complex to put in writing here. If you want to know more about Median Values vs Median Prices, have a read here on the Residex website for the best explanation.
How do I know that the property price has not been inflated above market value?
In most cases we will be able to provide a written valuation for the property from a registered valuer. It is also likely that your lender will order a valuation on the property before they decide to lend the money to you.
Why do you focus on House and Land Packages?
Because brand new properties usually attract higher levels of tax benefits through depreciation, they have lower stamp duty costs, require less maintenance, have builders warranty and more equity is likely to exist in the property once it is completed (especially in a rising market).
Can you find an investment property for me that is NOT in a location that you currently source properties?
Yes we can, however, unless we can secure a commission payment from a developer, a buyers agent success fee will apply.
