NOTTINGHILL SUITES - NEW LAUNCH MAY 2011

Sharing on - Top 6 Ways that Real Estate Investment Property Returns Profits

Top 6 Ways that Real Estate Investment Property Returns Profits

By James Kimmons, About.com Guide
When you purchase a company's stock certificates, you're looking for appreciation in the stock value, and perhaps dividend income if it is paid by the company. With bonds, you're looking for income yield on the interest rate paid by the bonds. With a real estate investment property, there are more ways in which to realize a superior return on your investment. Learn the ways in which your real estate investment can increase in value, as well as provide good cash flow.

1. Cash Flow from Rental Income

As with a stock that pays dividends, a properly selected and managed rental property will provide a steady stream of income in the form of rental payments. Historically, this percentage of return has exceeded that of dividend yields on average.
The real estate investor has a bit more control over the risks to that cash flow also. Though there are downturns in real estate prices and homes sold in some years and areas, generally those renting property in which to live will continue to rent and without a corresponding decrease in rent amounts.

2. Increases in Value Due to Appreciation

Historically, real estate has shown to be an excellent source profit through the increase in investment property value over time. Of course, one cannot predict that this trend will always be true, and it varies significantly by area.

3. Improving Your Investment Property - More Value at Sale

While it's providing rental income cash flow, your property can also be improved in order to garner a better price and more profit when you do choose to liquidate it as an investment.
Upgrades to the appearance and functionality of a real estate investment property can significantly increase value. As trends and styles change, keeping the property interesting to renters will at the very least help you to retain value.

4. Inflation is Your Friend When it Comes to Rent

Though your fixed mortgage will remain constant over time, inflation that drives up home construction costs will also drive up rents. Population growth creates housing demand, again driving up rent prices if supply cannot keep pace.

5. Paying Off Your Mortgage

As you pay down your mortgage, the increase in equity can be used for other purposes and investments. Though it's frequently accessed by selling the property, a real estate investor can also take out equity loans if the terms are right and use those funds for more investing or other purposes.

6. You Could Just Find that "Steal of a Deal"

This is the last item, though it's one of the first ones many investors think about. There are opportunities to buy below market, but the other advantages above will probably be what the average investor experiences most of the time.
Should you be fortunate enough and have the experience to locate a value-priced property, this is an immediate way to increase your net worth and the value of your investment portfolio.

Sharing on - Why Invest In Australia?

Why Invest In Australia?

Below you will find the main reasons why Australia affords a great investment climate for foreign property purchasers today.



Despite some investors’ misgivings regarding property in Australia, many key areas of Australia offer fine opportunities for high returns on investment.
Not only is Australia an outstanding country in terms of lifestyle and climate, it offers many economical and political advantages to today’s overseas property investors. Australia offers profitable opportunities for city investment as well as property for sale in current property hotspots. The following are the main reasons that make Australia such a strong investment today:

• Excellent, temperate climate, with an amazing average 3,000 hours of sunshine per year. A good climate gives rise to a pleasant outdoor lifestyle and healthy living.
• Unspoilt beaches, tropical rainforest, rugged mountains, deserts and sun-baked horizons that continue to attract people to the country as a whole.
• Stable both economically and politically, combined to create a peaceful and secure lifestyle option.
• GDP on par with most European countries. Australia’s strong economic growth rates are higher than most OECD countries, including the US and UK.
• English is the national language and the legal and business environments are based on the British system.
• Well established legal and property buying process, similar to that of the UK
• High capital returns of around 30% or more in key investment areas such as the Western Coast
• Fantastic, healthy lifestyle with abundance of outdoor pursuits, eg. swimming, fishing, cycling, jogging, bushwalking and more
• High rental demand due to currently high property prices
• Interest only mortgages on offer for 5 or even 10 year periods, making property purchase a more viable option.
• Population growth and rising incomes ensure the demand for housing outpaces supply, causing prices to rise.
• Regulated investment markets that are transparent and low risk in the Australian arena
• Favourable Sterling exchange rate (typically 1 GBP = 2.3 AU$) allows you to buy more for your money in Australia.