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Costs Involved in Investing in Australian Real Estate

The Australian property market is dynamic in nature. It means it is constantly changing. Understanding and leveraging the true potential of the market is essential to stay at the top of the game. If you want to get more information regarding investing in real estate australia then visit our website. Read more: https://www.jasminerealestate.com.au/post/Costs-Involved-in-Investing-in-Australian-Real-Estate-

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Costs Involved in Investing in Australian Real Estate

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  1. Costs Involved in InvestinginAustralian RealEstate

  2. The Australian property market is dynamic in nature. It means it is constantly changing. Understanding and leveraging the true potentialofthemarketisessentialtostayatthetopofthegame.Butifyouaresomeonewhoisnewtothemarketorifyouareunable tolearnaboutthefrequentchangesthattheAustralianrealestatemarketgoesthrough,thenyouneedaprofessional,licensed,and dedicatedagentbyyourside.Tolearnandseekanswersaboutanyrealestateneeds,contactCarltonVaz,thebestrealestateagent, offeringhisexpertiseinHamptonPark,Lynbrook,Lyndhurst,Cranbourneandnearbysuburbs. Havingaseasonedprofessionalwithyouwillhelpingettingtothedepthofthematter.Youwillgetclarityoverthingsthatotherwise youmaynotunderstand–themostcommonofalliscostsinvolvedininvestinginAustralianpropertymarket. Otherthanthechanginglaws,itisthestatisticsandthefiguresthatmakepeoplegocrazy.So,tohelpyouout,wehavecomeupwith thisblog.ItwilltellyoueverythingaboutdifferentcostsinvolvedwhileinvestinginAustralianrealestatemarket. So,letusgetstarted! Therearemanycostsassociatedwithpropertyinvestmentsuchasupfrontloancosts,upfrontbuyingcostsandtheongoingcostsof owningtheproperty. InvestinginAustralianpropertyisenormous.ThestatswiththeAustralianTaxationOffice(ATO)showthattherearemorethan2.15 millionpropertyinvestorsthroughoutthecountry. TheATO’sstatsshownineoutof10ofthose2.15millionpeopleownjustoneortworentalpropertiesatmost.Onlylessthan1%of investorsfitintothecategoryofhavingsixormorerentalproperties.Eventhoughinvestinginpropertybringsingoodwealth,itisat thesametimeariskyandexpensiveprocess. TherearedifferentcostsinvolvedinAustralianpropertyinvestmentsuchas;

  3. HomeLoanCostsforAustralianRealEstate Unlessyouhaveenoughcashtopurchaseaninvestmentproperty,youwillneeda goodvaluehomeloantomakesuchabigpurchase. Mosthomeloanscomewithfeesandmostlyallofthemwillchargeinterestafteralla loanisnotacharity. OtherhomeloanfeesinvolvedininvestinginAustralianpropertyareasfollows; Lendersmortgageinsurance Ongoingfees Loanestablishmentfees Breakcosts Interestpayments Wewillbrieflyexplainthesebelow.

  4. LendersMortgageInsurance(LMI) Lendersmortgageinsurance(LMI)isaninsurancepolicywhichcoverslendersagainst losses in the event that the borrower can no longer meet their loan repayments / defaulting. YoucanavoidpayingLMIifyouhaveadepositofabout20%oftheproperty’svalue orgreater,orifyouuseaguarantor.Butifyouhavetopayitcancostyouthousands ofdollars.

  5. LoanEstablishmentFees It is also known as an application fee. It is an establishment fee, basically a one-off paymentatthebeginningoftheloantopayfortheprocessingdocumentation.Notall lenders charge this fee, but those who do will often charge around $250 and the maximumcanbeashighas$800-$1,000.So,beaware! Youcanalsobechargedavaluationfeebutattimesitisbundledintothe establishmentfees. Eventhestategovernmentschargemortgageregistrationfeestoregisterthe propertyasasecurityonahomeloan.

  6. OngoingLoanFees Justlikeanapplicationfee,yourhomeloanmayalsocomewithanongoingfee.Itis usuallychargedannually.Yetagain,notalllenderschargethisfeebutcommoncosts canbearound$100to$180peryear.Ontheotherhand,somecanevenchargeup $400.

  7. InterestPayments Althoughnotafee,interestwillgenerallybeyourbiggestcostofahomeloan.Alow interestrateonyourpropertyinvestmentcansaveyoutensofthousandsofdollars. Investment home loans usually carry higher interest rates on an average than an owner-occupierloan,whichmeansahigherinterestcost.

  8. PropertyBuyingCosts Whiletheabove-mentionedfeesapplytothehomeloan,therearesomeothercosts toothatyoumustconsiderwhilemakinganinvestmentintheAustralianRealEstate. Thefeesareasfollows: Thedeposit Solicitorandconveyancingfees Stampduty

  9. LandlordInsurance Thisinsurancepolicyistoprotecttheinterestofthosewhoowntheinvestment property (landlords). This policy works in conjunction with homes and contents insurance.Butitalsohasacoveragetoprotectagainstlossoranydamagethatmay arise from tenancy issues such as loss of rental income, theft or damage to the property.

  10. LandTax Thisisanothercostthatyouhavetopayinordertobuyaproperty.Whatisaland tax?Itisanannualcostleviedontheownersofthelandandnotthepropertyitself. Thistaxisleviedbythestategovernments,excludingtheNorthernTerritory.So,the costcanvarydependingontheworthoftheland.

  11. PropertyManager’sFees ThisisequallyessentialbecauseifyouownaninvestmentpropertyinAustralia,you arelikelytoemployapropertymanagertotakecareofit.Forthatyouwillhaveto preparethebudgetaccordingly.Havingagoodpropertymanagerbyyoursidemeans everythingfromcollectingrent,findingtenants,maintenanceofthepropertyetc.,is takencareofbytheprofessionalyouhire. Dependingonyourstateandthepropertymanageryouchoose,apropertymanager cancostfromaround5-12%ofyourweeklyrentalincome.

  12. AdvertisingforTenants ThisisprobablythefinalcostyouwillhavetofactorinwhileinvestinginAustralianpropertyreal estate.Thisisespeciallywhenyouwanttenantstoliveinit.Unlessyoudonotwanttoreceivea rentalincome,youwillneedtofindatenantandforthatyoumayhavetoadvertiseextensively. DoingalittleresearchorhiringagoodrealestateagentinHamptonParkornearbysuburbswill alwaysbeofgreathelptoyou.AgoodrealestateagentlikeCarltonVazwillguideyouthroughout thejourney.So,whetheritistoknowaboutdifferentcostsinvolvedinAustralianRealEstateor anythingelseintermsofrealestate,donothesitatetocontactus.JasmineRealEstateishereto meetallyourrealestateneeds.Callnow.

  13. Get In Touch POBox137LynbrookVictoria 0425843786 carlton@carltonvaz.com.au ContentResource: https://www.jasminerealestate.com.au/post/Costs-Involved-in-Investing-in-Australian- Real-Estate- ThankYou

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