There are two ways to look at property as an investment:
- You can view it primarily as a way to generate a steady income stream from renting it to someone or
- You can view it as an asset that grows and that the rental income is a ‘bonus.’
I prefer to look at it as a growing investment. If I was only looking at the rental income, then it would be a really disappointing investment, especially because that rental is taxable. So if I was getting a 4% return on my capital, and the taxman was taking 40% from me for tax, then the REAL return would be 2.4% on my money. And that is before I have to pay for any maintenance, insurance and taxes on the property. I would do better by just putting the money in the bank. Or would I?
No! The way I make an investment property work for me is to use the ‘refinancing’ tool. The word ‘refinancing’ has been misused by some to mean “an irresponsible way to get into debt.” But nothing could be further from the truth. Refinancing is the perfectly legitimate, respectable and tax efficient tool that you can use to ‘sell’ your own property to yourself, get great growth on it and make it work for you in the best possible way!
Refinancing your existing property allows you to free up a cash value on the property that will enable you to buy more good investment property and at the same time use the legitimate financial structures to save income tax as well as being able to draw first-rate income.
This sounds pretty simple and straightforward, but without the correct, carefully planned strategy in place it may possibly work far less effectively than you would want it to.
This is where the IGrow team come in. With expert professionals in place to assist you, the very best structure to host your property portfolio can be established. Tax specialists will be called on to design the perfect plan to give you maximum tax efficiency permitted plus experienced administrators will assist you in getting the very best return from your properties.
But the IGrow Wealth service doesn’t stop there – we’re in place to assist and advise exactly when the best time for refinancing should take place and at what level.
We’re there to make sure there are no glitches in what appears to be a straightforward process so that your decisions have no negative impact or consequences in this intricate investment market. The IGrow team will ensure that you don’t commit yourself to properties that are in the wrong area for the present market. They will help you use software to monitor your portfolio, your returns and income flow. They will be involved in assisting with strategies of when to sell, when to hold and how to maximize the way your properties work for you. They will ensure you have peace of mind.
If you use the analogy of a farmer and his cattle, you will know that in times of plenty he increases the number of head, but when the drought hits, he gets rid of the weaker ones in order to sustain the best in the herd. IGrow helps you to ‘farm’ your properties – helping you get the best out of them at all times but not being so sentimental that when necessary it is sometimes prudent to get rid of some.
The IGrow Wealth team stay with you at all stages in the planning and refinancing process to ensure:
- your properties are always in the right areas
- make sure you are able to safely afford the best investment for you, regardless of the way the market is moving
- work with you to secure and safeguard the assets you’ve worked for all your life
Whether you are refinancing or investing your own capital and making financial commitments as you use property investments to grow your wealth is a serious business and should not to be taken lightly. You need the very best advice that is available before making a final decision on how your money needs to be employed. For advice and guidance, look to the independent specialists who have the right team of professionals working with them that gives them the track record of success, integrity and security that you want.
Contact us at IGrow Wealth Investments – our team and I will help you on the road to achieving the success you deserve.