We all have a built-in tolerance for risk. This determines the kinds of investments we’re comfortable with, and the kind of returns we’re likely to reap. Which of the following describes you best? I am risk averse For me, risk is a monster to be feared and avoided at all cost. I prefer cash ...
What is negative gearing, and what could it mean for you?
A property investment is negatively geared if the monthly or yearly costs or expenses are more than the rent. What are the benefits? There are two main benefits of negative gearing. 1. If you are willing to buy a negatively-geared property, you can spend more on your asset. By borrowing ...
Do I need an accountant?
I’ve got two investment properties, and I’ve (thankfully) kept good records since buying them both. I’m actively saving for a deposit on a third property and I’m making cuts to spending wherever possible. Do you think I can get by without an accountant? It depends. I’m not sure what your background ...
Is residential property investment the right proposition for you? We think so.
For generations, Australians have bought houses to secure their financial futures. Many of us own our home – just under 70% according to the 2010 Australian Bureau of Statistics census. Many don’t only invest in their own home, though. Approximately 20% of Australians live in housing owned by ...
Quick gains?
Dreaming of getting rich quick? Then property is probably not the best investment for you. Here’s another typical question: My husband and I are both 47. We would like to retire at 50. I’ve got about 50,000 saved for retirement, and my husband has $90,000. We’d like to have at least $500,000 saved ...
Should I buy the worst house on the best street?
Let’s have a look at another really common question we get about which property to choose: I told my uncle I’m looking at buying a property investment. He reckons I should find a great neighbourhood, find the best street, and then buy the worst house on it. He suggests that I do it up and make a ...
Should I buy an apartment?
We're often asked about different types of property investments. Over the next few weeks, I’ll answer some of the most common questions. Here's the first: My friend has just bought an apartment. The complex is about an hour and a half from Melbourne CBD. It looks like a great deal. Should I consider ...
LMI – Lenders Mortgage Insurance
What is LMI? This is a Frequently Asked Question so we have added it to the Majestic Property FAQ's page, link below LMI (Lenders Mortgage Insurance) LMI is an additional fee charged by banks when you borrow more than 80% of the value of a property. This fee is charged because the ...