Can ordinary people invest in property, or do you have to have lots of money to start out with?

Ordinary people can invest in property in Brisbane! Studies show that over 70% of property investors earn between $35,000 to $40,000 per year. This is how most millionaires get their head start, by early investing in the property market.

Remember it's not how much you earn that is important, it's what you do with what you earn!

Can I buy an investment property if I don't have a deposit saved?

Having spare cash is not the only form of deposit you can use. If you have equity in your own home or other assets, you should be able to borrow 100% of the loan using your home or assets as security.

Why is real estate a good investment for my money?

Most assets that you purchase, like a computer or a car, will decrease in value as soon as they leave the shop or showroom. Property is unique in that it will increase in value every year. This is called the compounding effect.

Say you purchased a property that was worth $200,000, in one year its value could increase by 10% to $220,000. The year after that, applying the compounding effect principal it will again increase its value by 10%. $220,000 x 10%= $22,000 meaning that its new value is $242,000.

Each year that passes, the property will continue to increase in value.

You may have to start small with minimal returns, but even a small start will still result in good results as your property wealth grows.

What happens if interest rates rise?

You should always discuss all possibilities with your lending expert before signing any loan documentation.

Remember that all interest charged by a bank on an investment loan is tax deductable. You may choose to claim this deduction on a weekly basis by having it applied to your wage or as a lump sum at the end of the year. You will also be able to claim a benefit for a fluctuating interest rate, in case you have a variable loan.

An investment property should be viewed as a long term plan. Over the years, interest rates will rise and fall but overall it will not make a big difference to the value of your property and should not be used as a reason not to invest. To the contrary, when interest rates rise, this is usually a time when you can purchase a well priced property.

I was always told that I shouldn't get into debt if I can help it. Is that wrong?

No, borrowing money for assets that depreciate, like a motor vehicle, is not always a very wise investment.

However, when deciding on whether or not borrowing money consider this: Is the asset going to grow in value? Will this asset help build wealth and secure my financial future?

Debt can be used as a tool to actually build your wealth in the long term.

Shouldn't my accountant have advised me to invest in property if it was right for me?

Not necessarily. Accountants are generally not experts in property investment and will probably not give advice about investing in real estate. They will account for money that you currently have and look into tax matters for you.

I already have advisors including an accountant and a financial planner? Why do I need extra advice?

Oz Mortgage Reductions offers significantly different services and advice to an accountant or financial planner. We specifically offer advice on property investment and mortgage reduction, whereas your accountant can advise on tax matters and a financial planner can manage a share portfolio. We will work with your accountant to achieve the best financial results for you.

Where is the best place to invest my money: real estate or shares?

We believe that residential investment properties are a solid investment for your money and a great strategy for building wealth. That is why we specialise in South Queensland properties. However, we also believe that a balance of the two investment types will provide you with the best chance of a comfortable retirement.

I don't think that financially I am in a position to invest at the moment. What's the point of meeting with you?

The majority of people that we meet for the first time believe that they are stuck financially. As experts in debt reduction and mortgage reduction techniques and investing in property, we can assess your financial situation and show you what is possible with what you currently have. Most of our clients are pleasantly surprised. Why not make an appointment and see what we can do for you!

I think I could probably do this on my own. What benefits are there to using Oz Mortgage Reductions?

There are many things a person could probably do on their own - cut hair, research symptoms of an illness when they are sick to find a remedy. But most people visit specialists for their needs including hairdressers, doctors and mechanics. They do this because these specialists are fully qualified and have years of training and experience.

With something as important as your financial future, why wouldn't you use a specialist?

Shouldn't I simply concentrate on paying off my mortgage before borrowing money to buy more property?

You could do that, but with a little more planning and effort you could set yourself up for a bright, debt free financial future that will provide for your retirement, allow you to support your family and live the lifestyle that you deserve.

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