Our investment philosophy is at the very heart of our unique, concept-to-completion approach and one-on-one methodology. It breaks down into eight key tenets:
- Property investment is a long-term strategy.Buying smart, holding for the long term and duplicating the process is the key to creating real wealth. It's common knowledge that the property market is cyclical and will experience fluctuations in growth patterns, but historically property prices continue to increase over the long term. In fact, over the last 100 years property prices in Australia have increased at about 8% per annum as an average, doubling every 7 to 10 years.
- Always purchase new properties.Buying property brand new provides generous tax benefits. What's more, brand new homes in premium developments are highly desirable to potential tenants, providing high occupancy rates and strong rental returns. By maximizing your tax benefits and rental returns you minimize your out-of-pocket expenses, thereby making the investment opportunity more affordable. Let the tax man and your tenant pay the majority of your investment mortgage.
- Purchase homes that are at or below the state's median house price.By doing this you broaden your market in terms of re-sale and rental, thereby limiting your risk exposure. High quality homes at this price point will always be attractive to potential buyers and tenants.
- Relationships hold the key to achieving your financial goals.The property investment world is complex, so you need the services of professionals who can work with you over the long term. Partnering with Axis and a quality accountant can make the world of difference to your financial future.
- Look beyond your local area or your own state.When researching property investment opportunities, we have a number of clear criteria. One of the most important factors is the potential for long-term capital growth. When seeking that growth potential for our clients, we think on a national level. The property market in Australia moves in cycles – and the cycles within the states are almost always at varying stages – so we constantly monitor the trends all over the country.
- Purchase turn-key property that you can set and forget.The last thing you need is the hassle often associated with rental properties. Buying 'turn-key' means the property is absolutely complete, including floor coverings, window treatments, air conditioning, landscaping and even things like your clothes line and letterbox. There is nothing you need to do to complete the property – your tenants can simply move straight in. Crucially though, as a brand new property there should be very minimal maintenance issues, so once your investment property is complete and tenanted it requires little or no attention.
- Research is a critical element in making your investment decision.A solid understanding of the property market and a thorough due diligence process result in smart investment opportunities. Of course, most people these days are so busy with their own lives and careers that they don't have time to become property experts. At Axis, we understand the property market and engage in a comprehensive research process to ensure all the investment opportunities we recommend represent good value and have solid growth potential.
- Investing in property should be a calculated business decision.Keep emotion out of the decision-making process. Investment properties will not necessarily look and feel like the property you would choose for your family to occupy. The internal colours may not be what you would choose. The area the property is in may not be the location that suits you. The home may be bigger or smaller than you personally need. However, none of this is relevant when it comes to making your investment decisions. The questions you need to ask are: Will the property achieve consistent capital growth? Will the property be in high demand from a rental perspective? And will it be attractive on the re-sale market?
