Frequently Asked Questions

Choosing to invest in residential property is a popular choice for many West Australian families because it provides opportunities to increase your wealth and benefit from significant tax advantages with greater financial security than other investment options such as shares.

Read on or select from the links below for some useful information on how to get that investment property of your own

Why should I invest?
What are my investment options?
What factors do I need to consider for property investment?
What are the advantages of building for property investment?
How do I get started?

Why should I invest?

1. Your actions today will determine your financial position in the future as well as when you retire. Choosing to invest in residential property now, can help you achieve goals such as:
   • Paying off your mortgage quicker
   • Help fund your children's education
   • Assist your children to purchase their first home
   • Family holidays and world trips
   • Taxation benefits and savings
   • Financial security in retirement
2. Property investment is a mid to long term investment strategy that has historically allowed investors to generate additional income and increase wealth through appreciation in land and house prices.
3. By buying a property and receiving rental payments you will be able to maximise your tax deductions through negative gearing (the difference between your tenants rent and your loan repayment).

What are my investment options?

Traditionally there are three types of investment options:

1. Cash savings
2. Shares/stock market
3. Property

Of your three options property investment is the most simple and requires very little ongoing effort and input on your part and historically has always significantly outperformed the other options in the long term.

What factors do I need to consider for property investment?

1. Buy in a prime location that is in close proximity of public transport, schools and major shopping centres which all provide for good capital growth.
2. Buy in the medium price range in your chosen location rather than the upper end. One of the most important principles of investing in property is to not build a property at the upper end of the market for the suburb you have chosen. Investors often make the mistake of building at the upper end of the market or buying on emotion rather than the numbers. Research the medium price for your chosen suburb build a package around that mark.
3. Research rental vacancy rates and median rent prices for your chosen property location to ensure your investment will enable a high rate of return.
4. Obtain the right finance package to ensure that you are taking advantage of low interest rates paid on your investment.
5. Employ the services of a registered accountant who understands property investment and can help you properly take advantage of the tax savings and concessions that are available to you.
6. Employ the services of a professional and diligent rental property manager to ensure your property remains occupied with tenants at all times.
7. Obtain a quantity surveyors report that will outline the depreciation of your property's individual fixtures and fittings to maximise your depreciation and tax savings.

What are the advantages of building for property investment?

• Less upfront costs
  You only pay stamp duty on the purchase of your land saving you thousands in tax payments.
• Customise your house design
  Building your investment property allows you to alter your home design to suit market requirements.
• Tenant security
  If you had the choice of renting a brand new property with the latest fixtures and fittings or an older home which would you take?
• Greater depreciation
  The Australian Tax Office will allow you to depreciate the value of the fixtures and fittings in your home over a certain time period. This time period is governed by the age of the property, therefore you will gain a greater depreciation benefit from a new home. The amount of depreciation can also be used as a tax deduction
• It is Flexible
  You have absolute control over your property as you determine how to manage the asset rather than leaving the decision to a large corporation, as is the case with shares or superannuation. You can sell at anytime or leverage it to purchase additional properties
• Minimal Maintenance
  A Celebration Homes investment package comes with a six month maintenance period and 25 year structural guarantee.

How do I get started?

At Celebration Homes we specialise in coordinating turnkey investment building packages for first time investors and will help you with:

• Researching the right location
• Securing a no deposit investment home loan
• Designing and building your home to be 'Ready to Rent'
• Securing a tenant