Property Investment

Investing in residential property is a process, not an event.

Unlike traditional real estate agencies, as a buyers’ agency, our very purpose is to understand and fulfill the individual investment objectives (both short and long term) of each and every client. One of the key requirements of the buyer agent discipline is to have a profound understanding of demand, with respect to both local area economics as well as the various property types. Our tenant agency division brings with it not only an extensive list of local rental hunters but also an insight into the areas promising the greatest growth – and the sorts of properties that are delivering the most attractive yields. Ours is a robust offering that supports clients all the way from strategic guidance through buying processes, property management, portfolio reviews and ultimately sales advisory when the time comes. Our knowledge extends across all type of property requirements.


Direct Investment

Over the last two decades, Direct Property Investment has grown dramatically and has become a core investment class for the growth of wealth through strong risk adjusted returns, while also providing a stable source of income through regular distributions of underlying rental income. By investing directly in a negatively-geared property, all expenses associated with managing the property (including interest repayments, repairs and maintenance and advisor fees) are fully tax deductible. You can also claim general wear and tear and associated fixtures. The team at Cohen Handler ensure that strategic investment decisions are made to achieve the overall outcome for clients.

Self Managed Super Fund

A self managed superannuation fund (SMSF) is a trust where money and investments are held and managed on behalf of the members. The fund’s purpose is to provide benefits to members on retirement or death. One of the advantages of a SMSF is that you can invest directly in residential property through your super. Owning a residential investment property within your SMSF can be significantly more tax effective than investing in a property in your personal name. There are excellent tax advantages to be conscious of when investing through your SMSF. Firstly, the maximum rate of tax your SMSF will pay on rental income is 15%. And if your SMSF is in the pension phase, this rate drops to 0%. This compares favourably with personally held property where rental income is taxed at your marginal tax rate, which in some cases can be as high as 46.5% (including Medicare levy). Another advantage is that if your SMSF holds the property for more than 12 months, any capital gain made on the sale of the investment property will be taxed at a maximum rate of 10%, or again, 0% if the SMSF is in pension phase. Gearing into property through your SMSF can be an excellent strategy. Due to the generally high price of purchasing a residential property that has the potential to provide good long term returns and capital growth, it may be appropriate to borrow to purchase a property within your SMSF. Borrowing to invest in property can help your SMSF maintain an appropriate level of diversification within your fund. Research Property, whether you live in it or not, is an investment asset and should be treated accordingly. Anyone looking to acquire property needs to research the market if they want to buy well and ensure they buy at, or even under, market value. Spending hours scouring through property on real estate websites or reading real estate articles in the newspaper is simply not an effective way to research property. To achieve reliable and strong returns in the property market, Cohen Handler undertake a detailed analysis of the historical performance of property in key investment areas, as well in depth research of the macro and microeconomic factors.

 

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