Australian Property Investment Blog by Micah Keall-Grant

This is a common question for property investors, and one where the choice is becoming increasingly difficult! First let’s quickly define these two terms: Interest-Only Loan (I/O):  You only have to make interest payments on the outstanding mortgage amount (for a certain period of time, typically 5 years, after which the loan will be converted back to P+I, or refinanced for another I/O term). Principal and Interest Loan (P+I):  You have to make payments off the principal loan amount, in addition to the interest payments. As the loan progresses, you pay proportionally higher principal, and less interest. As an example, if you have a 30 year, $500k loan at 4% p.a. interest : Amount payable with I/O - $20,000 per year Amount payable with P+I - $28,650 per year Repayments are obviously higher with P+I, however this does mean you are paying off your balance and therefore your total interest payment over the life of the loan will be lower. Interest-only loans have be...

A very popular question amongst property investors is: “Should I invest in regional areas or capital cities, or both?”. There is great debate on this topic, with many property experts weighing in with a wide range of opinions. I have outlined my personal thoughts below:

Making a property purchase is a big decision and often one of the largest financial transactions you will make in your lifetime. Therefore it pays to avoid costly mistakes! I have compiled a list of short tips and general advice for your next property search. As mentioned in my previous blog post, houses are generally my preferred investment option in Brisbane at this time, however this is not always the case and apartments can make for good quality investments at the right time or in the right location.  Tips for purchasing an apartment (in any location): - AVOID large blocks - In large towers of 100+ apartments, there will always be 5-10 other apartments for sale and rent at the same time as yours so the competition is fierce and you will have no point of differentiation > not a good recipe for capital growth! - AVOID brand new/off-the plan purchases. You are often paying a hefty developer premium and often a referral fee which is built into the purchase price...

This is a common question asked by property investors throughout Australia, and is the subject of great debate amongst property experts. Apartments as Investments Traditionally, property owners, particularly in the baby boomer generation, aimed to buy a house on a good sized block of land with a decent backyard – “the great quarter acre Australian dream”. This is changing somewhat as the demographics of our major cities are shifting and more and more and buyers are favouring smaller dwellings in central locations which are handy to places of work, with strong public transport and close proximity to trendy cafes, bars and restaurants. Young professionals, couples, overseas immigrants and down-sizers are the most common types of buyer in this market segment. Even without considering the usual location benefits that they offer, the other reasons that apartments and townhouses are now a popular option are: 1) Increased security 2) Lower maintenance 3) More modern la...

1. Read books This is a great way to get started as books can teach you some of the important fundamentals of property investment, or simply refresh your existing knowledge and provide renewed motivation. Focus on books/authors that you can relate to (as every author is different). You will naturally find that you gravitate towards some styles of writing more than others. Recommended Reading: - Rich Dad, Poor Dad – Robert Kiyosaki This book is often referenced by many people as the source from which they first learned about investing. It is not directly about property but focuses on the mindset required to build wealth over time. - Get A Financial Grip – Pete Wargent Great insights into taking control of your finances and learning how to start investing and begin your journey towards financial freedom. Pete also has a number of other good books that follow on from this. - Building Wealth, Story by Story – Jan Somers This is an oldie but a goodie – the principles discuss...