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Why invest in property instead of the stock market?

In short, historical tracking of property vs. shares has proven that overall the stock market is a much higher risk with markets being more vulnerable to economic fluctuations such as the Global Financial Crisis in 2009.

Investing in property is a much more stable and reliable investment because property values very rarely go down and you also benefit from a stable cash flow from rental payments.

Finally, you can invest your superannuation in a Self Managed Super Fund (SMSF). Read more about property investment and SMSFs here.

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What is negative gearing?

“Negative gearing” means that the cost of owing and maintaining your investment property outweighs the rental income it generates. The difference is therefore a loss that can be claimed as a tax deduction, which reduces tax on your salary or overall income.

What is positive gearing?

“Positive gearing” means that the income from your investment property exceeds your interest expenses and other deductions. This means that you may need to pay additional tax on the income derived from your investment property.

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What is co-ownership or joint ownership?

Did you know that you can pool your financial resources with family or friends to buy an investment property? However, this tactic carries greater risk so make sure you access the right legal and financial advice before proceeding to ascertain each person’s financial commitment and ownership percentage.

Do you recommend an ex-display home over a newly-built house and land package? 

Either type of home would work as an investment property because we build each of our homes to display home standard. Browse our house and land packages here.

What is the best type of home loan for my investment property? Will it be different to a standard home loan?

Some lenders may charge you a higher interest rate if you’re borrowing for an investment property, so it pays to shop around and get the right loan advice. The loan on your investment property will also depend on the amount of equity you have in your current home. To get more information about the right kind of loan please contact us on 1300 NEW HOUSE or by email enquiry and ask to speak with one of our home loan advisors.

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How much can I afford to borrow?

It all depends on the equity you have in your current home and several other variables. To find out how much you can afford to borrow, please use our property investment calculator, or contact us directly on 1300 NEW HOUSE or send us an email enquiry.

I’m from overseas, am I allowed to buy an investment property in Australia?

The laws for property investment in Australia by non-residents or non-Australian citizens are changing all the time. Please read the FAQ on the Australian Government Foreign Investment Review Board’s website for the most up to date information.

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What is the best type of property to ensure the best return on my investment?

Obviously choosing a property that is most likely to grow in value is the best type of property to ensure return on your investment. But also take into consideration current rental incomes in the area you’re thinking of buying in. You may want to ask our investment advisors about rental incomes and property value trends by calling us on 1300 NEW HOUSE or send us an email enquiry.

Which suburbs do you recommend for an investment property?

We build our homes in some of the most sought-after suburbs in metropolitan Sydney and regional Sydney council areas. We also build on the NSW Central Coast, Newcastle, Hunter and Illawarra regions.

Which home designs do you recommend as a investment property? 

It all depends on your budget and investment strategy, but almost any Eden Brae home design is ideal as an investment property. Browse our House and Land packages.

Do you only build in newly established “greenfields” developments?

Most of our newly built house and land packages are in master-planned greenfields developments, but you may also consider building an investment home as a Knockdown Rebuild project in a more established area.

Can I use the equity in my existing home to buy an investment property? 

If you already own your own home you may not need a deposit to buy your investment property. Instead you can use the equity in your existing home. Equity is the difference between your home’s current market value vs. the balance of your mortgage.

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Got a question that isn’t here?

 Please contact us to speak with one of our property investment consultants directly, either online or call 1300 NEW HOUSE

Photographs on this website may depict items not supplied by Eden Brae Homes, such as furniture, window furnishings, landscaping, retaining walls, fencing, decorative landscaping items, water features, pergolas, pools, decks, outdoor fireplaces and barbeques. Any prices on this website does not include the supply of any of these items. Images feature upgraded items - please talk to a sales consultant for detailed home pricing.