Demystifying Property Sales

By Chris Gray
This month, Mark Taylor talks with TV property
expert and CEO of Empire, Chris Gray, on how to
achieve the best sales result for your property.

Chris Gray – Selling Options – Out there- Sept 2011

Demystifying Property Sales

Creating a Buffer Zone: A Safety Net for Smart Investors

By Chris Gray

It is important to have a facility to access the growth of equity as a buffer zone if something should go wrong. Rather than paying the difference between the rent and the mortgage from your wage, a buffer zone will cover the difference.

Creating a Buffer Zone

Buy property, don’t sell: How to grow wealth

By Chris Gray

The cost of buying and selling is too high. A commonly-made mistake by many property owners is getting excited about immediate profits and selling too hastily. A majority of these people eventually regret selling, rather than waiting it out for its worth to increase in value. It is far more beneficial when buying property to consider the possible growth in the long term.

Selling property incurs many unforeseen costs and taxes. Chances are, if you’re selling, you will be using the money to buy another property anyway. If you’ve bought the right investment in the first place, it doesn’t make much sense to sell.

I’ll put this into perspective: if you bought a property for $500k which eventually rose to $1m, what would occur if you sold it to buy another one?

With this property in mind, real estate agents fees would be about 2% which would equal $20,000. Then there are re-buying fees, which would equal $50,000 and then there’s capital gains tax too. Yes, having more debt is risky to start with, but as soon as the properties grow in value you can release equity. This gives you a buffer zone to guard against interest rate rises and other expenses and helps you grow your wealth.

Buy property, don’t sell: How to grow wealth

Advantages in using a property finance broker

By Chris Gray

What are you waiting for? Buy Now!

Like any market, the property market is constantly changing. There is no guarantee that it will rise in the short term. On the other hand, long term trends are consistent and residential property almost always increases in value.

Another reason to buy now is to reduce the amount of tax you are liable for. If you are on a good salary you will be paying a high tax rate. The sooner you invest, the sooner you get your tax deductions and reduce your tax. The sooner you do it, the sooner you can get into your next property and the next one after that.

So what are you waiting for? If you’re in the position, buy now!

When is the right to buy?

Advantages in using a property finance broker

By Chris Gray

Home buyers can spend a lot of time and energy weighing up one loan against another. Doing this means missing the bigger picture: why focus on saving a few hundred dollars when a well-bought property can save you tens of thousands?

In regards to brokers, it is often beneficial to work with one that has a long-term wealth strategy for their own portfolio they can share with you, rather than a broker who is really only interested in getting wealthy by selling a lot of mortgages.

Advantages in using a property finance broker