Property
Your own home or an investment property: the right order, the financing and a clear process up to the purchase.
- Your own home
- Financing
- Building insurance
- Investment property
- Taxes
- Building project legal cover
The essentials in three points
- 01Your goals decide the order: investment property first, then your own home, or the other way round.
- 02Purchase costs are roughly 9–15% of the price, depending on the state.
- 03Borrowed capital can increase the return on your equity, but it also magnifies losses.
Property strategy
Your goals determine the right sequence
A home of your own, long-term wealth building or greater financial independence: these goals can form part of the same plan. What matters is which investment suits you at which stage.
We therefore start with your overall financial position: income, existing assets, cash reserves, commitments and personal plans. Together, we establish the role that home ownership and investment should play in your future. We also consider alternatives such as a fund or ETF portfolio.
Invest first, keep your future home in the plan
If your priority is building wealth over the long term while remaining flexible about where you live, buying a rental property before your own home may be the more suitable first step. You can choose your home location around your life and your investment location around the financial merits of a property.
Rental income can help cover running costs and financing payments. Subject to the relevant legal requirements, rental-related expenses and building depreciation may also be deductible. Suitable financing allows you to use borrowed capital, which can increase returns on your equity but also magnifies losses.
A home of your own remains a personal goal with financial benefits of its own, including the rent you would otherwise pay. Its timing also depends on your family plans, preferred location and financial capacity.
We therefore specifically assess whether building an investment first and purchasing your own home later would suit you. The reverse sequence, or another approach to wealth building for the time being, may also be appropriate. A rental property ties up capital too and affects your capacity for future borrowing.
Investment property
A clear process from planning to purchase
Once an investment property has been identified as a suitable next step, we support you through the process. After completion the cycle starts again, with a fresh review.
Your property investment roadmap
- 1Initial consultationFinancial assessment and information form
- 2Prepare documentsCompile the required documents
- 3Property & reservationPresent the property, record the reservation, submit documents to the bankQuestions & clarification
- 4Bank feedbackProperty valuation
- 5Viewing & notaryViewing with the property manager, notary appointment
- 6Invoices & tax noticesNotary, land registry and property transfer tax
- 7Purchase price paymentThe bank transfers the purchase price to the seller
- 8Acquisition costsPayment of incidental purchase costs
- 9Tax supportReferral to a tax adviser, wage tax allowance where eligible
- 10Emergency planningReview provisions for emergencies
- ↺Review and plan the next investment
An ongoing cycle for building your portfolio
After completion, we review your position again. This includes your current finances, the performance of your existing properties and your capacity for further investment.
One possible objective is to acquire another property approximately every one to two years, where circumstances allow. Each purchase is reassessed for financial viability. Cash reserves, existing loans, potential rental shortfalls and upcoming maintenance remain part of the overall plan.
The aim is to build a portfolio gradually that contributes to greater financial independence. What matters is the sustainable cash surplus available after costs, interest, principal repayments, taxes and adequate reserves. Neither a fixed acquisition schedule nor achieving financial freedom can be guaranteed.
Property brokerage and mortgage advice are provided through appropriately licensed network partners. Individual tax matters are addressed by a tax adviser.
Contact
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