Frequently Asked Questions
What makes SAFORE different from other property services?
SAFORE offers personalised service, intensive research, and tailored investment advice. Our network of reputable builders and developers provides access to high-quality new and off-the-plan properties across Australia, making us a comprehensive solution from search to settlement.
Do you provide property investment services across Australia?
Yes, we offer comprehensive property investment services throughout Australia. Our coverage includes major cities such as Melbourne, Sydney, Brisbane, Perth, and Adelaide, as well as key regional growth areas. We leverage our expertise and research-driven approach to identify high-quality investment opportunities in both urban and regional markets.
Why should I consider investing in regional areas?
Regional areas such as Newcastle, Sunshine Coast, Toowoomba, and Geelong often present strong growth potential due to expanding infrastructure, increasing populations, and lower entry costs. Our data-driven approach helps identify these promising markets that offer higher returns, allowing you to benefit from emerging opportunities while diversifying your investment portfolio.
How do you select investment properties?
We use a 9-step research process to identify properties that align with your investment strategy. This involves market analysis, financial assessments, and selecting high-growth regions to ensure strong investment potential.
What types of properties do you offer for investment?
We specialise in new and off-the-plan properties, including house and land packages, exclusive apartments, boutique townhouse projects, and high-yield opportunities like Dual Occupancy, Co-Living, and SDA housing.
How are you remunerated?
Our services are provided at no cost to you as an investor. We are remunerated by the builder or developer, who values our expertise in connecting the right buyers with their projects. Importantly, there’s no difference in property price whether you purchase through us or directly from the developer, ensuring you get the best value without additional costs.
Is property investment right for me?
Property investment can provide a stable source of income, tax benefits, and long-term wealth growth. As a tangible asset, it has historically appreciated in value, making it a reliable option for building financial security.
How do I get started with property investment?
To start your property investment journey, schedule an initial consultation with us. We'll assess your goals and financial situation, guide you on the best approach, and recommend suitable investment opportunities.
Could investing in my super fund be a good plan to add to my wealth?
Yes, superannuation can be an effective wealth-building strategy, and you can now use your super fund to invest in property. An SMSF balance of at least $250,000 is generally recommended to purchase an investment property. While we can guide you on suitable investment opportunities, we suggest consulting a licensed financial adviser for personalised advice tailored to your circumstances.
What is depreciation, and how does it benefit me as an investor?
Depreciation is the reduction in the value of assets over time, allowing investors to claim tax deductions on property assets. This can lower annual tax liabilities and improve cash flow.
What is equity, and how can I use it to invest in property?
Equity is the difference between your property's value and the remaining mortgage amount. You can leverage this equity by refinancing or obtaining a home equity loan to invest in additional properties, expanding your investment portfolio.
What is negative gearing?
Negative gearing is when your property’s expenses, such as mortgage interest, exceed the rental income. While this results in a financial loss, it can be used as a tax deduction to reduce your taxable income.
How does depreciation work for property investors?
Depreciation allows property investors to claim tax deductions for the gradual wear and tear of the property and its fixtures over time, which can help reduce taxable income.
What are the tax benefits of property investment?
Property investment offers several tax benefits, including deductions for mortgage interest, depreciation, property management fees, and maintenance costs. These deductions can help reduce your taxable income and increase your overall return on investment.
What is capital growth in property investment?
Capital growth refers to the increase in a property’s value over time. It is one of the main reasons people invest in property, as it allows them to build equity and increase their net worth through the appreciation of property values.
What is a property portfolio, and how do I build one?
A property portfolio consists of multiple investment properties owned by a single investor. Building a property portfolio involves careful planning, selecting properties that align with your financial goals, and diversifying across different locations and property types to spread risk.
What should I consider before purchasing an investment property?
Key considerations include the property’s location, potential rental yield, expected capital growth, and your ability to finance the purchase. It’s also important to consider market conditions and your long-term financial goals.
How do I calculate rental yield?
Rental yield is calculated by dividing the annual rental income by the property's purchase price, then multiplying by 100 to get a percentage. This helps investors assess the income potential of a property relative to its cost.
What is a buyer’s market versus a seller’s market?
A buyer’s market occurs when there are more properties for sale than buyers, giving buyers greater negotiating power and the opportunity to purchase properties at lower prices. A seller’s market occurs when there is high demand for property but low supply, allowing sellers to increase prices and negotiate favourable terms.
How do interest rates affect property investment?
Interest rates affect the cost of borrowing. When interest rates are low, borrowing is cheaper, which can increase the return on investment. Conversely, higher interest rates can increase mortgage repayments, reducing cash flow for property investors.
How can I minimise risk in property investment?
Minimising risk involves diversifying your property portfolio, conducting thorough market research, and ensuring you have sufficient cash reserves to cover unexpected expenses like vacancies or maintenance. Working with property professionals can also help you make informed decisions.
What is a property manager, and do I need one?
A property manager handles the day-to-day operations of a rental property, including tenant screening, rent collection, maintenance, and legal compliance. Hiring a property manager can save you time and reduce stress, especially if you own multiple properties or live far from your investment.
What is gearing, and how does it apply to property investment?
Gearing refers to borrowing money to invest in property. Positive gearing occurs when rental income exceeds expenses, providing immediate profit, while negative gearing happens when rental income is less than expenses, creating a loss that can be claimed as a tax deduction.
How can I identify areas with strong growth potential for property investment?
Identifying areas with strong growth potential involves analysing several key factors, including population growth, gentrification trends, and demographic shifts that indicate increasing housing demand. We also focus on regions with planned infrastructure projects, such as new transport links or employment hubs, as these developments can drive future growth and enhance the area's liveability.
What key elements should I consider to ensure long-term property growth?
To ensure long-term property growth, it’s essential to consider supply and demand dynamics, rental yield potential, and the area's vacancy rates. Additionally, evaluating major infrastructure developments and employment opportunities can provide insight into future demand.
What does 'off the plan' mean?
Buying 'off the plan' refers to purchasing a property before it is constructed or completed. You pay a deposit upfront, with the remaining balance due upon completion. This often allows for customisation of finishes and the potential to secure a property below future market value.
What are the benefits of buying an off-the-plan property?
Buying off-the-plan provides several benefits, including locking in today's prices, customising finishes, and potential capital growth by the time construction is completed. It may also offer savings through stamp duty concessions or exemptions in some states.
What happens if the property market changes before my off-the-plan property is completed?
Changes in the property market can affect the value of your off-the-plan property by the time it is completed. While this could lead to capital gains, there is also the risk of market downturns, where the property might be worth less than expected. It's important to maintain a long-term view with such investments.
How can I finance an off-the-plan property?
Financing off-the-plan requires a deposit when the contract is signed, with the balance due at settlement. Typically, no mortgage repayments are required during the construction phase. You may need pre-approval from your lender, but final loan approval will be based on the completed property's value.
What steps should I take to finance my property investment?
Obtaining a loan pre-approval or borrowing assessment from a qualified mortgage broker is an important first step before investing. This helps you understand your borrowing capacity, secure better financing terms, and streamline the purchasing process. We can connect you with a trusted mortgage broker to guide you through the loan application process and explore the best financing options.
How much can I borrow for an investment property?
The amount you can borrow depends on your financial situation, credit history, and the lender's criteria. Typically, lenders offer up to 80% of the property's value without Lenders Mortgage Insurance (LMI), though higher Loan-to-Value Ratios may be available with LMI. We recommend working with a qualified mortgage broker to assess your borrowing capacity and explore the best options.
How do I buy an investment property with equity?
You can use the equity in your existing property by refinancing your mortgage or obtaining a home equity loan. These funds can be used as a down payment for the investment property, allowing you to leverage your current assets to grow your portfolio.
What is Lenders Mortgage Insurance (LMI), and when is it required?
Lenders Mortgage Insurance (LMI) protects lenders if the borrower defaults on the loan. It’s typically required when you borrow more than 80% of the property’s value.
What is a fixed-rate loan, and how does it differ from a variable-rate loan?
A fixed-rate loan locks in your interest rate for a set period, offering payment stability. A variable-rate loan fluctuates with market interest rates, which can result in lower or higher payments over time.
What is cross-securitisation, and how does it work?
Cross-securitisation involves using the equity in one property as security for the purchase of another. While it can help you acquire more properties, it increases risk as multiple properties are tied to a single loan.
What is the Loan-to-Value Ratio (LVR)?
LVR is the ratio between the loan amount and the property’s value. For example, if you borrow $400,000 for a property worth $500,000, your LVR is 80%. Lenders typically require LMI for loans with an LVR over 80%.
What is the difference between a principal and interest loan and an interest-only loan?
A principal and interest loan requires payments towards both the loan balance (principal) and the interest. An interest-only loan requires payments only towards the interest, which keeps your repayments lower but doesn't reduce the loan balance.