Monday, 18 February 2013

Book review: Your Investment Property – How to Choose It, Pay for It, and Triple Your Returns in Three Years

Your Investment Property – How to Choose It, Pay for It, and Triple Your Returns in Three Years – by Someone Who Did It in Two by Anita Bell is a follow-on to Your Mortgage – How to Save $50,000 to $250,000 per Property with a specific focus on investment property.  In her words, typical investment advisors seem to focus on debt maximisation and tax minimisation, aiming for capital gain in the long term.  However, Anita focuses on minimising costs and maximising profits in the short term, using tax minimisation as an accelerator with capital gain as a bonus.

Her formula for investment property success incorporates the following four points:
  1. Get the best out of investments in the short term by lowering your costs (the biggest cost is interest)
  2. Then increase the property’s ability to earn income while minimising tax where possible and aim to succeed on that
  3. Capital gain can then be your bonus, not something you rely on to survive or progress
  4. Then aim to keep or invest your returns from three sources (property income, tax refunds, and capital growth on a debt-free property) instead of pumping your profits and equity for the next 20 years into your bank’s already big coffers