Q & A

Here is the collection of most common asked questions by our clients we have interviewed.

Q- How do I know I am getting a good price and good value on property recommended by MIDAS?

All our clients must be aware that any potential MIDAS property purchase will be valued by the lender, your chosen bank. One of our standards is that we deal directly with the vendor to reduce the cost to our clients to ensure they get the best possible deal with the property they purchase. We aim to help you grow a property portfolio so you can achieve a comfortable standard of living in retirement. MIDAS works with clients on an ongoing basis to ensure property investments are structured and established correctly.

Q- How MIDAS does get paid?

There is no charge or obligation to use our services. Similar to real estate companies, we will be paid by the vendor, developer or builder. Whether it is a finance or property we make our money from the products we research and source for you, negotiated with the suppliers/vendors, lenders, saving you time and money. However, in many instances, we do get volume discounts or cash-backs for our customers within our network making the purchase via MIDAS more cost & time effective.

MIDAS specializes in giving clients an “armchair ride” through the process of successful, effective property investment by guiding you to specialist professionals for finance, conveyancing, financial planning and property management helping people like you to make an informed commercial decision.

Q- What developers and builders do you recommend?

We only recommend builders who in our experience have a proven track record of appropriate quality suitable for investment purposes. You will be given all details of any developers and builders that we are recommending relevant to your position in the market to get you the best possible result.

Q- What is the impact on my financial situation if interest rates go up?

Do you know what else usually goes up with interest rates? Yes, rents and property values generally do, so can you see there is a silver lining in that cloud for the investor that the non-investor does not receive? A silver lining to the cloud of an interest rate increase is that it is tax deductible. Interest rates have gone up and down many times throughout the last 70 years covered by the median house statistics, and probably will continue to fluctuate, so can you understand why you can be better off having an investment working for you no matter what the interest rates do?

Q- How do I know I can afford investment property?

With our step by step process we will only be showing you a property if and when we have established that a bank will approve your finance application. Also, you will receive a personal Property Investment Analysis report that details what your actual “out of pocket” (if any) cost per week will be. Another question is, can you afford not to invest in property if you wish for a comfortable retirement standard of living?

Q- Why new properties?

We know you want to reach your investment goals, so choosing new properties makes sense. New properties deliver greater tax benefits, will rent faster and at a higher dollar value, and will be lower maintenance & lower risk of unknown building issues.

Q- Should I only buy in the city I am living in ?

Don’t limit the potential growth and returns by considering only one city – whether it’s the one you are living in or not. It is wise to consider major cities with enough population to ensure there are tenants and sustainable capital growth. Hence, property investors in Australia should consider suburbs within Sydney, Brisbane, Melbourne and Perth. Historically properties close to major cities have experienced significant capital growth and we are very conservative in our approach which tend to be within 30 -45 minutes from major capital cities to maximize investment returns.

Q- What tax benefits are available ?

You can claim any costs that are associated in the day-to-day running of the property such as Real Estate management fees, rates, repairs and maintenance etc. You can also claim capital costs of purchasing such as loan establishment costs, mortgage insurance as well as the interest on the loans. The government allows tax deductions on the deprecation of the building and fittings for investment properties. You can claim your tax refund in advance via tax variation form to help you with cash flow and reduce your monthly commitments.

Q- What type of properties will provide best returns ( Apartments, Townhouses, Houses) ?

There are many financial factors to be considered as well as personal preferences. Houses will generally experience a higher level of capital growth. Often comparisons are done on a general basis or between houses in one suburb and units in another. At times statistics can show apartments out-growing houses.

However when comparisons are made between houses and units in the same suburb, you will find that over time the houses will always outperform units in the suburb. The key is to find houses in the right suburbs at the right time for a price you can afford and you will win out over time. What makes a great investment in property is sustained growth over time. Also investors should consider the holding cost for each investment property type.

Q- When is the best time to invest?

Given the data of the median house price growth of the last 70 years, most investors have come across this question and probably always will be a case of do I invest now or do I invest later? Considering the historical median prices it appears that the data suggests the longer you delay getting into the market, the more growth (money) you are denying yourself?