FAQ's

How much debt is too much?

This will depend on a number of factors including current income, age and personal comfort level. At KEY2 we generally do not recommend leveraging beyond 80%.

Should I be focused more on rental yield or capital growth?

Again this will depend on your income and age, i.e. when you are younger with a high and/or rising income you can afford to be more focused on capital growth. As you grow older, yield (cashflow) becomes more important. At any stage KEY2 believe in developing a balanced portfolio of both high capital growth properties and higher yield properties.

What type of property should I invest in?

KEY2 deals in a broad range of property to deliver a balanced long term wealth creation portfolio. The range can be very broad from apartments to home and incomes and everything in between. If it fits the preset criteria for your plan, buy it.

Which area should I invest in?

Again the response is similar to what type of property. Different areas provide different buying opportunities, both in type of property and growth prospects. If it fits your plan, do it.

What if I can't get a tenant?

This is a rare occurrence, especially in residential property. A well located and maintained property will always have a ready tenant market. Especially when utilising the services of an experienced property manager who is incentivised to maintain a high occupancy rate.

Should I put any spare cash into the investment property?

Part of a good investment plan is being tax effective. Spare cash should be used firstly to pay off non income producing assets, namely the family home, credit cards, etc. Once these are paid off then consider either increasing your investment asset base or reducing debt, depending on your long term plan.

How many properties can I buy?

This will depend on a combination of your income, assets (typically property) and time. When taking these factors into account we can assist you in establishing a long term property investment plan to achieve your retirement goals and the implementation of that plan is sourcing the right properties and the right time.

What does KEY2 charge?

Our service when purchasing property is at no cost. Should you require any of your property to be sold, an industry standard real estate agency commission applies.

When is the right time to buy?

This is the most common reason people are put off entering the property market. There is a saying that you will only know when the market has hit its peak or trough in any given cycle after it has occurred. At KEY2 we believe now is the right time to be investing for the long term rather than speculation for the short. It is also said it is time in the market, not timing of the market.

Do I need to own a property to be able to invest?

Not necessarily. We have started clients on their long term investment plan by using other investments as their deposits. We also have parents assisting family members by using the equity in the family home to purchase their first investment properties.