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Property investment is an effective way to grow wealth - but it also requires ample preparation and financing. Real estate investment often involves planning as there are several costs that have to be taken into account before making a purchase. Making the correct investment decisions are always the number one priority of any investor and accepting what expenses that may be incorporated goes a long way to helping. The checklist below clarifies the different initial upfront and ongoing costs involved with investment property. Upfront Costs   Deposit - The deposit is a percentage of the property’s value that investors need to pay to the vendor. Generally, residential properties require a 20% deposit while commercial properties require 30%. Loan Establishment Fees - A loan establishment fee, also called an application fee, covers the cost of preparing documents of a new mortgage. There are some banks and financial institutions that are willing to waive this one-off payment, however, it can cost between $200 and $700 depending on the loan. Lenders Mortgage Insurance - Lenders require LMI if the deposit is less than 20% of the property price. This one-off fee protects lenders financially if a borrower defaults on their mortgage. This LMI estimator can help calculate the amount needed to pay for a chosen property. Stamp Duty - Stamp duty covers the cost of changing the title and ownership of a property. The amount differs depending on the state where the property is situated. The property’s value and purpose also determine how much stamp duty should be paid. Investment properties generally have higher stamp duty costs than those who have principal residence. This stamp duty calculator can provide an estimate. Connections - These are fees covering utilities and services, including electricity, water, and gas, that need to be installed before the property is ready for occupancy. Legal Fees - These include solicitor or conveyancing fees, which cover the legal transfer of the property’s ownership. The amount varies depending on the lender, fees can start at $100 and, in some instances, exceed $1,000. Title transfer may also require search processing fees, which can cost about $50 per search.   (Image Source: Unsplash) Ongoing Costs Loan Repayment - The cost of monthly mortgage repayments is calculated by the amount borrowed or principal, type of loan, loan term, and interest. An estimate can be provided by this mortgage repayment calculator. Land Tax - State governments, excluding Northern Territory, levy yearly taxes to landowners. The cost differs depending on the state or territory and does not include properties constructed on the land: land tax calculator. Council Rates - Council rates are a type of property tax that also changes from state to state. Local governments collect these on a quarterly or yearly basis, for the property maintenance of the council area and cover garbage collection, plumbing, electrical, and other services. The costs are often indexed against the property’s value and can reach thousands of dollars every year. Body Corporate Fees - Also called strata fees, body corporate fees are rates charged on properties located in the shared block such as apartments, townhouses, units, and flats. These cover the management of the block and maintenance of common areas. The cost is dependant on the condition, size and location of the property, and can range between $50 and several hundred dollars per week. Building and Landlord Insurance - Building insurance provides cover to the buildings on the property and its contents from unforeseen damage such as natural disasters i.e. fires and flooding. Landlord insurance protects property owners against loss or damage arising from tenancy issues, including theft, loss of rental income, vandalism. It is advisable to have these policies, however, they are not always required. Annual premiums vary per state but typically ranges from $1,000 to $2,000. Property Management Fees - Some investors choose to outsource the day-to-day management of their property. A property manager overlooks the daily operations of rental properties from collecting rent to maintenance and repair. They could cost between 5% and 8% of the monthly income. Plus a letting fee once a tenant is secured which can vary from one-week rental to 2.5 weeks rental plus GST. Advertising - To generate income, rental properties need tenants. The internet is filled with real estate websites that owners can use to attract potential renters. Advertising on these platforms usually costs a few hundred dollars. Repair and Maintenance Costs - A landlord is responsible for ensuring a property is in a livable state for tenants, so it is recommended to put aside a yearly budget for costs and repairs.   (Image Source: Pexels)   Investment properties return a multitude of benefits, among these is the potential for sturdy financial returns. Careful thought and planning are required when venturing into real estate investment. The key is not to rush in purchasing a property and consider all the costs involved. For more information on Investment Property, whether you’d like to buy or sell, contact the team here at Crowders Real Estate. Phone: 03 5983 3038 Email: property@crowdersre.com.au Visit: 2375A Point Nepean Road, Rye VIC 3941 Appraisal Request: crowdersre.com.au/appraisals   Disclaimer:  This article is a general overview and not in any way purports to be financial advice.  We are not authorised to provide any financial advice.  We recommend on seeking financial advice tailored to your individual needs from your Accountant, Financial Advisor and Bank for formal advice on investment properties.

When people visit the Mornington Peninsula they think of family-friendly beaches, fishing, amazing dining, delightful wineries, stunning scenery and golf! Yes, that’s right, people love to swing the irons on the fairway down here on the peninsula and we are most certainly fortunate to have some of Melbourne’s best public golf courses right on our doorstep. During our current COVID-19 lockdown, golf is an activity that is still allowed and why wouldn’t you get out and enjoy what the peninsula has to offer. Beauty is in the eye of the beholder, so we will be looking at our top public golf courses here on the peninsula, but we don’t think you can go wrong with any choice the next time you play. The Dunes Golf Links What more could you ask for than Victoria’s number one public access golf course and one of Australia’s top 20 golf courses! Set on 300 acres of gently rolling sand dunes, the 27-hole golf facility caters for all abilities. The Dunes Course Tour is an 18-hole championship course which is true links golf, designed by Tony Cashmore. If you’re struggling for time though, you can go around on one of Australia’s best 9-hole courses the Cups Course. Make sure your game is one point with 300m driving range, pitching and putting greens plus practice bunker, for those who spend a bit of time in the sand! After the days play is done, why not relax and enjoy a meal in the cafe or a refreshing beverage in the bar with views of the course. Location: 335 Browns Road, Rye VIC 3941 Opening Hours: Everyday 7:00 AM to 7:00 PM Book a Game: 03 5985 1334 Website: https://www.thedunes.com.au/   St Andrews Beach Golf Course Ranked Australia’s 5th best public access course by Golf Australia Magazine, this course was designed by renowned golf architect Tom Doak. Nestled near the thundering surf of Gunnamatta Beach, the Gunnamatta Course brings elements from the famous links courses of the UK and Ireland. Since opening this course to the public in 2009 St Andrews Beach has maintained its position as the number one public access course on the Australia mainland. A fully licensed rustic style clubhouse featuring al-fresco decking that offers snacks and light meals, it has everything you need for a top-up on your way around or once you’ve finished. Location: 209 Sandy Road, Fingal VIC 3939 Opening Hours: Everyday 7:00 AM to 6:00 PM Book a Game: 03 5988 6000 Website: https://standrewsbeachgolf.com.au/   Moonah Links Golf Resort You just cannot resist playing on Victoria’s largest golf tourism development consisting of two world-class 18 holes courses. Moonah Links is certainly a golfers paradise. The Open Course was designed for the Australian Open and is one of the longest courses in Australia. With exceptional views for spectators and golfers, this course is designed to challenge the modern-day golfer and can be played at many different lengths depending on the tees selected. The Legends Course was is a more friendly golfing experience for players of all ages and abilities. Following a valley through a variety of landscapes from both Moonah woodlands to open links, you’ll enjoy your game even if it’s not going your way. Moonah Links clubhouse provides for all occasions, with accommodation, conference facilities, bar, members lounge and Pebbles restaurant.     Location: 55 Peter Thomson Drive, Fingal VIC 3939 Opening Hours: Everyday 7:00 AM to 5:30 PM Book a Game: 03 5988 2000 Website: https://www.moonahlinks.com.au/   Bay Views Golf Course How can you not enjoy a game of golf when you have panoramic views of Port Phillip Bay! Bay Views Golf Course (formerly known as Carrington Park Golf Course) is an 18 hole course that offers Santa Anna couch fairways in excellent condition, along with lovely manicured greens, year-round! The newly refurbished deck area offers a great place to relax and unwind post-round with a cold drink or snack whilst soaking in the magnificent views! This course is ideal for social groups and offering very affordable green fees, it should be on your next-to-play list, as this one is a hidden gem! Location: Elizabeth Drive, Rosebud VIC 3939 Opening Hours: Everyday 7:00 AM to 6:00 PM Book a Game: 03 5981 2833 Website: https://bayviewsgolf.com.au/ Well, there you go. We hope you like our top public golf courses here on the Mornington Peninsula, and if you haven’t been to any of the above, why not give them a try today. If you’d like to know more details on other golf courses here on the Peninsula check out Visit Mornington Peninsula. Like all golfing handicaps, we want to see them improve over time, just like our property prices! To get an up-to-date and accurate appraisal on your property check out crowdersre.com.au to register your interest.   References: https://www.visitmorningtonpeninsula.org/ThingsToDo/GolfCoursesResorts.aspx https://bayviewsgolf.com.au/ https://www.moonahlinks.com.au/ https://standrewsbeachgolf.com.au/ https://www.thedunes.com.au/