Investing in property has always been seen a safe and effective way to build wealth.
The tangible evidence of your investment coupled with the rental income and possible tax concessions make it easy to see why an investment in property can be an attractive choice.
PROPERTY INVESTING TIPS & TRICKS
Is it easier if I already own a property?
If you already own your own home, you will be familiar with the property purchasing process; it is not that difficult to take your next steps in purchasing a property for investment.
Utilising the equity in your home to finance an investment (property, shares etc) is a great way of putting your property to work for you. This will often be a more cost-effective option than taking out a personal loan.
When the return or income you receive from your rental property is less than the expenses of owning that property (interest on your loan, council rates etc) – the property is said to be negatively geared.
In some instances the Australian Taxation Office will allow this ‘loss’ incurred on the investment to be offset against other income, as a tax deduction.
|Loss which may be claimed as a tax deduction||3,000|
*Consult with your tax adviser to see how negative gearing can be applied to your personal situation.
SEEK INDEPENDENT FINANCIAL ADVICE
The old adage that if an investment opportunity sounds too good to be true, it usually is – holds true. Always be sure to research your investment decision thoroughly. Be sure to seek independent property and financial advice.
If you are turning to property investment for capital growth, tax benefits and as a retirement strategy, it is very important to learn as much as you can, especially if it is an area you’re not completely familiar with.