Property
Investment
Investing in property has always been seen
as 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.
Negative gearing*
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.
Example:
| Rent received |
9,000 |
| Expenses incurred |
12,000 |
| 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.
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