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.
|
