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.
