The Property Investment Handbook was launched today. The Handbook is a guide for both new…
Over the past decade, we have seen an increasing number of individuals turning to property investment to create wealth and secure their future.
As prices have escalated, more homeowners have looked to use the increased equity to move into property investment.
Key Drivers of Property Investment
For many people, purchasing an investment property is more appealing and tangible than say investing in the share market.
That said, If you are considering investing in property, there are a number of factors you need to consider including:
Property Investment - What Can You Afford?
Property Investment - Do Your Research
Borrowing to Purchase an Investment Property
Tax Benefits of Property Investment
Apart from capital growth, one factor that attracts many people to property investment is the favourable tax treatment.
Generally, costs associated with owning the property can be offset against the rental received.
These costs may include:
Where the costs exceed the rental, this is known as negative gearing. The shortfall can usually then be claimed as a deduction against the property owner’s income.
Property Ownership - A Critical Decision
Before making an offer on an investment property, it is critical to speak to your accountant to understand the tax implications (& benefits) and importantly, in which name it should be purchased.
The ownership of the property will be driven by your personal circumstances and should be part of a longer-term wealth creation strategy.
It may be the ownership is in joint personal names, one parties’ name, or potentially, a Trust structure.
At The 500 Group we have assisted many clients obtain finance to create wealth through property investment.
Whilst property investment has proven to be extremely rewarding over the past decade, it is not without risk.
When investing in property, there are many factors that need to be considered, to avoid later regret.
Research, understanding what is involved, and the guidance of Professional Advisors are essential!
In my next post I will outline some of the common pitfalls that need to be considered.
If you would like to learn more about how The 500 Group can assist you finance an investment property purchase, don’t hesitate to get in touch.