Winning with Investment Property 1
Winning with Investment Property
Buy Investment Property Redlands, or maybe somewhere else, here are some helpful tips to help you on your way.
A lot has been written about investment property, in fact Australians really do have a love affair with property.
The media over time has reported on the downside of property, those nightmare situations people seem to find themselves in. These situations are in fact over sensationalised minority events. You already know of successful investors, in fact most property investors do realised the dream of wealth creation. It’s not rocket science, with a little research and common sense you too can reap the benefits.
To dispel some myths and provide you with a crash course in overcoming any objectives and answer any questions you may have, this outline is prepared to provide you with the logic you need to make informed decisions in investing in property.
How can I afford an investment property?
You’d be surprised! There of course is criteria that needs to be met from lenders and financial institutions. But if you have a secure validated income stream and equity in your own home, there’s a good chance you will qualify for an investment loan.
How does Negative Gearing work?
Essentially it is the difference between the income and the expense of an investment property. Let’s say your investment income, the rent that is, is $20,000 per annum, yet the mortgage, rates, rental agent’s fees, insurance etc are $28,000 per annum, the $8000 loss forms a tax deduction. Additional to direct cost there is depreciation on the building and fixtures, I am a strong advocate of investing in a depreciation schedule to maximise your legitimate deductions too! Then there is the much unpublicised of 221D variation through the ATO leveraging your deduction, meaning you don’t need to wait to lodge your tax return, this option is worthy of exploration.
Next week part 2 in this blog will be revealed.
Remember… for Real Estate Agents Redland Bay, Redlands and Logan Shire think Evolution Properties