If you’re thinking of investing in residential property, Australia represents one of the best markets in the world—as long as you do your research and are as careful as possible when choosing the right area to invest in. Yet, there is much more to pay attention to than simply the physical location in property investment. You need to take other factors into consideration before you pull the trigger.
Time marches on and those celebrations from the last New Year’s Eve may now be just a dim and distant memory. Unfortunately, the resolutions made during those moments may also have fallen by the wayside as the pressures of everyday life come to the fore. However, some of these resolutions may have been very important and designed to make significant improvements in your life, so they must be prioritised as soon as possible.
Investing in property can be a fantastic way to build wealth over time. Property investors can create a property investment portfolio that continuously generates income, and can also be passed along to their children. This also shows that investing in property can be a great way to have a financially secure future for you and your family.
Interest-only loans are where you merely pay back the interest of a loan to the lender. So if you borrowed $500,000 and made repayments for five years, your balance would still be $500,000. They are designed predominantly for investors for cash flow and tax deductibility purposes.
Property investment is big business in Australia. It accounts for 60% of the banking system’s assets, and over half of Australians’ wealth is held in residential concerns. That works out as $6.6 trillion over 9.6 million homes, or a respectable three times the total value of superannuation funds.
Buying your first investment property may seem daunting—it’s a major financial commitment after all. However, if done right, it can be the start of a property investment journey towards a more financially secure future.
Investment properties can be a great way to qualify for major tax breaks. But there’s a caveat to this: timing is everything.
The end of the financial year is the best time to take a look at your finances and make solid plans for the future. If you’re disappointed by the amount of tax you’ve just had to pay, investing could be a great option. Thanks to government incentives and tax break schemes, if you had earned $90K and invested in a $470,000 property through Calla Property, you would have net an annual cash gain of $705 for the year. In other words, the government would be giving you $705 to invest in the property!
In past years, the Federal Budget’s focus has been on improving housing affordability but 2018 saw the biggest drop in house prices since 2015, it appears the government have slowed down their pursuit.
INVESTORS LOSE $800M !!!
Bad news right?
Well actually the changes aren’t very ‘changed’, more slight modifications.
There are two main areas that will be affected, Negative Gearing and Depreciation.