How buying an investment property can save you money and provide an income. It might seem challenging enough to buy one investment property, so why would you buy two? Well, while it might seem counter-intuitive to increase your borrowing, buying an investment property can help you pay off your mortgage sooner. Of course, it will often depend on your income and how your loans are structured, but an investment property offers benefits that help you pay off your loans sooner. Tax benefits The ideal scenario for an investment property is that it is what we call “positively geared’. This means that you receive more rental income than you need to pay off the mortgage and other costs such as property management. However, it’s unusual to find a positively geared property. Most investment property costs aren’t covered by rental income. To make up the difference, you need to top up that income from your savings. And this is where the tax… Read More
Labor’s negative gearing policy was announced in February 2016. Whilst there has been much debate about the merits of negative gearing and whether negative gearing should be abolished, Labor’s decision to make substantial changes to negative gearing and capital gains tax discount has been controversial. But how does it impact Australian Expats? Craig Joslin, the founder of The Australian Expat Investor, explores the issue.
Did you know that every year people just like you lose money, by not understanding their rental property depreciation entitlements? People short change themselves by not using these rental property tax deductions effectively. Well this article may help you avoid this, and assist you in getting the most out of your tax return. So first of all what is depreciation? Depreciation Depreciation is basically the decline in the value of an asset that you can claim as a tax deduction against your income. To give what could be a more familiar example, after you purchase a car it loses value over time due to various factors including wear and tear. This loss of value is called depreciation. Similarly, your rental property (being the building not the land) starts losing value from the time you purchase it, again due to various factors including wear and tear and the limited life of various fittings and appliances (eg. Hot water systems and… Read More
Have you invested your hard earned money in a rental property, or are you considering it? Perhaps this is for your family’s future or maybe to create some passive income for now and in retirement. Because of this, I know how important it is to ensure that you are maximising your rental property tax deductions. Well, to make sure you are getting the best out of your rental property tax deductions, this short article will provide a broad overview of the deductions available. Some of this advice, can mean more money back in your pocket. I hope you enjoy the article, and find this guide useful. Before we go any further let me explain the three categories of expenses we will be dealing with. 1. Immediately deductible 2. Deductible over a number of years 3. Not deductible 1. Immediately Deductible 1a. Interest on Investment Loan If you are lucky enough, not to have taken out a loan to purchase your… Read More
It’s official: for all those considering a property investment, NSW is the place to be. Central to the strong revival in Australia’s property market has been the property investor, with the rental market thriving. Owner occupier loans in Victoria and Queensland showed pretty good growth of around 9% and 10% over the last year, and Tasmania’s home loans market grew by more than 20%. But the NSW home loan market outshone even this. Owner occupier finance grew by nearly a quarter in just twelve months. The real action, though, has been in property investment. NSW grew its home loan market for investment purposes by almost 30% in the last year. With a low interest rate environment in Australia looking set to continue for some time, and the draw of Sydney as a hub for students and businesses alike, it is perhaps unsurprising that NSW is leading the way in the property investment market. Prices set to continue to… Read More
Before you commit your deposit money and a mortgage to buying your new home, there are a few ‘must ask’ questions to ask your real estate agent. Being prepared to ask these will ensure the home you buy is the home for you. How much is this home worth? Price and value are two different things. This said, price is how most of us assess the value of a home. Before you commit to paying an asking price, you should find out about the value of the property. Ask for details of recent sales in the area: prices, time on the market, and paid prices versus advertised prices. This knowledge will give you a much deeper knowledge of the current market, and help you make the right offer. What’s wrong with the property? When you see the home of your dreams, it’s easy to get carried away. Your view may be clouded by the potential you see and the vision… Read More
MAP arranges a lot of pre-approved home loans for expat clients but many end up expiring as the task of finding the right property is too difficult when living overseas. This is whether a buyers agent can assist. What is a buyers agent? A Buyers Agent (or Buyers Advocate as they are sometimes known) are essentially real estate agents who represent the buyer rather than the seller. So a standard real estate agent representing the seller is trying to get the best price for the seller – the buyers agent is attempting to get the best price for the buyer. What do Buyers Agents do? The services offered by Buyers Agents does differ from agent to agent. Obviously all Buyers Agents will, on your behalf, locate suitable property for you and negotiate the purchase of that property. Some buyers agents though will also take care of or assist with; 1) Ongoing property management of the property if its an investment… Read More
Link to HTW month in review – ill make a point of adding these to the site as they are published. http://www.htw.com.au/Downloads/Files/202-February-2010-Month-In-Review.pdf