FINANCE SERVICES
Purchasing an Investment Property
Why should I invest in Property?
Property investment, although initially daunting, can be one of the best tools in setting yourself up for an easier retirement. As well as developing wealth for your retirement, property investment can also bring in high rental incomes as well as potential tax concessions. As a result it is easy to see why it is becoming one of the quickest growing forms of investment.
What incentives can I obtain from Investment?
One of the best known incentives that results from investing in a property is the term “Negative Gearing”. Negative Gearing simply refers to the tax deductions that may be claimed when the expenses incurred through the Investment (Interest, Bank Fees, Council rates etc) outweigh the rental income. An example of this;
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Throughout a year you incur expenses totalling $13,000
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Rental income for the year totals $9,000
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The $4,000 loss on the property may be claimed as a tax deduction *
*You must always consult your accountant or adviser before making decisions on investment.
Are there any costs that I may not know about?
Capital Gains Tax is one expense incurred from the investment in which many people forget to budget for. Capital Gains Tax (CGT) is a tax which is imposed upon sale of your Investment property. If your property price has increased since the Purchase, you may be required to pay CGT on the difference. This differential amount may be added to your Gross yearly income and you may be taxed at the marginal rate.
Why use Able Finance for Investment?
All consultants at Able Finance are trained in the basic knowledge of Property Investment. An Able Finance consultant will analyse your current situation and develop a strategy for investment. It may include using existing equity in your property or if you would prefer to keep your properties separate, we can tailor a product to your needs.
Contact us on 8981 9188 or submit an enquiry online to arrange for a no-obligation appointment with one of our many consultants.