Property has been a popular route to wealth for many Australians for many years. Are sensible property investments smart investing?
What is property investment?
Investment property is property purchased with the intent of gaining a return. Buying a home is often many people’s first investment. Whether you are considering your first property or your next purchase for building a property portfolio, financial advice can help in the selection and purchasing process.
Sensible investments in property have many benefits:
- Tax benefits
- Negative gearing
- Long-term investment
- Positive asset base
- Can be less volatile than other investments
What property investments should I consider?
With many different ways to invest in property, there are practical and financial disadvantages and advantages of purchasing property. Financial advice can help you decide what type of property investment is appropriate to help your reach your financial and lifestyle goals.
New Investment properties vs. Old Investment properties
The advantages to owners of new investment properties a new or newer property include the tax benefits of claiming depreciation on the building structure and the fixtures and fittings. Advantages of purchasing an old investment property could be the potential to renovate and add capital value to the property or increase its rental return by doing some small or large renovations, extensions and repairs. The best type of investment for you, depends on your financial goals.
Buying a First or second home
Many people buy a home and will upgrade as their finances allow. To determine the most appropriate path for your circumstances and for your best financial future, you should also consider whether you should be buying or renting where you want to live now, and for the future. Seeking advice will maximise your investment.
Can I use my SMSF for Property Investment?
You can invest in property through your SMSF (self managed super fund). There are restrictions to the purchase, and subsequent renting and knowledge of superannuation laws is required, and professional advice will help with your investment strategy.
Property is a popular investment in Australia and we can offer the advice to help you decide on the right property investment plan for you.
