Investing in Property
When it comes to real estate, there are three ways to make money.
- The first is through capital growth - when the value of your property increases
- The second is through cash flow - a regular income you receive from the property (usually from rents collected)
- The third is by negative gearing and ensuring you claim all deductions available.
There are many tax advantages from investing in property. These tax benefits for real estate investors are made available by Governments to encourage you to invest in property that can be used to house people who cannot afford to purchase their own. The Government cannot afford to provide housing for all.
Some of these benefits are on the interest paid on the loan (not the principal), depreciation of the property etc. We always advise you to have a Quantity Surveyor assess your investment property and advise you the accurate figures to be able to base your claims on. Hand these to your accountant at tax time.
Check out our Depreciation Information link online under "Tools".
With residential rental property, we at Jean Hamer Prime Properties will arrange for our associated Property Manager who is with First National, Mooloolaba Sales and Rentals to come and inspect your investment and give you a program for managing your property professionally. These costs are tax deductible.
Unlike in your job, where you get paid by the number of hours you work, you can still make money from property without needing to lift a finger. For a number of property investors, this is one of the most attractive benefits of investing in rental property. Through investing in residential rental properties, you will eventually get to a point where you don't need to listen to a boss anymore, and you can retire early. How attractive is that?!