HELP CENTRE
Property
In recent years there's been much talk of property being one of the best ways to create wealth. It's important though, that if you are serious about property investing, you take a closer look at why. Here are some tips that might help you...
Property Investments can provide:
- A good return on your income
- The potential for capital gains
- Greater investor security
- Potential tax advantages
If you are thinking of investing in rental property, it is essential that you:
- Carry out due diligence and establish the real worth of the property. Compare the asking price with similar properties in the same area, and check rental returns on other properties in the area.
- Check your responsibilities and legal obligations as a landlord. The residential tenancy authorities in each state will be able to help.
- Ensure your property is adequately protected. In addition to insuring the building, you should consider taking out content's insurance and Landlord's insurance.
- Decide whether to manage the property yourself or appoint an agent.
Investment property and tax :
- Correctly structured investments can assist in reducing your tax.
- When you sell your investment property, you may be liable for capital gains tax, or other taxes, so it's important to seek up front advice on the right way to own the property.
- Land tax and depreciation are also important factors to consider.
Investing in property for the first time :
- Analyse your budget to make sure you can afford to invest
- Decide which type of investment property best suits your needs.
- Discuss the benefits of positive and negative gearing with your tax expert and financial advisor.
- Ensure you have enough money for the deposit and up front costs such as stamp duty, legal costs, valuation and other fees.
Once you have found a property:
- Arrange a loan that suits your needs and your finances.
- Conduct due diligence on each property you are interested in, compare and evaluate the properties before making your choice.
- Arrange for pest and building reports to be conducted on the property.
- Put the offer in writing - know your limits if you attend an auction.
- Contact your solicitor regarding the contract of the sale.
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