If you are seriously interested in creating wealth and securing your financial future, then investing in property is something you should seriously consider. Property has been and will continue to be Australia’s best wealth building vehicle. It’s popular for a good reason – property is one of the very few investments with income virtually guaranteed. Low interest rates and high rental returns mean the timing is perfect to begin or expand your property portfolio.
Here are some of the reasons why you must invest.
Income Tax Incentives
A property investment strategy offers you a number of financial benefits including significant tax benefits. When you have an investment property you can claim tax deductions on most of the expenses related to your rental property. Brand new properties provide maximum depreciation benefits. Through deductions and depreciation, property investment legally minimises the amount of tax you pay.
Negative Gearing
When you own an investment property you can claim the loss you incurred of owning this property and offset it against your personal income. This is known as negative gearing and a great strategy to minimise your tax liability and at the same time acquire an asset using your tax dollars.
Capital Growth
Is the increase in value of your property over a period of time. While there is no guarantee on the amount of capital growth you will achieve as this depends on various factors, however historically property has always experienced steady capital growth over a long term period.
Create Extra Income
An investment property helps you create another source of income and with each property you own you have an additional revenue stream that is helping you to build wealth.
