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Guest Real Estate Articles
This week's guest article comes from Frank Thompson a well respected local investment property consultant from Future Planning and Investment Pty Ltd... Visit him on the web at www.goldcoastlifestyle.com
Frequently Asked Questions About Investment Property
1. If I invest in property, what do I need in order to offset my losses through the tax system?
To take full advantages of the provisions available you should: a) own your own home or be paying it off; b) have more than five years left in the workforce; and c) be paying more than $100 in tax.
2. Can I claim tax deductions on my investment property?
Gearing allows tax deductions (under current tax laws) to be claimed for many items in addition to the cost of finance - for example, depreciation of construction costs, maintenance costs and capital equipment depreciation
3. What if I already have an investment property?
Once you have built up sufficient equity in your investment property (this can happen within about 1.5 to five years after settlement ) it's more than probable you will want to consider purchasing another. Investing in additional properties is how many people build considerably valuable property portfolios.
4. How does property compare with other investments?
Since February 1966 (introduction of decimal currency), the value of one dollar has been reduced by 99%. During the same 35-year period, the Brisbane median house price has risen by 3614% (from $4,150 to $150,000 - Source: Reserve Bank of Australia). Property values can increase, well above bank rates, the volatile share market and well in excess of inflation. Have you checked your superannuation balance lately? For more information about the benefits of property investment, please contact us.
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