PERSONAL INVESTING

An investment property has the potential to increase in value over time and it may provide an additional source of income once the property is paid off, even before. Currently I’m assisting many of my clients with positively geared investment property.

The advantages include:

Rental income

If you’re renting out your investment property, you’ll be getting money from someone else to contribute to your home loan, which means you could pay off your mortgage sooner.

Bear in mind however that the rent you receive may not completely cover your home loan repayments and additional costs. Having said that, interest rates are the lowest they’ve ever been, this bodes well for the mum and dad investor and the serious long-time investor.

Tax deductions

Many of the costs associated with an investment property are often tax deductible. For instance, the interest and fees you pay on your loan, advertising for tenants, as well as cleaning, gardening, maintenance and pest control.
Also, if your property is negatively geared—which simply means the interest, and other costs you incur are more than the income your investment property produces—the loss can reduce the amount of tax you pay on your earnings at tax time.

Building equity

The reason the equity in your property can be a valuable resource is that it may allow you to secure finance to achieve other goals, whether they be investment or lifestyle oriented.

To break it down, home equity refers to the current market value of your home—which won’t necessarily be the price you purchased it for—minus the amount still owing on your home loan.

Remember though, as the market value of your property can go up or down, so too can the equity you have in it rise and fall. And, just because you have home equity doesn’t mean you can automatically borrow against it, as your lender will look at factors such as your age, income, and other existing debts.

Own new investment property for less than $50 per week, Greater Brisbane/Gold Coast etc.

Use investment property to pay off your own home mortgage

Use investment property to reduce your income tax substantially

$1,000 Is all you’ll need to get started Get rid of your own home mortgage in less than half the time it is currently taking you.

Do all the above and pay less than what you are currently paying on your home mortgage. Sounds impossible I suppose, but this is what I teach all my clients.

Book a free consultation