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Showing posts with the label Property investment

Structuring options for investment properties

  There are different ways investors can structure their investment property for tax purposes. Some of the structure options include: Individual or partnerships Investing as part of a partnership is usually treated for tax purposes as a collection of individuals. One of the advantages of owning property as an individual, particularly if the investment is negatively geared, is that any tax losses can be applied at the individual's level against all of the individual’s other forms of assessable income, such as salary, wages and revenues from other business activities. Alternatively, the losses can be carried forward and applied against income from future years. However, once the property starts to generating positive returns, income tax will be payable by the individual at their applicable marginal tax rate. Investing as an individual also does not provide investors with any form of asset protection from creditors or in the event of family break-ups. Discretionary trusts One of the m

How to improve your chances of selling

  With the selling season almost here, now is the time for those thinking of selling their property to start turning their plans into actions. But with many other property owners also going to market, it is important for sellers to know what to do to stand out from the crowd and improve their chances of selling. Deciding between selling your property by private treaty or auction depends on the market and buyer behaviour. When market demand is high and property buyers are quite competitive, having an auction is more likely to provide the best possible price for the property. However, if you are selling in a busy market, there is little point in opting for an auction. If you’re able to put your property on the market and be guaranteed to receive an offer within a week, there is no point going through a four-week auction campaign. Working out how much you should do up your property should also be a key consideration for property sellers. If your property doesn't look 100 per cent, you

What to do before investing

  Property investment is a popular way to increase a person’s wealth and secure their financial future. But changes in interest rates, fluctuations in supply and demand, and even emotional decision making processes can make the decision to invest in property a difficult one. How an investor manages their investment ultimately determines whether or not they will reach their financial goals. Below are some things to consider before taking the plunge into property investing. Establish what you want to get out of it If you don’t know what you want to achieve, then you will never get anywhere with property investing. You need to be specific about what you want to achieve, how much money you want to make and how long you want to spend trying to get to that goal. Speak to a mortgage broker For beginner investors, a well-informed mortgage broker can be invaluable. Having access to a range of mortgage and property information means they can help you calculate how much you can borrow and provide