Do you have a passion for property? Perhaps you are interested in entrepreneurship, earning retirement income or keeping steady cash flow aside from your current job. For seasoned property investors and newbies alike, their vision is clear. The opportunity for an income this sizable can’t be passed up. Read on to learn why people succeed with Property Investing.
Property Investment gives virtually anyone the opportunity to see a return on their rental. Aside from the steady stream of income that property investing allows for, real estate typically gains value. This positive value change is called appreciation, and it helps property investors get ahead. For example, one appreciated property can be exchanged for two up-and-coming properties. Can you see the potential for gain?
Smart financing strategies lead to the biggest gains. While cash can obviously be used to purchase investment property, upfront costs are dramatically reduced when financing is utilized. Property Investors know that if they should sell their property, they can maximize their potential for gain by choosing to finance in the beginning. This is one way Property Investing creates wealth fast.
3. Tax Benefits
Property investors can use great tax deductions to reduce their taxable liability. The ATO allows Property Investors to deduct interest for a loan that was used to purchase rental property, to finance renovations or to buy a depreciating item. Even if you have used a loan to purchase land for the development of rental property, the interest can still be used as a deduction. In addition to the robust interest deduction for rental properties, property investors can also deduct costs for any maintenance or repair performed on their rentals. Title fees, loan origination fees and stamp duty charges are also tax deductible. All of these tax deductions lead to lower tax liability and higher income.
After reading this, you might see that it’s no wonder people enjoy Property Investing so much. It’s a fun, lucrative way to earn big income and enjoy great tax advantages.
If retirement is coming up or if you’re searching for a way to make a nice chunk of income, then you should consider the three discussion points above. If you’d like to learn more, contact us today. Our friendly professionals at Custodian Wealth Builders can answer questions and impart valuable advice.