Invest in Property & Reduce your Tax!
- October 6, 2016
- Posted by: wpgroup
- Category: Investment Property
There has been plenty of hype on this subject for some time now with absolutely no change. There is a good reason as the full ramifications to the property market and economy at large are perhaps not fully understood. It would be a very bold Government to make any changes as this sector drives construction across the country. Developers will not be eager to invest if they face obstacles selling their finished product.
Negative gearing is here to stay, the issues with the rise in house prices in particular Sydney is due to supply. There will be new stock coming to market in the next 12-18 months and this will no doubt slow demand and will not push prices up at the current rate. Investors are gearing up by taking advantage of the low interest rate climate but this will not last forever.
Investors buying now in Sydney are paying the top price and will in the next couple of years see little capital growth. So rushing to buy now in Sydney and out suburbs, must be given due consideration keeping in mind the long term return.
First time investors looking for locations have to look no further than the inner Brisbane market where the supply chain is in contrast to Sydney with strong potential for growth. The tax advantages can make a big difference and incentive to own now rather than later.
You purchased a property for $532,000
Annual Expense $41,400
Annual Rent $31,200
Deductable Loss $10,200 + $13,354 = $23,554
Tax refund @37% marginal rate $8,715
So if you are looking to make the move we will provide the professional and well researched guidance for you.