Investing
GET BACK SOME OF THOSE HARD EARNED TAX DOLLARS
Yes, you've seen it on TV, you've heard it on the radio. Normal people, leading normal lives somehow ending up with a large property portfolio. How do they do it?? What's the big secret?? No secret!! Many people are not aware that there are excellent tax incentives provided by the Federal Government to encourage tax payers to invest for their future. However, it's just not the tax incentives alone that can catapult you into the world of the "multi property" investor.
However, you need to be totally comfortable with the concept. We strongly suggest you contact your account or financial planner for advice taking into account your personal & financial situation.
Clever and strategic planning of receiving your tax rebates sooner (on your pay days) rather than later, structuring your finances and use of equity can see many more people grow their wealth. Discussing your goals with experts in these fields could see you achieve those goals much, much quicker. As we are Property Investment Specialists we can provide you with information that will assist you along this path. Here are some tips we would like to pass on to you:
Invest with little or no deposit
Amongst some of the criteria required for you to be able to invest with little or no deposit* is something called "EQUITY" - sufficient to be able to cover the required deposit and setup costs of the property being purchased. Also, sufficient income is required to satisfy a lender to provide you with the funds to invest.
Equity is the difference between the value of a property and what is owed on it. For example, if a property is worth $500,000 and the total debt against the property is $200,000, the equity amount in the property is $300,000.
The lender will require you to utilise a percentage of the equity for the deposit* and set up costs. In many cases, by using a percentage of the equity, you are getting the investment ball rolling without having to have access to thousands of dollars in cash*. You still have to satisfy the criteria set by the lender to be successful with the application.
If you do not have equity to utilise for your investment, DO NOT despair. If you have a cash deposit you can still get your property portfolio started by purchasing an inexpensive property investment. The bright side is you will still enjoy all the entitlements that are available to investors. AND, you'll have your foot in the door of the property market. It has even become popular for multiple owners to purchase property. Because of the cost of real estate today, people are forming syndicates to get their foot in the door. The advantage of this, of course, is that once you start seeing some capital growth, it won't be long before you can use the equity in the property to buy another.
Please Note: The above information is to be viewed as general information and not specific advice. Local Real Estate does not accept responsibility for any person or organisation that may rely on this information. Please seek professional advice.