Property investments are a great way to build your wealth and ensure long-term profitability. They can be a stable form of investment and may also offer many tax benefits. However, becoming a property investor can be a daunting task as it requires a lot of commitment, time, and money.
If you’re looking to buy a property investment in Australia, here are five tips to help you get started.
1.Review your budget and financing options
Before buying an investment property, it’s important that you take a good look at your budget and whether or not you can sustain the cash flow requirements of managing an investment property. This is especially so if you don’t have a tenant.
Once you have worked out your budget, you should then look at investment property loans and aim to get a pre-approved amount so you have a clear picture of how much you can spend. Mortgage brokers can help you settle an amount and get information about interest rates.
2. Set your investment goals
Right from the start, you should be clear on what you’re trying to achieve through your investments. Consider your long-term and short-term goals to create an investment plan that incorporates how you will achieve each one.
Your goals should follow the S.M.A.R.T acronym which means they should be specific, measurable, attainable, relevant and time-bound. Remember also that any financial planning advice must be provided by a financial planner.
3. Understand investment property tax deductions
Understanding tax implications is a crucial part of being a property investor. There are various rental property tax deductions that you can claim in your tax return including property management and maintenance expenses, property agent fees, legal expenses, body corporate fees, council rates, and repairs and maintenance. Meanwhile, you can claim the costs for borrowing expenses, special building write off and depreciation over several years.
That said, maximising tax opportunities and legally minimising tax liabilities requires in-depth knowledge of Australian tax. It’s highly recommended that you seek an accountant and tax specialist to assist you.
4. Find the right rental property
Finding the right rental property requires careful consideration. You’ll need to do your research on the property market you are considering buying in, the demographics of the suburb, and what properties are selling for. Remember: it’s an investment– find a property that can maximise rental, as well as capital.
Location, location, location I hear you say and a location that is continuously growing has potential for capital growth. Things to consider are access to public transport, has a stable job market, and has a low crime rate. Other amenities like restaurants and parks in the area are also things to look out for.
5. Get Expert Tax Advice for your property by contacting Craig Allen and Associates
If you have purchased or are considering buying a rental property, Craig Allen & Associates are experts in rental properties. Schedule a free, no-obligation consultation now by contacting our team at 039 558 7316 or emailing us at craig@craigallen.com.au.
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