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Australian Investment Property made easy. Property Sauce takes the uncertainty out of property investment.We are a full-service property investment and advisory company.
Monday, 5 December 2011
For as little as $60 per week you too can invest in property
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The decrease in interest rate improves the affordability for people to purchase their own homes and investment properties, and if this downward trend continues into the new year as expected, purchasing an investment property will be even more affordable.However we feel it would be a mistake to view the downward shift in interest rates as the sole catalyst to pursue a property investment. Extensive research into the many factors that can influence the success of an investment, coupled with detailed macro economic analysis as it relates to specific markets and properties is more critical than ever.
ReplyDeleteIn plain terms, negative gearing allows people to borrow money to purchase an income producing property, to claim a tax deduction for many expenses they incur running that income producing property ... including loan interest.
ReplyDeleteYou tax rebates, along with your rental income are used to pay off your loan, with the tiniest in amounts coming out of your own pocket.
The end result ... down the track, the tax man and your tenants will have paid most of your running costs for you and your property will have more than doubled in value, so you can now sell it and earn a tidy profit, or use this system to accumulate multiple properties to use the rental income as part of your retirement portfolio.
In the early stages of investing in a negatively geared property, your costs like interest and so forth, are higher than the rental income you receive, so your property is negatively geared.