As you start planning for your retirement, you want to make investment choices that are stable and reliable. You never want to go to sleep at night worrying that your nest egg might vanish because of a poor investment decision. You want to be confident that your wealth will be safe and you can live a happy life post-career.
This is exactly why investing in property is such a healthy life choice. When you buy real estate, you can sleep easy knowing it will appreciate in value and your wealth will grow steadily over time. This is such a good financial move that it’s often worth taking out loans just to finance it.
Knowing the benefits of property investment
Some people are intimidated by the prospect of investing in property because of the hefty deposits and long- term mortgage repayments required, but it’s often well worth it. One of the key benefits of real estate is the lower volatility – when you buy a house, it’s almost certain to appreciate in value over the long run.
The other benefit of owning an investment property is the chance to generate extra income. With shares of stock, you only make money when you sell them, but with a home, you can rent it out and collect monthly payments. There can also be tax benefits to renting out an investment property.
Understanding the tax implications involved
If you own a rental property, you may well be able to write off maintenance and other costs as business expenses when doing your taxes. This is only if it’s for rental, though. The Australian Taxation Office (ATO) cautions that if you simply own a place as your private holiday home or hobby farm, you generally can’t claim any deductions.
Because of this key distinction, the ATO emphasises that it’s imperative to keep detailed records on all real estate transactions. This will help you verify what’s a business expense and what isn’t. For help with this process, you can consult with home loan brokers who know all the ins and outs of property investment.
Let us help you figure things out
Property investment can be a great opportunity, but it’s also complex. We know your local market and can help you make sound decisions – putting you in a much better position to succeed.