Why invest in property
Potential capital growth
While there are peaks and troughs in the Australian property cycle, property is an asset class that has increased in value over time. Based on the past performance of the Australian property market over the long term, you can generally expect the value of your property to grow and provide a strong return on your initial investment.
Ongoing supplementary income
Talk to a mortgage broker or credit professional who can give you a second opinion on your current situation, as well as a professional’s guide to what the market is currently doing. Their advice should help you answer the questions above and give you an idea of the most suitable loan for you. They’ll also look at your current and projected financial position to give you an idea of what you may be able to borrow.
Add further value
You can add value to an investment property by renovating. Changes you make can add further value to your property meaning your potential return at sale, and the amount you can charge in rent, increases too.
When you invest in property your investment may provide you with benefits at tax time if you have the right investment structures in place. Through negative gearing you may be able to reduce the amount of tax you pay on your personal income. By taking a long term view and keeping your property for more than 12 months, you may be eligible to pay a reduced amount of capital gain tax on any profits from the sale of the property.
Start the application process
Ask your mortgage broker or credit professional to get the application process started for you, so you’ll be ready to buy once you find your ideal property.