Property Investment News, Tips, Tools, Strategies, Experiences, Case Studies, Outlooks
I read an article titled “7 questions to ask yourself before buying an investment property” somewhere on the Internet. The first question of the 7 questions is “Can I afford it?” I suddenly realised that I have never done a blog post on how my website visitors could use my investment property calculators to help …
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Find out why using Trust to own investment property – Distributing income and capital gains For taxation purposes, a discretionary trust provides maximum fl exibility in terms of the annual net rental income of the trust and/or any capital gain on the sale of an investment property. This is because the trustee has the discretion …
Find out why using Trust to own investment property – Recouping tax losses Any negative gearing loss generated by a property owned by a trust is usually trapped in the trust, unless the trust has other income to offset the loss. While the trust can theoretically carry forward tax losses for an indefinite period, the …
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Find out why using Trust to own investment property – Passing on 50% CGT discount Unlike a company, which is not eligible for any capital gains tax (CGT) discount, a trust is eligible for the 50% CGT discount provided that the trust has held the property for at least 12 months before it is sold. …
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Find out why using Trust to own investment property – Passing through depreciation and capital works benefits Perhaps one of the main reasons for trusts being favoured as a property investment vehicle, instead of a company, is its ability to pass on any net cash profit. These profits can be passed from the property that …
Find out why using Trust to own investment property – Introduction By law, a trust is a relationship under which the trustee of the trust looks after the trust’s assets for the benefit of the beneficiaries. If it is set up properly, a discretionary trust may offer reasonably effective asset protection as the beneficiaries of …
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People shopping around for home loans could be missing out on the best deal because they don’t understand or don’t even know about a key indicator of the actual cost of a mortgage – loan comparison rate. A loan comparison rate is an important tool for people to compare lenders on an even playing field: it …
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We have often heard of a friend (or a friend of a friend) who is making a killing with investment properties and wonder why I cannot do the same? With the housing market on the rebound, home values are rising across the nation and it could be a great time to invest in some properties. …
In any type of investment, rewards and risks go hand in hand. Property investments, in recent years, have become an integral part of almost all mixed asset portfolios. But is property a fail proof investment? Well, I don’t have an answer. However, I do know that some of the very common challenges faced by the …
Do you as a property owner know that your home address number could means tens of thousands extra dollars when you sell your property to Chinese buyers? Some Chinese home-buyers will pay tens of thousands of dollars more for addresses containing the number eight, but shun those with a four. AC Property estimated Chinese buyers …
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The latest Association of Superannuation Funds of Australia research shows that, in general, a couple looking to achieve a comfortable retirement needs to spend $57,195 a year, while those seeking a ‘modest’ retirement lifestyle need to spend $33,120 a year which means that the average couple need a lump sum of about $660,000 to survive …
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As a property investor can you ignore the strata levy though nobody likes them? The short answer is NO! Why you should NOT ignore it Firstly, a compulsory 10 per cent penalty interest rate is applied to all overdue levies. Secondly, as well as interest, the costs of recovering the debt are entirely payable by …
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There have been a number of common mistakes identified in the tax returns of rental property owners. To help you, ATO has compiled a list of what you should do and common mistakes to avoid. If you have an overall property loss If your total rental expenses exceed your gross rental income, you have incurred …
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The most common misconception about negative gearing is that it allows you to reclaim the entire shortfall between rental income and expenses from your tax bill. The reality is that only a proportion of the above-mentioned losses can be claimed, in line with your marginal tax rate. So if you pay tax at 30 per cent, you can claim …
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If the buying investment property deals sound too good to be true, they might be US home scams. The number of property spruikers promising to enrich Australians by cashing in on the distressed US housing market has soared in the past six months. However, the Australian Securities and Investments Commission continues to warn investors about …
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