Investing in Property Basics

Investing in property can be a little daunting; so if you’re thinking about investing but are unsure where to start, or if you’re an experienced investor wanting extra advice, we can help.

Basics #1 - Consider the Benefits and Risks
Basics #2 - Negative Gearing
Basics #3 - Taxation
Basics #4 - Insurance

Basics #1 - Consider the Benefits and Risks

Investing in property not only gives you a solid tangible asset, it also provides you the opportunity to build your wealth through increasing property values and the various taxation benefits available.

But like any investment there are risks and costs you should consider before taking the first step. You need to take into consideration such things as purchasing costs including stamp duty, legal fees and loan establishment fees; holding costs including rates and taxes and property maintenance; the interest expense on any borrowings vs rental income expectations; the possibility that the property may be vacant from time to time and whether you may be able to achieve higher returns by selecting other investments. 

We can arrange for you to meet with a consultant from our financial planning subsidiary Eastwoods Wealth Management who can help you to realise your investment goals with smart financial planning.

Basics #2 - Negative Gearing

Basics #3 - Taxation

There are a variety of tax benefits available from your investment property, deductions will vary and it is important for you to understand what you can and cannot claim. You may also need to consider capital gains tax when you decide to sell your investment property so be sure to speak to your accountant.

You can visit the Australian Tax Office website for useful information but remember:

• Keep adequate records to prove your income and deductions as well as your ownership of the property for at least 5 years.
• Keep investment and personal borrowings separate. Claiming loan interest depends in the purpose of the loan and keeping your loans separate makes it easier to calculate your deductible interest.

We can arrange for you to meet with an accountant from Eastwoods Accounting and Taxation who can assist you with a wide variety of accounting and taxation services.

Basic #4 - Insurance

You have worked hard to establish your investment property and the regular income that it provides so it makes sense to protect your investment. 

Important Information
This is general information only and has been prepared without taking into account your objectives, financial situation or needs. You should speak with a qualified professional before making an investment decision. Any representation or statement is made in good faith.

For specific details on insurance products please refer to the relevant Product Disclosure Statement (PDS) which is available from us or download a copy. You should consider the PDS and whether the product is appropriate for you before deciding whether to acquire the product.