| |
There are many benefits in purchasing an investment property.
The possibility of gaining rental income, the expectation
of the property's value may grow, and also the tax reduction
you may receive from negative gearing. |
|
| Australian Mortgage Options offers property investors a wide
range of investments property services that maximise that
opportunity for wealth. |
| Investor Plus is a proprietary AMO investor service that
reduces your home loan term by consolidating your cash flow
from wages, rental income, tax deduction, and therefore maximising
your equity. |
| Visit AMO and we'll show you how you can create more wealth a lot sooner. |
| Difference between Positive and Negative Gearing |
| Positive Gearing |
| Positive Gearing is the ideal position to be in as an investor.
This is when your rental income covers your loan repayments
and/or any other expenses that you may incur. |
| Negative Gearing |
| An investor should be aware of the possibility of Negative
Gearing. Negative Gearing is where the return from the rental income
is insufficient to meet the costs of the investment. |
| This may lead towards the reduction in assessable income for taxation purposes. |
| Tax Deductions |
The benefit of Negative Gearing is that it enables you to
associate your costs involved with your investment against your tax.
|
| Please note: this information should be used as a guide
only. This is not intended to be investment advice. For advice,
please speak with a professional tax advisor. |
- The interest calculated on the loan associated with the
investment property.
- Any loan set-up fees i.e. stamp duty, mortgage insurance,
loan application fees, and valuations.
- Traveling expenses you may incur from maintenance inspections
i.e. airfares and petrol.
- Building maintenance and repairs.
- Expenses i.e. water & council rates.
|
| Elements to Consider |
| There are several issues to consider before purchasing
an investment property. |
- Gain information about the area.
- Does the area attract tenants?
- What is the growth rate of the area?
- Facilities in the area? i.e. shopping centers, medical centers,
schools and public transport.
- Living conditions i.e. heavy traffic conditions, aircraft,
industrial areas.
- What are the rental returns within the area?
- Landlord Insurance should be considered in the case of
unpaid rental payments or damage to property.
- Knowing your tenants.
- Most real estate agents can provide you with information
about the history of tenants(s).
- Try to gain a long lease (e.g. 12 - 18 months)
- Choose a real estate agent that offers property management
services to your satisfaction.
- Ensure you have enough money to cover expenses in the
cases of delay time between tenants.
|
| Please note: Information that is contained on the web
site should be used as a guideline only. You should seek advice
from professional financial, legal and real estate specialists
before purchasing a property and/or applying for a loan. |
