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Buying an investment property is widely considered to be one of the best investment choices. Investment properties are an easier investment for most people to understand than other forms of investments. It’s also fairly simple to leverage the equity in your home to buy an investment property.
Here are some of the benefits of buying an investment property.
Tax benefits
Property investors can enjoy a number of tax benefits from their investment properties, including:
- Depreciation: Investors can claim a depreciation allowance on fittings and fixtures in their rental property, and may also be able to claim a building allowance.
- Negative gearing: If the property is negatively geared (when the outgoings exceed the ingoings), you can offset the rental income and save on tax.
Capital growth
Investors may benefit from capital growth when they sell their investment property. Capital growth is where the property rises in value between when it was purchased and when it was put up for sale.
Lots of factors can impact the price of your property, including location, supply and demand, conditions in the market, and any improvements that were made to the property.
Form of passive income
While there is a lot of legwork involved during the initial stages of investing (finding tenants, applying for a loan, etc) after that you can pretty much sit back and generate a regular income without making much more of an effort.
Relatively stable investment
Rental property is always in demand in Australia (particularly at the moment) so low vacancy rates are common, particularly if your property is well located. Property investment can be a less volatile form of investment than other forms of investing.
Start your investment journey with loans.com.au
Whether it’s an apartment or a house you’re looking to buy, you can check out loans.com.au’s investment loan rates. Or, if you’re ready to get started chat with their team of lending specialists today and find out how you could save thousands.
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