Negative gearing is a popular investing strategy for many Australian property investors. There are a number of benefits for investors who choose to take advantage of negative gearing. However, it’s important to know how it works and what other options exist before making a decision about which strategy might work best for your individual financial situation. more Different types of gearing The word ‘gearing’ simply means borrowing money to invest. The investor pays interest on the loan amount taken to purchase the investment property. When gearing is leveraged correctly, it can be a powerful financial tool for helping to build wealth, so it’s a popular option for many investors. The key to
It’s always a good time to look at investing in property and you don’t have to be a property tycoon to do it. Many people who have come to Assured are ordinary mums and dads, singles, average income earners and so on. So if you’ve ever thought about investing in property, chances are it’s easier than you think. 1. Use the lenders money to buy your asset. Unlike many other types of investments property is an asset which is relatively easy to obtain a loan for. 2. Use other people’s money to pay off your asset. The great thing about investing in property is that because you are receiving rent, you’re using other people’s money to pay off your investment! 3. Use other people’s money to pay of
It’s been a couple of weeks since the federal budget announcement and since then we’ve had some time to review how the proposed changes relating to plant and equipment deductions will affect property investors. Although we are not expecting the legislation to be finalised anytime soon, we have been talking with government with the aim of developing fair policy which covers all the necessary factors. Many investors who have contacted us have asked how they will be affected. The proposed changes won’t have any effect on properties that are already owned. It will only affect owners who have exchanged contracts on an investment property after the 9th of May 2017. Below are the key points to answ
There are plenty of different ways to build wealth through property. Unfortunately, choosing the right strategy to suit you can be overwhelming, especially if you’ve been receiving conflicting advice or spoken to different experts about your options. For example, a property developer may suggest an off-the-plan property is your best option, while accountants may suggest building a new property to maximize depreciation options. Well-meaning friends and family may also suggest other strategies that worked well for them in the past. The key to choosing the right property investment strategy to suit your financial goals is to remember that your personal financial situation is different to anyon
When people develop a property, they often think they are going to make big dollars. But the reality is, only 20 per cent of developers actually make money. Most of them break even, and some lose money. Here's an observation that I've seen time and time again – when people become investors they often think that by doing a property development, they're going to make big dollars. The reality is that only 20 per cent of developers actually make money. Most of them break even, lose money or lose opportunities. The reason most people want to start property developing is because they see these people driving around in flash cars and so forth but they don't actually see their financials. Someone ha
