Acting On A New Year’s Resolution – Buying An Investment Property
January 14, 2015 Brighton Office News
This month Property Observer published an article by Hodges Brighton Director, Julian Augustini, on the benefits of investing in property in 2015.
Many of us will have undertaken the annual ritual of creating a new set of New Year resolutions. Common resolutions (some kept, many broken) that are guaranteed to have come up again in 2015 are spending more time with the family, volunteering, getting fit and reading more books. But what about increasing your wealth?
Improving one’s financial position is a common resolution and there are many different ways to go about this, investing in property being one of the most popular. Due to the relative stability offered by buying an investment property, it is becoming an increasingly popular investment for those with self-managed superfunds (SMSFs).
Some other pros of buying an investment property in the New Year include supplementing your salary or superannuation with rental income, the tax benefits that can be taken advantage of and benefiting from capital growth when you purchase wisely.
While these financial benefits represent a huge drawcard, it’s important to remember that owning an investment property can pose challenges too. Realistically, there will be times when a property is vacant, resulting in no rental income, even though you have to keep up with your repayments if you’ve taken out a loan. Furthermore, while most tenants pose no issues, unfortunately, sometimes a property does get damaged or rent is paid late.
To read the full article on Property Observer, click here.