| Investing in property is a great way to secure
your future. In fact many of Australia's
millionaires have created their wealth through real
estate. In order to maximise your investment there
are many factors you need to consider. |
| Prior to purchasing an investment property we
recommend that you consult experts in the property
investment Field. |
| Southern Cross Property Group are investment property
specialists:
www.southerncrossgroup.net.au |
| The Finance |
| To ensure the highest tax deduction possible,
many investors opt for an interest only loan when it
comes to investment properties. Most banks offer an
interest only period of 5 years and some even offer
a 10-year period. In the interest only period the
ongoing loan balance remains the same as the amount
originally borrowed due to the fact that only
interest is being paid instead of principal and
interest. This means that the amount of interest
that can be claimed as a tax deduction is maximised.
This type of loan also allows you to free up cash
flow to save for deposits on further real estate
purchases. |
|
Another strategy that can be used when it comes to
financing real estate is to fix the interest rate
for the entire interest only period. Not only does
this protect you from the possibility of increasing
interest rates but also it provides certainty as to
the repayments you will need to make for the entire
period. It allows you to accurately budget for the
period. |
| These are only examples and you should contact
our consultants for further information and
strategies on Investment Finance. |
|
The Property |
|
The characteristics that you look for in an
investment property are largely dependent on its
location. Capital growth, Rental return, Tax
deductability and Affordability. |
|
The ideal investment property will differ from
client to client. |
|
Firstly the property should be affordable.
Comfortably fit in ones borrowing capacity and any
outlays easily covered by the Investor. |
|
Secondly be located in an area of growth which
includes a growing infrastructure. |
|
The Correct Finance structure is essential. |
|
Tax deductability should be maximized. Tax
variations allow investors to receive their tax
deductions throughout the year instead of waiting
until the end of the financial year which can help
with cashflow. |
