One Private Wealth

Property

Buying an Investment Property has been a successful wealth creation strategy for many Australians.

Superannuation won’t be enough? Why Property investing is the key.

Buying an Investment Property should be considered, along with your Superannuation and other Investments as part of your overall wealth creation strategy to fund your future retirement.

The first exposure to Property in most cases will be the purchase of your first home. We have all witnessed over time the capital growth in our homes due to economic factors such as increasing home buyer demand, lower interest rates and increased foreign investment.

In most cases your Superannuation will not be enough to fund your retirement, so buying an Investment Property should be considered as part of your wealth creation strategy. This is where we advise clients on how they can access equity in their home along with a cash flow analysis to determine borrowing capacity and serviceability.

Benefits of Property Investment

Buying an Investment Property provides many benefits as part of your wealth creation strategy. This is explained below;

  • Most Investors feel comfortable with buying an Investment Property versus shares as it is a tangible asset, an asset they can see.
  • Historic growth in Residential Property over the decades has assisted many clients to build wealth through property investing (including their home).
  • With the increase in capital growth on Residential Properties, this is also reflected in increasing rental yields so properties over time can move from a negatively geared investment, to neutrally geared and long-term to a positively geared investment.
  • Buying an Investment Property is traditionally great for tax planning but the structure and asset ownership is integral to capture these tax benefits.
  • Buying new Properties over established properties also provides greater tax advantages due to the depreciation that you are allowed to claim on the ‘building price’ each year.
  • Buying your first Investment Property today is much more achievable due to the current low interest rates on investment loans.
  • Tax variation forms also assist with the ongoing cash flow management of owning an investment property.

How we can ‘HELP’ you?

We can assist you with the following:

  • Advice on your current Equity Position.
  • Eligibility requirements for an Investment Loan.
  • Cash Flow and Tax Considerations on a potential Investment Property purchase.
  • Advice on the correct loan structures for your Investment Property.
  • Help get you in a financial position so you are ready to buy.