Investing in property in Australia, specifically in Sydney can be quite tricky as the real estate market down under has been doing so well for the past decades.
People wonder if it’s a good idea to put their money in properties because after so much growth there has to come a bursting bubble, right?
But, with the strong economy and low base interest rates (1.5%), investing in Australia real estate may still be good move for increasing your overall wealth and financial portfolio.
Here’s why:
An interesting article written by Bob Korver for Smart Property Investment lists the key elements investors must know before buying a property using their self-managed super fund.
The article states that one of the best things about buying property through your (SMSF) is the low tax rate, currently at 15 per cent. But it’s not just the low tax, there are still two more important factors that you should take note of before investing your SMSF.
Most Australians have set their sights on Sydney for their dream property investment. I say ‘dream,’ because not everyone can afford it.
For many years now, property prices in Sydney have been steadily growing. Even many investors struggle to save up for their deposits. But still, I encourage people to not give up on their dream of investing in a property in Sydney. Here are three important reasons why investing in Sydney property is a great idea:
I just came across a new report from CoreLogic that says that residential rents in Sydney are at their lowest level on record – averaging just 3.1 per cent in April 2016.
Low rental returns can be a sign that property investors are relying heavily on negative gearing to offset their cash flow losses against their taxable income.
There is another easy way to improve cash flow that has nothing to do with negative gearing. Yet according to statistics, a stunning 80% of people investing in apartments are failing to use it.
In a recent article for Smart Property Investment, James Mitchell reports that it takes up to a third of investors more than four years to save the deposit for their next property purchase.
The article goes on to reach a startling conclusion.
Home hunting remains a passionate pursuit in our country and there are many who keep looking for a year or more before zeroing in on the right property.
What you pay for the property is not necessarily all that you’ll have to spend in the pursuit for a home. There are several surprising hidden costs of looking for a home, too.
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