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.
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.
If you have lines of credit and if, additionally, you have a property investment portfolio, there is a common and a frequently occurring error you should not forget about in a hurry. Certainly when the error can cost a great deal to rectify!
Australians stand to save a whole lot of money (and I mean real cash) if they can be more heedful towards the way they treat their tax returns. Australians cannot shy away from their housing debt and using the tax returns to service their debt can be one brilliant strategy.
The government will take a few key decisions after it diligently analyses the tax structure prevalent in the country. The stamp duty- widely dubbed as the ‘worst form of taxation’ can come under the scrutiny, too. Andrew Jennings talks about the issue in an article for the website The Adviser.
Investors love the idea of capital growth. This said they are not averse to the concept of high rental yield either. In fact, things boil down to how a particular investor is planning his portfolio. Negative and positive gearing both have their merit after all? I will be none the poorer by elaborating on this subject….hasn’t gearing caught public attention for a long while?
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