Investing in Property
Residential property can be an outstanding investment.
Australians have a strong track record of investing in residential property, and it’s not surprising. A well chosen property can offer three key advantages:
- Regular rent returns
- Long term capital growth
- Tax effectiveness through significant potential tax savings.
Mortgageport helps you establish a firm foundation, with tailored advice on the right choice of loan.
You can become a landlord
Almost anyone can become a successful property investor and reap the rewards of bricks and mortar. There is a wide range of funding options available, and as an existing home owner you may even be able to use your home equity to help fund your investment. Your own personal Mortgage Consultant can explain how this could work for you.
Some of the key considerations and features of residential property investment include the following:
Negative gearing and discounted capital gains – potential tax pluses for landlords
We often hear about the negative gearing benefits that landlords enjoy. Put simply, negative gearing means the costs of owning a rental property, including mortgage interest, are greater than the rental income it generates. The loss is tax deductible, and can be offset against your other income, including wages or salary, to provide valuable tax savings.
In fact, depending on your personal tax rate, negative gearing could effectively almost halve your real interest costs on your property investment after income tax is paid.
The tax savings on a rental property also extend to long term capital gains. A 50 per cent discount applies to any taxable profits made on the sale of the property, if you have held the investment for over 12 months.
It’s always important to secure professional tax advice about any investment, and property is no different. Your tax adviser can outline the benefits of a property investment for your particular circumstances.
Choose, plan and budget well – it pays off
Choosing the right property, and paying the right price, are vital ingredients of successful property investing. But that’s not all. When deciding your investment strategy and determining what you can afford to spend, you should also consider the potential costs of owning a rental property.
- Upfront charges to budget for include legal fees, stamp duty, loan application/establishment fees and pre-purchase inspections.
On an ongoing basis, you will be required to meet a range of property-related expenses including insurance, land tax, rates, maintenance, repairs and possibly property management fees. These ongoing costs, including interest on the mortgage, can be claimed as tax deductions, which reduce the after-tax cost. Your Mortgage Consultant can give you more information.
MATCH puts you in touch with the right loan
As an investor you enjoy a wide selection of loans and repayment options including interest-only repayments, a line of credit loan, or a fixed rate loan. Your experienced Mortgage Consultant can guide you through the choices available, using our unique loan selection system - MATCH, to recommend the loan that will help you make the most of your property investment.
MATCH involves a proven 6-step methodology that takes an in depth look at your situation to provide a thorough understanding of your needs. It lets your Mortgage Consultant confidently recommend the mortgage that is best suited to your circumstances.
Best of all, our mortgage broking service is free of charge to our customers – you pay nothing at all.
We’re here to help. No stress. No hassle.
Mortgageport is here to help at every step of your journey - from your initial meeting with us through to taking possession of your investment property. And we always put your interests first.
As part of our commitment, we’ll review your investment loan every two years, to ensure you continue to enjoy the best loan available for your needs. Our Future Proof Loan Commitment gives you the freedom and flexibility to switch loans as your circumstances change without some support towards the costs of switching.
Its part of Mortgageport’s dedicated service, to be with you for the long term, making life as a landlord easy, manageable and more rewarding for you.
To discuss how you could become a property investor, please contact a Mortgage Consultant on 02 9466 8200 or email us at info@mortgageport.com.au. Our Mortgage Consultant will arrange to meet with you to work out which investment loan product suits you best. They can also help you calculate how much you can afford to borrow. Alternatively, make an appointment to visit our Milsons Point offices, where it’s possible to have your new loan approved within 24 hours.
