5 Expert tips for creating wealth in property
- Ask us if it is worthwhile to have a depreciation report prepared so to unlock more deductions from all the building cost and fixtures of the rental property subject to certain rules.
- If you are on a solid income and the rental property makes a tax loss this can give you a bigger tax refund. This is common when you have borrowed most of the purchase price of the property and therefore your rent less all rental property deductions including depreciation, rates, insurances and interest, will normally mean a tax loss, which is commonly referred to as negatively geared rental properties. This effectively is a deduction against your other taxable income increasing your tax refund. For this reason, both the landlord and tax refund are subsidising your gaining more wealth through property.
- Have income protection insurance when you own rental properties with taxable losses that offset your other taxable income. This is because the value of the rental property tax loss is useless if you have no income. So it is a must to have income protection insurance to ensure you are covered with income no matter what circumstance stops your income.
- Time and owning property equals creating wealth, so do not think about buying property. Buy property and then think so that you do create wealth. Just remember it is a long term investment that over longer time has consistently shown to be a positive investment.
- Most of us can’t spend the money required for an investment property every day so it is a golden opportunity. Make sure it is the best opportunity for your circumstances.
Meet us to help you with building your property portfolio on 83374460
Experts in tax for rental property owners