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  • What are the benefits of buying an investment property?

  • What are the benefits of buying an investment property?

    When you invest in property, you have the potential to benefit from:

    • an increase in the value of your property over time (capital growth),
    • an additional source of income once the property becomes positively geared.

    You can invest in property directly as an individual or through self-managed super, but there are risks to consider first. For example, the home loan will need to be repaid, and your financial obligations may increase if the rental property is empty.

    For example, the home loan will need to be repaid, and your financial obligations may increase if the rental property is empty.

    Investors are not limited to residential properties such as apartments and houses―they can also invest in commercial properties such as shopping centres and office blocks through managed funds and property investment trusts.

    Property investment can provide tax advantages because the expenses that come with owning a property are tax deductible. However, any income will be subject to tax and when the property is sold, capital gains tax will apply. One of the downsides of property investment is that the large upfront costs can make it challenging for many people.

    However, any income will be subject to tax and when the property is sold, capital gains tax will apply. One of the downsides of property investment is that the large upfront costs can make it challenging for many people.

    One of the downsides of property investment is that the large upfront costs can make it challenging for many people.

    If you are interested in the steps to property investment check our articles steps-to-buying-an-investment-property

    Or call your friendly Awesome Lending Solutions broker.