Investing in property is a great way to diversify your investment portfolio and, when done right, will unlock the doors to a more financially secure future. When you purchase an investment property, you can improve on it through renovations so that you can sell it at a higher price or hold onto the property and rent it out, generating regular income.
One of the first things buyers and tenants notice when they’re looking at properties is, of course, how it looks from the outside. Regardless of how attractive a property may be inside, an off-putting exterior gives a bad first impression, and a property that looks good externally will attract more people.
Investing in a property is a complex process that requires a great deal of research and deliberation. But when done right, property investment is a smart, wealth-building strategy that can provide financial security for you and your family now, and for years to come.
The median house price has gone up yet again and has now reached a whopping $1,000,500 in Sydney and $715,549 in Melbourne. With the rising cost of housing in Australia’s capital cities, it’s becoming increasingly challenging, even unaffordable to get into the property market. Given the recent housing pricing trends, investors and aspiring homeowners have begun looking elsewhere for their next property.
Now is the time of the year some people consider paying 12 months of interest upfront to claim the tax deduction in this financial year. If you have sold a property and have a capital gain liability, or have come into some money via a bonus or something, paying the interest upfront and claiming the deduction this year can be a good way to reduce the tax bill for the year.
Many lenders will offer a discount on the interest rate for paying in advance, for example Commonwealth Bank have an interest rate of 6.54% for paying 1 year upfront if you are on their professional package. This is less than the discounted variable rate, of course you are taking a risk as to what interest rates will do over the next 12 months.