THE ADVANTAGES OF NEGATIVE GEARING RENTAL PROPERTY

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As the level of Wages increases the amount of tax paid each year on the group certificates is frightening. If you are frustrated about the amount of tax you are paying there are ways to reduce the amount and at the same time expand your wealth with the assistance of the tax office and a total stranger who would become your tenant.

This is how it works – Negative gearing is when the income from an investment is exceeded by the amount of deductions available, hence creating a deduction on your tax return. The level of this deduction depends on the type of investment and many factors which come together to create this negative gearing effect.

CASE STUDY:

Mr & Mrs A can purchase a property which attracts them. However because they have purchased a property on their own likes and dislikes they will probably end up with a low negative gearing level.

Mr & Mrs B seek good professional advice and discover that the property that will bring them a large negative gearing and hence a big tax refund each year , may not necessarily be the house they wish to retire in. However it meets all the requirements to result in the big refund and a worthwhile asset on retirement.

There is much to learn about investment properties before you make the purchase.

• We will endeavour to assist you with information which will end in a profitable decision for you and a secure financial future.
• When you are ready and confident in your knowledge and our understanding of your position, we would be delighted to assist you in the purchase and maintenance of your property.
• When purchasing a new property, be very aware that if you are not purchasing from the builder you are probably buying from a marketer and their fees will be included in the purchase costs. Hence the amount you borrow for the house will be far in excess of the value.
• Many years down the track your property may still not be worth the amount you paid because of these costs.

Property investment is a long term investment which, if purchased correctly, financed correctly and maintained correctly will be your financial security.

Please visit our web site at www.patwinn.com.au to get a good idea of our financial services aimed at enhancing the knowledge base of someone special to us that is YOU.

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