What should I be aware of when purchasing an investment property?
June 29, 2015
Before purchasing an investment property, we highly recommend that you see a qualified accountant to assess your personal situation and determine how investment property ownership will affect you. Some of the issues to consider include:
- Affordability in owning an investment property?
- Who will own the property? i.e. Personal name or joint names, a company or trust structure or even a Superannuation fund.
- Do you know the pros and cons of Company ownership v’s personal ownership?
- Negative gearing benefits whilst holding the investment property
- Who will the borrower/s be?
- Do you know the rental return from the property?
- Will you manage the property yourself or will an agent manage it on your behalf?
- Are you aware of tax deductible expenses in owning an investment property? Improvements v’s repairs.
- Are you aware of depreciation benefits? Make sure you get a Depreciation Schedule!
- Capital gains implications when you sell the investment property.
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