Why Invest In Property?

There may be a time when investing in property may be something that appeals to you, or is something your interested in. Many Australian’s have increased their wealth by investing in property, but to increase your chances you must be prepare to do your homework. The following 10 Questions will help

Where are you going to invest and why? Which city/ you investment is crucial in forming your investment decision. Ideally you want to pick areas that are in demand and where people either want to live or need to live because of work etc. Things like schools, trains, shopping centre’s and distance to work all form part of the aspects of why people will choose to live in a particular area.

As a property investor you will increase your wealth in 2 ways. Through capital gain and rental income. Rental income is simply the income received from the tenants renting the investment property and will usually be used to cover part or all of the repayments on the investment loan used to purchase the property. If the rental income received is more than the repayments on the home loan, the property is considered to be positively geared. If the repayments on the investment loan is more than the rental income received, this property will be considered negatively geared. This is an important point as you the difference between the loan repayments and the rental income received may be tax deductible. This strategy is commonly known as negative gearing.