Do you have concerns about having enough money for your retirement? Many people have found that investing in property can offer an alternative to investment in stocks and bonds or other forms of retirement investment.
One of the key benefits of a property is that it can provide an income through rental return. A property bought early enough could also provide equity to allow you to grow a property portfolio. Property investment brings best returns when the investment strategy is future-focused, as the property cycle will have highs and lows. Like all investments, no one has a crystal ball to make accurate predictions, but over a long term period it is unlikely that a real estate investment will not provide a significant appreciation.
Property investment also provides many tax deductible expenses that wind up saving you money in the long run. Repairs, management fees and other owner related expenses can offset taxable income because the property is effectively ‘making a loss’. This ‘negative gearing’ means you will have less tax to pay when the financial year ends in June. Any expenses related to the property while it is rented or available for rent (i.e. when you are looking for a tenant) can be claimed as deductions. Interest on your loan is usually claimed immediately. Capital improvements, borrowing expenses and depreciation are deducted over a number of years.
A Self-Managed Superannuation Fund (SMSF) can also be means of property investment for retirement. These funds allow you to take greater control over your superannuation and use superannuation money for a range of investments (more information about SMFs can be found here and here).
If you are interested in exploring the idea of property investment, Accrue Real Estate is an experienced, premium property introductory service which will take any stress out of the investment process. The team at Accrue know the Melbourne property market and have well established relationships with a range of professionals across all the related areas of property investment. Make your property dreams reality by contacting Accrue Real Estate.