How Investment Properties can Lower Your Taxes
Contrary to what many naysayers believe, real estate is still one of the best investments anyone can make. While many who owned investment property were definitely inconvenienced by the Global Financial Crisis, there never was a collapse as there was in many other countries, and those who held on to their properties are watching with glee as the market climbs back to where it was before the slump.
Even those who temporarily “lost” money during the crisis are finding out that, not only did they not lose money, but they actually gained money, thanks to the concept of negative gearing. Negative gearing is a technique where the owner runs a rental property at a loss on paper, but the losses are more than offset by the tax advantages and the long-term appreciation of the property’s value.
The Australian Taxation Office often takes a cynical view of rental or investment property, but with the help of competent, reputable financial management professionals, a property owner can make sure they are operating within the tax regulations, and feel safe that they are creating a more-than-acceptable long-term income from the long-term performance of the property.
At Highland Financial, we recommend that you monitor the following to ensure that you can maximise the ROI on your investment property