July was a positive month for investors in property. It was the first month of the new financial year, The Reserve Bank of Australia decided to keep interest rates at record low levels for another month and it is a time when many Australians eagerly anticipate receiving their tax returns from the Australian Tax Office after painstakingly sorting through their taxes.
The funny thing is, most people consider their tax returns to be large enough to spoil themselves with a new TV or a holiday, but too small to contribute it towards something really significant like an investment property, because they don’t know how to invest tax returns. Many people don’t even think about investing with their tax returns. Sure, if your tax return is a few hundred dollars or even a couple of thousand dollars, it will not be enough to purchase a new property. But saving those taxes instead of spending them can be your first step towards saving for your deposit.
Combine this initial saving with a few minor changes in your daily life and you will be amazed how quickly your deposit will grow, and you’ll see how to invest tax returns to achieve financial gain. Just by cutting out a coffee a day, a few takeaway dinners each week plus that expensive pairs of shoes you don’t really need, you could surprise yourself by saving up to an extra $1,000 a month, just using the return on your taxes. It might sound surprising but it’s possible for strong property investment tax return outcomes to occur.
How to use the taxes you receive back for investment
Yes, it will take you a while to save a 20% deposit with the return on your taxes, but if you are happy to put down less deposit and pay Lender’s Mortgage Insurance your dream of owning an investment property could become a reality much quicker than you think, just by learning how to invest tax returns.
Alternatively, if you already have a deposit saved any extra funds will help you to afford a better house or perhaps a comparable house in a better location. Or if you have equity in an existing property, your tax return might be that little bonus you need to inspire you to look at growing your portfolio. Either way, your property investment tax return outcome could yield promising results.
If the process is managed correctly and with the right advice, you might be surprised to learn how to invest tax returns easily. Put another way, you can own another investment property for as little as the cost of a cup of coffee a day so forgoing your daily detour to the coffee shop could allow you to save for a deposit, and your sacrifice will enable you to possibly purchase another property. Sounds pretty tempting, doesn’t it?
Invest the return on your taxes right
So before you bank your tax return and blow it on a few household bills or some new clothes (which will do little to further your overall position), take the time to stop and think about the best possible use for every spare dollar you have, and consider how to invest tax returns. Property investment tax return outcomes can be great.
Sure, a new pair of shoes or a holiday with give you short term enjoyment and satisfaction, but nothing of value in the longer term. Investors in property have just a little more motivation and discipline, saving their tax return could be the first positive step towards owning a new investment property.
Want to know more about how to invest tax returns? Book a FREE Property Investment Analysis with Investor Assist today. We are helping hundreds of Western Australians achieve financial security through property and we are here to help you. Or you can contact us on 9200 7200 or email@example.com and find out more about how to invest tax returns. Alternatively, if you would like to get started straight away on your property investment journey, download our Assist Kit to help get you started.