If I had $1 for every time someone approached me and asked the question “should I buy an investment property”, I would own a lot more properties.
It is true that investing in property can be a daunting decision, but if you are one of these people questioning should I buy an investment property, then read on for why, yes, you should buy an investment property.
It is important to understand that the property market moves in cycles. When deciding whether or not you should buy an investment property now, it is imperative that you know where in the cycle the market is. Property values have the potential to rise, remain steady, or even decline. These cycles should be taken into account when deciding whether or not you should buy an investment property.
Investing in property can have many benefits. First of all, investment properties have the potential to generate capital growth. Capital growth is the increase in the value of your property over time. Secondly, generating rental income from tenants assists in paying off your investment property.
I consistently tell people that a great benefit of investing in property is the tax deductions that are available. The Australian Taxation Office provides property investors with tax deductions due to the fact they are supplying property to the rental market. These deductions can help in reducing your tax bill and improving cash flow, which can help in the decision process of whether or not you should buy an investment property.
You may still be wondering “should I buy an investment property now?” and whether or not you can afford to. Well, there is more good news.
While everyone has undoubtedly experienced some form of bad debt in their life, investing in property actually has the potential to become good debt.
What is good debt you may ask? Well the good debt from purchasing an investment property allows you to earn income through rent and provides you with tax deductions while the property is simultaneously increasing in value above the initial cost. In May of 2014, I posted a blog outlining ‘Ten Tax Tips for Property Investors’
which can be used by property investors as a guide on how to maximise their tax deductions.
An advantage of investing in property as opposed to shares is the fact that you can have more control over your investment. You may be wondering why this would be a reason as to why you should buy an investment property, however being in control of where you buy, how you buy, and when to sell the property gives you the maximum potential to turn your investment property into a profitable purchase.
Purchasing an investment property is a relatively easy exercise, and at Investor Assist we aim to make it even simpler for you. If you are still questioning, “should I buy an investment property?” then my answer would be yes. If you have any further queries or would like to know more as to why you should buy an investment property now, you can contact our team of Property Investment Specialists on 9200 7200. Alternatively, our Assist Kit
, available on our website, contains plenty of information that will be of use for you.