Investors

Property:

The idea of negative gearing and its tax benefits was introduced by the government to increase the amount of rental property available for people who were unable to purchase their own homes. This all subsequently led to a rise in property investment and development, which had a positive effect on the overall growth of the Australian property markets.

However, there are many factors to consider when purchasing an investment property, during the ownership period of an investment property, and selling an investment property. Not only is capital growth a desirable feature of a potential investment, but it is also important to ensure you choose the most appropriate entity in which to purchase your investment property. Whether it is in your personal names, in a trust structure or in your super fund, there are many factors to consider before signing a purchase contract. We recognize too that clients’ would like to claim as much as possible in rental deductions during the ownership period, and minimize the capital gains tax upon sale of the property.

Different types of property transactions have differing tax implications. For example, if you are building a house with the intention of selling, you won’t be entitled to the 50% capital gains discount, but will be taxed on the full profit. Also, you may be required to register for GST and pay GST on the sale of the property. It is therefore crucial, if you are thinking of purchasing a property, to obtain professional advice as to the tax implications of that venture.

So what makes for a good property investment? Many people want to get into the property market but are unsure where to source a strong property. It’s essential our clients purchase property that has continuing strong demand of both tenancy and sale. That means each property must appeal to owner-occupiers, tenants and investors. Such properties will provide capital growth, confidence of income, income growth and an appropriate initial yield. We can help you to purchase property wisely to help you achieve your wealth creation goals.

We have many years experience working with property investors to ensure they are getting the most from their investments during the entire property cycle. We also attend many property seminars to ensure we are at the cutting edge of this specialized area.

Shares:

Participating in the share market can also be quite a complex area. Did you know there is a distinction between share investing as compared with share trading, and that there is different tax treatment for each?

Share investing generally relates to those who are investing for long-term growth, whilst share traders are those who tend to buy and sell more regularly to realize their profits. There are many factors to consider when determining whether one is a share investor or a share trader, so to find out more, please contact us.

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