Use your tax return to get into the property market! Here’s two ways that you can use your tax return to kick start you into property investing:
1. DEPOSIT FOR A CHEAP HOUSE.
Chances are, your tax return is not going to be huge, and probably not be enough to get you living in the home of your dreams. However, it will probably be enough for a small house in a development estate that has good rental demand and growth prospects.
Build a cheap home, rent it out and watch it increase in value over the years. If you’re really clever, you’ll find a house and land package that will cost you less in mortgage repayments than what you will make from rent from the tenants. This means it will be positively geared and it will actually put money into your pocket each week. We can help you find these golden opportunities by helping you analyse different suburbs and compare the rental return with what you would pay in mortgage repayments.
It’s all in the numbers!
2. GO IN TOGETHER WITH FAMILY MEMBERS TO BUY SOMETHING THAT IS PERHAPS MORE EXPENSIVE THAN YOU COULD AFFORD BY YOURSELF.
This is a good way to buy in an area you know and like but can’t afford on your own. Pool together your tax returns and jointly you would have more borrowing capacity with the banks.
This option is perfect for those who wouldn’t mind living in the house for a while, as this will decrease your capital gains tax bill whenever you do go to sell it.
Let us know if you would like more info on jointly owning homes with a relative! Simply call us today on 08 6189 8799.