Buying, selling and investing in real estate involves some of the biggest decisions and financial commitments most people will face in their lives. Thorough research and a sound knowledge base is the key to stress free real estate transactions. Not everybody has the time, the confidence, the inclination or the resources to do property investment by themselves, especially for their first. At Blueprint Wealth Management in conjunction with our team of independent property experts, we can assist you in purchasing a suitable property, in a good location at the right price.

National Rental Affordability Scheme (NRAS) - is a long term commitment by the Australian Government in partnership with the States and Territories, to invest in affordable rental housing. Investors In NRAS receive a tax free payment from the government for 10 years. Click here to find out more.

Outlined below are some of benefits of investing in property.

1. Invest for capital growth and use rental income to boost your affordability

Investing in property can provide you with two separate returns; capital growth and income. This simply means your initial investment has the potential to increase in value over time and (assuming the property is rented) provide you with a source of income.

2. Gain access to high levels of leverage

Compared to some other investments, you can borrow a lot of money to purchase property. For instance, it is not uncommon to finance 80% of the purchase price and sometimes it is possible to finance in excess of 100%

3. Borrowing is cheap

The interest rate on property loans is often less than for other investments.

4. Investment choice

You have countless options when investing in property; new or old, house or unit, established or off-the-plan, building and land or land only, city or country, single or multi-storey and so on.

5. Choice of ownership structure

Property is a very flexible investment in terms of ownership and can be purchased under a range of structures including solely, jointly, as tenants in common or via a trust, self-managed super fund (SMSF) or company.

6. Stable returns

Whilst property values have decreased from time-to-time, historically, they have fluctuated less compared to some other asset classes. Investing in property may therefore allow you to reduce the overall volatility (i.e. risk) of your investment portfolio whilst maintaining capital growth potential.

7. Ability to unlock equity

As your property increases in value over time, so does your equity. Lenders will generally allow you to borrow against the available equity in your property to fund other investment opportunities.

8. Reduce income tax through negative gearing

Investing in property can be an effective strategy to minimise the amount of income tax you are paying. This is because properties attract a number of upfront and ongoing expenses which can be tax-deductible to you. Deductible expenses are subtracted from your assessable income to calculate your taxable income (i.e. the amount on which you pay income tax). A property is negatively geared where the ongoing costs (i.e. expenses) exceed the income (i.e. rent) received.

9. Create a passive income through positive gearing

Properties may also be positively geared. This is simply the opposite of negatively geared, that is, rental income received exceeds ongoing expenses.

However, before you invest in property you should ensure it is suitable for your individual circumstances. If you would like more information on our property services or would like to discuss how we can help you achieve your financial goals please call (03) 9092 0664 or complete our enquiry form.