Posted to news.com.au (30/5/2011) on 31/5/2011 at 2:32 AM
Commenting on "Don't get stung by tax myths"
http://www.news.com.au/money/tax-time/the-great-tax-myths/story-fn8qmzek-1226065548422
This is one of the best articles I have ever read.
I would like to add that property investors have to realise if they buy the property when the market is low and you can get a good capital gain in future, then they are smart. If they buy it at the peak and the interest rate is on the rise, then the maintenance or owner’s corporation, land tax, rates and charges will swallow up the rental income resulting in negative return.
One must not expect 100% rental occupancy for the property; otherwise the bank manager will not be happy when they do not receive repayment on time.
In regards to negative gearing, put in simple language, every successful company or business wants to have a healthy income statement or balance sheet; making a loss to offset tax payment just defies good business practice!
Due to privacy legal reasons, no one really knows how many property auctions in recent times are mortgagee auctions, and how many real estate agents are honest enough to tell you have just bought an over-priced property! What is happening now is just history repeating itself.
Just be careful property investors, there are many traps out there!
Read more:
SinFongChanRealEstate.blogspot.com
Commenting on "Don't get stung by tax myths"
http://www.news.com.au/money/tax-time/the-great-tax-myths/story-fn8qmzek-1226065548422
This is one of the best articles I have ever read.
I would like to add that property investors have to realise if they buy the property when the market is low and you can get a good capital gain in future, then they are smart. If they buy it at the peak and the interest rate is on the rise, then the maintenance or owner’s corporation, land tax, rates and charges will swallow up the rental income resulting in negative return.
One must not expect 100% rental occupancy for the property; otherwise the bank manager will not be happy when they do not receive repayment on time.
In regards to negative gearing, put in simple language, every successful company or business wants to have a healthy income statement or balance sheet; making a loss to offset tax payment just defies good business practice!
Due to privacy legal reasons, no one really knows how many property auctions in recent times are mortgagee auctions, and how many real estate agents are honest enough to tell you have just bought an over-priced property! What is happening now is just history repeating itself.
Just be careful property investors, there are many traps out there!
Read more:
SinFongChanRealEstate.blogspot.com
