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Why Invest?
Property Investment
Property investments can be a great way to create wealth, but it pays to beware of the benefits and pitfalls*. Investing in Australian real estate can benefit you in several ways:
- capital growth
- rental income returns
- tax advantages with negative gearing
Capital Growth
Many investors see their property’s value increase over time. Capital gains on your own home are tax free. Please seek professional financial advice for in-depth information on capital growth and the related tax benefits.
Negative Gearing
Obtaining tax advantages from being negatively geared is when you deduct the non-capital costs of owning an investment property from your overall income. The biggest part is the interest portion of your mortgage, but you may also claim property management fees, some loan costs and costs for non-capital repairs.
Where to buy
Remember it’s an investment property so leave your emotions out of the decision. You want to invest in an area that will deliver growth potential. Things tenants may be looking for are:
- close access to schools, shops and transport
- proximity to parks and beaches
What to buy
You need to perform the same research you would when buying your own home. Remember that units (versus houses) are normally easier to maintain. When things go wrong in a unit complex, expenses may be shared among the other owners. The bottom line should be a combination of:
- what you can afford
- what rent you expect to charge
- what capital growth the property is likely to achieve
Thinking of refinancing? Call us on 1300 308 008 or visit your local branch to talk to an HSBC Lending Manager.
For detailed advice on the above please see a professional financial adviser.
*This document is produced by HSBC Bank Australia Limited for the general information of it's customers. It does not constitute advice in relation to any investment or purchase. Prior to making any investment or purchase you should conduct your own investigation and analysis of any benefits or costs associated with such. You should also seek your own independent legal and financial advice. This document makes no representations or warranties as to the products or services mentioned in this document are suitable for any person or appropriate in accordance with the local law. No consideration has been given to the particular objectives, financial situation or particular needs of any person. To the extent permitted by law No liability is accepted for any direct, indirect or consequential loss which may arise from your reliance on this document.
