Seeking more information about investment property

Viewing 5 posts - 1 through 5 (of 5 total)

williamwpy
Member
@williamwpy
Join Date: 2012
Post Count: 7
September 22, 2012 - 8:00 am
I just have been living in Australia for about two years and I am considering invest in some real estate properties. My friend told me that in Australia, you can buy some real estate property which is exclusive for investment purposes and the prices is much lower that the normal market price. However you cannot live in this property yourself as it is only for investment purpose.
Could anyone give me some idea about this kind of property and where i can search more information about it.
Thanks
Willaim
Derek
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@derek
Join Date: 2004
Post Count: 3,544
September 22, 2012 - 8:44 am
Hi William,
Your information is not quite correct and it is a little more complex than your friend's explanation.
The price you pay for an investment property is no different to the price you pay for a property to live in.
When you own a property you will need to pay for expenses such as rates, insurance, loan interest, repairs and so on. As a home owner you will need to pay for all of these expenses yourself. As an investment property owner these expenses are offset against any rental income earned.
In Australia when you sell an asset (and make a profit) you will incur capital gains tax. This tax is applied to all assets apart from your own home.
What I have explained here is a 'rough' outline of the differences and there is so much more to cover.
Jacqui Middleton
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@jacm
Join Date: 2009
Post Count: 2,539
September 22, 2012 - 10:15 am
Also any profits you make get taxed differently if you are not living in Australia.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone Me
VIC Buyers' Agents for investors, home buyers & SMSFs.
williamwpy
Member
@williamwpy
Join Date: 2012
Post Count: 7
September 22, 2012 - 11:50 am
thank you very much, that is very useful.
insano
Participant
@insano
Join Date: 2009
Post Count: 34
September 22, 2012 - 2:55 pm
williamwpy wrote:
My friend told me that in Australia, you can buy some real estate property which is exclusive for investment purposes and the prices is much lower that the normal market price. However you cannot live in this property yourself as it is only for investment purpose.
If only that were true, I think what your friend was thinking there was managed serviced apartments which seem to be cheaper then non managed apartments, have rental guarantee ect ect and those you'd not be able to live in yourself.