With
an investment property someone else pays the mortgage for
you. While you are paying off your home, you are building
up equity. Equity is the difference between the current
value of your home and the amount you owe the lender.
This equity is a powerful investment
tool and one you should be making work for you. You can
use this equity to purchase an investment property and then
have tenants pay the mortgage for you.
With the current economic climate of
low interest rates, competitive property prices and higher
rental incomes, the time is right to adopt this kind of
wealth creation system. As you make payments off the principal
of your loan it is like compulsory saving and grows substantially.
All repairs, fees, rates, interest and other costs help
to reduce tax.
If you purchase a new property the building
can be depreciated over the next 40 years, giving you a
tax deduction for 40 years. The depreciation schedule can
be passed on to the next owner if you sell the property
~ until the property is fully depreciated.
Many investors prefer new properties
and rightly so as they require less attention, are easily
rented, and have maximum tax relief benefits. |
