Avoid these Investing Mistakes
Let’s face it. No one is perfect, but when it comes to property investing there are definitely some certain traps and common mistakes you need to avoid.
I’ve had my fair share of trial and error when it comes to investing in property. Here’s three things that I wish someone had told me so I didn’t overpay for investment properties.
1. Stamp Duty Is Less On New Builds
When you purchase a property, the government charges a fee to transfer the ownership from one person to another. This fee is called stamp duty.
The thing with stamp duty is that you only need to pay it on a property that already exists.
How you save money is to purchase land and then build a new home on it. That way, you only pay stamp duty on the land and not the house.
This has literally saved me and my clients thousands of dollars on each investment.
2. Depreciation = Less Tax
The tax man allows you to claim the depreciation of the fixtures and fittings of your investment property as a tax deduction. The newer the home, the higher the depreciation.
I’m no accountant, but by building a home and using that as an investment property, your depreciation and tax deductions are much higher than an existing property, saving you thousands.
3. Bank Valuation Gives You Comfort
Finally, the bank valuation. This is one of my favourites. If I know one thing about banks it that they hate losing money. So if they are willing to lend money to invest in that property, that gives me comfort that I’m not overpaying.
There you have it, three ways to avoid overpaying for your investment property.
If you have received your finance pre-approval and are ready to take the next step toward your property goals, I would love to brainstorm some ideas with you. Click on the book now button below to set up a time to chat.
Not sure how to get preapproval? Contact a mortgage broker for a chat, or contact Marvel Realty for recommendations on our trusted partners.
Have a marvellous day
Selected Works
Investment Traps to Avoid20 Feb 2023
Client Success StoriesFeb 7 2023
Various Ways to InvestJan 10 2023
Self Managed Super Fund19 December 2022
Investment properties can save you money6 December 2022
Maximising Your Capital Value21 November 2022
Investment Scams9 November 2022
Covering your assets3 November 2022
Invest with us.21 October 2022
Location Location Location12 October 2022
I was so Confused7 October 2022
Choosing the Right Property Manager2 October 2022
Rid Mould from Your Home23 September 2022
Eliminate Pests22 September 2022
Safe as Houses17 September 2022
Results Speak for Themselves12 September 2022
“I can’t believe it’s been this easy”7 September 2022
Avoid These Investment Mistakes2 September 2022
When you just make it happen!26 August 2022
Do you know how much your property is currently worth?10 August 2022
Is this a good time to invest in property?31 December 2021
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