Avoid these Investing Mistakes

Marvel Realty – Blog – Avoid these investment mistakes (1)

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


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