Challenges ahead for property investors

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Maximising your tax returns from your investment property has got tougher.

One of the biggest challenges facing property investors is their ability to secure a home loan with more stringent measures in place.

The Australian Prudential Regulation Authority (APRA) has implemented processes to slow investor lending, which has resulted in investors requiring larger deposits to meet loan requirements.

And it’s working – the latest Housing Finance Statistics from the Australian Bureau of Statistics shows investment housings are continuing to fall.

Key to this is research and crunching the numbers so you can understand the after-tax cash flow impact on you from your property portfolio. Valuable to know is the loan to value ratios i.e. the cost of the property less the deposit and the subsequent repayments versus your annual rental income. This produces the yield. From there, you can understand if it’s a good investment or not. Confused – we can help with home loans and financial planning.

Deductions tougher

And there’s more to understand! Last year we also saw changes to property deprecation legislations come into effect and property investors didn’t come out on top.

In this challenging landscape, it’s never been more important for property investors to arm themselves with the best financial advice for crunching numbers when making investment decisions.

You can potentially save thousands of dollars in interest and gain more from valid deductions. Don’t make it guess work!



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