Investment

Investing in property can be highly profitable. Investment provides a more secure future for you and your family. In order to maximize your returns it is essential that you are correctly informed and guided by a qualified Agent.

Why Invest In Property?

Wealth is not necessarily determined by how much money you earn, but by what you do with it. With the correct guidance, investing in property can provide a secure future, without the need to invest a fortune each week.

Benefits of property investment include:

Diverting money away from taxes
Viewing your tangible investment
Controlling what happens to it
Relative stability of investment (while shares fluctuate in value)
Use of equity to increase your portfolio

What is Gearing?

Gearing can be defined as the degree of borrowing against equity and income received in comparison to monies paid out.

Gearing can be divided into:

Positive Gearing - When the rental income covers the expenditure, without profit or loss.

Tax Impact: No tax paid on the incomes and you may received a tax credit for depreciation on chattels and construction.

Negative Gearing - When the rental income is less than the expenditure.

Tax Impact: You can claim the loss on tax.

Your Accountant should advise you of all entitlements. Accountant’s fees can also be claimed.

Consideration should also be given to Capital Gains Tax. A capital gain is income derived from the sale of an investment – e.g. a rental property. The capital gain is the difference between the money received from selling the asset and the price paid for it.

Business Investment

Find out why Wellington is a great place to invest in business opportunites.