Property Investors Dictating the Property Market

House prices in Australia have reportedly increased by nearly 10% in the past year.

So how are property investors impacting the housing market?

According to Peter Boehm, of Our Home Sweet Home,  " investors accounted for around 25% of all dwellings financed last year [2009] making them a substantial purchaser of residential property in Australia.

"Significantly, the ABS [Australian Bureau of Statistics] also reported that over 90% of investment properties
purchased were existing properties, putting them in direct competition with first time buyers and thereby further increasing demand for existing housing stock. Importantly though, investors are afforded the benefits of negative gearing meaning their debt servicing costs are supplemented by tax savings as well as their tenant."

If you are looking to purchase an investment property you will need to do some serious research to find and appropriate property at an appropriate price. Having done the research myself I know how much effort goes into the process.

It’s also important to know the implications when deciding to purchase an investment property, or deciding whether to hold on to an existing investment property. Before investing in property you should ask yourself “Am I going to make money out of this investment?”. What is the real cost of having an investment property, and what are the tax implications for buying it? If you already have a property, do you know if it’s worth holding on to?

At My Tax Zone we have the experience to provide you with quality, practical advice and an in-depth overview of your current or potential investment. Our Property Investment Analysis Services can:
  1. Give you answers on how much an investment property is likely to cost you after tax
  2. What your rate of return you might anticipate based on data given
  3. Provide a cash flow projection for up to 40 years
  4. Provide both before and after tax cash flows
  5. Provide any tax implications
  6. Show you the cost-per-week for the investment property
We are able to provide you, the investor, with in-depth reports and analysis all aimed to help you make the right decision in your property investment purchase.

Contact My Tax Zone to discuss how our Property Investment Analysis service can benefit you.

Why do you think property prices have increased by as much as they have? What do you think is going to happen to prices during the next twelve months? Tell us below.

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