Why You Should Keep Your First Home as an Investment
Are you planning to upgrade and buy a new house? If so, then you might be wondering what you should do with your first home. Well, it is important to understand that whether it is beneficial to keep your home or selling it would be a better decision. Depending on the location and nature of the property, you can identify that your first home is a valuable asset.
Below are some of the reasons that can help to make your mind to keep your first home as an investment:
Easy Source of Income
If you’re interested in making money in real estate then your first home can become a source of passive income by renting out your home. It can be a stellar way to earn passively and achieve financial stability for years to come. Furthermore, the rental income can be used to pay off the property development finance on your new investment.
Profitable Type of Investment
There are many types of investments available in the market that you can go for including property, managed funds, market share and more. Buying property is considered as the most profitable type of investment. Property prices are likely to increase for the long term due to the increasing demand of the standard residential homes in Australia.
The total home cost includes the cost to repair and maintenance of the property, interest payments on the home loans in Australia and more.
Is your rental income less than your owning home costs? If so, then you can get the tax benefit, as it will reduce your taxable income. If you want to maximise the property investment tax benefits then get in touch with a qualified accountant.
Note: Before you keep your home as an investment, it is important to know that all investments have risks. Don’t put yourself into financial hardship if you already have a high level of debt.
If you want to make the right financial decision then seek financial advisor in Australia. For help, while applying for any loan in Australia, contact our brokers today.