Buying a Property?  …see PENTA before you decide

Owning property has been one of the most popular investments globally. Apart from providing security, shelter and long term financial security there are many other excellent reasons to buy and invest in property. Residential property is generally the most favoured.

Property returns come in 2 forms. Firstly there is Capital Growth and then Rental Return (or yield). Capital growth refers to the increase of the value of the proprty over the medium to long term. rental return refers to the income the property generates. 

Investors also obtain the rental return as well as potential for depreciation and negative gearing benefits and hence possible tax reduction. Property adds to long term wealth and many people also use it for their superannuation and retirement purposes.

It is important though that you purchase in an area which has public transport, shopping, schools and universities and amenities such as these. Furthermore the quality of the property and its inclusions are also important considerations.

Property is a solid performer over the long term which can be used to borrow against to further build up your investment portfolio. Demand for property has outpaced supply escpecially in the inner suburbs of the major cities. This increasing demand is due to the increased population and particluarly increased migration. There is not enough supply of properties to keep pace with the demand. The result is strong capital growth, increased rents which has led to great long term investment.   

PENTA analyses the properties we market before we offer them to our valued clients. All the properties we have are close to the abovementioned facilities and hence make great long term investments.

After you have built up enough equity in your property- then you may be able to borrow against it and purchase another property - hence increasing your wealth over the long term. PENTA can show you how to do this.

Capital gains on your main residence is tax free.

Only half the capital gains are taxed if the property is held for more than 12 months.

So for any property advice please feel free to contact us now.

For any advice regarding mortgages and loans please feel free to contact PENTA Finance International on +(61-2) 9212-5522 or see   www.pentafinance.com.au