If
you thought that only the wealthy could afford
investment property, it’s time to think
again.
The investment property proposition in Australia
is very strong, and has become even more so as
mortgage rates have fallen, as rents have surged,
and as building and development costs have become
more competitive.
McCarthy Group clients are investing in projects
that offer a brand new home in a strong rental
location (with 25 years of depreciation allowance)
with the investor covering a shortfall of as
little as $33 per week.
With average personal wealth having fallen
by 10% in the past twelve months, everyone
needs
to recover lost ground. A strategy is needed.
The combination of factors supporting investment
property in Australia make a very strong
case given its affordability, security,
and the
sound long-term fundamentals under-pinning
property
in this country.
An example of a current project in Melbourne
highlights the affordability of investment
property in today’s reduced interest rate environment.
Property cost (including all purchase
costs) $399 000
Outgoings
Interest $25 000
Property expenses $ 4 750
Total $29 750
Less Incomings
Rental $ 20 000
Tax credits $ 8 000
Total $28 000
Shortfall $1 750 (or $33 per week)
If you have friends or family who believe
that investment property
is out of reach for working
Australians, click here
to forward them this example of just
how affordable it has become in the current environment.
And fixing the mortgage at current low
interest rates
helps to lock in the advantage
for
years to
come so you can accurately
budget
for your costs.
|
