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Looking to diversify with property investment

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AL | 14 Sep 2013, 06:37 PM Agree 0
Hi there,

Relatively new to the forum but impressed with what I have been reading so far.

I have a solid Equity portfolio set up to reinvest dividends through DRP across the board. It is a long term strategy and I do not sell down positions unless there is a massive change within the company itself.

The tax burden from the dividend stream is becoming larger with time and I would like to invest in property to try and reduce the annual tax footprint as well as gain exposure to the property market.

My question is WHO DO I TALK TO about this kind of purchase? I am looking for specialist property investment advice and then assistance in securing the mortgage and making sure the whole structure does what it should from a tax perspective. Surely there are experts out there who can do this. I am based in Sydney and having trouble finding any!

Cheers and happy investing.

  • Eos Property | 16 Sep 2013, 10:08 AM Agree 0
    Hi AL,

    While tax hurts - it also means you are making money. Isn't that your main aim?

    It seems as if you have arrived at the decision to add property to your portfolio by yourself and credit to you for this. If you are committed to a bit of tax saving you may wish to look for a property that is relatively neutral on a pure income V expenses basis.

    On top of this you'll also be able to claim non-cash deductions for depreciating plant and equipment and the building itself. These two categories can add up to a sizable deduction over an extended period of time with some front ending of claims in the first five years of ownership.

    Give Davlin Wealth Management a call. They are based in Thornleigh and have clients who live in WA so a little drive across Sydney ain't gonna hurt that much. Davlin do have accountants, financial planners and mortgage brokers under the one roof.

    A word of caution with respect to looking for someone who does the lot. Some companies market their holistic services and use this to sell poorly researched and, in some cases, over-priced property.

    Now I know you're thinking - isn't that you.

    No, we specialise in small scale developments and clients are free and encouraged to use their own resources along the way. Our strategy and approach is quite different - developing offer the opportunity to buy under value and with high rent returns.

    Hope this helps.
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