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What is an investment property?

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| 19 Apr 2012, 12:20 AM Agree 0

I have moved from my home into a unit as a result of work. I am renting a unit and it is now my primary place of residence. I am currently renting out my home. What do I need to do to claim the house as an investment? I am new to the investment property concept and am looking for advice regarding what I need to do.
  • Generation M&P | 19 Apr 2012, 04:04 AM Agree 0
    Hi Chris,

    I see you are in Brisbane> There is plenty you can do to better prosper from your decision to rent where you live and rent out where you used to live. I am also in Brisbane and if you would like me to spend 30 min with you to discuss your options, please call me 0412 857 415.

    Regards
    Jason
  • jeevanswaraaj | 03 May 2012, 12:00 PM Agree 0
    Any property that is purchased with the intent of gaining a return is considered investment property. Investment property can be an apartment building, a duplex, a single-family dwelling, vacant land etc., investment property is purchased with the sole intent of realizing an income, either by renting the property, profiting over time from appreciation, buying low and selling high, or renovating the property and selling it for more than the purchase price.
  • Eos Property | 04 May 2012, 10:05 AM Agree 0
    Hi Chris,

    Under the circumstances outlined you can retain your first house as your principle place of residence for a further 6 years after moving out provided you do not buy another home in the interim. This in itself is important as your first home will normally remain CGT free for as long as you own it.

    While saying the above there is nothing to prevent you from claiming normal expenses associated with owning an investment property. For you this means you will be able to claim all expenses associated with your first home; loan interest, rates, insurance, repairs, strata fees (if relevant), property managers fees, and so on.

    For a detailed explanation of property taxes see http://www.ato.gov.au/content/00270214.htm

    All you need to do is keep receipts, statements, and other documents to prove your claims. I would suggest you developer some form of spreadsheet to keep track of the ins and outs so your accountant finds things a little easier.

    You may also wish to speak to your broker/bank about changing your loan from principle and interest to interest only. I would suggest the difference between the two payments be placed in an offset account linked to your loan. This will reduce your outgoings and at the same time maximise deductions while making sure you retain maximum flexibility of your cash.

    I would also suggest you arrange a depreciation report for your property. This can be organised through reputable Quantity Surveyors (Eg Deppro) who will assess your property and give you a detailed list of the depreciating assets in your property and their value. This will allow you to maximise your legal deductions and is particularly important if your property was constructed post 1997.

    Hope this all helps.
  • AuPropertySpectator | 07 May 2012, 02:17 PM Agree 0
    From a more 'textbook definition' driven response, I just blogged recently about different kinds of investment property strategies.
    I ended up shortlist eight kinds (though I'm sure there are way more than this) but you should read it; it helps to give context to different investment strategies that I've seen friends, colleagues, and also industry experts; each adopt.

    I myself have even adopted a few different ones of these, as I grow my portfolio! Sounds vague I know but have a read of this article when you get a sec, it'll explain things clearer:

    http://propertyspectator.blogspot.com.au/2012/05/different-strokes-for-different-folks.html
  • Bennett | 11 Jun 2012, 01:01 PM Agree 0
    Any property that is bought with the intent of gaining a return is taken into account funding property.Funding property may be an residence building, a duplex, a single-family dwelling, vacant land, Commercial Property Management principally any sort of actual property.The time period funding property normally describes property that the proprietor does not occupy, however in some cases, the proprietor could occupy a portion of it.

    Purchasing investment property can be a lucrative venture, whether one simply hopes to purchase a home or plans to make a business out of such investments. One strategy for beginners is to purchase an investment property such as a duplex, or other multiple family dwelling, and live in one unit while renting out the other(s). This way, monies collected from the renter or renters covers the note, leaving the owner without a mortgage payment. Eventually the property is paid off, and the purchaser continues collecting the rent for a profit.

    Real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence.It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence, while the others are used to generate rental income and profits through price appreciation.The tax implications for investment real estate are often different than those for residential real estate.


  • digital1234 | 14 Jun 2012, 05:18 AM Agree 0
    For the property management saint george utah property management is the term of property management business.To purchase , Property is taken by someone for the residential purpose and other for the business purpose in the business Property taken for the return of the profit and , it may be a vacant plot of ground and building for the commercial purpose .
    Real Estate is aslo a investing in the property business for a period to earn the profit in the Real Estate business.
    To selling the property on the profit base that is the property holder sell the property for a profit , These are all manaing term for the property management which utilize property in a very correct way for the profit.
  • JohnBroderick | 14 Jun 2012, 02:03 PM Agree 0
    Investment property is purchased with the sole intent of realizing an income, either by renting the property, profiting over time from appreciation, buying low and selling high, or renovating the property and selling it for more than the purchase price.

    Whitechapel estate agents
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