Investing in property has the ability to generate passive wealth for the investor over time. And in Western Australia, property investment has consistently outperformed other investment types like shares and bank interest.
In fact, over the last 10 years property in Perth has increased over 12% pa (as at Dec 2010). In simple terms if you purchased a home for $200,000 10 years ago it is likely to be worth around $600,000 today. (Source: reiwa.com.au)
Investing in Australian property also has taxation benefits. The Australian Taxation Office (ATO) allows you to deduct the majority of the expenses incurred by the investment property including:
- Interest on your mortgage
- Depreciation
- Shortfall between mortgage and rent
Example
| Weekly Mortgage repayment | $550 |
| Less | |
| Weekly Rent | $390 |
| Less 5% Depreciation | $75 |
| Total out of pocket expense | $85 |
Disclaimer: The information provided is an opinion only and does not constitute professional advice in anyway. It is recommended all prospective purchasers do not rely solely on the information provided and seek independent financial and legal advice before purchasing property. The information provided is based on 100% loan amount at 8% interest only rate and a comparison rate of 9.23%, less the average weekly rent amount published by REIWA and 2.5% depreciation Source: REIWA. ATO
Property investment is also flexible. You are in full control of the property, which means you can also choose to sell at any time or leverage into another property to further develop your portfolio.
WA Housing Centre have made the process to property investment as simple as possible, with our new ‘Ready to Rent’ packages and access to WA’s leading banks and lenders. For more information on why WA Housing Centre is Perth’s first choice for property investment, click here.
