Your Best Investment

What kind of property makes for a good investment?

Well, that would depend on whether you are active or passive as an investor.

Some don’t have the time or desire to do anything but buy a low maintenance property, authorise an agent to find a tenant and collect the rent. Such investors are relying on the market to determine when and by how much their property increases in value.

An active investor generally has the time and often the skill to identify the right properties which, with a little work or creativity, can improve their value. If you fall into this category, that’s excellent, because you know how to add value to a property, over and above any market increase.

There is another type of property, however, that many never consider to be an investment – the family home!

Your principal place of residence, in effect is your perfect legal ‘tax haven’, because, you DON’T pay capital gains tax or land tax on the family home as you do with an investment property.

If you are contemplating buying an investment property, why not consider trading up on your family home instead. It could offer the added bonus of having the whole family enjoy an improved lifestyle.

To insure your family home is a great investment, make sure it provides you with the desired lifestyle and ticks all the boxes of a sound investment. It should be positioned close to all amenities, have a good floor plan as well as an outdoor living and entertainment area, to meet today’s lifestyle needs.

Then once the kids have moved out, you can cash up, by selling the property and downsizing. You benefit from the increase in value and it’s all free of capital gains tax.

The family home can be a great nest egg and your building block for wealth creation for retirement.

 

 

Uncategorized
Related Posts
Your Best Investment