We ask Mark: what has been the best property investment he has ever made?
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Over the course of Mark’s 30+ year career, the most commonly asked question is: what has been the best property investment you’ve ever made?
What might have been Mark’s best investment happens to be the best investment for a lot of his clients too, and guess what investment it is? It’s your principal place of residence!
The beauty of your principal place of residence is that instead of having to find (for example) a 20% deposit for your investment property, you can purchase your own home on only a 5% deposit (subject to specific criteria) so it’s easier to get started (subject to personal earning capacity etc.). As financial lending conditions have tightened up across all areas, you would be well placed to seek independent advice from a reputable mortgage broker to endorse your lending capacity and even better still, obtain a “pre-approval” letter.
Having a pre-approval letter will usually ensure you offer is considered in a far better light than other competing offers which don’t have a letter of pre-approval, it’s considered more sure by the Seller.
Here’s an example of another great perk;
If you purchase your property today for $400,000 & sell it for say $1.4 million in the future, that million dollars is totally capital gains tax free! That’s why it is prudent to purchase the most expensive home you can comfortably afford!
The other beauty of this of course, is that you get to live and enjoy your property. It doesn’t hurt if you’re handy either as you can improve it at the same time which will increase the value! It’s amazing how over a long period of time property and wealth grow – and with no tax implications!
A lot of people often face a dilemma on whether to purchase their principal place of residence before an investment, but buying your own home can be the best corner stone investment for your overall investment portfolio. Be sure to seek independent financial or accounting advice before proceeding.
We would love to hear from you if we can assist you in order to do so!
August 29, 2018
Posted in: Blog