The Warrnambool property investors left standing won’t be the most intelligent but the ones who are most willing to adapt to change.
Page 4 of today’s Standard states that “In scenes unheard of in Warrnambool's rental market, 25 people had registered to look through a two-bedroom unit in north Warrnambool just last week”.
According to the Warrnambool Standard, real estate agents say they are desperate for more rental properties but that investors are spooked by the possibility of the government scrapping negative gearing. Now whilst we know this fear has some investors currently jumping at shadows, it’s worth remembering that where there’s a shadow, there’s light. At the end of the day, if you’re paying tax it means you’re making money and whilst it’s always sensible to look at ways to save tax, it shouldn’t cloud our ambition to strive for a higher income earning capacity.
Whilst negative gearing may or may not be here to stay, it’s worth considering what the landscape would look like for you if you went into the market with the intention of positively gearing your investment property for the purpose of increasing your income and getting a better return on investment.
“Negative gearing is a popular tax minimisation strategy, but remember, you only reduce your tax if you reduce your income. If you are borrowing to invest, choosing a positively geared investment will increase your income and increase your overall return on investment” - ASIC's Money Smart
At the end of the day Australia has one big problem. Our population is growing faster than we can accommodate it and Warrnambool clearly isn’t exempt from this. And, anyone who is a position to invest in property is also in a position to be part of the solution.
This is why the government offers money saving incentives to owner occupiers, first home owners and investors to buy or build brand new properties rather than purchase existing properties. We simply need more housing.
Let’s briefly look at some of the current benefits of building or buying brand new:
1. First Home Owners in Australia building or buying a brand new never been lived in before property can claim the First Home Owners Grant which is as high as $27,000. In Victoria for regional first home owners the grant is $20,000.
2. Owner Occupiers with a $450,000 budget who choose to build rather than buy can save $15,279 in Stamp Duty straight off the bat.
3. Investors building or buying brand new properties can claim capital works deductions and depreciating assets which leads to significant tax savings. These benefits are currently only available to new investors buying or building brand new. Investors may also benefit from Stamp Duty savings which can be considerable.
According to Warrnambool Real Estate Agent Mark Dwyer, Warrnambool is in “desperate need of more rentals with there being practically a zero per cent vacancy rate”.
If you’re someone who is in a position to be part of the solution and who would like to maximise the tax benefits of investing in brand new property irrespective of the future of negative gearing then you may be interested in our latest project that sees the construction of seventeen 2 and 3 bedroom townhouses in an investors dream location close to shops, recreation, schools and with public transport on the doorstep. All on their own title. Purchased off-the-plan brand new, these are the ultimate affordable opportunity for not only investors but also first home owners and owner occupiers. They are perfect for downsizers.
2 & 3 Bedrooms
5-7% Rental Yield
$319,000 - $339,000
Save Stamp Duty
Investors can maximise deductions and depreciation
Built by local property expert using local custom builder
For other brand new properties for sale in Warrnambool visit https://buildinwarrnambool.com.au/new-homes-for-sale/