There’s a variety of investment opportunities out there. It can be a tough decision choosing where to put your money to get yourself a good return. Property investment is one such way to help build your wealth.
Davod Koch took a look at some of the pros and cons of property investment:
It’s stable. Property is a solid performer long-term and a mortgage can ensure that you save money.
It’s taxable. Capital Gains tax applies on homes sold for a profit unless it’s a family home. However, tax deductions are available for interest paid on the loan and insurance.
It’s income. Rent received from an investment property must be declared as annual income.
It’s expensive. You’ll be faced with stamp duty, legal fees, taxes and agent fees, not to mention the price of the property.
It’s time-consuming to withdraw. If you need to quickly pull your money out, you must be prepared that a home can take months to sell.