Why Property
Why become a dual occupancy property owner in Perth? Learn the basics and the advanced levels of successful property ownership.
Dual Occupancy/Dual Key Investment
A Dual Occupancy Property Investment is one of the best ways to create wealth. It's important though, that if you are serious about property investing, you take a closer look at why. Here are some tips that might help you...
Property Investments can provide:
A good return on your income
The potential for capital gains
Greater investor security
Potential tax advantages
Investment property and tax:
Correctly structured investments can assist in reducing tax.
When you sell your investment property, you may be liable for capital gains tax, or other taxes, so it's important to seek upfront advice on the right way to own the property
Land tax and depreciation are also important factors to consider
When Investing in property, you may want to see a Property Advisor who can:
Analyse your budget to make sure you can afford to invest
Decide which type of investment property best suits your needs
Discuss the benefits of positive and negative gearing
Ensure you have enough money for the deposit and up front costs such as interest while the property is being built, stamp duty, conveyancing costs, depreciation schedule and other fees
Why Invest in Property
Western Australia is recognised around the world for its beautiful climate, unique natural environment and relaxed lifestyle. Perth’s high standard of living, with the city’s low crime and unemployment rates have seen it ranked in the top 10 most desirable cities in the world (Economist Intelligence Unit, London). The survey ranked 140 cities in terms of their economic and political stability, health care facilities, education, infrastructure, culture and environment. Perth is a beautiful place to live and invest.
For South East Asian investors, Perth has the added bonus of being located in the same time zone as Kuala Lumpur, Singapore, Hong Kong and Beijing.
Positive Cash Flow
Most people would welcome a positive cash flow property investment that pays for itself. Positive cash flow means that the tax gains and rental income are higher than the price of holding the property. For investors, this means that you won’t be sacrificing a portion of your income every week enabling you to build your capital more quickly and helping you save for further future investments.
Even more, if it’s in a capital city as to a regional or mining town you can potentially achieve a higher income and higher growth without the associated risk or the Boom or Bust seen in WA Country Towns. (We remember only 3 Years ago, if you wanted a positive cash flow property, you essentially had to invest in a WA Country Town. Dual Occupancy Housing is now one of the few properties that can offer positive cash flow to its owner if set up properly... While not all our properties are positive cash flow we believe they still stand taller than highly geared (negative geared) property.
Dual Income Plus's property Example
EXPENSES
Interest @ 5.5%p.a. x $570,000–$31,350
Property Costs (agents fee, rates etc.)–$6,800
Total Expenses p.a.–$38,150
INCOME
Rent 1 $450p.w. + Rent 2 $340p.w.
Combined Rent @ $790p.w.$41,080
Surplus before tax p.a.$2,930
TAX DEDUCTIONS
Less Surplus–$2,930
Depreciation on new property (approx.)$15,000
Total Deductions$12,070
Tax Refund (38.5% tax bracket)$4,647
Cash Flow Positive $7,577 p.a. or $145.71 p.w.
(note all data should be checked with your accountant, Property Manager or financial Advisor for accuracy. The above information is an example only)