Investment Property Tax Deductions
Despite an under-supply, property sales across the country have reportedly slumped to their lowest level in 10 years. PRdata report that sales of houses and units plummeted 20 per cent in 2010 from 2009. Accordingly, the number of home loans has also dropped.
This is all good news for rental property owners. The housing shortage is not going away, and people have to live somewhere.
The other interesting figure out recently was that the whole construction industry was under pressure.
These indicators tell me that if you are thinking of expanding your rental property portfolio, you should consider constructing a new dwelling. The tax benefits are better for a new dwelling and the government is still providing incentives.
Check out the land for sale and builders in your next Sunday newspaper, do some home work with your mortgage broker about construction loans and set yourself for a new project.
Build an investment property, and reap the rewards.