Self Funded Retiree
The Self Funded Retiree is the NEW PLAYER in the investment game. The Reserve Bank of Australia has lowered the Cash Rate to a historical low of 1.5%. One of their main objectives is to stimulate the housing industry which in turn stimulates the economy and creates employment.
Since the mid-1980’s when Paul Keating unsuccessfully tried to end the investor incentive of negative gearing, the Federal Government has provided an attractive ongoing tax incentive for investors to create NEW housing. This is a depreciation rate of 2.5% of the cost of the building. This is a flat rate with no time limit.
With interest rates at a historical low, we now have a NEW PLAYER increasing demand from investors.
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The new player is the SELF FUNDED RETIREE.
And the clincher is, the value of $1,000,000 sitting in a term deposit is continually being eroded by inflation, whilst with housing, his/her capital and income are protected from inflation.
If you are interested in buying an investment property and would like to know ‘how it works’ you are welcome speak to me about your options. Please contact our office to schedule a free, no obligation consultation and find out if our service is suitable to your needs.
Steve Taylor
At the helm of Steve Taylor & Partners, Steve Taylor has been delivering expert advice and product knowledge to clients for over 30 years. Steve Taylor & Partners provide individuals, couples and families with the right strategies to create wealth and change their lives with solid bricks and mortar.
DISCLAIMER
Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the subject being discussed. The figures stated in this article were accurate at the time of publication. For up to date figures, please contact our office.
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