Property is often the preferred investment choice for Australians, as it offers extensive financial benefits as well as the buzz of owning a tangible asset in bricks and mortar. With the right property you can leverage in excess of 100% of the purchase price, as opposed to other asset classes where the highest loan-to-value ratio is around 75%. The direct deductibility of both interest to service the borrowings and asset depreciation can lead to significant wealth generation, particularly when a rising market adds capital value. While property is less liquid than some other assets, the ability to borrow against the equity accumulated in it means that you don’t necessarily need to sell in order to use those funds for another purpose. Register here for an obligation free consultation
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