What are the benefits of buying property as an investment?

Answer

When you invest in property, you have the potential to benefit from:

  • an increase in the value of your property over time (capital growth),
  • an additional source of income once the property becomes positively geared.

You can invest in property directly as an individual or through self-managed super but there are risks to consider first. For example, the home loan will need to be repaid and your financial obligations may increase if the rental property is empty.

Investors are not limited to residential properties such as apartments and houses―they can also invest in commercial properties such as shopping centres and office blocks through managed funds and property investment trusts.

Property investment can provide tax advantages because the expenses that come with owning a property are tax deductible. However, any income will be subject to tax and when the property is sold, capital gains tax will apply. One of the downsides of property investment is that the large upfront costs can make it challenging for many people.

  • Visit our AMP Capital website for more information about investing in property through managed funds.

 

Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.