If we can provide a simple scenario whereas a couple purchase an investment property and we ask why? generally it will be 1) to create wealth, 2) provide a solution for the next generation 3), to help pay off debt 4) reduce tax being paid
Out of the 4 points above - nothing is more important to your financial prosperity than reducing the amount of tax you are paying and arranging to receive any tax relief via a tax variation authority (TVA).
Regardless of the pro's and cons of a TVA, what you need to understand is that there is no magic silver bullet. It becomes a pretty simple equation. The first thing anyone needs to do to become financially free is pay off any debt outstanding.
To pay off mortgage debt, there is one major factor that will help you achieve this - CASH - FLOW
When investing in property we tend to focus way too much on capital growth. Sure you do not want to buy an asset that reduces in value, however relying on growth is like picking the x lotto numbers - who knows what is going to happen.
If you own that property freehold and it gives you an income that is fixed by term leases, does it really matter what the price of that property is today?
Capital Growth should be seen as the cream of your investment and should not be included in future return projections.
I have spoken to hundreds of people who have sold their investment properties as they were not seeing any growth in the value and it was costing them financially to hold the property.
A simple Tax Variation Authority aligned with a strategic offset mortgage structure would have made all the difference to these people.
Once you get your head around debt, cash flow and freehold ownership you will see rapid improvement in your finances.
Buying an investment that is going to work for you requires a lot of knowledge, skill and time.
Before rushing off and making a mistake that could cost you hundreds of thousands - find someone to help that isn't going to see you as a one off purchase. If you can find someone who is experienced in rapid debt reduction through investing that can assist, coach and mentor you any costs associated will pay for themselves 100 fold.
Where do you find these people?
Well of course I could say ring me......
Network and talk to successful people, don't wait until you are ready to invest start looking for that person now.
They may be your accountant, a real estate salesperson, a property manager, a mortgage broker or a financial planner. What you are looking for is someone who looks holistically at your finances, not just an expert in their field.
All the Best & Happy Debt Reducing.
PS - Self EDUCATION isn't a bad place to start
Purchasing this book from Amazon for under $30.00 wouldn't be a bad option either.