Investing in property is becoming more affordable than ever, with many new homes requiring just the same weekly cash outlay as a few good bottles of red.
Prominent accountant Nigel Plowman says outstanding buying conditions, increasing rents and excellent depreciation benefits, as well as prospects for reduced interest rates, make investing in new homes more affordable than ever.
The director of McKinley Plowman and Associates, who has coached a lot of property investors to success, says the combined conditions outlined above now make it possible to invest in a new home with a weekly cash outlay of $80 or less.
Mr Plowman says while buying conditions are excellent it is important to consult with an accountant with property investment expertise before signing a contract.
He says before buying a property speak to an accountant about how much cash is needed to hold the investment, the amount of capital growth needed to make it viable and the most tax effective structure for owning the property.
"As a starting point use the tool on this website to estimate how much of your own cash will be needed each week to hold on to the property," Nigel says.
"As you will see, for a lot of people on a 30 per cent tax bracket, the cost to own a $400,000 property, after rents, depreciation and tax benefits are taken into consideration, can be as little as $80 a week.
"This is not much more than a few bottles of wine.
"Properties requiring such little cash outlay can be held on to for a very long time and require very little capital growth to be viable."
Mr Plowman is a recognised authority on property investment and his commentary is featured on 6PR, Today Tonight, the Sunday Times and The West Australian.
He says McKinley Plowman looks after hundreds of property investors ranging from Mums and Dads, to real estate agents and prominent property identities.
Mr Plowman says investors who are serious about wealth creation through property investment should choose an accountant with specialist expertise in this field.
"At McKinley Plowman we have access to an enormous amount of resources about property investing and we ensure that we remain abreast of every development and issue that will impact on property investors," Mr Plowman says.
For more information visit www.mckinleyplowman.com.au