Comments on: Is residential property a good investment? http://www.wealthfoundations.com.au/blog/residential-property-good-investment/ Personal wealth management issues Sat, 21 Jan 2012 07:04:11 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Wealth Foundations http://www.wealthfoundations.com.au/blog/residential-property-good-investment/comment-page-1/#comment-6275 Wealth Foundations Tue, 18 Jan 2011 04:42:13 +0000 http://www.wealthfoundations.com.au/blog/?p=676#comment-6275 Anton Thanks for your question. In Australia, excluding companies and superannuation funds, there is a 50% capital gains tax discount for any investment asset held for longer than 12 months. So, provided the 12 month's test is met, capital is treated more favourably than income regardless of the investment. While your primary residence is capital gains tax free, we do not regard the family home as residential investment. We think it is best considered as a lifestyle asset offering consumption benefits, rather than as part of your investment wealth. To overcapitalise on the family home because of the tax advantages is, in our view, very poor investment practice. Anton

Thanks for your question.

In Australia, excluding companies and superannuation funds, there is a 50% capital gains tax discount for any investment asset held for longer than 12 months. So, provided the 12 month’s test is met, capital is treated more favourably than income regardless of the investment.

While your primary residence is capital gains tax free, we do not regard the family home as residential investment. We think it is best considered as a lifestyle asset offering consumption benefits, rather than as part of your investment wealth. To overcapitalise on the family home because of the tax advantages is, in our view, very poor investment practice.

]]> By: anton http://www.wealthfoundations.com.au/blog/residential-property-good-investment/comment-page-1/#comment-6200 anton Sat, 15 Jan 2011 06:47:06 +0000 http://www.wealthfoundations.com.au/blog/?p=676#comment-6200 i am a real estate investor so though I understand your views, I somewhat disagree. My question stems from your quote " The fact that capital gains are treated more favourably than income for tax purposes is a potential “break” but it is not limited to property; "....if it ( ie, this tax break ) is not limited to property, what other investment asset class offers the same opportunity ? i am a real estate investor so though I understand your views, I somewhat disagree. My question stems from your quote ” The fact that capital gains are treated more favourably than income for tax purposes is a potential “break” but it is not limited to property;
“….if it ( ie, this tax break ) is not limited to property, what other investment asset class offers the same opportunity ?

]]> By: Macky http://www.wealthfoundations.com.au/blog/residential-property-good-investment/comment-page-1/#comment-1603 Macky Thu, 06 May 2010 02:58:50 +0000 http://www.wealthfoundations.com.au/blog/?p=676#comment-1603 it is best to get a property consultant---they will help you decide it is best to get a property consultant—they will help you decide

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