If you are paying interest on a Depreciating asset you are going broke! 

Check your investment property – If you are paying interest on a Depreciating asset you are going broke!  Think about this….using your Net income to pay down an investment mortgage that is not increasing in value – BIG MISTAKE. 

One of the worst investment strategies you can find yourself in is throwing good money after bad money.  What do I mean by this?  Well it’s simple.  Take a look at your investment property or properties and a simple look at the growth of them since your purchase date.  Now we all know property takes time to grow but it most certainly should not be going backwards year, after year, after year.

If you do find yourself in the unfortunate position of having being talked into Mining properties in the past years you need to get advice on what you can do.

 I have helped a number of clients that have fallen into the hands of property sprukers sprouting 10 properties in 10 years.  They get told things like “property doubles every 10 years” “You can cover your costs by getting tax back from depreciation” “Rent paid for 6 months” and many more other little tricks they use to keep you buying from them.

Possibly the worst trick is body corporate fees. Developers subsidise the body corporate fees for a few years to make them look cheap and when the subsidy runs out body corporate fees can double! Massively impacting the return on your property.  

 Good property is property that is positively geared.  This means from the outset without tax deductions the rent from your property covers your loan repayments and anything else like insurance, maintenance etc. 

 Now sometimes you may, have to contribute a small amount and the only time my clients to do this is if the property is gaining capital growth ie the value of the property is increasing.  We check this every 6 to 12 months.  

The other main factor is you should not buy property through anyone teaching you how to manage your budget or pay down debt.  There’s a very good reason why they are teaching you to pay off your home quickly, you will feel good and trust them enough to do what they say.  Check their credentials and make sure they are licensed to give you advice. 

Check all your calculations with an independent Financial Mortgage broker and or advisor.

 So I encourage you to check the values of your investment properties and don’t be lured into the “Tax deductions” through Depreciation sell tactics.

 I have helped many clients into investment properties. I run their numbers and make sure the numbers are sound and the make sure the clients fully understand what they are getting themselves into.  I also make sure the clients check the property themselves and do their own independent research with their Financial Advisor or Planner. 



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