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Pros of Property Investment The benefits of investment property vary depending on what type of property you buy and what you want to do with that investment. Here’s a quick list of the most common advantages of an investment property: Enjoy tax benefits As a property investor, you can maximise your return on investments with tax deductions such as: Negative gearing: This occurs when the mortgage repayments and expenses exceed the rental income. You can offset the income which saves on tax. Depreciation: Investors can claim depreciation allowance on fittings and fixtures, and you may also be entitled to building allowance deduction. You can also claim a portion of costs related to managing and maintaining your investment property and property depreciation as tax deductions. With these tax deductions, you’ll be able to save on upkeep costs and fees while getting more profit. Remember, eligibility to some tax benefits depend on the State or Territory you live in so it’s best to check beforehand. Get capital growth When you buy a property and sell it for more value than you bought it for—that's capital growth. The increase in value over time can vary depending on factors like market conditions and location. You can also increase capital growth even further by making smart improvements to your investment property overtime. To really take advantage of capital growth, you need to sell your property at the right time. For instance, if the market is hot in your local area, you can capitalise on the high demand by selling your property immediately to get the most out of your investment. Earn passive income The most common property investment are rental properties. Rental properties are those you buy with the purpose of leasing them out. You can easily earn extra income from your rental properties without expending too much effort. Although this might take more work because of tenant management, upkeep and maintenance, and other landlord responsibilities, it could be a really profitable investment for the long term. A more stable investment Real estate is considered to be a relatively less volatile investment compared to stocks, bonds, or shares. The real estate market is usually more predictable and easier to navigate especially for novice investors. Plus, properties often appreciate in value in time with inflation, you can use equity to fund your investment, and it can provide you with a steady cash flow or a good payout. A flexible asset An investment property can be a much more flexible investment compared to other types of investments. With an investment property, you can choose to flip it or rent it out. If you have a vacation property, for example, you can rent it out part-time for extra income and use it the rest of the time for personal holidays.