#4 – Are taxes going up or down (for property investors)
Taxes have been pushing investors out of the market.
But the government has changed the rules. Interest deductibility will be gone by April next year.
This will boost house prices as investors re-enter the market.
We’re moving from a higher-tax environment to a lower-tax market.
So … is now a good time to invest?
At Opes Partners, it’s my job to help people first time property investors – no matter what’s happening in the market.
Because investing for your retirement is always important.
Provided that you can get the right knowledge to invest.
So I don’t like saying, “Now’s the time to invest!”
Otherwise, you’ll think, “Of course he says that. He’s biased.”
But I’m going to break my own rule … because the data is so clear:
- We’re moving away from a time when everything worked against investors.
- We’re moving towards a time where it’s not easy … but it’s easier.
So, if you can afford it. It is a good time to invest (generally).
But it’s not a good time for everyone.
You should only invest if you can afford the current interest rates. Because they are still high.
So, you need to weigh up whether you want to buy now. Take the higher interest rate but the lower house price.
Bearing in mind that as house prices go up (and interest rates go down), your mortgage stays the same. Plus, you get the lower interest rate anyway.
Or whether you wait for the lower interest rate and pay the higher house price. Bearing in mind that your mortgage is then larger.
Whatever you choose, expect to hear more of these conversations at the supermarket, at work, or at the BBQ.