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| Home | News | 1/07/2010 Investment Heats Up |
1/07/2010 Investment Heats Up |
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One in seven taxpayers now own at least one investment property, a figure that is expected to rise as property investors return in force to the market.The most recent taxation statistics from the Australian Tax Office has shown that negatively geared property generated losses of more than $8.6 billion, a 35 per cent surge that saved property investors some $4 billion in tax over the 2007-08 year.
Investors are being enticed back to property by a distrust of the stock market after its worst performance in a decade. The latest Financial Stability Report from the Reserve Bank charting the prices of shares and houses in Australia for the past 20 years shows that houses are up more than shares, and this doesn't account for the fact that there generally is no capital gains tax on selling your home.
While investors were cautious about property during the financial crisis, numerous surveys indicate a return in confidence. The Knight Frank/Citi Private Bank Wealth Report 2010 of the world's richest investors found that on average, property accounts for 30 per cent of the investment portfolio of those surveyed, followed by 24 per cent of equities. Half of the respondents said residential investments would offer the strongest performance this year, while 30 per cent believe commercial property would lead the market.
The figures demonstrate how popular the property market has become, with experts predicting this year will see an increase in investment activity.
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