fbpx

Tax is not a strategy

Want our top tips for finding investment properties that PAY YOU?
  • The top eight strategies to consider when searching for positive cashflow investment properties
  • What a positive cashflow property looks like ‘on the books’. In other words, you’ll see an example cashflow analysis clearly demonstrating HOW a property can pay YOU every week
  • And much more.

Transcript

Tax is not a strategy. Tax is simply part of your strategy, or the outcome that you’re looking for once you’ve made a strategic investment. Why do I keep saying that tax is not a strategy? That’s because many people dig into their investments hoping for a taxable advantage thinking that yes, I’ve achieved what I wanted to do with property, but tax is literally just one part of that. 

When you think of tax we need to go well before what got you to thinking of tax advantages. You need to go to the asset, why you think it may grow, what income it may deliver and are you okay with that, and the economy, economic diversity, and just the other factors that come with research when you’re looking into this property. Tax should be the complimentary advantage of buying the property not the reason why you buy it. 

Let’s think of homes, and then let’s think of the government policies. Over time, you can go decades, you can go centuries people live in places, right. Now I know that may be sounding really simple, but the truth is the fundamental of buying real estate is to buy it for other people to live in and either pay you and income, or have growth. It wasn’t to actually get this one tax advantage because tax has been changing in comparison to the fundamental of property. 

Today we use property to live in. Yesterday we used property to live in. But yesterday’s tax advantage may not be tomorrow’s tax advantage. We’re actually already seeing talks in terms of the government ahead, who that may be, what they might be able to do, what might change, and these are things for us to consider. 

When you’re looking to make your investment decision don’t look at your tax situation and go, I need to buy property because tax is the reason why. Talk to your advisors, talk to your buyer’s agents, your professionals, and understand the portfolio and the property as a whole. When you start doing that you’ll find tax is a part of your strategy it’s not the strategy. And that way you’ll really be able to look from a property and within rather than tax policy to property. 

Now we’re not advisors here for tax, but I did want to make sure that you know and how you can have these discussions with your advisors, so you can look at it from a wholistic view. That’s it from us here at Investor Kit, the experts in wealth creation helping you take action.