New findings from a survey conducted by fintech startup TaxTank has found that 63% of Australian property investors are worried about the continuous rise in interest rates.
The survey of 606 property investors also revealed that 40% of them are concerned about the cost of living.
TaxTank founder Nicole Kelly clarifies that Australian property investors shouldn’t consider selling their assets without gathering all the right information and advice.
“With some property investors now feeling concerned about maintaining their portfolios in the current environment, it’s absolutely vital not to panic sell properties,” Ms Kelly said.
“Too often we see clients sell properties based on the wrong criteria because they don’t have the right information.
“Clients look at the mortgage they need to pay out, and the cash left over, instead of which properties are performing the best in their tax return and what cash is required from their pocket to hold that investment each week.”
Additional findings show that only 34% of property investors are optimistic that they know their cash position. Only 21% of property investors are up to speed with their tax position.
“Understanding the performance of each property is crucial to ensure solid decision making, and let’s not forget about capital gains tax (CGT) which often catches investors off-guard,” Ms Kelly said.
“Knowing the tax impact of a property sale will not only enable better decision making on which property to sell, but when to sell to reduce the liability where possible.”
Image by Andrea Piacquadio via Unsplash
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