Home
  • plan
  • Invest
  • Property
  • enquire now
  • Learn
Home
DPN
  • plan
  • Invest
  • Property
  • enquire now
  • Learn

Considering investment? Understand what the 2014-15 budget brings

If you have an inkling you'll be investing in property in the future, or you're already an ardent investor, you'll need to understand how the 2014-15 federal budget affects you.

TAGS

Beginner (575) / Intermediate (540) / Expert (564)

If you have an inkling you'll be investing in property in the future, or you're already an ardent investor, you'll need to understand how the 2014-15 federal budget affects you.

Pension age

The federal government's decision to raise the pension age to 70 by July 1 2035 will require individuals in their 20s and 30s to seriously consider strategies outside of superannuation and a government pension to fund an early retirement.

The move to raise the age pension to 67 by July 1 2023 had already been put into motion, so the most recent decision to add another three years to this figure reflects the reality of an ageing population. 

Building an investment portfolio will be an important step in preparing for a secure retirement. According to research from Timetric released earlier this month, residential construction is tipped to become Australia's fastest-growing construction market until 2018, offering opportunities for those looking to secure investment property now. 

Negative gearing

There was plenty of chatter about whether negative gearing would be abolished in the lead-up to the budget announcement. However, this approach to investment remained untouched. 

Negative gearing is when the annual expenses associated with holding a property are greater than the income generated from it, allowing investors to reduce their taxable income.

However, there are other options available.

For instance, a cash-flow positive property is where gains from a rental property are greater than its costs, giving investors peace of mind when it comes to anticipating their ongoing expenses. Otherwise referred to as a positively geared or cash-flow positive real estate, this generates a passive stream of income that's accessible while you hold the property.

Infrastructure boost

The federal government's Infrastructure Growth Package will inject an additional $11.6 billion into major projects across the nation. This is on top of the existing $50 billion infrastructure commitment that's improving rail, road and intermodal projects, according to Minister for Infrastructure and Regional Development Warren Truss.

Individuals contemplating their investment options may wish to focus on buying property in areas that are set to benefit from the package. It's no secret that suburbs that have strong transport links, well-maintained facilities and excellent schools are a pick amongst tenants. Therefore, this growth package may encourage individuals to pursue property when it comes to building their future wealth.

 


Follow us on Twitter for more news, tips and inspiration.
Like us on Facebook and Google+ explore our Pinterest boards.

Like this article or found it helpful? Share it!

Newsletter

Receive our articles directly to your inbox

Next article

Face of Cronulla, November 2013

Go to articles list

Programs

Work with us
Giving back
Become an affiliate
Refer a friend
Help desk
Property Management
Finance

Locations

Head office
Australia
Hong Kong
Singapore

Contacts

Toll free in Australia
P. 1300 723 318
Outside of Australia
P. +61 2 9525 2033

Social Media

Newsletter

Terms of use | Privacy policy | Guarantees

This information is provided by DPN Pty Ltd ABN: 94 630 700 186 Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and related entity of DPN. Credit for Dream Big 100% Offset and Work Smart 100% Offset is provided by Adelaide Bank a division of Bendigo and Adelaide Bank Ltd, ABN 11 068 049 178 and Australian Credit Licence 237879. Casa Capace Operations Pty Ltd, NDIS provider number 4050038018 trading as Casa Capace.