Property Taxes - What Taxes Do You Pay If You Have an Investment Property?

MIAMI, FL - MAY 10: Miami-Dade mayoral candidate and current Mayor of Hialeah, Julio Robaina, speaks during a forum with other mayoral candidates vying for the open seat during the May 24th general election on May 10, 2011 in Miami, Florida. The former mayor Carlos Alvarez was voted out of office by voters unhappy with a property tax rate increase and the fact that he gave salary raises to county employees during a deep recession. The vote to oust the former mayor made Miami-Dade the most populous area ever to recall a local official. 11 candidates are running for the open seat. (Image credit: Getty Images via @daylife)In Australia there are no investment property taxes as such, however your property sale may be subject to Capital Gains Tax (CGT). The purchase and sale of your property in Australia will be subject to Goods and Services Tax (GST) and your rental income will be subject to Income Tax.
GST is paid on almost everything in Australia at a rate of 10% on the purchase price of your property. GST must be paid on all property that is connected with Australia. With regard to residential property in Australia that is purchased and rented out, the investor can make a claim on input tax credits. That is any GST paid on goods and services purchased to maintain the property can be claimed as input tax credits. These input tax credits can be claimed on a Business Activity Statements (BAS) as a refund and reduce the amount of GST paid overall.
If your Investment Property is held as in a Trust or purchased by a Company, the Trust or Company must register for GST if it's turnover is greater than $75,000 or $150,000 for a non-profit organisation in a financial year. Once registered for GST the Trust or Company must lodge BAS regularly.
If your Rental Income is paid direct to you and the property is not owned by a Superannuation Fund, Trust or Company, then the Rental Income will be taxed at your Marginal Tax Rate. That is, if you pay tax at a top rate of 45 cents in a dollar, your Rental Income will be taxed at 45 cents in a dollar.
Thus the importance of communicating with your Accountant and Financial Planner about your financial situation so they can work out the best ways to purchase your investment property or properties in order to minimise or postpone the amount of Income Tax that you pay. That is, they will consider using a Self Managed Superannuation Fund, Trust or Company to be set up to purchase your properties.
Capital gains tax is another tax you will be subject to when you sell your property. So it is best to sell your property when your income is at a minimum as Capital Gains Tax is paid at your Marginal Tax Rate which is dependent on your income. If your Investment Property is owned for more than 12 months, you may able to receive a 50% discount on Capital Gains Tax.
Now, you are probably thinking is all this worthwhile? If you want to increase your holdings of property investments and you income, and you like the idea of investing in property, this may be the ideal solution for you. There are property investment specialists, Financial Planners, Accountants and Mortgage Brokers whom can assist you with your financial strategies to obtain the best outcomes for you.
Discover How You Too Can Retire Early with a Well Designed Investment Property Plan.

Investment Loans: 7 Tips How To Use An Advisor Team To Get The Best Investment Loan

Investments benefiting from the IPL in Jordan (Photo credit: Wikipedia)In today's turbulent economic markets, we want the quick fix and we want the results as soon as possible, however investment earnings take time. Time should also be taken in finding the best investment loan to meet your needs.
1. Discuss your investment plan with your financial planner and accountant. Can you afford an investment loan?
a. Honestly discuss your current financial situation - come prepared with loan balances for all loans including car loans, personal loans and all credit cards; bank balances; pay slips; and any existing budgets. If you are unable to afford an investment loan at this point, consider strategies to pay off your current debts by reducing your expenses and possibly increasing your income. Your Financial Planner or Accountant should be able to assist you with putting together a budget.
b. Discuss the risks involved for investing in shares and/or property. Determine which types of investments you and your partner (if you have one) feel meet with your risk profile. A risk profile is an assessment of how you would feel in certain circumstances such as a reduction in the value of your property or shares. A risk profile should be completed independently be each investor. Your Financial Planner should be able to assist with this. If you don't understand what is being said, ask questions.
c. Work out how much money you can contribute per month to your investment from your budget calculations. These payments may be in the form of a margin call (if you borrow money to purchase shares) or property maintenance.
2. Use a trusted investment loan broker to find you the best loan option for you.
a. Use a broker whom will be honest with government authorities, because any "mistakes" made on your loan application will be authorised by yourself and you will have to answer any questions about your investment loan.
b. Be realistic about how much you can afford to borrow and follow your budget, do not deviate from your budget at this point.
3. Discuss different types of investment loans
a. Use a loan broker that has access to different lenders and different types of investment loans to be sure that your investment loan meets with your needs. If you don't understand anything, ask questions.
b. Don't sign anything that you don't understand. If you don't speak English, ensure that you have someone at all the meetings with specialist advisers to translate for you.
c. Seek pre-approval for your loan before you purchase your investments.
4. Having discussed which types of investments you are interested in, research those that meet your needs. You may want to discuss this with your financial planner as they will have some knowledge about the investments that you are attracted to.
a. After you have worked out which investments you would like, confirm your purchases with your Financial Planner and advise him or her of your pre-approval loan number so that the paperwork may be completed.
b. Your financial planner will contact you when the transactions have been completed. You may also have online access to your investment purchases and accounts to see how your investments are tracking.
c. However, be aware that your purchases are for the long term and variations in share prices will happen continuously. Property values are more stable but may still be subject to market fluctuations. All this would have been discussed with you by your Financial Planner when talking about your risk profile.
5. Review your loan every few years to ensure that it is meeting your expectations and that your investment is making capital gains in the long term.
6. ALWAYS, ALWAYS, ALWAYS have a buffer amount in your loan. Ideally 10-20% available equity after you have refinanced for more investing to cover unforeseen expenses, miscalculations, under valuations and market corrections
7. Sit back and relax. Try not to review your investment portfolio too often. Remember, positive investment returns take time. Stay in contact with your professional ad visors and let them know if you have any changes in circumstances that affect your income or ability to earn an income.
Discover How You Too Can Retire Early with a Well Designed Investment Property Plan.

Affiliate Marketing - How to Make Money Without an Initial Investment

There are a million different ways to make money online. There are also just as many unscrupulous people who want to separate you from your money. Making money on the internet does not require always require upfront money. You can begin to build your online empire without pulling any money from your bank account. You just have to be aware of which programs work for your benefit.
START WITH WORDPRESS
There are many choices when you want to set up your website. If you go the cheap route, then you should at least decide on a site that you will be able to transfer later. Every single search engine optimization pro will suggest that you skip the free blogging platform in order to build your online following from day one. If you decide to disregard their advice and try to re-invent the wheel, then you should head to WordPress.com. They will host your site for free. However, if you are serious about making money with your website, you might want to think about spending a few dollars to buy a domain name and set up a site using WordPress on your hosting service.
SIGN UP FOR AMAZON ASSOCIATES
The first affiliate program that you should sign up for is a free affiliate program by Amazon. They offer incredible products that people will buy. In addition, they will provide you with the necessary analytics to see if your endeavors are working. Once you begin to master affiliate marketing through Amazon, you will find there are many other affiliate programs available. Don't be shy with signing up for products. If you feel you can promote it effectively, then do it!
ARTICLE MARKETING
People will suggest you promote your site through buying advertising space on Google and Yahoo searches. However, if you chose effective keywords, you can promote your site simply by writing effective articles. Once you have written these informative and helpful articles, you can then post them to articles sites online. Article marketing is an effective--and inexpensive--way to promote your website.
CONCLUSION
The beauty about the internet is that you can make money without spending money. You do not need an initial investment of any amount of money in order for you to make money online. There are ways that you can build a money making empire without spending thousands of dollars. Find a product, build a site, and promote it.
You can build a money making site without spending money. If you don't want to spend years mastering the basics and if you don't want to re-invent the wheel, head to ThatsAwesome.org
Jay Monroe is passionate about people making money online by creating smart passive income streams. He believes that it is something everyone can participate in, regardless of education level. Follow his free step-by-step approach to financial success.
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SMSF Strategies: Why Should You Buy Property in a SMSF?

Image by Getty Images via @daylifePeople generally experiment with a wide range of investment options to enjoy high returns on investment. Investments can be in the form of shares, direct property, bonds, assets and insurance schemes. However when you invest money in shares, cash funds or industry operated super funds, you have a fund manager who operates the funds across various sectors depending on the performance of the economic market. SMSF strategies give you the benefit of controlling and managing your own finances invested in the fund without having to depend on others. One big benefit is you get to save on the fund management fees and charges that can be incredibly high on some of the superannuation industry managed funds. If you have adept knowledge about investment options and understand how funds operate then it's a wise decision to invest in a SMSF fund. You will need to devote certain amount of time, money and energy into maintaining and operating this type of SMSF fund. However, the effort is worth it as you get to enjoy higher returns on investment over a long period of time.  
The SMSF fund consists of maximum of four-member trust that play a key role in deciding upon the investment strategies that favor the fund. You should be able to identify the most profitable and consistent investment strategy that will yield maximum returns on your self-managed super annuation fund. If well planned and well managed your SMSF strategies can sometimes outperform what the industry standard has been over the past 15 years or so. Sadly that real rate of return is only about 3% according to an ABC TV report conducted in 1010. It does take time and practice to master the art of investing and managing your own SMSF fund. But it is worth the investment, as you tend to save your income to profit from it at the time of your retirement. There are numerous pension schemes that are available in SMSF funds, which help you enjoy high rate of returns on investments at the time of your retirement. Planning for your future is important and the best way to do it is to invest in SMSF funds as you get to save and invest while you work to enjoy the returns during your old age. Another point to note is that self-managed superannuation fund can be paid out at the time of retirement, disability and death and need not necessarily be wound up at the time of retirement.
Using SMSF strategies are also highly portable and transferable. You can continue contributing towards the fund even if you switch jobs and it can be transferred from one generation to another in the even of death etc. If however, in emergency in case you need some amount of the fund there are options for withdrawing and contributing towards the same. We have a team of experts who can counsel and guide you on the pros and cons of investing in SMSF funds. Always talk to a licensed specialist who operates within the law and is an expert in SMSF strategies.
SMSF Strategies: Why Should You Invest in SMSF? The SMSF fund consists of maximum of four-member trust that play a key role in deciding upon the investment strategies that favor the fund. Learn more visit us at: http://propertyinabox.com.au/australianinvestmentproperties/investor_seminar
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NRAS Housing: An Effective Income Tax Benefit for Australian Property Investment Buyers

Image by Getty Images via @daylifeNRAS Housing: An Effective Income Tax Benefit to Australian Investors
NRAS Housing, known as National Rental Affordability Scheme, is one of the best ways for property investors to get started buying Australian investment properties.
It is also one of the best ways an experienced real estate investor can grow their portfolio because of the extra $90,000 provided by the Government over the first 10 years of ownership.
The sole objective is to create extensive investment opportunities in the Australian market. Many large-scale investors seek to register under this scheme to derive the benefit of high returns on their direct property investment. The rationale behind NRAS scheme is to:
1. offer tax-free incentive per dwelling to investors who build
2. rent out approved dwellings at a rate that is less than 20 percent of the prevailing market rate for the benefit of poor and moderate income holders.
Through this scheme the Australian government seeks to reduce the tenancy crisis. This scheme is supported by the Queensland government and seeks to increase the supply of affordable rental dwellings in Australia by 50000 by the year 2014. They have already allocated 15000 at the time of writing this article and they expect to have filled the allocation by the end of 2014. In other words, don't hang around and wait forever because you will miss the boat...
This is a fantastic option for all potential investors. Why?
This is the only government property incentive that you get back as tax credits in cash.
Investors reap some amazing benefits through this NRAS housing schemes:
1. positive cash flows,
2. enhanced rental yields,
3. minimum $9140 tax free incentive every year for every property invested in and more than $90000 of tax free incentives over 10 years.
You can enjoy high rentals and attracts tenants locally and internationally due to such reduced rental rates.
However there are certain strict stipulations and guidelines to be eligible to invest in NRAS dwellings. The Australian Government has released a list of locations of properties that are eligible under this scheme. To avail the benefits of this scheme you have to follow the rules and regulations and invest in the region, state that is approved as per the list. NRAS proves to be a commercial and profitable investment for participants of this scheme.
The main distinguishing feature of NRAS housing dwellings and other conventional residential property investments is that NRAS incentive provides better cash return to investors even though the investor is receiving rent at 80% of rental market value.
NRAS encourages only large-scale investors to avail such incentive and hence small-scale individual investors are not eligible for this scheme. For those private and individual property investors who want to take advantage of this NRAS scheme by investing in just one or two properties, we can arrange and facilitate the application process as we involve in large-scale investments.
Our team of professional property investors understands how you can access this scheme and get the most value from it to build your portfolio successfully.
Looking for someone that can provide investment quality service? End of your quest, visit us at http://propertyinabox.com.au/australianinvestmentproperties/nras for more details.
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How to make money online without investment

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