Season 4, Episode 54 - How can I hold Multiple Investment Properties?

A common question we get asked at OpenCorp: How can I hold multiple properties while I'm still paying my mortgage and dealing with the cost of living? Michael Beresford,  Executive Director - Property & Investment Services, gives a quick masterclass on how that works.

Highlights:
A masterclass on how to hold multiple properties while still managing a mortgage and dealing with the cost of living.

Property Selection: The type of property you buy significantly impacts how much it will cost you to hold the investment. Properties with higher rental income and tax benefits are preferable.

Maximizing Rent and Tax Benefits:

Rent: Due to the rental crisis, rents are increasing, allowing investors to treat rental income increases as a form of pay rise.

Tax Benefits: New properties often offer greater tax benefits compared to established properties, which can amount to an extra $100 per week—enough to help hold a second property.

Tax Variation Form: Investors can use a tax variation form to receive tax benefits throughout the year rather than waiting until the end of the financial year. This can provide additional monthly income to cover holding costs.

Real-World Example: An example from a recent client demonstrated how a property that was initially cash flow positive turned slightly negative due to rising interest rates. However, the increase in rent and tax benefits helped maintain the property with minimal out-of-pocket expenses. Watch the Real World Example discussed here: https://bit.ly/3X4yGDj

Cost of Waiting: The importance of taking action rather than waiting for perfect market conditions, as waiting can significantly increase the cost of holding a property.

Conclusion: By strategically selecting properties, maximising rent and tax benefits, and using tools like tax variation forms, investors can hold multiple properties without negatively impacting their lifestyle. This approach has been successfully applied by OpenCorp for over 20 years.

Watch the Real World Example discussed here: https://bit.ly/3X4yGDj

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