One piece of really good news to come out of all the recent bewildering tax changes is that the family home is still firmly enshrined as the only tax free investment.
If you are smart with your family home purchase, you will have an asset that grows a lot quicker than inflation and still pay no tax on the profit you make when you sell.
However it pays to keep in mind that on average, house prices only keep pace with inflation over the long term. To beat inflation you have to be very shrewd about choosing your principal place of residence.
You must buy your family home with your head and not your heart.
What I have I just said is very hard to do, so when you are making a purchasing decision on a new home always involve another party for some independent honest advise.
Location, location, location is the golden rule when it comes to purchasing property.
The rule of thumb is the higher the demand for property in an area, the stronger the capital growth. A property to live in is usually a seven year commitment, and I always say buy a property that value can be added. An extra bedroom maybe, a garage, bathroom this all helps with the end sale price which remember is capital gains tax free at the end of the day.
Buying property with good land content is always a smart move, because land goes up in value, and Sydney is a place that is very scarce in Land.
If you can afford a water view you are very much securing your strong future capital gain straight away. Water views are very hard to come across in Sydney and every one wants one, which comes back to low supply, which equals strong demand and therefore high purchase prices.
Shop 1, 696 Military Road
Mosman NSW 2090