INVESTING - Property

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Edit   Delete - Last Modified By: DIR at 14/04/2016 11:26:31 AM

Revision - What is investing?

Investing means to put (money) into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit or return.

If we are to break this down, investing is using our money to make more money.

You can buy property such as houses… You can buy shares, which is to own a small part of a company… Or you could purchase and trade in commodities (such as gold or oil) or trade in foreign currency such as US dollars, or Euros.

TASK 1 – Read the following guide to investing in property

https://www.aussie.com.au/home-loans/home-loan-resources/investing-guide.html

• Why invest in property?
  The elements that make property a good investment option for some people.
• The return on your investment
  Getting capital growth and a steady stream of rental income.
• Choosing an investment property
  Inspecting places with a business-like eye.
• Choosing an investment loan
  The types and features that appeal to most investors.
• Tax and your investment property
  The liabilities and deductions you need to know about.
• Managing your investment
  You'll need to find tenants and deal with their day to day issues. Or you could get an agent to do it for you.

Some quick questions to answer

1. Define the term “capital growth.”
2. Define the term “rental return.”
3. What is capital gains tax?
4. What is negative gearing?

Research and investigation questions

1. If you had $500,000, where would be the best place in Victoria to invest if you were looking for Capital Growth?
2. If you had $500,000, where would be the best place in Victoria to invest if you were looking for rental return.