New owners will enjoy the many benefits of property ownership
First-home buyers are back in the market. The number of loans they have taken up – as a percentage of total owner-occupied loans – rose to 18% in November 2017, according to ABS housing finance data. The last time the figures were at 18% or above was 2012.
Let’s hope the trend continues, because buying and paying off a family home, has been a traditional route to building wealth.
A family home does far more than just provide you with shelter. It’s the only investment that is free of capital gains tax. Under the current rules, if you realise a $250,000 gain on your share portfolio, and you’ve held it for over a year, you’ll pay tax at 50% of your marginal rate. A gain of this magnitude could push you into the top tax bracket (45% plus 2% Medicare). Make the same profit on the family home and it’s tax free, unless you have used part of it to make money.
Esta historia es de la edición March 2018 de Money Magazine Australia.
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Esta historia es de la edición March 2018 de Money Magazine Australia.
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