If you’re an expat and you plan on returning to Australia when you retire, or even before that, it makes sense to have a solid foot on the property ladder first.
You may want to enjoy the climate and more laid-back lifestyle in your golden years, but if you’re planning on returning without working, then make sure your finances are in place to support you.
The Australian Property Market has continued to grow, which means it’s a good, stable long-term investment but it also means it could be difficult for you to get back into the market if you leave it too late.
Of course, investing in property carries risks, but there are also excellent tax benefits for investing in Australian property while you’re still living abroad.
Let’s look at some of the reasons to start investing in property now to secure your retirement.
Maximise any tax benefits that your tax residency provides
If you’ve remained an Australian resident for tax purposes, you can deduct financing and other property costs like maintenance and management. You can also expect a depreciation benefit each year. If you’re no longer a resident for tax purposes, you can still claim the same deductions against your Australian sourced income.
Save tax credits while you’re still a non-resident.
If your tax-deductible expenses are higher than your Australian taxable income, it’s wise to accumulate those tax losses on your Australian property that can be offset from your income when you return to Australia.
At WiseGuru, we urge you to use your low-income tax regime to help build your retirement nesting. Our presence in Singapore and Australia means we can work with expats to tailor the best solution based on your requirements.
Related Tag: Australian Property Investment Advice