Is it still worth it to buy an investment property or should we all start mining crypto? In March 2021, when a lot of changes were announced, people were worried about the additional costs of the new tax. As the dust settles some of those numbers make investing still worth the journey.
Example of the new tax changes
In terms of tax, an investment property bought for $850,000, could mean an additional tax of approx $7,000 per annum. This is assuming the full amount was borrowed and previously you could deduct the interest of approx 2.5% as an expense against income @ 33% tax rate. (your own personal tax rates may change this).
For properties that were purchased before the 27th of March of this year, the tax will be phased in over the next 4 years.
There are exemptions for new builds and further exemptions being discussed for new 2nd dwellings.
