More than one in 10 property investors fear they may have to sell their assets due to rising interest rates according to a new survey.
New findings from a survey conducted by fintech startup TaxTank has found that 63% of Australian property investors are worried about the continuous rise in interest rates.
The survey of 606 property investors also revealed that 40% of them are concerned about the cost of living.
TaxTank founder Nicole Kelly clarifies that Australian property investors shouldn’t consider selling their assets without gathering all the right information and advice.
“With some property investors now feeling concerned about maintaining their portfolios in the current environment, it’s absolutely vital not to panic sell properties,” Ms Kelly said.
“Too often we see clients sell properties based on the wrong criteria because they don’t have the right information.
“Clients look at the mortgage they need to pay out, and the cash left over, instead of which properties are performing the best in their tax return and what cash is required from their pocket to hold that investment each week.”
Additional findings show that only 34% of property investors are optimistic that they know their cash position. Only 21% of property investors are up to speed with their tax position.
“Understanding the performance of each property is crucial to ensure solid decision making, and let’s not forget about capital gains tax (CGT) which often catches investors off-guard,” Ms Kelly said.
“Knowing the tax impact of a property sale will not only enable better decision making on which property to sell, but when to sell to reduce the liability where possible.”
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Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of August 11, 2022. View disclaimer.
Variable More details FEATURED Smart Booster Investor Bundle (Principal and Interest)
Smart Booster Investor Bundle (Principal and Interest)
Variable More details FEATUREDGET APPROVED FASTER WITH A DIGITAL APPLICATION Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)
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Variable More details 100% FULL OFFSET ACCOUNT Ocean Investment (Amounts < $1m, LVR < 60%)
Ocean Investment (Amounts < $1m, LVR < 60%)
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