Similar to the property market there are also some great benefits to investing in the share market. Much to many peoples surprise you can also achieve tax benefits when borrowing to investing in shares.

Becoming a property investor

If you currently own a home and have experienced an increase in property prices around your area, or you have paid off some of your mortgage, then you could start investing in the share market almost straight away. APD Lending Services can assist you to release the equity in your house to start a share portfolio.

So how much equity do you have? Simply take your estimated value of you house and multiply by 0.9 (90%) then subtract your current mortgage amount. This gives you an approximated equity value based on you expected value of the property. Lending institutions will tent to take a conservative approach to property value so they will look more closely at what properties have sold for over the last 3 months rather then current prices.

The borrowing costs will include bank fees and charges along with mortgage stamp duty and mortgage title registration and release fees. Some of these costs are tax deductions.

Tax Benefits

You can claim some expenses against your share market investment including:

• Interest expenses
• Borrowing expenses (loan application fees, legal fees, and valuations, to name a few)
• Education expenses (this may include: seminars, book purchases, subscription, etc)
• Ongoing expenses (accountants fees, insurance premiums, bank fees, Brokerage fees)

For more information speak to your accountant.

Important Factors when considering investing

• Determine your Strategy – The share market can go up in price just as quickly as it can go down. So it is vary important that you determine you investment strategy before you jump in. This includes identifying the level of risk that you are comfortable with.
• Diversify – Don’t put all your eggs in one basket. Even if you are an aggressive investor you want to ensure that you will be in the market tomorrow. Talking to a financial planner can greatly assist with helping you to spread your investments.
• Get Informed – A great place to start is by taking advantage of the ASX seminars offered on a regular basis about the share market.

It is very important to establish a structure that is conducive to your investment strategy. APD Lending Services will take the time to discuss the best options available.