Successful investing cannot be achieved without due regard to tax. Today I want to show how tax plays a key role in every stage of investing … and to throw some light on one of the less well known areas of tax-effective investment.
Obviously all investors must seek to have a diversified portfolio. One of the most favoured asset classes for Australians with a diversified portfolio is direct residential property investment. This asset class firmly fits into the accumulation and consolidation phases, but can be found wanting once a person enters the drawdown phase. This is because net residential rental returns are often less than 3%.