Australian property investments 'offer great after-tax returns'

Property investment in Australia could be a great option for those looking to maximise their after-tax returns, it has been claimed.

James Dunn, writing for the Australian, has asserted that a ten-year comparison has shown that residential property has bested shares at both the highest and lowest marginal tax rates.

Michael Yardney, an industry expert, told the news provider that property is particularly useful as it has a low level of volatility.

He said: "Historically, well-located properties double in value every eight to ten years, with an average capital growth of eight to ten per cent a year, and rental yield of around four to five per cent a year."

Mr Yardney added that those looking to leverage their investments also stand to benefit due to banks' willingness to offer better loan deals for this type of investment, meaning that it can outperform shares.

Australian Property Monitors economist Matthew Bell recently suggest that Melbourne, Australia offers investors one of the best performing markets over the last 12 months.
 

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