INVESTOR MYTHS BUSTED
One of the biggest misconceptions about property investors is that they are all wealthy. While some are, 99% are not: They have full-time jobs and struggle to make ends meet like most people. If a tenant doesn’t pay rent or unplanned maintenance needs doing, that money needs to come from somewhere. It might usually be tax deductible but you can’t claim that third back until the following year.
The majority of property investors have just one or two rental properties. They pay tax on the little left over after payment of the mortgage, maintenance, rates and insurance. It usually takes many years of investing in residential property before any real money is made. I know more investors who have gone bankrupt than I do ones who have been successful over the long term.
No investor I’ve ever met has wanted to be an investor so they could pay less tax. They go into it because they want to have a couple of properties freehold when they retire and not have to rely on the
