Negative Gearing – it’s not to your benefit!

Written by Naomi Warne

Continued from page 1

Beware of attractive property packages Who gains from this then? Well, investors who are seeking investment property will tend to seek out property developers or sales agents. In order to make a property seem attractive, they are packaged with elaborate financial models with expected returns on investment. However, commissions and profits torepparttar developers have all been packaged intorepparttar 147820 sale price. With this, investors end up paying premium price for a property with negative cash flow, which is used to pay for hefty commissions to sales agents and developers.

The disadvantage of property depreciations Another aspect that should be watched out for would be property depreciation for taxation purposes. While it is true that depreciation is applied and is used for tax deductions, however, accumulative tax deductions for depreciation costs on property with appreciating value may cause capital gains taxes to be large. This is becauserepparttar 147821 greater depreciation you apply ontorepparttar 147822 value of your property,repparttar 147823 lower its value will be on paper. Therefore, your difference betweenrepparttar 147824 sale price andrepparttar 147825 book value of your property atrepparttar 147826 time of sale will be great. This leads to larger taxes imposed onto you.

Do not purchase because of tax benefits Finally, making a property investment requires careful planning and consideration. Extra caution must be put in especially when a property is projected to generate a negative cash flow. Inrepparttar 147827 end, tax benefits should notrepparttar 147828 main reason for property purchase. You may end up losing a great deal of money inrepparttar 147829 end. For more information, please visit Mortgage Mall Australia.

Naomi Warne of Around the Corner Real Estate Dealers, Sydney, has helped her clients with profitable property investments and numerous tax benefits. Having started as a real estate agent, Naomi has established herself as an analyst and property consultant.

Managing Your Home Based Online Business - 1

Written by Roy Thomsitt

Continued from page 1

Having achieved your dream of a home online business, you want it to succeed. You will have an online business that will belong to you. You arerepparttar boss, andrepparttar 147699 expert on all aspects of runningrepparttar 147700 business. You have your freedom at last, now you need to manage your new business in a way that will ensure it grows and prospers.

With you as manager and staff, these things will all be so easy...won't they? Maybe not. Having your own business, especially based at home and alone, is not necessarily as straight forward as you may have thought. Just ask yourself for now, if you were a manager before, were you a good manager? As a subordinate, were you a good member of staff, someone your bosses respected and could rely on? Ask yourself. Be honest and ask some of your former co-workers, who should be honest too. Listen to any conflicts. You will have to deal with those conflicts as manager and staff.

Really? Yes, really! You have to deal with yourself. You arerepparttar 147701 boss andrepparttar 147702 staff. The best staff are those who follow instructions, work hard in their allotted time, work efficiently in what they are doing, and apply allrepparttar 147703 knowledge and training they have. They are also going to flourish by coming forward with good ideas and having them listened to.

The best managers give clear instructions and communicate their expectations of their staff. They also explain why certain things are done and paintrepparttar 147704 broader picture to enlighten their staff about what their role means. They also know when to listen torepparttar 147705 ideas of others, including staff, and when to buy in expertise. Are you able to fulfil both roles?

By being aware ofrepparttar 147706 need to managerepparttar 147707 finance, marketing, purchasing andrepparttar 147708 other “departments” of your online business, you are part ofrepparttar 147709 way to managing your business more effectively. If you can learn to compartmentalise, in your own mind, those same “departments” then you will be taking another step alongrepparttar 147710 same road. If you can devote time to learning more about those “departments”, becoming an expert in each, and also learn what you can about management, then you will be a powerful manager of your online business.

Who will benefit from that? You, and those you support and care for. Does that not makerepparttar 147711 effort worth it?

Roy Thomsitt is the owner of the home business website:

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