19 Dec 2021

Clever Buying Capacities: Pre-Tax Income Considerations

When it comes to purchasing a home and living with your means, engaging in creativity is a must. Plus, the Australian government allows loopholes for clever buying capacities. These are strategies that help you make the most of your pre-tax income. The strategies also help individuals lower their tax liability.

Here we look at two clever buying capacities for homeownership.


Superannuation allows individuals to save for retirement with their pre-tax income. They place it in their retirement account and don’t pay taxes on it right away. Of course, there are tax considerations after the fact. But speaking with a tax accountant can clear up any doubts or questions that you may have.

The contribution transfers to a super account monthly. In addition, you can make additional contributions to the account. When you’re ready, you can invest your superannuation into a property. Simply use a self-managed super fund. 

Salary Sacrifice

The other clever buying capacity is salary sacrifice. Salary sacrifice is another method that helps individuals save for retirement pre-tax. Speak with your employer about setting it up.

Once your funds settle into an account, it’s possible to invest them in a property. In addition, some allow you to borrow from yourself. 

For more information, speak with a tax accountant. For information about home loan rates speak with our Mortgage House loan specialists. 

Clever Buying Capacities Conclusion

Individuals interested in clever buying capacities can contact Mortgage House to obtain additional information. Our loan specialists help you understand the loan products that fit your current financial circumstances. Then they find ways to make the payments more affordable. Contact our team today.

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