Author: Frank Barragan

Some people love the idea of investing in a new property because they know they’ll receive a 2.5% building write-off allowance they can claim come tax time.   What isn’t well known is that owners of older buildings can still claim the residual value of their property for up to forty years from the date of construction which gives you plenty of deductions to make the purchase worthwhile.   Even if your property is more than 40 years old, you can claim depreciation on its fixtures and fittings, as well as any recent renovations, even if they were carried out by a previous owner.   A good rule of thumb is to get professional advice on a property's depreciation potential before you buy.   If you’re researching the best investment loans for your potential investment, I can help make the process easier for you.  Reach out and let's talk. My Very Best To You Always,  
Read More

The investment game is tough and if you’re just starting out, it’s easy to fall into marketing traps.   Here are four property investments that may trick you so make sure you take your time reading the fine print: Off the plan developments. There are significant benefits to buying off the plan, including no stamp duty, depreciation opportunities and the potential need for a smaller deposit. But some risks could cost you, too. Watch out for developer profit margins and high selling agent commissions, which can add 25-35% to the market value of a property. In many cases these margins can far outweigh any savings in stamp duty, slowing down your capital growth. Serviced apartments or student accommodation. Lenders can see these types of specifically-zoned properties as higher risk, so they might make it harder to source finance and sell later down the track. Foreign property markets. There's been a lot of editorial inches on the opportunit...
Read More

    Getting your loan structure right is crucial to making the most out of your assets. With the right property, negative gearing can be attractive to investors because it offers tax relief and financial gains in the long term. But what exactly can you claim on tax? Borrowing expenses such as legal costs, stamp duty and mortgage insurance Interest and bank fees you pay on your loan Real Estate Agent fees Rates and body corporate costs Home and contents insurance Cleaners, pest control services and gardening/landscaping costs Costs to secure, terminate and evict tenants Any decline in your property’s value If you have any questions about what you can claim on tax, reach out and let's talk. My Very Best To You Always,  
Read More

    If you want to start earning money from your rental property straight away positive gearing is right for you! Taking this approach means: You gain immediate returns on your investment You have a regular stream of income which means less risk You are more attractive to lenders who are loaning you money It also means that the immediate returns on your investment are taxable and therefore positive gearing may you’ll need to know what your tax situation will look like.   I hope this email has given you some insight into the perks and pitfalls of positive gearing.   If you have any questions, reach out and let's chat. My Very Best To You Always,  
Read More

    The key to investment success has nothing to do with how your home looks and everything to do with who’s living in it. Reliable tenants are the key to making sure your investment pays dividends but how do you find great people to rent your home? The first step is choosing a property that's attractive to your target audience. Ask yourself these important questions: Does the property have all the amenities a high value tenant can reasonably expect? Is the property close to public transport? Are there community amenities and shopping centres nearby? If you wouldn’t want to live there then don’t expect that anyone else would.   The second thing to consider is whether you can ensure a good return via capital gains.   Here’s what to look out for before you buy: Planned infrastructure and government spending in the area Trend data that indicates the suburb will ...
Read More

  The first thing you  have to do is work out how much money you can borrow. Borrowing capacity depends on a lot of things, including your income, savings, expenses and credit rating. It also varies between lenders, because each one will use different criteria to assess your financial circumstance. As a general rule, a lender will consider the following: Your credit card limits Your income and whether you’re fully or self-employed Your proposed property’s value vs your loan size and kind How many dependents you have Your living expenses Whether you have existing assets and a deposit For an in-depth assessment of your borrowing capacity, reach out and let's talk. My Very Best To You Always,  
Read More

  As more and more of us turn to the ease and convenience of apartment living, it’s no surprise that they’re becoming an increasingly attractive option for investors too. A common scenario for apartment investors is to purchase strata-titled property. This means you own the apartment as well as a common share of the entire complex, which is managed by a body corporate. You’ll be expected to pay a levy to cover the body corporate costs but in return they will maintain and repair the external walls, floor and roof of your apartment. There’s plenty more to take into consideration before you invest in a strata scheme, which I’m happy to talk you through in detail.  Reach out and let's talk. My Very Best To You Always,  
Read More

    There are quite a few advantages to purchasing a new property as an investment. The Pros: No repairs or renovations needed Appealing to tenants so you can charge higher rent You can claim depreciation, particularly in the first few years of ownership If you live in the property for a little while, some states offer generous government concessions for new-home buyers The Cons: Purchasing off the plan has its risks – you don’t know exactly what you’ll end up with. Can be more expensive than older properties No rent history, so it’s difficult to estimate rental income Sometimes located in new fringe suburbs, adding to potential commuting times I’ve got access to the latest facts and figures to help with your research. If you’d like to chat about your options, reach out and let's talk. My Very Best To You Always,  
Read More

    I bet you never thought that property depreciation could be your best friend! It sounds like a scary concept but truth is, the everyday wear and tear on your property can work in your favour and provide you with a variety of tax breaks. What can I claim? There are two kinds of property depreciation allowances: Plant and equipment (carpets, blinds, whitegoods, hot water systems, heating, light shades, etc.). Each type of deduction attracts varying rates of depreciation. Capital works (structural elements such as windows, brickwork and doors). You can claim all capital works items at a flat 2.5% per annum. What you need to know before you claim Older properties can claim depreciation You can depreciate renovation works, but make sure you get advice from a quantity surveyor before you start so you know how much you can claim You can backdate depreciation on your property if you ...
Read More

    It’s important to get pre-approval for your investment loan so that you know exactly how much you can spend and what your repayments will be. It won’t cost you a cent and you’ll be able to go out and view properties with confidence. There are a few things to look out for though: Quick online approvals. Websites that offer super-fast approvals are unlikely to be accurate. You might end up thinking you can buy something that in reality you cannot afford. Deposit Bonds. If you've got equity in another property and limited cash for a deposit, a Deposit Bond is a kind of insurance policy that you'll pay a 10% deposit on any investment property your purchase. Essentially, your insurance company promises to cover the 10% deposit once you agree on a price. This means you can keep your deposit amount in your account until settlement, which is great for off-the-plan and auction purchases. Always check with the agent w...
Read More