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There has been a lot of talk about capital gains but did you know that you have to pay tax on your profits?   Capital Gains Tax (CGT) is calculated based on the difference between your sale place and what your investment cost you over the course of your ownership including any improvements and repairs.   To get an indication of what your CGT may be, reach out and let's talk. My Very Best To You Always,  
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If you’ve been making regular repayments and have finally paid off 20% of your mortgage, now is a great time to think about investing in real estate.   Why?   You might not need a deposit   When you own your own home (or have more than 20% equity in its value), you may not need to make an upfront deposit as your existing property essentially becomes security for the investment loan.   You can draw on your equity   Use the capital already existing in your home to borrow more so you can buy better value investments and charge a premium rent. Sound good?   If you’re thinking about jumping on the property investment bandwagon, I can help advise you on everything involved with the finances you’ll need. Reach out and let's talk. My Very Best To You Always,  
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Many property investors often struggle to figure out what sort of investment property to purchase. No matter where you buy, it’s reasonable to assume the value of the home will increase over time and it’s nice to know your money is sitting tight in bricks and mortar.   That doesn't mean every investment strategy is right for you.   The industry is full of jargon like “negative gearing”, “capital gains” and “cash flow” and that can really throw people off, especially if they’re just entering the market.   The most important question you need to ask yourself is ‘why’ you are purchasing the property.   Is it because you need a tenant to cover your mortgage repayments or is it because your accountant has told you it’s a great way to receive tax breaks?   Whatever the reason, you should put some thought into your investment strategy and how much time and money you are willing to commit.   I’m here to help you figur...
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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,  
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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...
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    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,  
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    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,  
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    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 ...
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  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,  
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  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,  
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