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    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,  
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    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 ...
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    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...
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        Choosing an investment loan can be a daunting experience. There are endless options and mountains of information out there, so how can you be sure that you’re getting the best deal for your situation? Let’s have a quick look at the options. Fixed loans Your interest rate remains the same over the life of your loan Budgeting is made easy as your outgoing costs are the same each month Fixed loans don’t offer the breadth of features variable rates do, and you won’t be able to make extra repayments to decrease your loan balance when times are good. Variable loans Your interest rate changes as the Reserve Bank adjusts to economic conditions. Variable rates are useful if you’re not worried about fluctuating repayments and want to take advantage of lulls in the economy. There’s plenty of add-ons and benefits of a home loan that you can use to your advantage, including: Interest only repayment...
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      Negative gearing can be a smart financial strategy for property investors and those looking to build up a portfolio and prepare for their future.   How does it work?   Simply put, negative gearing describes the situation in which your rental income is less than expenses you pay on your property .The main expense is usually the interest on the loan you took out to pay for the property but can also include council rates, maintenance and repairs etc.   Because the amount you are making on the property is a negative sum, you can offset the taxes you pay from other sources such as your income.   Sounds great right?   Well, yes! Who wouldn’t want to pay less tax?   Unfortunately, negative gearing isn’t an option for everyone and for it to work effectively it’s highly recommended that you speak with a financial professional. I can walk you through your investment loan o...
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    Existing properties can make excellent investments. As with any big financial decision it’s necessary to thoroughly map out what you want to achieve from your investment at the outset, as well as the potential advantages and disadvantages of purchasing an older property. Why existing properties make good investments: You have a clear rental history with an older property, so you know you’re your potential income might be from the start Some existing properties already have tenants – so you won’t have to spend extra cash finding someone to help with your repayments You can quickly add value to an established property with smart renovations or landscaping You're not buying sight unseen as you do with off-the-plan investments – so you know what you're getting and how it will work for you. Be Aware: You may need to do immediate repairs or renovations to appeal to tenants willin...
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      Many owner-occupiers don’t think they can afford to invest in property whilst paying off the mortgage on their own home. This is a misconception as there are some great advantages to investing that can make building your nest egg easy.   Lenders tend to look more favourably on owner-occupiers seeking to invest. This is because the equity in your existing home puts you ahead of the game and makes you a safe bet in the eyes of a lender.   It also means you don’t have to take out lenders mortgage insurance and your paperwork and fees will be reduced.   Best of all, you might not even have to put down an additional deposit.   This all sounds great on paper but it’s important to remember there are still risks involved which is why it’s crucial to get professional financial advice before you use your home as collateral.   If you have any questions , reach out and let's talk. ...
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      You’ve had a look at what different banks are offering and realised you are missing out on additional features that could save you thousands of dollars over the course of your loan.   Financial institutions are continually innovating to stay competitive so it’s definitely worth looking at what’s on the market.   Here are four loan features you should keep an eye out for:   Interest only repayments This allows you to reduce your monthly repayments so you are only paying off the interest portion of your loan.   Additional repayments This allows you to make additional repayments while interest rates are low.   Offset account This allows you to keep a sum of money in a separate account reducing the balance you need to pay interest on.   Redraw Facility A redraw facility allows you to claim back additional repayments if you need quick cash.   ...
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      One of the most common ways to fund a renovation is through equity built on an existing home loan. Simply put, equity is the difference between a bank’s valuation of a property and the amount of money a person owes on a home loan. This builds up over time because the value of a property increases and the balance of a home loan decreases. Using equity will help you avoid the additional costs of creating a new loan, however if you increase your LVR by over 80% you may have to pay lender’s mortgage insurance.   To discuss the pros and cons of adding renovation costs to your current home loan reach out and we'll talk. My Very Best To You Always,  
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