Despite the disruption the global pandemic continues to inflict on freedoms and the economy, the Australian property market is still going gangbusters, with home sales continuing to outpace new listings.
According to CoreLogic, the sales-to-new listings ratio hit 1.4 over the three months to July, meaning that for each dwelling added to the market, more than one gets sold. This ratio has trended ever since June 2020 when the Federal Government … Read the full post »
As a property owner, do you know how much equity you have in your property(s) in the current market? Equity changes as market conditions change, and right now in such a booming market, it’s highly likely your equity has risen.
What is equity?
Equity is the amount that you actually own outright of your property; sitting between what you owe and what your property is worth. Effectively, it is the amount of … Read the full post »
With interest rates remaining at historic lows and rental yields at historic highs, an increasing number of people are considering becoming ‘first time’ property investors. With soaring house prices, many people have had a substantial equity-boost, simply by way of the market forces, and this increased equity can be borrowed against to invest in another home. There is also a growing movement of non-homeowners choosing to invest and buy their … Read the full post »
The path to financial prosperity is not always straightforward, cheap, or easy; however, it is widely acknowledged and consistently proven over time, that one of the most solid ways to build wealth is through property acquisition.
Outlined below are a few key steps to consider when building a property portfolio:
Goal Setting: this is a fundamental first step. What do you want to achieve (for example early retirement)? What is your timeline? … Read the full post »
If you are a private landlord, managing your rental portfolio yourself, occasionally you may come across a situation of ‘abandonment’; whereby a tenant has unexpectedly vacated your property.
What are the ‘red flags’?
Late rent
Cessation in communication ie no response to emails etc
Unkempt gardens
Overflowing letterbox
Information from neighbours
Direct indication/communication from tenants themselves
What happens now?
It is essential that you follow the correct procedures before changing the locks and … Read the full post »
With the handing down of the Federal Budget last week there is much to digest and indeed the path to economic recovery is a long one; however, the government have been widely praised for their handling of the pandemic, particularly in regard to stimulus packages aimed at keeping the economy moving, and the JobKeeper payments enabling employers to retain staff.
One of the real game changers, in term of stimulus emerged … Read the full post »
When looking for a property to commence or add to your investment portfolio, are you put off by Auction properties? What are the benefits and challenges? Certainly, compared to private treaty sales, you are bidding against other potential buyers, with the winner the highest bidder; this competitive environment sometimes creates fear in investors of overpaying. How do you avoid this? Below are some tips to help you navigate the auction … Read the full post »
When it comes time to consider investing in property, many discussions arise around the question of the benefits of purchasing new, as opposed to old. Which is better, particularly from a depreciation point of view? Whilst there is no black or white answer, generally if you are focused on capital allowance deductions then new is the way to go.
Why new? What are the benefits?
The main benefit of buying a new … Read the full post »
Last week we spoke about four key factors to consider when purchasing an investment property: capital growth, cash flow, tax benefits, and accelerated growth. This week we will talk about location and professional advice.
Location
You are all familiar with the real estate mantra ‘location, location, location’. Location is a key factor that can make or break a property investment.
Question: How do you get it right?
Answer: Research.
You need to find out about … Read the full post »
Property investment is not for the faint-hearted, it is a big decision, and like all investment that involves significant amounts of capital outlay or borrowing; it is not without risk. However, it is also one of the most solid and proven ways of growing your wealth, and generally involves less risk than the stock market and other capital ventures that can deliver strong returns in short periods of time. A … Read the full post »
Investment property depreciation can save investors thousands of dollars each year, minimising your tax and maximising your cash flow. Depreciation is classed as a non-cash deduction, meaning that investors do not need to spend any money in order to claim it.
Below is a basic summation of what property depreciation is and how it works.
What is property depreciation?
As a property ages, its structure, and the assets within it wear out … Read the full post »
On the back of state and federal government incentives, combined with historically low interest rates, now is an extremely opportune time to buy, and there has been a national surge in first home buyers entering the market.
Below is a checklist to consider for anyone buying a home, regardless of whether it is your first, second, or an addition to your investment portfolio:
Set your long-term goals: understand WHY you are … Read the full post »