Investing In Property



Our property investment blog brings you all the best articles from industry investment property experts.

Housing Market Headed For Recovery?

Some analysts and property professionals presume that Sydney and Melbourne property markets could bottom out within 12 months. The housing market had been showing some early signs of improvement prior to the election. Consumer sentiment was tracking upwards. In addition, auction clearance rates climbed, while the pace of house-price drops slowed, according to HSBC’s chief economist Paul Bloxham. “We’re of the view the housing market will stabilise in the second half of this year,” he told Guardian Australia. The re-elected Coalition government recently announced that it is lowering the required home-loan deposit from about 20% to 5% for qualified borrowers. Labor’s loss in the national polls

Property Politics: What does the federal election mean for investors?

What does the continued Liberal government mean for the Australian property market and our investors? The nation has breathed a sigh of relief that the Federal election is now over and we can all start to move forward with a greater degree of certainty. Negative gearing remaining untouched is one of the most key policies for Australian investors. Fear-mongering in the media built up over the last few months with even Prime Minister Scott Morrison predicting that ALP’s proposed changes to negative gearing would result in a housing market crash. The ALP also proposed increasing capital gains tax which was another nail in its election campaign coffin in the eyes of the investment community alon

Big “Hidden” Costs Of Buying A Property

We often tend to focus on the total property value when shopping for an investment property – or the deposit needed to secure it. But what are some of the other fees that get lost in calculation? Lenders Mortgage Insurance Previously, buyers were required to hand a lender at least a 20% cash deposit before they could secure a home loan. But today, this amount has been diminished to as low as a manageable 5%. In order to reap this advantage, a borrower will need to take out Lenders Mortgage Insurance (LMI), which will cover the bank in the case that your circumstances change – deeming you unable to continue tending to mortgage repayments. In other words, it’s insurance the bank takes out to g

Market deficits that create golden opportunities

This year will be remembered as an interesting one for Australian real estate – and the period from May to July might prove the most consequential. There are a swirl of factors circling the property sector at present. Looked at in isolation, they can seem minor in terms of a macro-economic influence. But take them all in at once, and it’s obvious why now is a prime time to prepare for a bright future in Aussie markets. Political wrangling As at the time of writing, the federal Liberal-National Coalition had just been re-elected to govern for the next four years. It was a surprising, counter-intuitive result for many pollsters. While commentators will give their thoughts in the coming weeks a

Negative Gearing, CGT Remain Unchanged

Prime Minister Scott Morrison has led the Coalition to a surprise win in the federal election over the weekend, meaning negative gearing remains unchanged. Making massive changes to negative gearing and Capital Gains Tax was a key platform for the Australian Labor Party, which many expected to win at the polls on May 18. However, this election result “shows that Australians have rejected risky taxation changes at such an uncertain time in the property cycle”, said Ken Morrison, Chief Executive of the Property Council of Australia. “A key plank of the Opposition’s policy agenda were big changes to negative gearing and big increases to capital gains tax, and the election result can only be see

Advice for first home buyers after new research shows most are clueless about buying property: ME Ba

New research shows that most first home buyers are clueless when it comes to knowing the ins and outs of property buying. A concerning 61 per cent of first home buyers failed a basic property buying literacy quiz, compared with only 27 per cent of owner occupiers, and a quarter of investors. Home loan lender ME Bank tested the knowledge of 1,000 Australians who are looking to buy their first home or have already purchased an owner occupied or investment property. But it turns out that those buying their first home were not as clued up as they would like to think, despite nearly 70 per cent of respondents saying they feel confident about making financial decisions, and around half saying they

Varied Market: House Price Trends

Median home price in the country slid by 7.2% in the year to April, with capital cities recording a larger decline of 8.4% in average weighted terms. Data from CoreLogic, though, showed that for some specific markets, the declines have been massive, while in others prices have not decreased at all. The largest value drops among capitals have occurred in Sydney and Melbourne—which logged over 10% falls—and in Perth and Darwin, which have been demonstrating weakness. On the other hand, Hobart, together with some suburbs in Canberra, topped the list of capitals with largest price growth in the year. The five best-performing regions in both cities recorded increases of 7.9% from 12 months earli

BMT’s top tax time tips for property investors

With tax time fast approaching, here are five tax time tips to ensure you maximise the deductions for your investment property. 1. Understand what deductions you’re entitled to As a property investor, you’re entitled to a range of tax deductions. These will help lower your taxable income and make owning an investment property more viable. For example, some of the tax deductions available to investors include deductions on council rates, the interest from a mortgage, property management fees, land taxes, strata fees, maintenance costs, insurance, accounting fees and depreciation. Of these deductions, depreciation is the most commonly missed. This is because it’s a non-cash deduction and the

Seven Proven Strategies For Boosting Your Property's Rent

It’s a dilemma every landlord has to face at some point: when, and by how much, should you increase your rent? You might fear raising the rent too much and driving your great tenants away, while at the same time you know you’ll never achieve property mogul status if you continue leasing your property for rock-bottom rent. Here are seven strategies proven to boost your rental return, which you can implement across your property portfolio. Of course, this advice is general and does not take the place of speaking directly to your property manager or investment advisor, who should be able to guide you on specifics such as the market rent for the area and what local tenants are looking for. 1. Li

Five things to know about depreciation this tax time

With tax time fast approaching, claiming depreciation is the key to increasing cash flow from an investment property. MT Tax Depreciation has some tips for investment property owners when it comes to claiming depreciation at tax time. Below are five ways to make sure you get what is yours. 1. Don’t miss out on depreciation deductions Property investors are entitled to a range of tax deductions which help to lower taxable income and make owning an investment property more viable. Some of the tax deductions available include council rates, the interest from a mortgage, property management fees, land taxes, strata fees, maintenance costs, insurance, accounting fees and depreciation. Of these de

House Prices Continue To Drop

Home prices across Australia fell by half a percent in April —down by 7.2% over the past year and by 7.9% since peaking in September 2017. The rate of decline, though, has been easing since moving through a monthly low point in December, when national dwelling values dropped by 1.1%, according to recent CoreLogic data. “The improvement in the rate of decline is attributable to an easing in the market downturn across Sydney and Melbourne where values were previously falling much faster. In December last year, Sydney dwelling values were down -1.8%, with the pace of month-on-month, falls progressively moderating back to -0.7% in April. Similarly, Melbourne values were down -1.5% in December, w

Aussies Obsessed With Property — Study

Australians spend an average of 2.5 hours a week focused on property, more than twice the time they spend at the gym (1.08 hours) or speaking to their parents (0.88 hours), according to new research from HSBC. The bank said that the result is an indication that the cooling housing market is doing little to dent some Aussies’ property fixation. Softening property prices and low interest rates were encouraging factors for many Australians looking to enter the property market, said Alice Del Vecchio, head of mortgages for HSBC Australia, said. “Buying a property is often the most significant purchase Aussies make,” she said. Globally, people spend an average of 3.5 hours every week window shopp

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