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

What can you claim when renovating?

More and more Australian investors are choosing to renovate their investment properties before leasing them out. However, investors who live in the property while renovating risk missing out on thousands of dollars in property depreciation deductions. Property depreciation is generally the second biggest tax deduction after interest, though it’s often missed by investors. This is because it’s a non-cash deduction, meaning you don’t have to spend money to be eligible to claim it. The Australian Taxation Office allows owners of income-producing properties to claim depreciation deductions for the natural wear and tear that occurs to a building and its assets over time. Depreciation can be claim

7 Tips For Saving Your Deposit

Investing in property is an enterprise that can take a lot of research, advice and sometimes even trial and error to get off the ground. And, most importantly, it takes money. There are many costs involved when it comes to buying a property, one of which is the initial deposit you’ll need to put down. Generally, most buyers aim to save or access a deposit of 10% of the purchase price, although a deposit of 20% is ideal if you want to avoid lenders mortgage insurance (LMI). Prime Minister Scott Morrison recently outlined a First Home Loan Deposit Scheme that could help some buyers get their property goals off the ground with a deposit as low as just 5%. While the plan is intended to help firs

Aussies "More Confident" About Price Growth

The number of Aussies expecting housing price growth increased, according to ME Bank’s June Property Sentiment Report. Thirty-eight percent of Australians believed property values would increase in the next 12 months, rising from just 32% in the March quarter. Buyers’ improved sentiment was unsurprising given the central bank’s latest rate cuts, changes in mortgage lending rules, and the certainty over negative gearing options since the federal election, according to Craig Ralston, ME Bank group executive for customer banking. Rising auction clearance rates also helped the positive views on housing values, Ralston said. “Positivity among sellers and owner-occupiers suggests these groups see

Number Of Renters Spikes As Homeownership Falls

The proportion of Aussie households renting their dwelling increased to 32%, as homeownership in the country fell to 66% in 2018, according to a new analysis from the Australian Bureau of Statistics (ABS). The number of households renting their home from a private landlord also rose to 27%, with the proportion of public housing tenants falling from 6% to 3%, according to the analysis. “Most of the increase in renter households was in the private rental market. Some of the decrease in public numbers can be attributed to recent social housing provision which [has] seen the community housing sector taking on an increasingly prominent role,” ABS Chief Economist Bruce Hockman said. Homeownership

Housing Minister Says Now Is Right Time To Buy

Housing Minister Michael Sukkar urged first-home buyers to try and grab a property now before the introduction of the First Home Loan Deposit Scheme in 2020. “If you’ve got an opportunity to get a foot in the market before then, you should take it, given I think the market is starting to improve. People who buy now, I don’t think, will regret it at all,” Sukkar told The Australian. The Minister spoke as the government polishes the loan scheme, which will enable first-time buyers to purchase a house with as little as a 5% deposit. The market conditions were possibly the “best ever” for first-home buyers, according to independent property economist Andrew Wilson. “It’s a very good scenario for

Home sales stabilising, with Adelaide market trending above decade average

Although sales volumes are lower on an annual basis, monthly sales volumes have risen from recent lows, according to CoreLogic research by analyst Cameron Kusher CoreLogic estimates of monthly settled sales data point to a levelling in housing market activity, following several years of falling home sales, according to research by analyst Cameron Kusher. Despite signs that market activity is leveling out, annual transaction numbers remain lower year on year across every capital city region of the country. Annually, transaction volumes continued to decline, however, recent monthly data indicate that transaction volumes may have stabilised. Mr Kusher said, “The decline in home sales has taken

How Will The New First Home Loan Scheme Impact The Market?

Do you remember what happened to property prices when the First Home Owner Grant was introduced back in July 2000? The original $7,000 grant to first home buyers seems modest by today's standards, but its impact on the property market at the time was quite extraordinary… A lesson from history After the grant was announced, but before it was actually implemented, there was a noticeable drop-off in activity by first home buyers - who held off buying while waiting for the grant to come into effect. However, following the implementation of the grant in July 2000 there was a surge in buying activity. Property prices went up quickly - and by much more than the $7,000 value of the grant in many sub

Challenges Remain For Property

Property industry confidence climbed by 13 index points, reversing a year of decline, according to the latest ANZ/Property Council Survey for the September quarter. The data showed that industry confidence improved across all states and territories — except for the ACT — following the federal election outcome. South Australia recorded the largest increase, up by 16 index points. “This strong sentiment bounce is driven by some welcome post-election policy certainty out of Canberra and will be an encouraging sign for the RBA and national policymakers,” said Ken Morrison, chief executive of the Property Council. “Following the federal election, we have had a quadrella of positive policy news wh

Partial year depreciation deductions can boost your cashflow

If you haven’t owned your investment property for a full year you can still claim depreciation deductions this tax time. Investors can claim pro-rata depreciation deductions for the period their property is rented out or is genuinely available for rent. That is, the property is given broad exposure to potential tenants and considering all the circumstances tenants are reasonably likely to rent the property. Quantity surveyors use legislative tools like applying the immediate write-off rule and adding eligible assets to a low-value pool to make partial year claims more beneficial to new investment property owners. An immediate write-off applies to any item within an investment property with a

New Home Sales Take An Upturn

New home sales recovered from lacklustre results over the first four months of 2019 in May, hitting their highest monthly level in over a year. The federal elections affected the market confidence and discussions on proposed changes in capital gains tax strengthened the uncertainty in the first part of the year, according to HIA's Chief Economist Tim Reardon. "This month's result confirms our expectation that the decline in building activity will start to level off in the second half of 2019 and stabilise at a level below the highs achieved back in 2017," he said. The HIA New Home Sales report showed that Australia's largest states experienced the improvement in home sales. The results impli

Property Styling

Have you taken a close look at the home decor in real estate listings these days? Have you noticed a growing similarity between the presentation of private listings and display homes? Private sellers are learning from the property developer playbook; they invest in the presentation of their properties to gain a greater return. Not only does it make the property more appealing on inspection, but well-presented photos also get more feet through the door. The easiest way to achieve this is through styling. Property styling is a presentation service that includes the design, hire and installation of a complete furniture and accessory package. A complete service will transform an entirely vacant

Highest new home sales in over a year

A new survey of home builders across Australia has “confirmed expectations” that the decline in building activity is levelling off, in accordance with a general rise in housing market optimism. According to the HIA New Home Sales report, new home sales in May were at the highest monthly level in over a year. “The pickup in May follows lacklustre results throughout the first four months of 2019,” said HIA chief economist, Tim Reardon. “The resurgence in home sales was evident across all five states covered by the New Home Sales survey, suggesting a broad-based improvement in housing market sentiment around the country.” The data showed that new home sales were up by 54.2% in NSW, by 34% in WA

5 Steps to property investing success

Becoming a savvy investor isn’t something that happens overnight. While some people possess more aptitude than others, any successful investor will have benefited from years of experience, mentoring and access to the knowledge of others. But that’s not to say there aren’t ways to effectively harness such knowledge and distil it into an accessible form. With more than 15 years of experience in property investment across multiple strategies ranging from capital growth and positive cash flow, through to small- and largescale property development, Simon Buckingham, director of Results Mentoring, has developed a variety of tools to aid new and existing investors alike. “We train people to become

How Investor Mindset Moves The Markets

If they’re armed with all the research available in today’s information age, why can’t economists agree on where are our property markets are heading? In fact, a better question would be – why do so many get it wrong? The simple answer is that market movements are far from an exact science. The fundamentals are easy to monitor. Things like population growth, supply and demand, employment levels, interest rates, affordability and inflationary pressures. However, one overriding factor that the experts have difficulty quantifying is investor sentiment. And that’s what’s really been behind market movements of late. I’ve found that investors often suffer lapses of logic when investing and many of

5 Steps To Property Investing Success

Becoming a savvy investor isn’t something that happens overnight. While some people possess more aptitude than others, any successful investor will have benefited from years of experience, mentoring and access to the knowledge of others. But that’s not to say there aren’t ways to effectively harness such knowledge and distil it into an accessible form. With more than 15 years of experience in property investment across multiple strategies ranging from capital growth and positive cash flow, through to small- and largescale property development, Simon Buckingham, director of Results Mentoring, has developed a variety of tools to aid new and existing investors alike. “We train people to become

SA Excerpt from The 2019 July Market Report

Consumer confidence is high as selling times shorten and vacancy rates tighten in response to positive condition After a long period of being the ‘middle of the pack’ capital city in Australia, Adelaide is starting to come out of its shell as it rides a strong wave of positivity. CoreLogic’s Quarterly Rental Review for March 2019 indicates that rents are increasing in the city, while rental returns were reasonably strong over the March 2019 quarter at an average of 4.42%. Its Home Value Index for April 2019 also notes that pockets of Adelaide achieved positive growth over the last 12 months. According to CoreLogic head of research Tim Lawless, Adelaide’s affordability plays a part in the cit

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