Saturday, June 22, 2024

Property prices expected to surge in most capital cities in 2025 ! Time to buy?




House prices in Brisbane, Perth, Adelaide and Sydney expect to have a growth spurt by 8pc says Nicola Powell - research and economics chief of Domain talks to Nila Sweeney of the afr.


Domain predicts Sydney house prices are poised to increase Ny $132k to an average of $1.76m - a climb by up to 8 per cent - with Perth Adelaide and Brisbane hitting the )1m mark!!


She suggests units will increase more than houses - as that is what most can now afford ! 


Why?

  • strong population growth, 
  • increased borrowing capacity 
  • a supply shortage as a result of 
  • - a scarcity of land, weak building approvals and high construction costs

So what will slow down this increase?


“ Affordability constraints and serviceability limits” says Nicola


Melbourne is expected to be sluggish next year - but Nicola expects the spurt to come !!


Government and industry need to work together to find a solution to help those who cannot afford to buy a property to be able to !!


There are solutions to 

  • increase supply
  • Help front line workers and those who can’t afford to enter the property marke

Some solutions 

  • Co-buying 
  • Co-investing 
  • Fractional ownership 
  • Government support - “help to buy” 
  • Opening immigration to construction workers - concessional interest rates? 
  • Fast train to outer areas ?


Exciting times ahead 

Thursday, June 13, 2024

Nils Sweeney researches where Investors are investing

Gotta luv Nila Sweeney of the afr





She has been researching the property market and has identified that properties increased by over 10pc around Australia - with bank economists predicting further rises over the next 2 years.

Investors interest in property is rising and mortgages are being written 


This is where The gurus are predicting 


Scott Kuru, Freedom Property Investors

  • Gold Coast: Surfers Paradise, Southport
  • Perth: Baldivis, East Perth
  • Melbourne: Eynesbury
  • Sydney: Bankstown, Liverpool


Arjun Paliwal - InvestorKit

  • Rockhampton (Qld): Wandal, Kawana
  • Townsville (Qld): Berserker, Kelso, Condon, Kirwan
  • Perth: Gosnells, Kelmscott, Carey Park


These areas all have median house prices below $500,000 - affordable , strong rental yields and low inventory yields - good indicator of growth 


Kent Lardne -  Suburbtrends

  • Adelaide: Golden Grove, Eden Hills, Moana, Trott Park
  • Mackay-Whitsundays (Qld): Glenella, Marian, Rural View
  • Townsville: Bushland Beach, Bohle Plains, Mount Low
  • Cairns: Redlynch, Brinsmead
  • Perth: Caversham, Pearsall, Yangebup, Aubin Grove, Secret Harbour
  • Brisbane: Eatons Hill

Terry Ryder, founder of property market research firm Hotspotting


  • NSW: Shoalhaven local government area
  • Sydney: Surry Hills
  • Perth: Carey Park

Anissa Cavallo - EDA Property

  • Melbourne: Melton South, Fraser - There’s a new hospital being built, household incomes are increasing strongly, and house prices are still affordable

Damian Collins - Momentum Wealth

  • Perth: Bayswater, Clarkson, Mandurah - cheap , accessible , station , close to city 


9 Things to look out for when buying a property 

  1. Area with strong demand, with  rising population - need for housing 
  2. demographics - find Affluent residents are less likely to default on rent payments, m
  3. Close to commercial centres - with a diverse and growing local economy 
  4. Close to  infrastructure such as schools, parks, public transport
  5. Strong rental yield of more than 4.5 per cent 
  6. Low vacancy rates
  7. Affordable
  8. Limited amount of land to avoid potential oversupply in the future.
  9. Get a loan when interest rates are high - so you know you can afford the property .  When interest rates decrease, you will have additional funds to pay off the property faster.

Here’s the article in the afr 



Wednesday, June 12, 2024

End of year tax planning - 7 strategies on how the wealthy save tax


Ivan Kaye  and the team at Ark - accounting and financial planning gurus 

Tax rates are being cut from July 1 . The threshold above which the 37 per cent tax rate applies will increase from $120,000 to $135,000, while the threshold for the 45 per cent tax rate will rise from $180,000 to $190,000.


Consider  defering  your income or pay relevant expenses before June to minimise your tax mobility this year 


Michelle shares 7 strategies to help you reduce the amount of tax you pay - or maximise your tax refund . 


1. Prepay expenses 

Make annual payments for income protection insurance, insurance payments , work-related subscriptions, union fees, technology and work-related travel to claim tax deductions on these related to this financial year. Think about prepaying your interest on mortgages of your investment properties for the year and pre-pay  insurances and property management fees. 


Because of the tax cut there is actually an advantage to it in the sense that you get a deduction this year at the higher tax rates rather than next year at the lower tax rates.


2 . Delay the receipt of income

For business owners, deferring receipts and not invoicing for goods or services until after July 1 can push income into the next financial year, 


 EOFY bonus payment can  be paid in July instead of June.


Defer capital gains by potentially holding off on an asset sale until July.


3. Sell loss-making investments

To offset capital gains made during the year, selling any underperforming or loss-making assets before June 30


4. Make charity donations

With donations of more than $2 to an Australian deductible gift recipient being fully tax-deductible, they can “be very useful for last-minute tax planning”,

With an immediate tax deduction for the contributed amount, donors can carry forward any unused portion for up to five years if they’ve overestimated their tax liability.


 Instead of committing to a single charity upfront, donors can gradually distribute the funds to eligible charities later, giving them ample time to make thoughtful giving decisions.”


5. Repair investment properties

Investment property before June 30 to claim a tax deduction. 

Inflating rental property repair claims is on the ATO’s tax deductions hit list this year - so make sure it’s a repair and not an improvement (which can be depreciated over time) 


6. Claim work-related expenses


Home office expenses can be claimed using one of two methods, either the fixed-rate method – where taxpayers can claim 67¢ per hour for every hour they work from home – or the actual cost method, where home-based expenses are apportioned to the amount of time they’ve spent working from home.


If you use  the actual cost method - you  need to have kept records of every expense that they are looking to claim, and “be able to show how they’ve calculated the amount that relates to the working environment and the amount that’s private in nature. 


In terms of time spent working from home, taxpayers using the actual cost method either need to have a record of the hours they’ve worked for the whole year or can base their calculations on a typical four-week WFH sample.


7. Max out super contributions

Taxpayers can make concessional contributions to super of $27,500 per year – this includes both employer contributions and any personal contributions you  make via salary sacrifice. If you have not maxed out these contributions, have spare cash and are looking to boost your  tax deductions, this is a no brainer 


Both the payment and notification have to be received by the fund by June 30.


It’s possible that you  may not have maxed your super in previous years - Providing your super balance is less than $500,000, you can catch up on up to five years of unused concessional contributions.


thank you Michelle at afr for inspiring this article 

If you need me to refer you to a good accountant - to help you with these strategies - let me know - would be delighted to assist ! 

#accounting #tax #taxstrategies #wealth #eofy 

Thursday, June 6, 2024

why people are still punting property in Australia - even after continuous gains !!




Nila Sweeney gets  insights from  Warren Hogan at Judo Bank, Eliza Owen at CoreLogic Australia , Shane Oliver at AMP, Louis Christopher at SQM Research, Mark McCrindle, Simon Kuestenmacher, Cameron Murray 


on why people are still punting property in Australia - even after continuous gains !!


Anabelle Tungol and Didith Gabrillo share there stories that give clues 


Here are 9 reasons 

  1. Increase rents 8.5pc pa 
  2. Lack of supply 
  3. Fomo - fear of missing out 
  4. Population growth - immigration 
  5. Weakness in building approvals 
  6. 1st homebuyers incentives 
  7. Baby boomers transfer of wealth to children 
  8. Sense of home ownership in the psyche of our nation 
  9. People are moving further out of cities to buy what they can afford
click here for article



Some comments 

Dax  Stanley

Great piece, Nila! 🌟 Buyers seem to be playing a long game, betting that today's high prices are tomorrow's bargains. Reminds me of 'buy high, sell higher.' Curious to see how this optimism holds up!

Adam Kentwell

Sentiment in many recent articles seems to be “prices can’t keep going up because metric ‘x’ is the highest it’s ever been.”

I’m sure that was the same case 40 years ago, 30 years ago, 20 years ago and so on. Buy whenever you can buy, and you’ll likely do well in the long run.

Shanaka Ubeysekara

Of course, only to say they are 
NOT taking any chances. Either way you look at it, it’s a basic necessity or one of the safest investments (if not the safest) of all the asset classes out there. Rest is just noise. It will be
what it will be yesterday, today and tomorrow!

Jerome Lander

No surprise at all.  Years of undersupply are likely to continue under current government policies and given council attitudes and NIMBYs everywhere and an ineffective building industry short of trades (and effective quality tradespeople even more so), and buying has been shown to be superior to renting both lifestyle wise and financially.  The required appreciation from property isn't large to have it make sense.  But just ask a renter how they find their landlord and how well they are respected as a renter; often landlords are awful.  Its hard to see quality areas in Sydney not having further appreciation.

Illan Samuel

Buying investment property  is a tax free haven -if you can get it right and gain over time.... tax free money is a hey factor in building wealth .