A great way to build wealth and pay off your mortgage! …

Someone recently asked me:

“I’m about to sell my share of an investment property we bought long ago with a friend – should I pay off my home loan or roll it into another investment?”

After the sale of this property , and after CGT, they’re walking away with a solid chunk of cash.

My answer?  You can do both!!

Here’s the gem 💎

This is what you do:- 

1. First, use the proceeds to wipe out your home loan. This clears  your non-deductible debt !

2. Then, once your home is mortgage-free, let us revalue your home and tap into the equity to fund your next investment.

Now, instead of personal / non taxable debt, you’ve got tax-deductible investment debt — 

with OPM (other people’s money )  working to build you wealth

 That’s the foundation of a solid debt recycling strategy.

You’re not stuck juggling old loans. You’ve hit reset: 

• no owner-occupier non detectable debt, 
• access to capital, and 
• a clean structure to grow your wealth more efficiently.

As Robert Kyasaki from “Rich Dad Poor Dad” says 

“Debt is good — as long as it’s working for you . 

The key is in how you structure it.

Need help figuring this out?

Contact me at www.bsifinance.com.au — and let’s build a strategy together to help you grow your wealth through “good tax deductable debt”

Opportunity to invest in sub $million

So what are the ramifications for  an interest rate fall?

❓Has it something to do with the monumental housing shortage?

We need houses - and rate drop will increase demand for housing …. But may also boost supply !

❓Will rate drop  encourage investors and developers back into the market to  build houses, confident that prices will keep going up as rates fall? 

Maybe 

❓Will reduction of rates help with the High construction costs and delays getting permits to build more houses ?

Not sure ! 

💎Demand is increasing for units and sub $million houses 

First home buyers get in with a 5% deposit and no lenders mortgage insurance. 

And this money will be firmly directed like a blow torch on properties in the sub million dollar range. 

High demand and  low supply = price rises 

My view - if you missed the last boom, you don’t want to miss what’s coming 

If you want to get your Preapproval for a property loan happening - give me a ring at www.bsifinance.com.au

Advice to first home buyers

As a Dad , finance professional and a mortgage broker - this is some advice that I have given to my children on how to start building a property portfolio.

Scenario 

homebuyer has a $30k deposit and earning a combined $180k 

Use the 5% deposit scheme to buy your first home now.

The scheme offers no LMI, no stamp duty in most states, and suits their income (they’re under the $200K cap).

With their $30K, they could buy up to $600K .

They could rent out rooms to help cover the mortgage, reduce their debt, and add value through cosmetic renos.

Once their loan-to-value ratio hits 80% -  refinance, rent it out fully, and use the equity to buy again.

Buyer beware on new builds in Perth

Anna Porter talks about  the property boom in Perth where prices have surged 21pc in 2024 

- but

Construction costs and lack of supply and workflows have been found wanting and the risk of property developers going broke with investors losing their money!!!

Heres the full article

If you are looking for a property - want my views and Preapproval for your finances - give me a ring or dm me :) 

Have a great weekend! 

Four reasons why property prices are likely to keep rising

The election has been a landslide to labour.... 

What does this mean for property prices  in Australia?

In my view , it looks like property will keep on rising for four good reasons – two on the demand side of the equation and two on the supply side.

Demand

1. Interest rates appear to have peaked, and the Reserve Bank is expected to start cutting rates. This will give buyers increased confidence right now, and even more buyers are likely to enter the market if/when rates start falling.

2. Population growth is at record levels. The population grew by 659,800 people in the year to September 2023, according to the latest data from the Australian Bureau of Statistics (ABS). All those extra people are increasing the demand for housing.

[Click here to book an appointment with Ivan Kaye]

Supply 

3. Home building activity is too low. In the same year that 659,800 people were added to our population, we started work on only 165,602 new homes, according to the ABS. That’s well below the 263,920 homes needed for that many new residents (given that the average household contains 2.5 people, according to the most recent Census).

4. People are staying in their homes for longer, which is contributing to a shortage of for-sale properties, and therefore higher demand. In March 2025, a total of 251,000 properties were listed for sale across Australia, according to SQM Research. But in March 2019, there were 354,459 homes for sale. So despite the big increase in population over those five years, listings actually fell 27.8%.

In any market – whether for housing or oil – higher demand and lower supply leads to greater buyer competition. That’s why property prices are likely to keep rising in the foreseeable future.

So if you’re thinking about buying in 2025, it might be best to take action now.

Prices keep increasing - best time to buy is now 

Australia's median price keeps increasing. If prices keep rising at that rate, delaying your purchase by even six months could cost you tens of thousands of dollars.

It's generally a good idea to get a home loan pre-approval before you start looking for a property, so you can feel comfortable when making an offer.

Click here to book an appointment with Ivan Kaye.