Saturday, August 10, 2024

Anna Porter from Sunrise shares 7 amazing tips ro help you with your mortgage!!!




Now is a great time to speak to a broker and look at your mortgage!

Anna Porter from Sunrise shares 7 amazing tips ro help you with your mortgage!!!

1. Get a  better interest rate - refinance to another bank who may have a better deal
2 negotiate with your bank to pause payments for a while , while you get ahead 
3. Airbnb your place while staying at your family for awhile! 
4. Renting out a spare room 
5. Convert garage into spare room to rent out 
6. Share house with family and friends 
7. Try pay an extra $100 dollars a week on your home loan and save $100s of thousands of dollars 

Sit down with a financial planner to help you plan out your retirement 

Tuesday, July 2, 2024

Is Australia becoming a population of renters?




Demand from existing homeowners and investors will continue over the next 10 years as a shortage of houses is expected to continue - as 130k migrants pour into Australia each year, writes Michael Bleby of the AFR. He points out that new loans to investor buyers rose 5.6 per cent in April, their fastest monthly rate since November 2021. 


Although higher borrowing and construction costs have made new projects unviable for many developers , Emma Bray from Macromonitor expects housing starts to increase . 


They have to!! 


She says they estimate that housing starts lifted sharply from a forecast 162,000 this financial year (a 6.5 per cent decline from FY23), up nearly 12 per cent next year to 181,000, up 20 per cent in FY26 to 217,000 and a further 16 per cent to 251,000 in 2027.


So, who will buy these homes? 

Investors or homebuyers? 


It seems that Australia will become a renter society with young people and new migrants not being able to afford the Australian dream of home ownership .


https://www.afr.com/property/commercial/the-next-home-building-boom-is-coming-20240625-p5jonb


Demand from existing homeowners and investors will continue over the next 10 years as a shortage of houses is expected to continue - as 130k migrants pour into Australia each year, writes Michael Bleby of the AFR. He points out that new loans to investor buyers rose 5.6 per cent in April, their fastest monthly rate since November 2021. 


Although higher borrowing and construction costs have made new projects unviable for many developers , Emma Bray from Macromonitor expects housing starts to increase . 


They have to!! 


She says they estimate that housing starts lifted sharply from a forecast 162,000 this financial year (a 6.5 per cent decline from FY23), up nearly 12 per cent next year to 181,000, up 20 per cent in FY26 to 217,000 and a further 16 per cent to 251,000 in 2027.


So, who will buy these homes? 

Investors or homebuyers? 


It seems that Australia will become a renter society with young people and new migrants not being able to afford the Australian dream of home ownership .


https://www.afr.com/property/commercial/the-next-home-building-boom-is-coming-20240625-p5jonb

Median household prices around Australia - June24




Australia's leading independent property economists Dr Andrew Wilson's latest Australian property report shows the performance of median house prices as of June 2024 between various major capital cities in Australia.

Perth topped the chart for the month, year, 1 year as well as 2 year with a whopping growth of 26.8% in the past 12 months!! Followed by Brisbane and Adelaide. 
(Maybe catching up to Melbourne?))

 Melbourne, Darwin and Hobart has been flat , with Sydney growing 5pc .

Where to from here? 

Is the trend your friend?

Where is each market on the property clock?


If you want finance or preapproval - call www.Bsifinance.com.au 


#housing #perth #landdevelopment #landsubdivision #brusbane  #adelaide  #finance #mortgage #bsifinance

www.Bsifinance.com.au

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