It’s not unusual for a homeowner to turn their main residence into an investment property. They may do this for various reasons, such as moving for work, travelling overseas for an extended period or they may simply decide to buy another property and rent out their previous home. Before you turn your home into an investment property, there are several factors to consider. Tax deductions and additions Once a main residence turns into an investment property, tax reporting requirements change. You will be able to claim property expenses such as interest costs, maintenance and management fees as ..read more

Australia's housing market appears to be at its most affordable level in more than five years despite recording a rebound in prices over the recent months, according to a new report by the Housing Industry Association (HIA). The HIA Affordability Index rose during the September quarter by 2.2%, reflecting a reading of 80.8 for capitals and 94.8 for regional areas. Affordability measures improved across the country, in all eight capital cities. "This means that in Australia's capital cities, just over 1.2 incomes will comfortably be able to service an average mortgage, and in the regions barel ..read more

The September 2019 quarter CPI figure continues to be good news for home buyers and renters, according to the Real Estate Institute of Australia (REIA). “The All Groups CPI increased by 0.5 per cent in the December quarter giving an annual increase of 1.7 per cent,” said REIA President of Adrian Kelly. “The annual changes for the analytical series of trimmed mean and for the weighted median were 1.6 per cent and 1.2 per cent respectively. At a glance: All Groups CPI increased by 0.5 per cent Housing Group increased by 0.3 per cent for the quarter Rents increased by 0.1 per cent for the quart ..read more

Maximise the depreciation benefits of an investment property While many property investors consider location, purchase price and vacancy rates when contemplating an investment property, depreciation is often overlooked. Depreciation can help unlock the cash flow potential within an investment property, often resulting in thousands of additional dollars for the investor each financial year. The following factors will help property investors understand how property depreciation can change their cash flow position: The age of the property While new and old residential investment properties hav ..read more

Buying a property, whether you’re a first home buyer or seasoned investor, may feel like a long and complicated process. ​ Buying a property is a big life moment, so be patient; the prize is just around the corner. A buyer’s first and most important job, long before the day of settlement arrives, is to engage a competent team of advisors to support them in their journey to settlement. That step will help ensure that all the others fall into place. So, what do buyers need to know about settlement? What is settlement? To refresh the basics, settlement is when the ownership of the property legal ..read more

New research has revealed the top 10 suburbs around the nation with forecast median house price growth of up to 30 per cent over the next three years. Each of the major regions in Australia include suburbs with price potential, according to a new analysis. Research from Select Residential Property Research Group (SRP) has identified the top 10 suburbs within major markets, with one location potentially achieving more than $385,000 in capital growth across the next three years. The group used 17 market variables to determine the locations with the best chance of superior price growth over the ..read more

Investors who self-assess or estimate costs based on their own judgement when lodging their tax return are potentially missing out on thousands of dollars, according to BMT Tax Depreciation. With the October 31 tax deadline fast approaching, It’s common for investors to self-assess or estimate costs based on their own judgement when lodging their tax return. However, investors who do so are potentially missing out on significant depreciation deductions by incorrectly evaluating their claims. Depreciation is one of the most lucrative tax deductions because it’s a non-cash deduction, meaning in ..read more

Replacing earned income with passive income is a goal that many investors aspire to, whether it be through property, shares or operating a business. It all sounds good in theory – but if you want to create an ongoing income through real estate rents, how do you go about achieving this? Ian Hosking Richards, an experienced investor with more than 50 properties in his portfolio, is founder and director of Rocket Property Group. He says the first step to success in this regard is adopting the right mindset. “Over the past 20 years I have spoken with many hundreds of investors, and the most succe ..read more

Find out if you are an observer, speculator, collector, or investor. It’s nice to believe we’re unique but, in truth, human patterns of behaviour are predictable. This isn’t always a bad thing – particularly for professional advisors like me who’ve operated in a specialist field for some years. It helps us identify what’s driving people to act in certain ways, so we can help guide them through their property investment journey. One of the most important steps in the process is to identify which of the four categories of investor types they fall into. This enables us to establish specific stra ..read more

Economists at UBS have lifted their price expectations for Australia's housing market — from a muted recovery between 3% and 5%, their fresh projections are pointing to as much 10% increase by next year. The revision was due to the sharp lending growth witnessed in July. Figures from the Australian Bureau of Statistics show that investor lending grew by 4.7% to $4.6bn, its fastest pace since September 2016. Owner-occupier loans also recorded substantial gains at 5.3% to $13.25bn. The overall value of financing commitments jumped by 5.1% in July, driven by the substantial growth in new lending ..read more