First home buyers: home deposit or lifestyle

When I was browsing Facebook today I noticed there was an article from SMH. The title is ‘We’re conning young people’: The double whammy trapping first home buyers (URL: https://www.smh.com.au/property/news/we-re-conning-young-people-the-double-whammy-trapping-first-home-buyers-20220114-p59oaa.html). Basically the article says that first home buyers “are facing a double whammy of rising rents and soaring house prices, combining to make it harder …

How many years it will take to save enough deposit for a property?

How many years it will take to save enough deposit for a property? Based on an article published on domain.com.au, it really depends on the deposit needed, for example, “The comparison between the time taken to save a 20 per cent and a 5 per cent deposit is pretty stark.” If the deposit needed drops …

Aussies trapped in ‘commodity bust, housing boom’ cycle and the unwinding is going to be painful

There is an article published on financialpost.com dated 29/09/2016. I think it is worth to read. Basically it argues that Australia is “having its central bank backed into a corner, forced to warn about the dangers of high debt and hot housing markets, while powerless to change interest rates as a commodity bust weighs on the economy.” Economists …

Find out why using Trust to own investment property – Distributing income and capital gains

Find out why using Trust to own investment property – Distributing income and capital gains For taxation purposes, a discretionary trust provides maximum fl exibility in terms of the annual net rental income of the trust and/or any capital gain on the sale of an investment property. This is because the trustee has the discretion …

Find out why using Trust to own investment property – Recouping tax losses

Find out why using Trust to own investment property – Recouping tax losses Any negative gearing loss generated by a property owned by a trust is usually trapped in the trust, unless the trust has other income to offset the loss. While the trust can theoretically carry forward tax losses for an indefinite period, the …

Find out why using Trust to own investment property – Passing on 50% CGT discount

Find out why using Trust to own investment property – Passing on 50% CGT discount Unlike a company, which is not eligible for any capital gains tax (CGT) discount, a trust is eligible for the 50% CGT discount provided that the trust has held the property for at least 12 months before it is sold. …

Find out why using Trust to own investment property – Passing through depreciation and capital works benefits

Find out why using Trust to own investment property – Passing through depreciation and capital works benefits Perhaps one of the main reasons for trusts being favoured as a property investment vehicle, instead of a company, is its ability to pass on any net cash profit. These profits can be passed from the property that …

Find out why using Trust to own investment property – Introduction

Find out why using Trust to own investment property – Introduction By law, a trust is a relationship under which the trustee of the trust looks after the trust’s assets for the benefit of the beneficiaries. If it is set up properly, a discretionary trust may offer reasonably effective asset protection as the beneficiaries of …

One reason that you should NOT buy Central Melbourne off-plan apartments

You should NOT buy Central Melbourne off-plan apartments unless you are willing to take a loss as Melbourne units fall an average 11.5% in year one, according to the The Australian Financial Review Magazine. Central Melbourne off-plan apartments fell about 11 per cent in the first year between their original purchase and pre-settlement valuation, figures from valuation firm …

Top 10 home loan offset calculators reviewed – are they correct?

Download the home loan offset calculator used in this article (Excel). How does home loan offset work? An offset account is a transaction account that can be linked to your home or investment loan. The credit balance of your transaction account is offset daily against your outstanding loan balance, reducing the interest payable on that loan. With a …

New Investment Property Calculators released for FY16

I have released new Investment Property Calculators for Financial Year 2016. These include all the calculators on the Products page including but not limited to the following calculators: Ultimate Investment Property Calculator Professional Investment Property Calculator Standard Investment Property Calculator Normal vs NRAS Investment Property Calculator NRAS Investment Property Calculator Commercial Property Lease or Buy Analysis …