Higher interest rates... Higher property prices... What's next? The truth is, does it really matter? All these things are out of your control. BUT what you can control is your mind, and that is the only thing that will make ALL the difference between your financial position today to your financial position 10 years from now.
When it comes to property and taxes, change is the only certainty. There are a few major changes coming your way that relate to property in Victoria. These changes impact both owner occupiers and property investors and therefore you should take a closer look.
Australia's banking watchdog APRA is worried about the housing market overheating and exploding. To counteract this perceived risk, APRA has changed the rules of play which Authorised Deposit-Taking Institutions (ADIs) must adhere to when assessing loan applications.
In my daily work, a misunderstanding I often come across amongst property investors is whether recycling debt against a property is "always" tax deductible. Property investors need to be across this issue as loan interest claims are a hot button for the ATO with regular audits being conducted.
A survey conducted by UBank earlier this year revealed that 85% of Australians don't know their home loan rate. 41% had no clue and 44% could only recall an approximate figure. If you're one of these people, you should be aware that it's costing you a lot more than just money.
Just when you thought the dust had settled, out comes another credit policy change which is a game changer, particularly for property investors. APRA is the regulator pulling the strings, with the motive to curb investor lending further. Banks and lenders have been forced to tighten up their credit policies further, which is positive for a healthy and sustainable property market.
Capital Gains Tax was a hot topic during the recent (July 2016) federal election. When it comes to property, CGT is usually only considered by property investors as the tax only applies for investment purchases and not your owner-occupied residence. From time to time I come across clients that change "intent" during ownership of their home which then "potentially" raises the CGT issue.
Spring is often referred to as the selling season when it comes to property. Traditionally the warmer weather brings out more buyers and sellers to market, making it an ideal time to buy and/or sell your property. Your priority should be to buy with minimal risk and with certainty. Here's a guide I prepared to assist you.
The two most common terms know by property investors are 'negative gearing' and 'positive gearing'. In my day to day work I come across many people that invest in property for the wrong reasons. One of those is to reduce tax and they fall in love with the concept of negative gearing.
Last week's Brexit decision resulted in immediate turmoil across global financial markets. Trillions of dollars have been wiped from global equity values. In the meantime, its business as usual for property investors, at least for now!