6 Tips for Wealth Creation. Whether you dream of being a millionaire or just wish you had more money, there are actions you can take to set you on the path to wealth creation, here are the top tips most commonly recommended by experts. Be clear about what you want Create a list of goals, things you want to have and dreams you want to realise. Use words and images to create a vision board of these aspirations and position it somewhere you will see every day. Get right back up each time Setbacks happen and it may seem like you are never going to reach your wealth creation goals, but it is important to keep plugging away. When things don’t go as planned, look for another way. Put enjoyment first If what you are doing to make money is draining and oppressive, it might create financial wealth but it will never create true wealth.
Create systems It’s not enough to run a business, you need systems in place that allow your business to run in your absence. Learn wealth creation from the right people Develop the right mindset. No Movement as Interest Rates Stay on Hold at 1.75% While the country is still distracted by uncertain election results, the RBA has voted for consistency, keeping the official interest rates on hold at the all-time low of 1.75%.
This came as no surprise, with the chief economist of AMP Capital, Shane Oliver stating in advance that the RBA had “expressed a degree of comfort” following June’s decision and was most likely in “wait and see mode” with regard to interest rates. Meanwhile, the results of another vote – more commonly known as Brexit – has resulted in some experts predicting a greater demand for Australian housing as locals rethink their overseas moves and expats consider returning back to our fair shores. Macquarie economic analyst James McIntyre believes that the decision could impact on population growth – and bring a boost to the housing market along with it.
The hike in demand for housing is good news for mortgage holders and investors alike, especially in the winter, when the market usually cools off. Like this: Get your Investment Property in Shape. Looking for a tenant for your investment property? Thinking of selling? The lead-up to spring is great time to do repairs and maintenance. Here’s a short checklist. A landlord has to provide a safe and livable property for tenants. If you’re in touch with the previous tenants, ask them if anything needs attention. . • Plumbing: Turn all taps on and off, flush toilets and watch water drain down each sink. . • Gas and electrical: Turn all lights on and off, and test power points. . • Structure: Check the interior and exterior for damage such as cracks in the walls, floor or ceiling, or broken roof tiles. • Fixtures: Make sure ceiling fans, blinds and other fixtures are in working order. Mould is a symptom of bad ventilation and/or poor waterproofing – it’s a health hazard that needs expert attention.
Hire certified professionals where possible. Like this: Like Loading... What’s Hot in Property. The property market is dynamic, with trends changing from week to week. Here’s what people are talking about right now. This may lead to a shift in the way the government addresses economic issues, with the Turnbull government set to be “a thoroughly Liberal government committed to freedom, the individual and the market.” At the heart of Turnbull’ economic ethos is the concept of a ‘free market’, encouraging competition wherever possible.
Despite low interest rates, the rate of home ownership for those under 65 is declining, along with wages growth. International property investment hits dizzy heights International buyers continue to have strong interest in local markets, with many real estate agents actively courting overseas buyers to purchase high-end properties. According to the Foreign Investment Review Board, approvals for foreign investment in real estate increased by 57% in 2014-15. The next pitfall: Over-valuing Eco-friendly properties Like this: Like Loading... What is the Right Home Loan for Renovations. You’ve been dreaming of that new kitchen and dining room for as long as you can remember, and now the time has come to put your plans in motion. But do you really have the budget to afford the works? Here are a few things to consider about which home loan is right for you before making the leap from Pinterest board to blueprints.
Work out your budget Before you look at borrowing any money, you first need to work out how much your renovation will cost. Before your finalise your plans, you can arrange for a building inspector to help identify any structural work that might be needed. In addition, add a percentage for contingencies: most experts recommend that you add another 10% to 20% to the overall budget to cover the inevitable delays and complications that arise throughout the renovation process. Once you know what the costs may be, you can start to think about how to raise the cash. Unlock your equity Construction home loan Personal loans Like this: Like Loading... Studies show that Investing in Property makes Money. If there’s any doubt in your mind about the value of property as a creator of wealth, new research from CoreLogic RP Data has found that you can’t go past real estate when looking for a profitable long-term investment. Researchers used an automated valuation process to obtain current real estate valuation estimates, and from there calculated equity levels for homes around the country.
The results clearly showed that in Australia, the average property is now worth almost double the amount of debt against it. This means home owners in either city or regional areas with a mortgage have accumulated 48.4% equity in their properties on average, which is the equivalent of $242,642. New South Wales and Victoria have the highest average level of home equity at 56.6% and 49.3% respectively.
The ACT came next at 42.8%, Queensland at 39.9% and South Australia at 39.4%. Even the lowest equity level, in Tasmania, was still an impressive 32.7%, worth $95,427. Like this: Like Loading... 6 things to avoid when selling your property. If selling your property was an exam, scoring 100 per cent would bring the reward of less stress and more money. Here’s a cheat sheet of mistakes to avoid in order to pass your exam with flying colours!
Don’t Wrongly Price Your Property Over-pricing or under-pricing is a common mistake that occurs when property owners fail to do sufficient research about what buyers are looking for and what they are expecting to pay. Look at comparable sales in your area and use this data when you are discussing prices with your real estate agent. Not tidy up Mess, dirt and clutter turns buyers off because it makes it harder for them to imagine themselves living in the property. Don’t Spend too much on renovations While a coat of paint or re-carpeting can help improve the value of your home, it’s never a good idea to spend considerable money on a major renovation that you may never get a return on. Don’t Hide problems Don’t Sell your home empty Homes devoid of furniture often look smaller and less appealing.
How Property Investors Slash their Tax Bill. With some research, preparation and expert advice, smart property investors can turn an ordinary tax return into one that will help kick off the new financial year with a smile, here we list five different deductions that you can consider, but remember, always seek out professional tax advice. Claim every allowable expense There are around 20 expenses property investors can claim as tax deductions, including interest on loans, advertising for tenants, phone calls, cleaning, body corporate fees, legal fees and water charges. Refer to the Australian Taxation Office website for a detailed list. You can only claim deductions for the period during the year that the property is rented or available for rent. If the total borrowing expenses are $100 or less, you can claim a full deduction in the income year they are incurred.
It’s difficult to remember every expense you incurred over a year if you don’t keep accurate records. Take advantage of immediate write-offs Understand low value pooling. What to be aware of when buying an Off the Plan Investment Property. The rise of new apartment developments in our cities provides greater opportunities for potential home owners to buy an off the plan investment property. There are benefits to this, but also a number of issues to be mindful of. We look at some of the things to consider when buying off the plan. The benefits of an Off The Plan Investment Property A major benefit of purchasing off the plan is that you’ll own a brand new property. If you need to borrow money towards the deposit, speak to your broker about how to best structure the purchase.
Depending on which state or territory you’re in, you may have access to stamp duty and tax concessions, or government grants. Things to look out for Off-the-plan contracts try to cover future issues. Find out whether the developer has taken out home warranty insurance. The investment property might be everything you dreamed of, but there’s always a risk the market may have changed by the time you settle. Like this: Like Loading... Pay off your Mortgage or start Property Investing? Instead of waiting to pay off your first home, why not invest now? Property investing provides a good opportunity to build wealth, but it is not for everyone. If you answer ‘yes’ to the following questions, chances are that investing in a property might be a good fit for you.
Do you have a high cash flow? As long as your cash flow is high, you are in a good position to enter into property investing, even if you have little equity. If you don’t have the available cash flow to fund the additional debt of a second property, you will find it hard to get ahead. For a lender to approve the home loan finance, they will look at whether you have a stable income that is capable of servicing two home loans on top of the cost of living. Do you want to build wealth by property investing? Investing while paying off your home loan has the potential to create an additional source of income and widen your opportunity to build more wealth more quickly.
Are you comfortable with risk? Like this: Like Loading... Do you have Troublesome Tenants in your Investment Property? Most tenants are reliable, but if you own an investment property, chances are you’ll encounter at least one bad renter. From failing to pay rent through to causing damage or conducting criminal activity, these tenants can harm your return on investment. It can be stressful when things go wrong, but try to stay calm and professional, get familiar with the relevant legislation and address the problem promptly and proactively.
Don’t let rent slip on your investment property Late rent payments are common, and it’s important to get on top of this issue quickly. You (or your investment property manager) may wish to call or email the tenant the day after rent was due. If payment is still not received, you’ll need to issue a breach notice after the tenant has been in arrears for the number of days prescribed by the residential tenancy laws in the relevant state or territory. Taking the next step The last resort: Eviction Prevention is better than cure Like this: Like Loading... Buy, Sell or Wait: When to make your Property Market Move. As we approach the end of the year, the so-called ‘property bubble’ identified by some commentators remains, though there are signs the property market could be easing.
In Sydney and Melbourne, demand remains strong and housing prices continue to rise, but it’s a slightly different story in some other states, such as South Australia, and particularly in the resources-dependent regions of WA and the Northern Territory. Melbourne currently leads the property pack, overtaking Sydney as the country’s best real estate performer since April, according to CoreLogic RP Data. However, recent figures from the Australian Bureau of Statistics indicate the housing boom may be slowing – at least for now. Investor interest in recent years is largely what has pushed housing prices so high in Melbourne and Sydney, but the ABS figures suggest the growth of property investors – who now comprise around half the total housing finance market – may have peaked.
When is the right time to buy and sell? Like this: Intelligent property investment – stick to the basics. Overwhelmed by the confusing game of property investment? Don’t give up just yet. In spite of its complexities, many novice investors seem to find property easier to select and manage than other types of investment. But if you make the wrong decision you may find yourself experiencing problems. In an ever-changing market, here are Seven Golden Rules that may provide you with some guidance when considering any investment. Create a plan and stick to it Ask yourself: what would you like to achieve by investing? Is it capital gain over a set time period or are you buying to generate a rental income?
Set limits Lenders often highlight the maximum amount that you can borrow, so determine your own limits before you seek out a loan. Secure the right property investment finance Though interest-only products often suit property investment situations, there is a range of options available. Find good tenants Do a health check Know the neighbourhood Consider a buyer’s agent Like this: Like Loading... 5 Reasons to Style your Home for Sale. Styling your home for sale is not a new concept but it has grown in popularity as anecdotal evidence suggests it can help your property sell faster and for a better price. Displaying a property’s full potential with property styling (also known as property staging) can be as simple as removing or adding a few decorative pieces or as extensive as refurnishing the entire home.
Here’s 5 reasons why many real estate agents recommend it. Makes a great first impression It’s often said that a buyer makes a decision about whether they like a property in the first 30 seconds, so property styling can create this ‘wow’ factor. Introducing the right combination of colours and textures, furniture, art and soft furnishings can bring out the best in a property, making small rooms appear more spacious and cold spaces feel warm. Brings more people through the door on inspection day Helps buyers visualise the property’s potential A Styled Home for Sale Provides a competitive edge Like this: Like Loading... The 2014/2015 property market in review. From today’s vantage point, the 2014/2015 financial year was certainly an interesting one, especially for the property market. We saw interest rates cut further to bring them to the lowest levels in a generation, helping to fuel higher capital city house prices. We also saw the ongoing effects of the end of the mining boom and a fall in the value of the Australian dollar, good news for exports, but less so for Australians travelling (or shopping) overseas.
And although lower interest rates were a plus for those paying off mortgages, consumer sentiment was wary. Australians were working to pay off debt, and were most concerned about funding their retirement and the future of their families. Property Market Prices Bubble or no bubble? So, if there is a bubble, it’s certainly not nationwide. 2015/2016: What to expect So what’s ahead? The RBA has kept rates low to support borrowing and spending, while keeping a close eye on the housing market, especially Sydney and Melbourne markets.
7 tips to help you win at a property auction. Invest in your small business with equipment leasing. Steady as she goes for both property investors and home owners. A softer outlook for 2015 but investment property still hot. Investment property a firm favourite. On house prices, let’s get real. What are the latest First Home Owner Grant Schemes? Lender Special $1,250 Home Loan Refinance Rebate. Gold Coast market update. Cashed up young blokes tend to stay living at home. Solar: The ‘No-Brainer’ That Could Take Suburbs Off Grid. Tips & Tricks – To Sell Your Property Quickly. Property Investment Outside the Inner City. What are the pitfalls of an “off the plan” Investment Property?