Admit it, we’ve all been swept up in the cheer of the of the holiday season and made ambitious resolutions for the new year—from having a healthier lifestyle to improving your foreign language skills. It’s definitely a time of the year that inspires us to reflect and figure out ways to better ourslves.
Now that we’ve started a new financial year—hooray—it should also be a time to start your new financial year resolutions. In fact, it’s the perfect time to re-evaluate your finances and find ways to improve of your property investments ahead of your next tax return.
Here are four new financial year resolutions you might consider to take charge of your property investments and maximise their potential.
Exercise a healthier investment strategy:
Many mum and dad investors got into the game through life circumstances, and not a lot of thought was put into what type of investment strategy suited them best. Should they buy and hold? Be negatively geared? Positively geared? Is passive property development something they should look into?
The first step in reassessing your strategy is to determine if your current one is working for you. How do you know if it’s working? This all depends on which one you have chosen, but overall if you’re getting the desired return and see future growth, you’re moving in the right direction.
If you think your property can do better, chat with a financial planner about your circumstances and what options are out there for you. Also, speak to an agent who can look at your rental returns, the tax benefits you could be taking advantage of as well as the expenses associated with your property including asset management fees. An agent can also analyse and benchmark the performance of your strategy and provide possible alternate options. Continue reading
2017 was a big year for Canberra. Light rail construction was in full swing, our first tram arrived and who could ever forget Lonely Planet naming our great city the third best in the world.
It was a big year for Canberra property, too. With the median house price surpassing $700,000 for the first time and approximately 37 suburb records broken (source: Allhomes), 2017 saw Canberra sitting near the top of the highest growing capital cities in Australia.
But what does this all mean? And where is the market heading in 2018? We sat down with John Minns, Chief Operations Officer of Independent Property Group and Hannah Gill, Managing Director of Independent Property Management, to find out. Continue reading
Catherine still has possessions in storage from the last time she moved. It didn’t seem worth finding spaces for them all when she knew she’d have to box them all up again in a few months, so now she’s paying for a storage unit as well as her rent. She’s already moved four times in the past five years, and her lease is up in six weeks. She’d love to buy some plants for her balcony, or choose her own paint scheme, but it doesn’t seem worth it when she’ll just have to move again shortly.
At Perspective, we hear several tales like Catherine’s. These are tenants who want nothing more than to settle down in one spot, find their favourite local cafe and introduce their children to the nearby schools. But instead, they’re asked to move by landlords who want to sell up, move in or renovate. Some landlords also only offer six-month leases, and because there’s so much competition for the longer leases, tenants like Catherine might find themselves with no choice but to accept six months. Continue reading
Heads-up property investors, current or considering it. Have you ever read an article about property investment and had to grab a dictionary or ask Siri to make heads or tails of it? Like a lot of industries, Real Estate has its own language and knowing the difference between a lessee and lessor can turn making money from property into a far less intimidating venture.
The Perspective team have defined all those pesky property investment terms that you might come across when renting out your property because the language can be tricky to understand whether you’re starting out as an investor or getting ready to sell a property. And negative gearing – that must be evil, right? The media keep saying it’s ruining the housing market. But what is it exactly?
Study up on this list of investment lingo and you’ll be top of the class in no time! Continue reading
June is a consistently crazy time of year. With invoices and finances needing to be settled before the close of financial year, as well as the fact that it’s just downright miserably cold, you could be forgiven for not noticing that the ACT Budget has come and gone, and changes will take effect as of 1 July, 2017.
What you probably didn’t expect is that the government would introduce a tax increase on the Lease Variation Charge (LVC) of at least 300% with seemingly little to no consultation and no significant publicity to speak of. The consequences of this increase will become clearer with time, but initial suggestions include decreased house values in the central established suburbs of the Inner North and Inner South, not enough housing supply for those seeking to live in these areas and fewer townhouses becoming available – the exact housing product that First Home Buyers and downsizers are after. Continue reading