Interest Rate Update Since the election this year there have been two interest rate changes, a new prime minister and the banks have lowered their assessment rates. August is the first month where things appear to have stabilised. This is true for todays RBA announcement with the RBA deciding to keep the cash rate on hold at the historical low of 1%. Many economists will tell you that a lower cash rate is a reflection of the lack of business confidence in our economy. So whilst those of us with Home Loans would like to see our minimum monthly reduce as much as possible, it can be a double edge sword. So to close on that, no changes this month (August) to the cash rate. A reminder that there are some amazing fixed rates on the market below 3% with some lenders already pricing in 1-2 more rate cuts. And anyone with a variable rate mortgage with P&I repayments should… Read More
On Tuesday, the Reserve Bank of Australia decided to decrease the Cash rate by 0.25% to 1.00% It was a surprise move according to many economists in the media, as there was a rate reduction in the previous month of June. Before the decrease in June, there were no rate changes for 18 meetings; this was a record. The last time this happened was in 1996 more than two decades ago when the RBA went for 17 meetings with no changes to the Cash rate. What does an interest rate decrease mean for home loan owners? If you are on a fixed rate, this does not affect your monthly repayment. For homeowners or investors with variable home loan rates, your bank will decide on how much of the 0.25% reduction they will pass on. Some banks have made announcements already, and some will have set dates to when they make a decision. If you are unsure, contact your bank or… Read More
Labor’s negative gearing policy was announced in February 2016. Whilst there has been much debate about the merits of negative gearing and whether negative gearing should be abolished, Labor’s decision to make substantial changes to negative gearing and capital gains tax discount has been controversial. But how does it impact Australian Expats? Craig Joslin, the founder of The Australian Expat Investor, explores the issue.
Did you know that every year people just like you lose money, by not understanding their rental property depreciation entitlements? People short change themselves by not using these rental property tax deductions effectively. Well this article may help you avoid this, and assist you in getting the most out of your tax return. So first of all what is depreciation? Depreciation Depreciation is basically the decline in the value of an asset that you can claim as a tax deduction against your income. To give what could be a more familiar example, after you purchase a car it loses value over time due to various factors including wear and tear. This loss of value is called depreciation. Similarly, your rental property (being the building not the land) starts losing value from the time you purchase it, again due to various factors including wear and tear and the limited life of various fittings and appliances (eg. Hot water systems and… Read More
Have you invested your hard earned money in a rental property, or are you considering it? Perhaps this is for your family’s future or maybe to create some passive income for now and in retirement. Because of this, I know how important it is to ensure that you are maximising your rental property tax deductions. Well, to make sure you are getting the best out of your rental property tax deductions, this short article will provide a broad overview of the deductions available. Some of this advice, can mean more money back in your pocket. I hope you enjoy the article, and find this guide useful. Before we go any further let me explain the three categories of expenses we will be dealing with. 1. Immediately deductible 2. Deductible over a number of years 3. Not deductible 1. Immediately Deductible 1a. Interest on Investment Loan If you are lucky enough, not to have taken out a loan to purchase your… Read More