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
The gift that keeps on giving: my new book. If you’re like most of us, you’re more optimistic than ever that you’ll be able to own your own home or buy an investment property. But where do you start? Well, to help you out, I wrote a book. Quite a long book. The reason it’s so big is I wanted to pack in as much information as I could about buying property in Australia. But, I hear you ask, aren’t there many other books on mortgages and borrowing? Yes, there are, but they tend to be aimed at those on six-figure salaries with standard 9 to 5 roles. Frankly, these people don’t need too much help, although they’ll definitely pick up some tips for paying down a mortgage sooner. There are so many potential home owners out there who fall outside the spectrum within which lenders are comfortable lending. My book covers these home loan or investment loan borrowers and… Read More
The Reserve Bank of Australia (RBA) has delivered its final cash rate announcement for the year with the decision to leave the rate unchanged at 0.75%. In making the decision the RBA appears to be assessing the impact on the broader economy of the three previous cash rate reductions together with recent tax cuts, government spending on infrastructure and signs of improvement in the resources sector. The RBA will be keeping a close eye on household consumption and the GDP numbers being released later this week as it stays focused on the aim of restoring inflation to within its target range of 2 – 3 %. From behalf of the MAP Team – we would like to wish everyone a Merry Chrsitmas and a Happy New Year!
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
If you have plans to take your career in an international direction – or if you are already globetrotting, and wish to dip your toe into the Australian property market – there are plenty of options available to you. Importantly, these are available without you having to put up with uncompetitive interest rates or high deposit amounts. In fact, by purchasing an investment property back in Australia while you are overseas, you can even benefit from attractive tax benefits*, which makes this prospect even more attractive. So how does it work from afar? 1- Confirming eligibility The first step is to confirm your eligibility. Non-resident Australian citizens who live overseas are often eligible for the same loans and financing as those who live locally. Factors that will be taken into consideration include: a) The country you are living in and the currency you are earning. Different lenders accept different countries and currencies. b) Your income: your income needs to… Read More
Your job doesn’t just help you make money; when it comes time to get a mortgage, it can actually also help you save money. This is because your career can influence not only who will lend to you, but also how much they will lend you, and how flexible the terms of your mortgage will be. It’s a little-known secret in the mortgage industry that if your profession falls into one of your lender’s preferred categories, you can access better loan conditions and better interest rates for your mortgage. It is all about the risk factor at the end of the day, and if you can prove to your lender that you are a ‘low risk’ purchaser, then they will be more willing to work with you and woo you as a client. The end result is that you can actually save money when you are buying your house. Your stable employment, a clear credit history and strong financial standing… Read More
If you shuffle between important meetings at work and are responsible for making big decisions, then the odds are, you’re working in a professional capacity. And if this is the case, you could stand to save tends of thousands of dollars when you decide to buy your next home or investment property. A professional home loan package can save you a significant amount off the cost of your loan. Why? Because lenders want to attract low risk borrowers and high-income earners, so they offer special features and rates that aren’t always available to the general public. Could you qualify for a professional home loan package and what are the benefits? Who is considered a professional? Professional home loan packages were once restricted to medical professionals, lawyers and accountants, but now they are available to all sorts of people with sufficient income and assets. Teachers, nurses, defense force personnel, scientists and engineers are among the most widely recognised professions. Interest rate… Read More