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
What is Labor’s Policy with Respect to Negative Gearing?
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.
Are You Missing Out On Money Saving Rental Property Depreciation Tax Deductions?
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
Rental Property Tax Deductions that Put Money Back in Your Pocket
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
Can Expats get a mortgage in Australia?
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
How your job can save you money when buying property
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
How a professional loan could save you $20,000
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
How much deposit do overseas buyers need?
Most overseas buyers who are looking to buy real estate in Australia – whether as an Aussie expat, a temporary resident or a foreign citizen – need to save a minimum 20% deposit to purchase property in Australia. Of course, there are exceptions to every rule, so while a 20% deposit is preferred by most lenders, there are certain financiers in the market who will accept smaller deposits and higher LVRs, depending on the strength of your application. At MAP Home Loans, we work with these lenders every day to make sure we can source the best value loans on behalf of our customers. We also negotiate hard to try and secure you the best possible rates and conditions. If your situation falls into one of the ‘exception’ category listed below, you may be in luck. For Australian expats wanting to buy Australian property, a strong employment history, current stable job, clean credit history and earning a currency that is… Read More
NSW Leads Surge in Property Investment Activities
It’s official: for all those considering a property investment, NSW is the place to be. Central to the strong revival in Australia’s property market has been the property investor, with the rental market thriving. Owner occupier loans in Victoria and Queensland showed pretty good growth of around 9% and 10% over the last year, and Tasmania’s home loans market grew by more than 20%. But the NSW home loan market outshone even this. Owner occupier finance grew by nearly a quarter in just twelve months. The real action, though, has been in property investment. NSW grew its home loan market for investment purposes by almost 30% in the last year. With a low interest rate environment in Australia looking set to continue for some time, and the draw of Sydney as a hub for students and businesses alike, it is perhaps unsurprising that NSW is leading the way in the property investment market. Prices set to continue to… Read More
Australia Still on Top for British Expatriates
With a sluggish economy, seemingly endless wet weather, and their penchant for Australian soaps and lager, it’s no wonder that Australia is the country of choice for British expats. In fact, the attraction of Australia as a relocation destination for British expats has hardly changed over the last thirty years. Many of these immigrants choose to live here on a permanent basis, enjoying the sporting rivalry between the motherland and their new home, and revelling in ‘owning’ the Ashes. Apart from the cultural similarities, language and financial benefits are a big draw to Australia, though many find difficulties in our property market. There are certain rules and regulations – hoops to jump through – which often cause the British expat to be declined when they apply for a home loan. How MAP can help In our experience, the British expat home loan application is most usually declined because of a technicality, and not because of a ‘real’ issue. Such… Read More