Investing in property is a great way to build your path to financial flexibility and create your ideal lifestyle. For most people, buying property is not only the most expensive outlay in life, it’s also the greatest wealth creator and the largest debt. Combine this with it being the only asset we both live and invest in and you have a recipe for unparalleled emotional and financial complexity when transacting on property. The nerve-jangling reality is that one wrong step can have a devastating impact on your finances and quality of lifestyle. Given the factors, it is easy to see why property decisions can feel so overwhelming. This is precisely why when assisting people to make superior property, mortgage and money management decisions, a common conundrum we assist people with is deciding whether to prioritise a future home or investment properties.
Most borrowers would understand that getting a low interest rate can save you hundreds of thousands of dollars over your lifetime. What is not understood is how an effective mortgage strategy can actually make you hundreds of thousands of dollars over the same period. Borrowers don’t need to consult an expert to find a low rate. The only skill required is being able to use a search engine. On the other hand, understanding how an effective mortgage strategy can create wealth is complex and not understood by most lending professionals, let alone consumers.
In our video series Mortgage Strategy 101 Ep. #10 David shares with you how you can manage your financial risk by putting in place a simple money management strategy. When it comes to stress, our finances are usually at the top of the ‘worry pile’, if not the King of the Mountain!
In our video series Mortgage Strategy 101 Ep. #9 David shares with you how to maximise your tax deductions and save money by paying for tax deductible expenses out of a redraw facility on your investment loan as opposed to spending savings from your Grow offset account as this is reducing your home loan interest which is non-deductible.
Recent regulation changes will directly impact the amount you can borrow - significantly. So, how much - I hear you ask? Let’s take a look at how much your borrowing capacity has increased and how this is impacting the property market... The Australian Prudential Regulatory Authority (boy that’s a mouthful), otherwise known as APRA, reduced the assessment rate that banks use to determine [...]
In our video series Mortgage Strategy 101 Ep. #8 David shares with you how to maximise your ability to hold property as you purchase your next property as well as maximise future possible tax deductions. If you have purchased a home that may one day become an investment property, then this element of your mortgage strategy is critical to you and maximising your future tax deductions.
David Johnston wrote this article for Domain on August 6, 2019 and it was also published in The Age and The Sydney Morning Herald. Home owners considering upgrading may be wondering whether it’s possible to keep their current home and convert it to an investment property. If your existing property is a decent asset, you [...]
Peter ‘the Property Professor’ Koulizos, our co-host on ‘The Property Planner, Buyer and Professor’ Podcast and Chairman of Property Investment Professional of Australia, shares six signs that you're about to be stung by a property spruiker. As the property market appears to be in the early days of a recovery, this is timely advice. We have added our commentary [...]
The offset account is the bank’s greatest invention!Most people understand that an offset account will reduce the interest payable on your mortgage 356 days a year in exactly the same way the interest would be reduced if it was paid directly into a loan. What many people are unaware of is that there are many more ways that the effective use of offset accounts can enhance your ability to pay less tax, hold properties, manage risk and improve your cash flow.