Investment Archives - Focus Property Wealth - Perth Mortgage Broker

Redraw vs offset: what first-home buyers should know

glennadmin — Mon, 25 Aug 2025 11:48:50 +0000

If you’re planning to buy your first home this spring, you’re not alone. It’s one of the busiest times in the property market, with more listings and more competition. That’s why it’s important to be well prepared.

Beyond interest rates, there are other features that can make a big difference to your loan and how much interest you pay. Two of the most common are redraw facilities and offset accounts. While they both help reduce interest, they work in slightly different ways.

Here’s a breakdown of what they mean and how to choose the option for your needs.

What is a redraw facility?

A redraw facility allows you to make extra repayments on your home loan and then access those extra funds later if you need them.

For example, if your minimum repayment is $2,000 and you pay $2,500, the extra $500 goes towards your loan. This lowers the balance and reduces the interest charged. If needed, you can request to withdraw that extra amount at a later date.

Pros:

Lets you pay down your loan faster by making extra repayments
Helps reduce interest over time while keeping funds available

Things to consider:

Some lenders place limits on how much you can withdraw or how often
Withdrawals may not be available instantly
Fees and conditions may apply

I can help you understand which lenders offer flexible redraw options that suit your financial plans.

What is an offset account?

An offset account is a transaction account linked to your home loan. It works like an everyday bank account – you can have your salary paid in, use a debit card, and pay bills directly from it.

The money in the account is “offset” against your home loan balance. For example, if your home loan is $500,000 and you have $20,000 in your 100 per cent offset account, you are only charged interest on $480,000.

Pros:

Reduces interest charged while keeping your money accessible
Can be used for everyday banking, helping you stay organised
May help you pay off your loan sooner

Things to consider:

Some lenders charge higher fees for offset accounts, or have limits on how many you can open
Not all offset accounts reduce the full loan amount – some offer only partial offset

As your broker, I can help you compare lenders to find an offset account that matches your spending and savings habits.

Choosing the right loan features

If you’re just starting to explore your home loan options, it’s okay not to have all the answers. The most important thing is to choose a loan that suits how you want to manage your money.

Some loans include redraw or offset features as part of the package. Others may charge more or offer fewer benefits. I’ll help you make sense of your choices so you can borrow with confidence and avoid paying more than you need to.

Planning to buy this spring?

Now is the ideal time to get organised. If you’re looking at buying in the coming months and want to understand how loan features like redraw and offset accounts can help, let’s chat. I can also help you get pre-approval sorted so you’re ready when the right property comes along.

Please get in touch today! Regards Glenn Biggins.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Redraw vs offset: what first-home buyers should know appeared first on Focus Property Wealth - Perth Mortgage Broker.

Buying an apartment vs a house as an investment

glennadmin — Sun, 03 Nov 2024 12:03:11 +0000

Do you want to jump into the property market but don’t have the budget to buy a house? A unit or apartment could be a great way to get your leg up on the property ladder.

According to CoreLogic data, unit values are now rising at a faster rate than houses in more than half of all suburbs across Australia.

Aside from being more affordable than a house, there are other benefits of apartment investing to consider. Let’s look at some of the pros and cons of investing in an apartment versus a house.

Pros of investing in an apartment

A more affordable entry point

The median house price in Australia’s capital cities is now $975,592. Compare that to the median unit price of $669,434 and that’s a big difference at the checkout.

With apartments generally being more affordable than houses, it means you’ll need to save up less of a deposit (usually around 20% of the purchase price), and you may find servicing the loan on an apartment easier too.

Fewer maintenance responsibilities

When you own a house, you have to foot the bill for all of the repairs and maintenance. With an apartment or unit, the costs of any repairs or maintenance in common areas is split with other unit owners, usually through a body corporate scheme.

Generally speaking, there’s usually less maintenance required on a unit compared to a house. There may not be a lawn to mow, for example.

Certain expenses can be more affordable

Some expenses can be cheaper when you own a unit. Council rates, for example, are usually higher for houses and may even include land taxes in some states.

If you’re paying smaller fees on an investment apartment, the returns on your investment can potentially be higher.

Potentially higher rental yield

Units often have higher rental yields than houses because you’re able to outlay less money to potentially acquire a similar rental income. This may mean you are in a better position to cover your mortgage repayments and other expenses.

Cons of investing in an apartment

You may need to pay strata fees

In a strata scheme, you’ll need to pay body corporate fees and factor these into your ongoing budget. Strata fees can be pricey and increase over time.

If there’s an onsite manager, pool, tennis courts, barbecue area and gym, expect higher fees than an apartment block with fewer facilities.

There may be restrictions

If you want to renovate your apartment, you may need to run the changes by the strata committee for approval, particularly if it affects the exterior of your apartment or any shared utilities.

There may also be restrictions around having pets, too, which could reduce your tenancy pool.

Oversupply can affect your investment

If you buy an apartment in an area where loads of high-rise apartment blocks are being built, it can affect your property’s capital growth, rental yield and demand from tenants.

Generally speaking, experts recommend seeking low-rise or boutique apartments in areas where planning rules cap the number of apartment buildings allowed.

Want to discuss your finance options?

Whether you’re looking to buy a small studio apartment, a bigger unit or a house, we can help you explore your finance options.

We’ll run you through the investment loans available to you and explain which may suit you, based on your individual financial situation and goals.

Get in touch today.

However, it’s important to remember there’s no one-size-fits-all approach to buying your first property. For some, it could be a home to live in. For others, rentvesting makes more sense as it can offer a great alternative to get a foot up on the property ladder.

Ready to get started?

As your mortgage broker, we’ll organise everything, explaining the process, keeping in touch and keeping you updated, so that everything runs smoothly.

Please get in touch today! Regards Glenn Biggins.

The post Buying an apartment vs a house as an investment appeared first on Focus Property Wealth - Perth Mortgage Broker.

Rentvesting: is this a good option for first-time buyers?

glennadmin — Thu, 15 Aug 2024 06:38:15 +0000

With today’s cost of living pressures and the median dwelling value in Australia now at $794,000, many young Australians feel like they’ll never be able to enter the property market.

What is rentvesting?

Reinvesting is when you rent where you want to live and buy where you can afford.

By rentvesting, you can earn an income from your rental property, pay off the mortgage and potentially cover the costs of owning the property, all while continuing to live in a suburb you enjoy.

Why do people choose to rentvest?

One of the biggest motivators of buying an investment property is the potential to make a return via capital growth. This is when your property increases in value over time.

If you’re positively geared (that is, the rental return is higher than your home loan repayments and other property expenses), a rental property can also offer you an additional income stream.

Another reason people choose to rentvest is that it’s another way to enter the property market, without having to purchase a home to live in. Maybe you’ve grown fond of your inner-city apartment (that’s unfortunately out of your price range) and don’t want to move out to the “burbs”? With rentvesting, you can own your own slice of real estate where you can afford and still have the flexibility to live where you want to live.

What to know before going ahead with rentvesting

1. Potentially smaller deposit, but fewer government perks

If you choose an investment property that’s more affordable than the home you intend to live in one day, your deposit will be smaller. It might be easier to save a deposit if you go down the rentvesting route.

However, because you’re an investor and not a first-home buyer, you won’t benefit from government schemes such as the First Home Owner Grant and First Home Super Saver Scheme, which would only apply if you were living in the property.

2. There are ongoing costs to factor in

If you’re rentvesting, you’ll need to budget for all of the costs associated with owning the property (e.g. the mortgage repayments, management fees, rates, water bills, maintenance, insurance, and strata levies if it’s under a body corporate scheme).

Keep in mind, the rental income may cover some, if not all, of these costs. You’ll also need to cover your own rent too.

3. Investor loans could come with higher interest rates

As a rentvestor, you will have an investor loan. These typically come with higher interest rates than owner-occupier home loans.

This means your mortgage repayments may be larger than if you were living in your own home.

4. There will be tax implications

At tax time, your accountant will ask for information about your investment property, including the rental income and expenses (most of which can be claimed as tax deductions).

Your accountant can guide you about the tax implications of owning a rental property, such as the potential for capital gains tax (if your property goes up in value) when it comes time to sell.

Like to know more?

If you want to get started in the property market sooner rather than later, rentvesting could be the way to go.

To explore your finance options, get in touch. We’ll help you work out whether rentvesting is right for you.

Ready to get started?

As your mortgage broker, we’ll organise everything, explaining the process, keeping in touch and keeping you updated, so that everything runs smoothly.

Please get in touch today! Regards Glenn Biggins.

The post Rentvesting: is this a good option for first-time buyers? appeared first on Focus Property Wealth - Perth Mortgage Broker.

Refinancing your home loan: how does it work?

glennadmin — Fri, 19 Jan 2024 06:00:13 +0000

When you’re busy with life, refinancing can seem like a hassle. However, with a mortgage broker to guide you through the process, it doesn’t have to be!

Refinancing may allow you to switch to a more competitive home loan, thereby potentially saving you money in interest.

It can also help you achieve other goals, like using different finance options to renovate your property or consolidating your debt and paying it off more efficiently. You may even consider refinancing to access equity to buy an investment property or another big-ticket item like a pool.

Here are the steps involved in the refinancing process:

Step 1: Work out your financial goals

Do you want to find a loan with a lower interest rate? Perhaps you’d like to explore some of the interest-saving loan features that are available nowadays, like offset accounts and redraw facilities?

It’s important to understand what your financial goals are so that we can help you to access the finance you need to achieve them.

Step 2: Compare home loan options

Next, it’s time to do some research.

Trying to understand all the different home loan options available and consulting with different lenders can be time-consuming and overwhelming. Instead, get us to do the hard yards for you.

We can explain which home loans may be suitable and help you narrow down your options.

Step 3: Submit your loan application

Once you’ve decided which home loan is right for you, we’ll take care of your mortgage application.

Just like when you applied for your original loan, you’ll need to supply certain documents. These usually include identification, proof of income, home loan statements, and records of living expenses, liabilities and assets.

The new lender may also require a property valuation. This helps them to determine how much they are willing to lend you.

Step 4: Discharge your existing loan and settle your new one

When your chosen lender approves your new loan, we will let your current lender know you plan to discharge, or pay out, your existing loan.

We’ll keep you informed throughout the settlement process and let you know when your new lender has paid out your old loan.

Step 5: Start making repayments

After settlement, you’ll receive documentation explaining the ins and outs of your new loan. Then, it’s time to start making repayments.

All up, for most cases the process of refinancing usually takes anywhere from four to eight weeks. The timeline depends on the lender, how quickly you submit the required paperwork and the strength of your application. Some lenders may offer a fast-tracked service.

Ready to get started?

As you can see, refinancing may not be as hard you think. If you’re interested in comparing what loan options are available for you, get in touch with us today.

Ready to Dive In?

Exploring finance options is a crucial step. Reach out to us! We’re here to guide you through the maze and help you align with your investment objectives.

Ready to get started?

As your mortgage broker, we’ll organise everything, explaining the process, keeping in touch and keeping you updated, so that everything runs smoothly.

Please get in touch today! Regards Glenn Biggins.

The post Refinancing your home loan: how does it work? appeared first on Focus Property Wealth - Perth Mortgage Broker.

Smart Investing for the Budget-Savvy

glennadmin — Fri, 18 Aug 2023 04:25:47 +0000

Perth property investment market is going very well, much of this success is to do with the WA property markets affordability in comparison to other states.

Is a small budget holding you back from property investment? Think again!

So you might be surprised to learn that you don’t need a hefty bank balance to dive into the property market. Let’s explore how you could make this dream a reality.

1. Unlock Your Home’s Potential Through Equity

What’s Equity? It’s the difference between your property’s market value and what you owe the bank. For instance, if your home is worth $800,000 and you owe $500,000, you have $300,000 in equity.

How Can It Help? If the value of your home has appreciated or you’ve made significant progress on your mortgage payments, you could be sitting on a hidden treasure. By refinancing, you can tap into this equity, providing you with the means to invest without depleting your savings.

2. Think Beyond the City

Why Regional? If city investments are stretching your budget, consider looking into regional areas. Many of these zones have recently surpassed major cities in performance, especially when it comes to vacancies, rental rates, and property values.

Hotspots to Consider in 2023: Refer to the latest “Top 10 Affordable Regional Areas 2023” report for inspiration. This comprehensive study, based on affordability, property trends, investment considerations, project development, and unemployment rates, highlighted the following standout areas:

Queensland: The Whitsunday Region, Mackay Regional Council, The Charters Towers Region.
New South Wales: Federation Council, Dubbo Regional Council, The City of Lithgow.
Victoria: City of Greater Bendigo, City of Greater Shepparton, City of Ballarat.
Tasmania: Central Coast Council.

3. Two Heads Are Better Than One

Joint Ventures: Consider teaming up with someone. It could be a friend, family member, or another investor. Pooling resources can make property investment more accessible.

Remember: This is a big decision. Always get legal advice to ensure everyone’s on the same page.

4. The Off-the-Plan Route

How It Works: You sign a contract, pay a deposit (often just 10%), and settle the balance once the property’s built. This gives you time to get your finances in order.

Pros: Lock in today’s price, even if property values soar during construction.

Cons: There are risks, like potential drops in property value. Always research thoroughly.

Ready to Dive In?

Exploring finance options is a crucial step. Reach out to us! We’re here to guide you through the maze and help you align with your investment objectives.

Ready to get started?

As your mortgage broker, we’ll organise pre-approval on your home loan and get your loan application over the line, so that everything runs smoothly come settlement day.

Get in touch today and let’s chat about your exciting new property purchase.

Please get in touch today! Regards Glenn Biggins.

Smart Investing for the Budget-Savvy

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How your HECS-HELP debt affects your borrowing capacity

glennadmin — Thu, 11 May 2023 07:17:19 +0000

Do you know how much you owe on your HECS-HELP debt?

While student HECS and HELP loans in Australia are interest-free, they are indexed every financial year based on a cost of living index.

The recent outbreak of high inflation means millions of Australians with student loan debts are facing a 7.1% increase from 1 June, up from 3.9 per cent the previous year.

Your HECS-HELP debt is an important piece of information that banks take into consideration when assessing your application for a home loan, so it’s important to understand yours.

If you’re a bit vague about all the details, it’s worth reading on to see how indexation will impact you.

What is HECS-HELP?

The Higher Education Loan Program (HELP) is a federal government scheme that offers loans to students so they can afford their university and higher education courses.

Most university courses fall under the banner of a Commonwealth Supported Place (CPS). With these, the federal government covers some of the student’s university fees, while the student covers the rest – known as the ‘student contribution amount’.

Your HECS-HELP loan can be used to pay the ‘student contribution amount’. It can’t be used for things like accommodation, textbooks or your dormitory’s mini bar supply.

How do you find out how much your HECS-HELP debt is?

You can check the balance of your HELP debt, the indexation amounts and your voluntary and compulsory payments through myGov or by contacting the Australian Taxation Office (ATO) directly.

Do you pay interest on a HECS-HELP debt?

HECS-HELP debts are interest-free, but the amount of the debt is adjusted on 1 June each year in accordance with an annually determined inflation factor.

And because the cost of living and inflation has gone through the roof, the latest annual indexation factor is higher.

The 2022-23 HECS-HELP debt indexation factor for 2022-23 is 7.1%. To put it in perspective, in 2022, it was 3.9%. In 2021, it was 0.6%. Big difference, right?

Another way of looking at it is like this:

a $10,000 loan balance would increase by $710
a $25,000 loan balance would increase by $1,775
a $50,000 loan balance would increase by $3,550.

What does this have to do with getting a home loan?

When you apply for a home loan, lenders will look at your HECS-HELP debt when assessing your loan application.

While this type of debt is different from credit card debts and personal loans, you still need to make repayments on your student loan and this ultimately affects your income and borrowing capacity.

Paying off your HECS-HELP debt

Once you earn over a certain threshold, your employer will deduct a percentage of your income to go towards your HECS-HELP debt. The more you earn, the higher the repayment rate.

You can find more about the HELP repayment rates and thresholds here.

These PAYGW (pay as you go withholding) amounts are only applied after you do your tax return. So, if you were to jump online and look at your HECS-HELP debt today, your PAYGW payments wouldn’t have been applied yet.

What about voluntary payments?

You can make voluntary payments towards your HECS-HELP debt through myGov. Once processed, voluntary payments are credited directly against the loan balance by the ATO.

If you wanted to pay your loan balance off in full before indexation is applied on 1 June, you’d need to do so as soon as possible (taking into consideration bank processing times).

It is recommended to talk to your accountant or financial advisor about whether making voluntary payments is right for you.

Bottom line

Whether or not you are considering buying a property, it’s important to understand your HECS-HELP debt and how this year’s higher indexation could affect you.

If you’d like to find out more about how your HECS-HELP debt might be treated by lenders, get in touch and we’ll explain.

Additional Resource
https://www.realestate.com.au/home-loans/guides/can-you-still-get-a-home-loan-with-hecs-help-debt

We are here to help with any questions you have, so get in touch today.

Please get in touch today! Regards Glenn Biggins.

The post How your HECS-HELP debt affects your borrowing capacity appeared first on Focus Property Wealth - Perth Mortgage Broker.

How to manage your own investment property

glennadmin — Mon, 24 Apr 2023 05:24:13 +0000

How to manage your own investment property?

It’s time to find some quality tenants and sign them up to a lease. When it comes to this step, you can go one of two ways.

You can pay a property manager to take care of the nitty gritty for you. There are all sorts of perks to doing this, but of course, there’s a cost involved.

Otherwise, you can choose to manage the property yourself. Here’s what you need to do if you decide to take this route.

Familiarise yourself with the law

How and when do repairs need to be completed? Who pays the utility charges? What kind of notice is required before an inspection?

The answers to these kinds of questions and more can be found in your state or territory’s Residential Tenancies Act. The rights of both tenants and landlords are protected by these laws and you’ll need to be across them if you plan to manage your own investment property.

Prepare the paperwork

Next, it’s time to get your documentation in order. You’ll need:

A lease: usually a fixed term for 6 or 12 months.
The bond: an upfront payment by the tenant (usually one month’s rent) paid in advance as security for rent owed or damage, and held by the governing authority in your state or territory.
The condition report: takes note of the condition of the property before the tenant moves in and can serve as evidence if the tenant damages the property. Your tenant may also submit a condition report once they get the keys. Be sure to take photos.

Set the rent and list the property

To get an idea of how much to charge for rent, you could:

Ask us for a suburb report to find out what the going rates are
Check out websites like www.realestate.com.au and www.domain.com.au

Ask a local real estate agent for advice.

When you advertise the property, make sure you pair quality photos with a great listing to attract the kinds of tenants you want.

Remember to include any stipulations about pets and/or smoking.

Find quality tenants

Finding quality tenants all comes down to how thoroughly you screen candidates.

You’ll need to verify their ID and income (such as their most recent payslips and/or a bank statement highlighting their income), call their references and investigate their previous rental history.

Online tenant (renter) databases allow you to check whether candidates have been ‘blacklisted’ by previous landlords. Examples include:

Be aware that there are laws governing things like disclosure and how these databases can be used. Make sure you get up to speed with the rules in your state or territory.

Get the ball rolling

Once you find the right tenant, file all the necessary paperwork, lodge the bond and start collecting the rent. Keep in mind that each state or territory may have different requirements, so do your research.

Look into landlord software apps, which can help make your life easier with things like rent tracking and expense management.

Respond to repair requests

If you take care of your tenants, they will be more likely to take care of your property.

Make sure you respond to any requests for repairs and maintenance in a timely manner. Remember to check the rules and timelines around completing repairs in your state or territory’s Residential Tenancies Act.

Don’t forget inspections

You’ll want to organise regular inspections to ensure your property is being looked after. Rules may differ depending on location, so again, make sure you do your research.

It also pays to be meticulous about your record-keeping and documentation. Keep a record of all interactions with the tenant, as these can help protect you should issues arise.

Ready to become a landlord?

As you can see, there’s a bit involved with managing your own investment property. However, if you want to have complete control over your property and save yourself the commission you’d pay a property manager, it may be the way to go.

We are here to help with any questions you have, so get in touch today.

Please get in touch today! Regards Glenn Biggins.

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3 things every new landlord needs to know

glennadmin — Thu, 04 Jan 2018 03:55:29 +0000

Buying your first investment property is exciting, but it also comes with new responsibilities. When you’re on your L-plates as a new landlord, it’s important to be aware of your rights and obligations and those of your tenants. Here are some of the essential things that you should know.

1) Go it alone, or use a property manager?

When you’re a new landlord, managing your own property could have a steep learning curve. Working with a good property manager will not only teach you the ropes, but they’ll do all the hard work for you - like finding tenants, lodging bond forms, collecting rent, doing inspections and making sure things run smoothly. If there are any issues, the tenant will contact them directly, which could save you a lot of hassle. They’ll also keep you informed of your rights and responsibilities, giving you peace of mind that you’re doing things right.

Before choosing a property manager, be sure to check their online reviews or ask them if you can reference check their other clients. Otherwise, ask us! We are well connected and are more than happy to provide a referral to any reputable local suppliers that we may know. Property management costs are usually tax deductible for property investors, so also check it out with your accountant.

2) Familiarise yourself with the legislation

As a new owner of an investment property, it’s important to know your rights and responsibilities and adhere to the relevant legislation in your state or territory, even if you use a property manager. For example, in some states, you must provide tenants with a new tenant checklist before they sign the tenancy agreement, and you can be fined for not complying. You can find helpful information about each state and territory’s specific requirements on the TenancyCheck.com.au website, available here. Be sure to also check with your state or territory’s relevant government department.

If you have a Property Manager, it’s their job to help you understand the legalities, so if you’re not sure, ask them to fill you in!

3) Understand the importance of the bond

The bond is a security deposit that protects you if the tenant damages the property, leaves it unclean, or fails to pay rent or bills that fall under their obligation. In these instances, you or your agent may be able to claim the bond money to cover your expenses at the end of their tenancy. The bond is usually about four weeks’ rent, but in some instances, it may be more.

Once the bond is collected, you must provide the tenant with a receipt and lodge the money with your state or territory’s residential tenancies authority (known by different names in each state/ territory). Be sure to check with your local authority about how soon the money must be lodged. This authority will hold on to the bond until the tenancy is up and pay it back to the tenant when the property is vacated, provided there’s no money owing for damages, unpaid rent or other costs. If there is a dispute about the bond or you want to claim compensation for damage that exceeds the bond, you can apply to the relevant tribunal within your state or territory.

Buying an investment property is exciting and rewarding. If you’re not confident about going it alone, you can rest assured that there are professionals out there to help make sure things run smoothly. In terms of finance, we’re here to help you find a loan that meets your current financial needs and ties in with your future investment goals. We’ll compare the market and set you up with a loan that ticks all of your boxes, so please get in touch today!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

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3 ways to start growing your nest-egg using real estate.

glennadmin — Thu, 19 Oct 2017 01:56:45 +0000

In Australia, the national past-time seems to be to save, save, save for a house deposit! People are making all sorts of sacrifices to get that all-important deposit together – from living with mum and dad into their thirties, to sacrificing life’s little luxuries. But why are so many Australians so very focused on owning their own property?

Besides providing a cosy nest of your very own, buying a property can potentially open up a world of wealth building opportunities – for your long term benefit! Whether you’re buying your own home or an investment property, home ownership could be a good move to help you get ahead financially. So get ready to start feathering your nest! Here’s a few reasons why real estate can be used as a powerful wealth generator.

Capital growth potential

Real estate has real potential to increase in value over time – this is called capital growth. That’s because the supply of housing is often insufficient to meet demand, supporting growth in values.

Whether you’re buying your home to live in yourself, or you’re buying a property as an investment to rent out to tenants, capital growth is going to be very beneficial to your financial situation. If the value of your property increases, you could potentially make a nice profit when you sell, particularly if it’s your own home. Alternatively, you could access the capital gains (known as equity) as you go along by refinancing your loan – effectively using the property as a money tree.

Make more investments

Money tree you say! We all know that money doesn’t grow on trees, so how does that work?

If you refinance your home loan you can access your equity, which gives you funds that you can spend how you like. If you’re focused on building wealth, you may wish to use it as a deposit for an investment property. Once some time passes and your equity builds in that property too, you could refinance your loan again and use those funds as a deposit for your next investment, and so on. In this way, your nest egg could potentially keep growing and growing.

This is just a broad outline of how property investment works. We recommend that you talk to a professional financial planner to help you formulate an investment strategy that’s right for you. Just ask us if you’d like a recommendation.

Tax perks

As mortgage brokers, we’re not tax advisors or financial planners. But generally speaking, property investment is a very popular form of investment, mainly because the Australian Taxation Office supports it with tax benefits.

One popular strategy is to ‘negatively gear’ your investment property to reduce your taxable income. Negative gearing is when the expenses associated with owning the property (including interest on the loan borrowed to finance the property) are greater than the income it generates. You can claim any net losses against your taxable income and in this way, reduce the tax you’ll have to pay on the money you earn in your job or by other means – all whilst your property investment makes capital gains. Once again, talk to your accountant and financial planner to be sure that a negative gearing strategy is right for you.

Speak with Focus Property Wealth with your property plans!

Buying real estate could be a smart move for you financially, whether you’re buying a home to live in or are investing in property to rent out to tenants and build your nest-egg. We’re here to help you maximise your financial position and obtain a loan that’s suitable for your purposes and goals. Talk to us about how buying a property could benefit you – we’ll help you to determine your borrowing capacity, get pre-approval on your loan and can even help you with insightful property data to assist you with locating and purchasing the right place. Just give us a call and we’ll be happy to chat with you about your plans.

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Retire early Live off your property portfolio! Let rent supply your income!

Focus Property Wealth — Thu, 27 Jul 2017 06:50:37 +0000

We see these headings all the time in blogs and articles on property investment websites, but how do you actually retire early? How many properties do you need to own for it to be feasible to retire? What are the costs involved? And, does being leveraged up to your eyeballs work in your favour?

As more and more people realise that living off their superannuation and pension is going to create a shortfall in their lifestyle, many are turning towards property investment as a safeguard for their future. What we urge you to keep in mind that it is often not the number of properties you own that you need to consider but the cash flow that is generated or the equity it accrues.

It is better to own two high performing investment properties situated in growth areas with steady demand for rentals, than to own 4 that are not performing well and costing you money.

Smart, considered property selection will prove invaluable, which is why we recommend you get some professional advice before you jump into the property investment market.
Obtaining the right loan for your investments can save you thousands of dollars over the life of the loan, and often banks won’t divulge just how flexible they can be. By utilising the services of a mortgage broker, one who has years of professional experience in dealing and negotiating with banks, you can fast track your returns, and create financial security for your future.

Focus Property Wealth can not only source you the best possible loan for your investment properties but they can also structure a long term financial plan, outlining the steps you should take to achieve a profitable retirement portfolio, and are committed to providing the highest possible standard of service. We will advise you on the different strategies you can employ to secure your retirement, be it through creating positive cash flow, growing then liquidating your portfolio, or a combination of the two - growing then paying down the debt.

To become a successful investor, surround yourself with a team of professionals whose knowledge and experience are known, proven and trusted and who you can rely on to help you achieve your property investment goals and retire well.

The post Retire early Live off your property portfolio! Let rent supply your income! appeared first on Focus Property Wealth - Perth Mortgage Broker.

Investment Archives - Focus Property Wealth - Perth Mortgage Broker

Redraw vs offset: what first-home buyers should know

If you’re planning to buy your first home this spring, you’re not alone. It’s one of the busiest times in the property market, with more listings and more competition. That’s why it’s important to be well prepared.

What is a redraw facility?

What is an offset account?

Choosing the right loan features

Planning to buy this spring?

Buying an apartment vs a house as an investment

Do you want to jump into the property market but don’t have the budget to buy a house? A unit or apartment could be a great way to get your leg up on the property ladder.

Pros of investing in an apartment

A more affordable entry point

Fewer maintenance responsibilities

Certain expenses can be more affordable

Potentially higher rental yield

Cons of investing in an apartment

You may need to pay strata fees

There may be restrictions

Oversupply can affect your investment

Want to discuss your finance options?

Ready to get started?

Rentvesting: is this a good option for first-time buyers?

With today’s cost of living pressures and the median dwelling value in Australia now at $794,000, many young Australians feel like they’ll never be able to enter the property market.

What is rentvesting?

Why do people choose to rentvest?

What to know before going ahead with rentvesting

1. Potentially smaller deposit, but fewer government perks

2. There are ongoing costs to factor in

3. Investor loans could come with higher interest rates

4. There will be tax implications

Like to know more?

Ready to get started?

Refinancing your home loan: how does it work?

When you’re busy with life, refinancing can seem like a hassle. However, with a mortgage broker to guide you through the process, it doesn’t have to be!

Step 1: Work out your financial goals

Step 2: Compare home loan options

Step 3: Submit your loan application

Step 4: Discharge your existing loan and settle your new one

Step 5: Start making repayments

Ready to get started?

Ready to Dive In?

Ready to get started?

Smart Investing for the Budget-Savvy

1. Unlock Your Home’s Potential Through Equity

2. Think Beyond the City

3. Two Heads Are Better Than One

4. The Off-the-Plan Route

Ready to Dive In?

Ready to get started?

Smart Investing for the Budget-Savvy

How your HECS-HELP debt affects your borrowing capacity

Do you know how much you owe on your HECS-HELP debt?

What is HECS-HELP?

How do you find out how much your HECS-HELP debt is?

Do you pay interest on a HECS-HELP debt?

What does this have to do with getting a home loan?

Paying off your HECS-HELP debt

What about voluntary payments?

Bottom line

Additional Resource https://www.realestate.com.au/home-loans/guides/can-you-still-get-a-home-loan-with-hecs-help-debt

How to manage your own investment property

How to manage your own investment property?

Familiarise yourself with the law

Prepare the paperwork

Set the rent and list the property

Find quality tenants

Get the ball rolling

Respond to repair requests

Don’t forget inspections

Ready to become a landlord?

3 things every new landlord needs to know

1) Go it alone, or use a property manager?

2) Familiarise yourself with the legislation

3) Understand the importance of the bond

3 ways to start growing your nest-egg using real estate.

Capital growth potential

Make more investments

Tax perks

Speak with Focus Property Wealth with your property plans!

Retire early Live off your property portfolio! Let rent supply your income!

Additional Resource
https://www.realestate.com.au/home-loans/guides/can-you-still-get-a-home-loan-with-hecs-help-debt