API Online

May 28, 2010

What can a property investor learn from the Rich 200 List?

According to the just released BRW Rich 200 list, the rich are getting richer again. They got through the challenges of the global financial crisis and the total wealth of the Rich 200 members is up 19 per cent from last year.


So what can we learn from Australia’s wealthy individuals?

Firstly, 59 members got onto the list through investing in property. But that’s no surprise, is it?

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May 27, 2010

How to pay off your mortgage faster

As we all know, the quicker you repay your home loan, the more equity is built up, which can be used to fund the expansion of your investment property portfolio. It’s not as difficult as people may think.


It’s about taking little bites and continuing to chew, all the while thinking about the end goal. Why let negativity cloud the satisfaction of getting closer to owning a property outright and having a good amount

of equity at your disposal?


Did you know that if a fairly average new home loan borrower – someone with a $281,400 home loan at 7.1 per cent over 30 years – contributed an extra $100 every month to their mortgage from day one they would save well over $70,000 in interest plus almost four and a half years off their loan term?

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May 26, 2010

Will the resources super tax affect property?

The Rudd Government and the mining industry are locked in a ferocious battle over plans to introduce a resources super profits tax, with

the industry saying the tax has put its expansion plans in Australia at risk.


But property investors should take the mining industry’s rhetoric with a hefty grain of salt, according to hotspotting.com.au founder Terry Ryder, a man who spends a fair chunk of his time assessing regional Australian property markets.

Fortescue Metals Group says it’s put two of its three expansion projects on hold as it reviews the potential impact of the tax, while BHP Billiton has also indicated some planned projects could move offshore.
However, Ryder doesn’t believe investors need to fear the impact of the proposed tax flowing through to their property returns.

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May 24, 2010

Markets cool as interest rates bite

According to Australian Property Monitors, auction clearance rates over the weekend in Melbourne and Brisbane were down considerably compared with the previous weekend, while Sydney and Adelaide showed modest gains.


Figures from the Real Estate Institute of Victoria (REIV) reported a 75 per cent auction clearance rate. REIV chief executive Enzo Raimondo is reported in the Herald Sun as saying “interest rates and a large number of homes on the market continue to keep the clearance rate below the pre-Anzac Day norm of over 80 per cent”.

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Buyer beware! Should sellers have to provide mandatory building inspection reports to prospective purchasers?

Can flood-prone Queensland homes be sold without sellers or agents volunteering the soggy truth? Yes!


What if sellers don’t ‘fess up if there’s no record of council inspections? They can sell regardless!

What if a seller’s carport, garage or deck was built illegally? No selling worries!

What if a home is termite-riddled? Don’t tell!

And if sellers obtain a pre-sale building report showing heaps of problems? Don’t mention the report!

This is why “buyer beware” is the first unwritten rule of real estate in Queensland. Will it stay that way? Yes. Because Queensland’s government refuses to legally oblige home sellers to disclose material information to prospective buyers.

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May 22, 2010

How will NSW’s new property tax affect investors?

Property industry groups have slammed the New South Wales Government’s decision to introduce a new tax on property transactions, but what impact will it really have on the market?


In the shadow of the Federal Budget last week, the NSW Government announced it was introducing a new transaction charge of 0.2 per cent for properties valued at $500,000 and above, or 0.25 per cent above $1 million. The decision to introduce what’s become known as the ‘ad valorem’ levy (ad valorem is Latin for ‘according to value’) brought a furious response from the property industry.

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What does a good property manager really do?

Let’s start with the bottom line: is your investment growing more because of the expertise of your property management company?


We all know it’s a good idea to have an investment property, just as we know we should spread our investment risk by diversifying, but it’s fair to say there’s more to managing property than collecting rent and organising maintenance.

The basic expectation for a landlord paying management fees should be a relationship with their property manager or the principal of the business and a business plan for how their investment property can grow in capital value for them.

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Are you playing the game or watching from the sidelines?

Property investing can be likened to sport – it takes practice to perfect your skills and achieve winning results.


Recently I attended a rugby match. I was only there as my husband has the misconceived idea that one day the Kiwis will beat the Aussies – alas he was proven wrong again. I don’t understand the game but it doesn’t stop me cheering from the sidelines and I do appreciate the skill of those playing.

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More needed to improve banking competition

Here’s an idea to reignite competition in the mortgage market and get credit flowing again, but will the Federal Government consider it?


The Federal Government touted its Budget announcement in relation to the proposed 50 per cent discount on interest income of up to $1000 (to save personal income tax for investors) as a mechanism to assist the banks with funding mortgages. It will revive competition, it said. The thinking is that people will be encouraged to save more money if they won’t get taxed as much. The benefit to the banks is that an increase in bank deposits will ease the funding pressures as they won’t have to borrow as much from expensive overseas money markets. Banking deposits is one of the cheapest forms of funding at the moment.

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May 21, 2010

Re-stumping a house – the right way!

Re-stumping is one of those aspects of renovating that’s a bit of an unknown to a lot of people, and as such can be a bit scary. I’d like to give you a few pointers.


When it comes to re-stumping I’d first like you to consider that an average home is likely to have around 90 to 100 stumps. This is something you might be able to just go and check for yourself. On average it costs around $70 to $80 per stump (material and labour) to get a house re-stumped so keep that in mind when getting quotes. You can pretty easily work out roughly what your job might cost by multiplying the number of stumps with a cost per stump. This figure will and should include the cost of getting a permit.

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