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The Australian Taxation Office (ATO) has revealed it will have three key focus areas this tax time – one of which will be deductions claimed by property investors.The reason property investors are being targeted is because an ATO review found nine in ten property investors were filing faulty tax returns. Common errors included:Leaving out rental incomeMaking mistakes with property-related deductions – like overclaiming expenses or claiming for improvements to private propertiesAs a result, the ATO said it would match investor tax returns with data from home loan providers and insurance providers, to ensure investors don’t omit income or inflate deductions.“Around 80% of taxpayers with rental income claimed a deduction for interest on their loan, and this is where we’re seeing mistakes,” ATO assistant commissioner Tim Loh said.“For example, you can’t refinance an investment property to buy personal items, like a holiday to Europe or a Tesla, then continue to claim the interest expenses as a tax deduction.”The ATO's other two focus areas will be work-related expenses and capital gains tax.Need a home loan? Let's talkHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about ATO reminds property investors to take care with their tax returns

Australia's mortgage market is experiencing a significant shift, with many homeowners coming off two-year and three-year fixed-rate loans onto much higher variable rates today.Starting during the 2020 pandemic, there was a boom in fixed-rate borrowing, as lenders slashed their fixed rates to record-low levels and many borrowers took advantage. At the peak, almost 40% of outstanding home loans in early 2022 were fixed, which was “roughly twice their usual share from prior to 2020,” according to a research paper published by the Reserve Bank of Australia (RBA). As of March 2023, about 25% of fixed-rate loans outstanding in early 2022 had expired. By the end of 2023, another 40% will expire; and by the end of 2024, another 20%. This is what the media has been referring to as the 'fixed-rate cliff'.Here are three tips if you're about to revert from a fixed to a variable loan:Start budgeting right now for higher interest ratesContact me to discuss whether you could refinance to a new lender with a more suitable fixed or variable rateLimit your spending to increase your chances of qualifying for a new loanSwitching from fixed to variable? Let's talk.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about What you should know about the ‘fixed-rate cliff’

Things are looking up for owners of units, whether owner-occupiers or investors. After the national median unit price fell for 10 consecutive months, it increased in both March (0.6%) and April (0.7%), according to CoreLogic. CoreLogic economist Kaytlin Ezzy said this could signify “the start of a slow recovery phase, with inflation seemingly moving past its peak and consumer sentiment rising from near-record lows”. Meanwhile, unit rents are not only surging (up 14.8% over the year to April), they’re growing significantly faster than house rents (8.4%). “The mismatch between [unit] rental supply and demand has seen capital city rental growth reaccelerate, which will be unwelcome news to many tenants already struggling to find affordable rental accommodation,” Ms Ezzy said.“While units across each of the capitals and rest-of-state regions still offer a more affordable rental alternative compared to houses, the stronger rental growth seen in the medium to high-density sector, in part due to their relative affordability, has seen the gap narrow.”Need a home loan? Let's chat.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Unit prices and rents heading north

It's too early to say first home buyers are back, but they've certainly made a welcome return to the market, according to the latest data from the Australian Bureau of Statistics.The number of new owner-occupier first home buyer loan commitments rose 15.8% in March, after reaching a five-year low in February.That said, first home buyer activity was 21.8% lower than the year before and 50.5% lower than the January 2021 high. Now that property prices appear to be rising again (see first story in newsletter), it might be wise for first home buyers to enter the market sooner rather than later, before prices rise further. Saving a deposit can be hard, but there are two ways to speed up the process.Under the First Home Guarantee, the federal government helps eligible first home buyers purchase a property with just a 5% deposit without having to pay lender’s mortgage insurance. Income and price caps apply.First home buyers who have parental support can use a guarantor home loan to enter the market with, potentially, a 0% deposit. Again, conditions apply.I love helping first home buyers get on the property ladder.Contact me for expert advice.See how much you can borrow now. Let's talk.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about First home buyer activity jumps 15.8% month-on-month

The Reserve Bank of Australia (RBA) is set for a shake-up, following a review commissioned by the federal government.The review made 51 recommendations, including specific measures to create a clearer monetary policy framework and stronger monetary policy decision-making.Treasurer Jim Chalmers said the government agreed in-principle with all the recommendations and would work with the RBA and parliament to implement them.Subject to consultations with the opposition, the Treasurer said the government would introduce legislation to:Reinforce the independence of the RBA in the operation of monetary policySplit the RBA board into two – with one board to oversee monetary policy and the other governanceStrengthen the RBA’s mandateClarify that Australia’s monetary policy framework will aim for both price stability and full employmentTreasurer Chalmers also said the government would institute a more transparent process for appointing external members to the RBA boards.Need a home loan? Let's talkHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Treasurer reveals plans to reform RBA

Australian property prices look to be trending upwards again, judging by the latest data from CoreLogic.After the national median price fell 9.1% between May 2022 and February 2023, it has since risen in consecutive months – by 0.6% in March and 0.5% in April.“Not only are we seeing housing values stabilising or rising across most areas of the country, a number of other indicators are confirming the positive shift,” CoreLogic's research director, Tim Lawless, said. “Auction clearance rates are holding slightly above the long run average, sentiment has lifted and home sales are trending around the previous five-year average,” he said.Mr Lawless said it was notable this housing turnaround was occurring despite interest rates remaining elevated.“The last time we saw housing values trending higher through a rising interest rate environment was during the mid-to-late 2000s when the mining boom was underway. This period was also characterised by surging net overseas migration that contributed significantly to housing demand,” he said.Get in touch if you need a home loan.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Property prices have now risen in consecutive months

The Australian Banking Association (ABA) has launched a new campaign to raise awareness about scams.This is a very topical issue, with Scamwatch receiving 14,603 reports about bank impersonation scams in 2022, resulting in more than $20 million in losses, according to the Australian Competition & Consumer Commission.The ABA ads include these key messages:Bank impersonation scams: “Banks will never call you and ask you to transfer money to another account.”E-toll scams: “Never click on suspicious texts, links or emails.”Investment scams: “Always check you’re dealing with a legitimate organisation.”Invoice scams: “Never transfer money unless you’re certain it’s to the right person.”Banks will never:Ask you to transfer funds to another account over the phoneSend you unsolicited texts or emails that ask you to provide your account or personal detailsAsk for online banking passcodes or passwords over email, text or phoneAsk for remote access to your computerThreaten to take immediate action on an issueThe ABA has advised consumers to question the authenticity of texts, emails or calls from people who claim to be from a bank or trusted organisation. The ABA has also highlighted the importance of registering a PayID (only through a bank, not a third party) and using it when available. Consumers should also set up two-factor authentication for online banking, check the legitimacy of invoices or bills, and report any suspicious activity to their bank.Need a home loan? Let's talkHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about How to protect yourself against scams

Property investors have been put on notice, after the Australian Taxation Office (ATO) said it would scrutinise their tax returns in an attempt to claw back an estimated $1.3 billion in missing taxes.The ATO told The Guardian that it would use “formal information gathering powers” to compel 17 financial institutions – including all the big four banks – to provide data on approximately 1.7 million property investors.That would allow the ATO to assess all the income an investor had earned and all the expenses they'd incurred over the course of a year, and to then compare that with their tax return.According to the ATO, the most common tax mistakes that property investors make are:incorrectly declaring improvements to be repairs rather than capital worksnot apportioning expenses for private use of the propertyeither not apportioning or incorrectly apportioning the loan interest costs after refinancing for private purposesThat’s why it’s generally a good idea for property investors to get professional help when filing tax returns. If you’d like to be introduced to a trusted accountant, reach out and I’ll be happy to recommend someone.Need a home loan? Let's talkHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about ATO orders banks to provide data on property investors