Share on facebook Share on twitter Share on linkedin The Australian Taxation Office has made it easier for locked-down workers to claim deductions for working from home.You can now claim a rate of 80 cents per hour for all your running expenses, rather than needing to calculate costs for specific running expenses.To use this shortcut method, all you need to do is keep a record of the hours you worked from home as evidence of your claim.This new shortcut applies only to expenses incurred from 1 March 2020 – earlier expenses must be calculated using the old working-from-home formula.Legitimate expenses may include power, phone, internet, stationery and the decline in value of computers and furniture.As taxation legislation is complex, I recommend you speak with your tax advisor, financial advisor or contact the ATO for further details and guidance regarding your personal circumstances.Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review 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 Taxes just got simpler for WFH Aussies
Home owners turning repayments back on
Share on facebook Share on twitter Share on linkedin Feeling more confident about your financial position than when the COVID crisis began? If so, now be a good time to resume your mortgage repayments.More than 400,000 borrowers have taken advantage of six-month deferrals since the crisis began, according to the Australian Banking Association.However some banks are now reporting that there’s an accelerating trend of borrowers switching their repayments back on.For those in a position to do so, this can be very beneficial. The sooner you turn your repayments back on, the less interest you’ll accrue on your loan balance and you’ll shorten the extra time added to your loan term.It is important to note that not all repayment freezes are the same and you need to speak to your bank about your options.You can find the contacts details for all Australian banks here.Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review 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 Home owners turning repayments back on
Time running out to claim immediate tax break
Share on facebook Share on twitter Share on linkedin With the end of the financial year just weeks away, this could be a golden opportunity for your business to take advantage of the enhanced instant asset write-off scheme.The federal government recently increased the instant asset write-off threshold from $30,000 to $150,000, for businesses with a turnover of less than $500 million.So if you have an eligible business and you install an asset worth less than $150,000 before 30 June, your business can claim the entire spend on its next tax statement, rather than deducting the spend over multiple years.Your business can also claim accelerated depreciation on certain assets, provided they were:Purchased on or after 12 MarchNot subject to other depreciation deductions (including the instant asset write-off) Click here for more information about the government’s ‘Support for Businesses’ measures.If you would like to take advantage of this opportunity and need finance, just click belowNeeding a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Get business finance help 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 Time running out to claim immediate tax break
“Property has shown its resilience through economic shocks before”
Share on facebook Share on twitter Share on linkedin If the past is any guide, the future looks promising for property, according to new research from a not-for-profit organisation.Property Investment Professionals of Australia (PIPA) research found that, within five years of each of Australia’s last four downturns, median house prices in the capitals were always higher than at the start of the downturn. “Some locations performed better than others, most likely due to local economic factors after each period,” according to PIPA chairman Peter Koulizos.“However, the research shows that talk of impending property ‘doom’ has never happened in recent history – and these recessions or downturns lasted multiple years rather than a few months.”Mr Koulizos said that, in 2011, every capital city recorded a fall in prices, after the GFC stimulus money ran out – but that they were all growing again within either one or two years.“The moral of the story is don’t panic. Property has shown its resilience through economic shocks before and we have no reason to expect it won’t do so again.”Looking to buy?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. Book a review 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 has shown its resilience through economic shocks before”
Property investors turning from units to houses
Share on facebook Share on twitter Share on linkedin Investors are now favouring houses over units, according to a study of 4,000 investment properties by MCG Quantity Surveyors.The study found that last year, 37.5% of the properties purchased by investors were houses, while 33.7% were units (with the rest being townhouses, granny flats and duplexes).In comparison, units were more popular than houses, by 47.2% to 43.2% in 2016-17.As with all things in life, investing in a house comes with pros and cons. The pros include:Houses are expected to hold their value better during COVID-19Houses are often more popular with tenants, because they’re roomier and may include gardens and extra parkingHouses are easier to renovate than units, and thus have more value-adding potentialHouses can be renovated without needing approval from an owners’ corporation The cons include:Houses generally cost more to buy than unitsHouses may have negative cashflow (when investors collect less in rent than they pay out in mortgage repayments and other expenses)Want to invest in a house?I can help. Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review 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 investors turning from units to houses
Tax office delivers warning to investors
Share on facebook Share on twitter Share on linkedin Last year, the ATO found that 90% of deductions made by property investors contained errors, based on a random sample.As a result, the ATO has been auditing more and more investors – about 1,500 in the 2017-18 financial year and about 4,500 in the 2018-19 financial year.Here are three of the common errors cited by the ATO:Deducting 100% of the interest payments you make on your investment loan even if you divert some of the home loan for non-property expensesDeducting 100% of your renovations expenses immediately (capital works are deductible over a number of years)Deducting holiday home expenses when you're not genuinely using your holiday home as an investment property If you’re a property investor, you should take care this tax time, because the ATO is paying closer attention to investors. It may be a good idea to consult your accountant before you file your tax statement.The ATO can cross-check your tax statement with data from banks, rental bond offices and Airbnb, so it’s important you declare all your income and claim only legitimate deductions.Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review 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 Tax office delivers warning to investors
Get your finances in order before renovating
Share on facebook Share on twitter Share on linkedin With everyone stuck at home, you won’t be surprised to learn there’s been a surge in renovations activity.Renovations can be a great way to add liveability and value to your home – but they can also be costly.Last year’s annual Houzz & Home Australia survey of more than 8,800 respondents found kitchens are the most popular rooms to renovate, followed by living rooms, bedrooms, bathrooms and laundries.However, half of homeowners in the Houzz survey were renovating three rooms per project, at an overall median spend of $20,000.So if you’re looking at doing a larger scale renovation during the quarantine, and need help paying for it, these are the three common ways people pay for their renovations:Taking out a personal loanAdding the costs to their existing home loanTaking out a new home loan Another way to fund the renovation is to pull out equity from your current home.For example, if you had a $500,000 mortgage on an $800,000 property, you’d have $300,000 of equity. A lender might allow you to use some of that hypothetical $300,000 to fund your renovations.Be aware that you need more than 20% equity in your property to make this work. If your loan-to-value ratio (LVR) climbs above 80%, you might have to pay lender’s mortgage insurance (LMI).Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review 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 Get your finances in order before renovating
Refinancing surges as rates tumble
Share on facebook Share on twitter Share on linkedin Refinancing is popular right now – over 75% of valuations ordered in the past few weeks were for refinancing, according to property research group CoreLogic.And for some borrowers, there may never be a better time to refinance.Mortgage rates are at historically low levels after five rate cuts in the past 10 months. So if you’re confident about your employment, now may be the ideal time to switch to a better loan That said, there are several things to bear in mind:Your property appraisal value may have recently fallen, especially as valuers are being conservative right nowSome banks are offering cash-back incentives to refinance – one major is offering $4,000 until the end of May if you meet certain eligibility criteria.In the current market, lenders are reluctant to lend to people who work in certain roles and industries.Some lenders are experiencing slower processing times, however there are many that are operating as normal. Get in touch if you’re thinking about refinancing. I’ll know which lenders are right for you in this current environment.Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Get a better home loan 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 Refinancing surges as rates tumble