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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

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 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

Individuals suffering from COVID-induced financial stress will be able to get early access to up to $20,000 of their superannuation.Eligible individuals can apply online through myGov for access to:$10,000 of their superannuation before 1 July 2020$10,000 of their superannuation in the three months after 1 July 2020 These early withdrawals will be tax-free.Eligible Australians include those who are unemployed or whose working hours have been reduced by at least 20% since 1 January 2020.Sole traders will also be eligible if, since 1 January, their business has been suspended or they’ve had a reduction in turnover of 20% or moreHowever, early access to your precious retirement savings should usually be as an absolute last resort. First, see if you can:Draw on other savingsAccess other government relief packagesTap into any equity you might have The best person to speak with about these changes would be your financial advisor.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 You can now get early access to your super – but beware

The Australian Taxation Office has promised relief measures to help those affected by COVID-19.The ATO will “work with individuals experiencing financial hardship” and will “apply appropriate tax relief measures for serious and exceptional circumstances, such as where people cannot pay for food or accommodation”.The tax office also offered support to coronavirus-affected businesses, with measures including:Tailored support plansDeferral of tax payments by up to six monthsFaster access to GST refundsLow-interest repayment plans for businesses with tax liabilitiesAnyone impacted by COVID-19 can call the ATO’s emergency support infoline on 1800 806 218.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 ATO offers tax relief for people, businesses

Announced on Sunday night, Australia’s biggest banks have thrown their support behind a new federal government plan to support the nation’s small and medium-sized businesses.The government will guarantee 50% of new loans issued by eligible lenders to SMEs, with a pledge of $20 billion to support $40 billion in loans.Three of the big four banks immediately announced concrete support for the government plan, with measures including:Extra funds made available for business loansBig rate cuts for unsecured business loansBank staff proactively contacting businesses to offer supportThe authorities have now unveiled $189 billion in stimulus, which is designed to help businesses stay afloat and keep Australians in work.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 Big banks support $20bn business loan guarantee