If you’ve got some money stowed away that you’re hoping to invest – particularly if you happen to be the proud owner of a self-managed super fund (SMSF) – you’ve got a conflict on your hands. There are legions of different avenues to invest your money. But when it comes down to it, you’re probably going to be tossing up between investing in property and shares.
The most recent Russell Investments Long-term Investing report painted a complicated picture regarding this question. According to the report, while shares outperformed property during the decade to 2013, over the last 20 years, residential property investment brought a higher return to investors.
With either choice seeming like it has great potential, what will you decide to do with your SMSF? There are more factors to consider than simply the potential return.
https://madeleinehicks.com.au/wp-content/uploads/2014/06/Property-vs-Shares-where-should-you-invest.jpg458600adminhttps://madeleinehicks.com.au/wp-content/uploads/2019/08/Madeleine-Hicks-Real-Estate-Brisbane-300x64.pngadmin2014-06-25 11:03:232018-03-01 09:44:39Property vs Shares – where should you invest?
Flutterby and ask, cul-de-sac family friendly living is yours with this rambling lowset home. Separation is the key for large families. Yet a focal point to gather as a family is pinnacle.
In your new home you will love: – 5 bedrooms and office – open plan kitchen meals and living – formal lounge – rumpus for the children to rumble – ensuite – 3 toilets – fire place – sparkling inground pool – large workshop – lots of storage – 2 car accommodation
Located within the McDowall School catchment, close to Chermside Hills Reserve, and just minutes to shops and all amenities.
Homes of these proportions are difficult to find. Hesitate and it will be too late.
https://madeleinehicks.com.au/wp-content/uploads/2013/07/Whats-hot-right-now-in-home-revamps.jpg533800adminhttps://madeleinehicks.com.au/wp-content/uploads/2019/08/Madeleine-Hicks-Real-Estate-Brisbane-300x64.pngadmin2013-07-16 14:54:432018-03-01 12:18:18What’s hot right now in home revamps?
Do you want to know where house prices are expected to double in 10 years? Or where rental yields are highest? How to choose the best growth suburbs, or find ones with the best returns, are questions many investors ask.
Leading residential property researcher RP Data has identified 263 suburbs where current trends suggest the median value will double over the 10 years to February 2018 and 792 suburbs where rents are on track to double over the same period. It has found 582 suburbs that are currently showing a gross rental yield higher than 5.5%. Impressive considering sub-5% home loans are now available.
https://madeleinehicks.com.au/wp-content/uploads/2013/06/Hot-spots-for-home-owners-and-investors.jpg476634adminhttps://madeleinehicks.com.au/wp-content/uploads/2019/08/Madeleine-Hicks-Real-Estate-Brisbane-300x64.pngadmin2013-06-28 08:30:002018-03-01 12:16:50Hot spots for home owners and investors
With more than 100,000 property investors receiving letters from the Australian Tax Office for possible incorrect property deductions this year, it’s crucial you have a plan for effectively managing your tax situation.
Although it may seem tempting to exaggerate a claim, it isn’t worth the risk. Heavy penalties apply to those caught claiming excessive deductions or failing to declare rent.
Astute property investors can adopt a range of strategies to legitimately minimise tax liabilities, while maximising their tax breaks. And the first step should be to arm yourself with trusted experts.
While it may cost upfront, paying for expert advice and services, will pay dividends for years to come. Because, getting your system right – for effectively managing your tax situation –can help clarify and manage the following areas, which can often trip investors:
Be aware of what you can claim. Sounds simple, but, are you sure you’ve got it all covered.
Research your tax obligations and claimable expenses. Remember too, that expenses are only claimable when the property has been available for rent. When performing repairs or maintenance, anything completed prior to the property being available for rent will not be tax deductible.
Is it a repair or an improvement? Not all work performed on your property is deductible. If the work involves fixing damage caused by wear and tear, it is likely to be a repair and therefore tax deductible. But when you are replacing old materials with new and enhancing your property, the work is more likely to be considered an improvement and will instead be added to the cost of your property, representing a depreciable asset.
So, if you’re ever in doubt when it comes to walking that fine line of optimising your tax position, seek professional advice early, or even contact the ATO directly for a ruling.
https://madeleinehicks.com.au/wp-content/uploads/2013/06/Be-prepared-to-walk-that-line.jpg533711adminhttps://madeleinehicks.com.au/wp-content/uploads/2019/08/Madeleine-Hicks-Real-Estate-Brisbane-300x64.pngadmin2013-06-27 13:54:022018-03-01 12:17:30Be prepared to walk that line
Hi, we are all concerned about safety and security where we live, and we hope over the coming months to provide you with helpful information on staying safe and making sure your property and belongings are protected against theft.
Property theft is unfortunately on the rise , and we hope the following article from GC Law which contains some very simple tips will help to keep your valuables safe.
• Makes ownership clear • Deters theft as marked property is more difficult for the thief to offload. • Marked property helps police to identify and return it to the rightful owner.
Property that is most at risk of being stolen is property that is desirable, usually small, has a good re-sale value and is able to be off loaded and sold quickly. Typically, this includes computers, cameras, multi-media devices, satellite navigation devices, mobile phones, power tools and bicycles.
https://madeleinehicks.com.au/wp-content/uploads/2013/06/Marking-and-protecting-your-property-against-Theft..jpg532709adminhttps://madeleinehicks.com.au/wp-content/uploads/2019/08/Madeleine-Hicks-Real-Estate-Brisbane-300x64.pngadmin2013-06-13 12:41:342018-03-01 12:16:47Marking and protecting your property against Theft.
If you add it all up, those strata levies you pay for facilities such as pools, gyms and concierges can be good value.
There’s increasing angst among some apartment owners about high strata levies, which for some can be more than $20,000 a year. No-frills apartments with low levies are becoming more popular.
But developers also say many buyers, particularly owner-occupiers, are prepared to pay for the many lifestyle facilities that some big Sydney complexes offer: pools, gyms, spas, concierges and even rooftop cinemas. Others have tennis courts, music rooms and libraries.
General manager of developments with the Crown Group, Pierre Abrahamse, says inner-city buyers especially are keen on in-house facilities.
”If you don’t have the facilities in the building and people want to work out or go to a swimming pool, they’re going to have to join a gym or go to the local pool anyway,” he says.
”Having facilities within the building gives people that level of convenience.”
https://madeleinehicks.com.au/wp-content/uploads/2013/05/Price-is-right-for-lifestyle.jpg541700adminhttps://madeleinehicks.com.au/wp-content/uploads/2019/08/Madeleine-Hicks-Real-Estate-Brisbane-300x64.pngadmin2013-05-24 10:00:572018-03-01 12:40:53Price is right for lifestyle
Figures from the Australian Taxation Office show property investment in self-managed super funds is growing fast.
”There is now a significant trend towards direct property investment in SMSFs because a lot of baby boomers are wanting to take control of their super,” says Michael Yardney, director of Metropole Property Strategists. ”They’ve lost confidence in the managed-funds industry and the volatility of the sharemarket is fresh in their minds so they want to invest in the security of bricks and mortar.”
Significant tax breaks are the biggest drawcard for SMSF investors. Rental income and capital gains are taxed at 15 per cent and if you hold the property in your SMSF until your super goes into the pension phase, you pay no tax on the rental income or on the capital gains if you sell.
On the downside, you can’t live in the property and neither can any friends or family members. If the property is negatively geared, the tax offset only applies to income earned within the fund, not to your regular income. Borrowed funds cannot be used for major improvements or to substantially change the property. And there are costs involved in setting up and running an SMSF and setting up the bare trust required to purchase property.
It’s also worth noting that under present legislation you can’t refinance a property in an SMSF in order to gain access to equity and buy another property. For this reason, younger investors looking to build their asset base would be better placed outside the SMSF environment.
”While I can see the attraction of buying new, I don’t like buying new because you pay a premium,” Yardney says. ”Instead, look for something which is neat and tidy and is not going to need a lot of work in maintenance and repairs.”
https://madeleinehicks.com.au/wp-content/uploads/2013/03/Self-managed-super-funds-are-a-great-option-for-real-estate-investment-but-be-careful..png640800adminhttps://madeleinehicks.com.au/wp-content/uploads/2019/08/Madeleine-Hicks-Real-Estate-Brisbane-300x64.pngadmin2013-03-27 09:30:152018-03-01 12:41:35Self-managed super funds are a great option for real estate investment, but be careful.
Australia was one of three countries highlighted as having good growth prospects at a meeting of property experts from around the world recently.
Christie’s agent Ken Jacobs has just returned from three weeks of meetings in Spain and the US and said that the consensus was that confidence was returning and that property investors were looking for new markets to spend their money.
“Stuart Schweitzer, vice chairman, global markets strategist for J.P. Morgan, commented on the extraordinary high number of clients with significant cash reserves looking for ways to deploy their funds,” Mr Jacobs said.
https://madeleinehicks.com.au/wp-content/uploads/2013/03/Australia-a-hot-topic-at-global-meeting.jpg729800adminhttps://madeleinehicks.com.au/wp-content/uploads/2019/08/Madeleine-Hicks-Real-Estate-Brisbane-300x64.pngadmin2013-03-05 11:10:112018-03-01 13:00:30Australia a hot topic at global meeting
Ever since the days of the ancient Greeks and Romans, mankind has been fascinated with the pleasures of relaxing in a swimming pool.
Only the wealthiest and most powerful among those early civilisations could afford their own private watering hole. The rest of the population had to be content with a quick dip in the River Tiber.
Our love affair with pools continues today as an increasing number of home owners explore the health and lifestyle benefits of adding a backyard swimming pool. A well-designed pool is also seen as a good investment, adding significant value to a property.
The addition of a swimming pool is the single most effective way of dressing up a backyard. You can create your own outdoor oasis and make it the focal point of the entire home. Suddenly there is a relaxing outlook from the living rooms that can also provide hours of enjoyment.