» New Year resolutions

2019 New Year’s resolutions for property investors

BMT team — Tue, 01 Jan 2019 22:10:02 +0000

Plenty of people make New Year’s resolutions, most commonly to lose weight, to change jobs, to buy their first investment property, to buy their third investment property, to achieve previous goals that remain unconquered. Within a week or two we usually fall back into old habits and quietly forget we decided to make a change at all. Make 2019 your year Even when things in our lives are on track, we all have room for improvement, property investors included. The key to making a New Year’s resolution is remembering the change will have an effect somewhere down the road. Even the small, minor adjustments we want to make in our day-to-day lives can be huge and a small change in our thinking or a small declaration can make 2019 a big year for property investing. Reassess your long and short term investment goals The New Year is a great time to take a look at your goals. If you’ve found yourself off track, you can plan to get where you want to be by revising your short-term goals. Meeting with a Financial Advisor at the beginning of the year can also be of benefit. After investing for some time, you may find that your long-term investment goals have change. Even if they haven’t, the New Year is the perfect time for property investors to evaluate their current situation and plan for the year ahead. Improve your investment portfolio Is 2019 the year to expand and diversify your property portfolio? Or perhaps you found your niche in 2018 and need to sell properties which no longer suit your needs? Either way, start 2019 by consciously planning how you want your property portfolio to evolve this year. Commit to learning something new Over the course of the year, it’s easy to get wrapped up in your own investments and not keep abreast of what’s happening in the market that could have an impact. In 2019, dedicate yourself to staying informed on what is happening in the area where your property is based. There are also many resources out there you could use to improve your investing knowledge from books, blogs, magazines and online resources to information nights and investing courses. Our Research and Insights tab within MyBMT is the perfect place to stay informed to help guide your investment strategies. Focus on being disciplined in 2019 Make one of your New Year’s Resolutions to be more disciplined with your property investments. Plan better, get more organised and work on clearly communicating your needs and future vision. Where can you make improvements? It could be as small as getting a new Financial Planner or it could be as big changing your approach and property plan entirely.

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New financial year resolutions for 2018

BMT team — Tue, 24 Jul 2018 06:31:17 +0000

The new financial year is a great time to look critically at last year’s investing habits and identify any weak areas that can be improved for a more successful year ahead. The ability to question your investing habits and open yourself up to new ideas is key to strengthening your property portfolio and boosting your investing performance. Alternatively, if you are considering purchasing your first investment property this financial year, it’s important to be prepared with a clear set of goals to work towards. Pay attention to interest rates It is always important to keep your finger on the property pulse and monitor markets across Australia. They are known to move at different times based on key growth drivers such as employment, infrastructure, population growth, housing stock shortages and changing demographics. Aim to continue educating yourself with the use of data, market predictions and the help of expert advice. Remember, however, that the market can change and sometimes be difficult to navigate. Interest rates can unexpectedly rise at any given time and it is important not to over-leverage and put yourself in financial distress. It could be worth checking in with your bank or Broker to see what your borrowing power is and also to make sure you have the best rates on your current loans. You may also wish to get pre-approval organised so that if a must-have property comes available, you are ready to jump on it. Make improvements to your existing investments If you’re not planning on purchasing a new investment property this financial year, perhaps it is a good time to focus on making some improvements to your existing properties. Renovating an investment property can reward investors with increased value, improved rental returns and, of course, additional depreciation deductions. Before you dive into any renovations, it’s important to consider which assets attract the most depreciation deductions when replaced. Individual assets have a unique effective life, on which depreciation rates are based. If you’re considering which assets to add to your investment property, you can use BMT’s depreciation rate finder to weigh up which will give you the most returns. Remember to speak to a specialist Quantity Surveyor before commencing any renovation work as you may be able to claim for any removed and scrapped assets. Consider rentvesting If you’re looking to purchase your first investment property, rentvesting may be a viable option to get your foot in the door. Rentvesting is an increasingly popular way to enter the property market. It involves purchasing an investment property in a strong growth area while living in a rented property. Rentvesting allows investors to benefit from lucrative tax depreciation deductions without having to already own your own home. Get your finances in order Often when things get busy, paying attention to your budget can easily get put aside. If everything seems to be running smoothly, time poor investors often avoid making any changes to the way things are done. However, it is important to do regular checks and look for ways you can improve your situation now to benefit your future. Having regular meetings with your Accountant is one way that you can be sure you are not missing out on any possible return. Don’t be afraid to question your investing habits and involve professionals to assist you to get the most from your property. When it comes to depreciation, ensure you have a comprehensive tax depreciation schedule in place to capture all possible deductions and maximise your return. Contact the expert team at BMT Tax Depreciation to organise a tax depreciation schedule or to update your schedule if you have undertaken renovations.

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2017 New Year’s resolutions for property investors

Bradley Beer — Mon, 16 Jan 2017 00:22:07 +0000

2016 was yet another interesting year for property investors. Housing affordability continued to be an issue which dominated the press and as a result we saw the major political parties discuss whether changes should be made to existing housing taxation policy. From our perspective it seems that a lot of the talk around affordability and capital growth comes from the Melbourne and Sydney residential markets which have shown median price growth of 11.3 and 13.1 per cent respectively during 2016. The same can’t be said for Perth, which recorded a decrease in median prices of 3.4 per cent. Darwin only saw a modest increase of 1.1 per cent. Adelaide finished the year with around 4.7 per cent growth and Brisbane 3.9 per cent. During the 2015-2016 financial year we saw growth in the number of depreciation schedules ordered by property investors for all states. In New South Wales, there was an 8 per cent increase, while in Victoria there was a 7 per cent increase. These increases have continued to the end of 2016, with a further growth of 11 per cent seen in both of these states for the first half of this financial year. Tasmania and Western Australia led the states with the highest increase in orders for schedules, achieving 15 and 12 per cent growth respectively over the financial year. Growth in the number of depreciation schedules ordered during the 2015-2016 financial year for Queensland was 9 per cent, South Australia 8 per cent, the Northern Territory 7 per cent and the Australian Capital Territory 4 per cent. With all of this property investor activity in the different states of Australia, I thought I would help you prepare for the year ahead and share a few of my 2017 New Year’s resolutions as a fellow property investor. 1/ Take advantage of cheap money Interest rates are at an all-time low. The Reserve Bank lowered them to 1.5 per cent during August. Now is a great time for investors to take advantage of cheap money. Your ability to service the loan might be a little easier. It could be worth checking in with your bank or Broker to see what your borrowing power is and also to make sure you have the best rates on your current loans. It can be well worth getting pre-approval in place so you are ready to take advantage of any bargain that pops up. Keep in mind though that interest rates do rise sometimes and it is important to consider your buffer in a situation that it may cost more in the future. 2/ Consider rentvesting For those finding it difficult to get into the property market or to invest in property while servicing a primary place of residence, it could be worth considering rent vesting. Rentvesting offers an alternative way to enter the property market, by buying a more affordable investment property in a growth area while renting elsewhere. Research suggests that rentvesting is a growing trend which has enabled many young investors to purchase investment properties when they may be finding it difficult to buy their first home in the area they would like to live. Factors such as, increased flexibility on where you live as a renter, and the additional taxation benefits like depreciation associated with investing has made rentvesting appealing to a wider demographic. It could be just the way to make that first venture into property possible. 3/ Discover if you can grow and diversify your portfolio Analysis by BMT Tax Depreciation suggests that most of our investor clients (83.64 per cent during the 2015-2016 financial year) own just one investment property. I find this a little surprising considering the capital growth many areas have experienced. This is another factor that could really boost your borrowing power. Given the potential equity held in these properties, there could be significant scope for investors to expand their portfolios in 2017. See the Broker, get the valuations and see if you can work out whether or not you can buy into more property. 4/ Improve on your existing investments If buying another property isn’t on the cards in 2017, maybe you could consider updating some of your existing investments. Renovating an investment property can reward investors with increased value, improved rental returns and of course there will be those additional depreciation deductions. Make sure you plan what needs to be done, ensure the renovations stick to a budget and crunch those numbers. Talk to your Property Manager and ask what the increased rental return might be if you update or renovate certain things. There also could be that considerable increase in value for minimal outlay. You need to also ensure that you’re adding capital value to the property with the works you propose to do. It’s not about making a nice bathroom, it’s about increasing that value and increasing that rental return. Speak with a Specialist Quantity Surveyor before starting any work because items that you remove, you may be able to claim scrapping value for which means instant deductions and potentially more cash flow. 5/ And finally – look outside of your own backyard Many property investors only look at potential properties close to home. You know the area, you like the area so you think it is going to grow. Property markets all over Australia move ahead at different times based on a variety of key growth drivers such as employment, infrastructure projects, population growth, housing stock shortages and changing demographics. As a property investor it is important to consider other suburbs, towns and states. Get expert advice, read, learn and do research. Use key metrics that are available. While some property markets are slow, some property markets are growing. I wish you all the best with investing in the year ahead and remember our expert team at BMT Tax Depreciation are always happy to help with any of your depreciation queries. Bring on a great 2017.

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