fbpx
X

Bonusisode – Market Wrap with Nerida Conisbee

Folks, this Bonusisode features Bryce’s Live chat with REA Group’s Chief Economist Nerida Conisbee on today’s Monthly Market Wrap… which they kicked off on Facebook Live!

So, what shape is the market in?

 

The Top Insights in this Bonusisode:

  • Nerida’s guess at tomorrow’s cash rate – will there be another drop?
  • Economic insights
  • Auction Clearance Rates
  • The locations with house price growth
  • Market Wrap around the States – Melbourne, Sydney, Brisbane, Adelaide, Perth, Hobart

 

Plus, The Top Performing Properties from the month:

  • The Most Viewed Rental Property
  • The Most Viewed Residential
  • The Most Expensive Property Sold
  • The Most Viewed Property Going To Auction This Weekend

Want to see these properties? Click here to View the Properties (all are in the Comments section)

P.S. Want more from Nerida?

Episode 232 | Are All Tenants the Same?

Have you ever thought about WHO will be living in your investment property?

Chances are, you have! Because folks… an investment property is pretty useless without a tenant/s in it!! After all, you need these guys to help pay off your mortgage!

So. Are they all the same??

What TYPES of tenants are out there and what can you expect from each one?

Well, here’s the deal… we think there are FOUR tiers of tenants.

Let’s meet them, shall we?

Oh and FYI: Ben’s “Did You Know” is off the charts… we don’t think we’ve ever seen him this prepared in our podcast history — so make sure you stick around for that!!!

Resources mentioned in today’s show:

Here’s what you’re in for…

Loved the episode? You might also like:

Episode 231 | Q &A: How Will Changes to Negative Gearing Impact Investors?

Have you ever wanted to know how the changes to negative gearing will affect YOU???

Because folks, let’s face it… Labor’s policy to turn the lights out on negative gearing isn’t just going to affect the property market and potentially the ENTIRE Australian economy… the policy IS going to impact property investors, whether we like it or not.

So we want you to be prepared and know what’s coming our way! And that’s why earlier in the week, we asked our Facebook Tribe, “What’s your #1 Question on Negative Gearing?”

And, as you can imagine, today we’re going to be answering as many of these questions (there were LOTS) as humanly possible (well, without having this episode drag on for a day and a half!)

We’ll also be covering WHAT EXACTLY Labor is proposing to change, when these changes are officially kicking in, how it impacts the losses you can claim etc. etc. etc…

(See below for FULL LIST of Questions).

A bit of housekeeping…

*New* ENCORE WEBINAR ANNOUNCED: How to Master The Property Investment Formula That Works in Any Market

When: 2:00PM, Friday 10th May 2019

CLICK HERE to Register & Get FULL Details (Last Chance Encore Webinar)

or go to www.thepropertycouch.com.au/webinar.

.. And PICA is also throwing a webinar TONIGHT at 7:00PM Thursday 9th May including a Market Update from Tim Lawless, Director of Research at CoreLogic as well as a deep dive into Negative Gearing and Labor’s policy. To watch, you need to be a PICA Member (or become a member for $5) — If you want to watch, you can find out more about the PICA webinar HERE.

FREE RESOURCES MENTIONED:

  • To Access Ben’s Negative Gearing Series CLICK HERE
  • To Get Ben’s Latest RBA Cash Rate Announcement CLICK HERE
  • We’ve announced the winner for our Denise Book Giveaway! Brook Lyn, if you’re reading this, please get in touch with us on Facebook or info@thepropertycouch.com.au. And for the rest of you who participated, thank you so much as well! We’d love to give you a copy of our newest best-seller, Make Money Simple Again. Just get in touch with us with your name and best postal address and we’ll send it to you!

THE EXACT QUESTIONS WE ANSWER:

Thank you for sending in your question to our post below as well! Let’s jump in now and of course, if we’ve answered your question, please do get in touch with us on Facebook or info@thepropertycouch.com.au and let us know which book would you like (Make Money Simple Again or The Armchair Guide to Property Investing), your name and best postal address!

Question from Scott
If negative gearing is scrapped and grandfathered what will be the effect on a property you withdraw equity from after the rule is put in place? Will the increased debt on the property keep it negatively geared when you have done the release after the potential rule is put in place?


Question from Pat
If you currently have a PPOR, will you be able to draw equity and use as a negatively geared investment loan AFTER Jan 2020 or whenever they propose the change happens?


Question from Nicholas
If you currently have a PPOR that you plan to change to an investment property in the future, is the grandfathering based on when the property is purchased or when it is switched to investment?


Question from Michelle
Looks like my question is along similar lines to above so no doubt this will be covered. We’ve just purchased PPOR but may look to turn into investment in future. Queries around the timelines for both living in now, then renting out, then selling (6 year rule?) and what impact new government legislation may have?

Question from Jake


Question from Jake
Is it the property or the loan that is grandfathered? (Property I assume.) And what, if any, are the considerations when refinancing, assuming the new changes come in?


Question from Anne
If Negative Gearing is scrapped on established properties and only allowed on new constructions, but the construction industry is already slowly to a halt, and capital growth often in the red, how viable is Property Investment as a means of securing your retirement in the next 30 years?


Question from Martin
What is the experience with this type of tax scheme in other countries? Is there evidence of its impact on the real state bubble?


Question from Karen
Why are there policy attacks on LRBA property borrowing? Apparently based on the evils and risk of negative gearing… however, borrowing does not necessarily mean negative gearing, it just means gearing.

Question from Ray


Question from Ray
Many economists predict an increase in rental prices of negative gearing is abolished. Since only the initial part of the loan is negatively geared (as it is later positively geared and therefore taxable), will this have as much of a negative impact on the property market as predicted? Or is it the combination of the abolishment of negative gearing as well as the reduction in capital gains discount that will cause the knock on effect over time and make property investment less attractive?


Question from Simeon
Are there any other countries without negative gearing that we can compare with to predict the direction of Australia’s investment property market?


Question from Anastasia
I’d be interested to know your thoughts at a more macroeconomic level around what affect you think this might have on the property market over the medium term. One thing that comes to mind is potentially an increase in larger blocks being subdivided/developed into multiple townhouses for tax purposes.


Question from Jillian
Is negative gearing based on a whole portfolio or individual properties? One is positive and one is negative — do they cancel each other out in your tax return or are they assessed individually? And will this continue to be the case is Labor get in?


Question from Timothy
What would be your preferred solution to the problem? Negative gearing capped to % of income? Fixed maximum deduction? Or something else?


Question from Leo
When will the next election be after the upcoming election? For us investors to know how long we have to purchase some properties.


Question from Alex
Love the content guys! In your opinion does the removal of negative gearing make implementing The Four Pillars any more difficult, and would you recommend purchasing my first property before or after January 1st (when the grandfather rules will take place)? Would love to hear your thoughts as this is currently my big block to buying!


Question from Dale
It seems to be argued that negative gearing should not apply to the super wealthy who own 5, 6 or more properties. Should it be based on the $$ value on a property or portfolio rather than the number of houses owned?


Question from Liam
Unfortunately, it seems inevitable that it will happen; is there any positives at all we can take from it? Does it change any fundamental principles when it comes to property investment?


Question from Tom
One thing that has not been made clear in all the discussion is what happens to the investment losses if you were to buy an established property after negative gearing was removed? Are the taxable losses you incur simply lost or do you hold onto the losses and they can be used to offset future investment income once the property moves into a positive geared position down the track? I know this is the case for some countries that do not allow negative gearing and then it just makes it a timing issue as you access these benefits in the longer term.

Question from Matt


Question from Matt
With regards to the grandfathering that is proposed, is it the property that is grandfathered or the loan? How do they determine this? What happens if I refinance etc.


Question from Tania
I would like to understand better the reasons why Labor repealed the cancelled negative gearing in the 80s. Surely there are some lessons there that we can look to. So I guess the question is, What were the outcomes last time Labor cancelled negative gearing that caused them to re-introduce it?


Question from Mustafa
Most experienced property investors have stated that negative gearing is not a property investment strategy, but most property investors rely on it. If negative gearing is not a property investment strategy (not saying it is or isn’t), then why is it such a hot topic of discussion ever since Labor had intentions of removing it if won? Just curious.

Bonusisode – Negative Gearing Policy removed from Labor’s Homepage

Folks, if you haven’t noticed the level of activities that had been happening on our show recently, there were heaps of things going on regarding Labor’s Proposed Negative Gearing policies.

Long story short.. Two weeks ago, Ben as the Chair of Property Investors Council of Australia (PICA), discovered that Labor and the Parliamentary Budgeting Office (PBO) had been using incorrect data in their costing for the proposed Negative Gearing Policy.

Since then, Ben had been speaking to researchers, aggregators, politicians, lenders and real estate agents to find out what’s the actual rate of investors that are buying brand new properties vs existing ones. So far, it’s been found that the proposed Negative gearing savings could be overstated by up to $8 billion. This again highlights the importance of having the right data.

So last week, Ben was on the Money News Show with Ross Greenwood to discuss further about this discovery and he was also invited to the Housing Industry Forum to share his point of view as Chair of PICA.

And it looks like, he’s finally made an impact because now, you couldn’t find much information on the policy on ALP’s website!

We’re very excited that Labor and the PBO are updating their costing with good data now but the work’s not done. It’s important to include subject matter experts like the Master Builders Australia, Housing Industry Association, Real Estate Institute of Australia (REIA), Property Council, Property Investment Professionals of Australia (PIPA), PICA and others to craft this policy together.

Again, as we mentioned before, we’re NOT against Labor.

We are NOT saying that we should leave Negative Gearing unchanged.

We are against the ill-prepared policy here. And if you agree with us, please share this with your network and hopefully, common sense would prevail.

Episode 228 |Ownership Structure & Trusts with Julia Hartman – Everything You Need to Know About Property Tax (PART 2)

Here we go, folks…. Property Tax PART 2 is finally here!!
So, let’s get down to the Ownership Structure, Trusts and SMSF insights you need!

If you tuned into Episode 226, then you’ll know we have none other than The #1 Property Tax Expert in Australia… Julia Hartman, unpacking the gold for you!

Julia is the Founder of BAN TACS, a co-operative of Accountants, which has been helping thousands of Australian’s navigate the world of tax since 1992!! She has a Bachelor of Business and is a Chartered Accountant (CA), Certified Public Accountant (CPA) and a Registered Tax Agent…. which, if they don’t mean much to you, translates to this — “impressive” and “rare”!!

PLUS, because we knew she was coming, we threw it out there for our listener’s to ask us their most pressing Tax Q’s they have — and Julia’s going to answer the last of these today and dishing out her top tax tips on ownership and borrowing tax structures!

Get the answers to…

Before we get to today’s questions, we want to let you know that we’ve compiled all of Julia’s Answers and Additional Resources into a PDF! If you’re interested, then just fill in the form below and we’ll send it to you right away. 🙂

  • This field is for validation purposes and should be left unchanged.

Today’s Ownership Structure and Trust Related Questions:

Question from Ben:

When investing for the long term as a couple (with one partner’s income considerably higher than the other), what are your top tax tips to consider when determining ownership and borrowing structures.

Question from Locky:

What is the best tax structure for being able to keep borrowing (family trust or company)? Buy build and rent out for passive income? Thanks guys.

Question from C L Wong:

Should we open a company to manage the residential properties or a trust perhaps? If so, what are the tax benefits do we have? Thank you, Gents 🙂

Question from Alistair:

How to transfer property between entities (company to trust or company to personal name). Investigate how the family law act interprets this. Thanks.

Question from Damien:

Is there any point in getting a tax depreciation schedule anymore for existing fixtures (since recent changes)?

 

Question from Paul:

Is there any point getting a depreciation schedule done on a brand new build IP considering I can just give my accountant the exact costings of the build to depreciate?

Question from Pete:

I want to know: am I able to claim tax deductions if I rent out 1 or 2 bedrooms in my home? If I rent out 2 bedrooms in my 3 bedroom home, am I able to claim two thirds or my rates, Strata, etc?

Question from Matthew:

When renovating an investment property to what level must you renovate the IP so it can be classed as a “Substantial Renovation” to allow you to claim it as a depreciating asset?

Question from Andrew:

Would love to know if we have any further clarification on the possible negative gearing changes from Labor are we able to still offset our income with interest down to 0 but not claim it as a loss i.e. negative gearing or is there plans to take away claiming the interest charges at all so all income is classed as income.

Question from Nick:

How do I transition my investment property at retirement with minimal tax impact?

Question from Kosta:

What implications must we consider if we go down the short-let Airbnb route?

Question from Sandy:

How do you choose/ find a quality property investment savvy tax accountant? Thank you for all your insights

Question from Sineth:

How to differentiate investment savvy/specialist tax agent and general Tax agent? What outcome Investment savvy tax accountant can bring in to table? Cheers

Question from Iain:

What sort of benefits could one expect from a property investment savvy/specialist tax agent over a generalist or do it yourself?

Thanks again for sending in your questions on Facebook folks! All of the answered questions will get a free book so make sure to reach out to us at info@thepropertycouch.com.au! 🙂

Instagram

This message is only visible to admins

There is no connected account for this username

This message is only visible to admins

There is no connected account for this username

×

MONEY SMARTS SYSTEM

Plus We Will Also Notify You
When We Release New Episodes

  • This field is for validation purposes and should be left unchanged.

We Only Send You Awesome Stuff

×