The basic premise of Mortgage Planning is:

  • Debt elimination options
  • Future leasing of owner occupied home (or homes)
  • Non-cross securitisation of more than one property per mortgage
  • Provision for automated repayments
  • Allowing for future equity and investments as well as retirement needs
  • Cash flow needs without disrupting loan repayments
  • Consideration for further borrowing.
  • Investment loans
  • Development loans
  • Construction loans

Lenders don’t always have the necessary understanding and expertise in dealing with advanced loan structuring. Banks have a tendency to lock properties against all mortgages, which places them in an advantageous position of needlessly holding all securities, often to the detriment of the investor.

People with multiple investment properties, in particular, should seek out specialised professionals to gain the flexibility they require in mortgage planning their loans.

Property Investment Company in Sydney

For more advice on Mortgage planning, property investment, property development and management in Sydney or Perth, contact Rass Global Investments. Not only can they help you start an investment portfolio, they can manage your investment properties for you too.

After several tough years for real estate, investors are drifting back into the property market. In addition to greater stability and faith in the global economy, investors are encouraged by low term deposit rates.

For those who have weathered the storm, a potential dilemma looms in terms of direct versus listed properties. Naturally, it’s important to consider the pros and cons of a number of options. This includes real estate investment trusts (REITs), single/multi-asset syndicates, and closed/open-ended funds.

Direct Properties

Over the last year or so, property trusts have performed well, but steadily falling REIT yields have led people to opt for direct property for higher returns instead. The benefits of buying direct commercial property is less determined by the equities market. This generally means less fluctuation and more consistent financial yields.

Though direct property investment is a more drawn out process (requiring substantial capital to get started), the concrete nature of the assets provides more stability and, in turn, the returns are typically higher.

Listed Properties

One of the main attractions of a listed property, on the other hand, is its liquidity and accessibility. The flipside, obviously, is that REITs tend to be a lot more up and down.

Both direct and listed properties have their benefits depending on the financial means of individuals, though the current trend for investors steering away from unpredictability is to opt for the steadier ship of direct investments.

For more advice on loan structuring, property investment and management in Sydney and Perth, contact Rass Global Investments..

Thousands of people incorrectly (and unknowingly) claim tax deductions each year. Considering the proliferation of negative gearing in property investment, it is especially crucial to know what deductions you can claim for. Here we look at several rental property deductions you can rightfully claim for.

Loan Interest

You might be able to claim instantly for interest incurred on loans used to buy properties, land on which to build properties, or items that serve the property (appliances etc.).

Depreciating Property Assets

Certain assets can be written off on tax that can add value to a property but depreciate individually, such as televisions and microwaves. Construction or renovation costs, however, do not qualify in this category. Depreciating property assets can also be claimed in the long term as they decline in value.

Property Maintenance Costs

Running repairs and maintenance costs can be claimed back on tax.

Tenant Costs

Costs stemming from tenant activity, such as lease agreements or eviction costs, can be claimed straightaway.

Renovation Costs

Any construction or structural upgrades, both internal and external, can qualify as capital works deductions.

Stamp Duty and Other Fees

Borrowing costs can be deducted over the course of the loan period. This includes things like mortgage stamp duty and loan establishment fees.

When submitting your tax returns, be sure to read ATO conditions thoroughly or seek the advice of qualified professionals in property and finance.

Property Investment Coaching in Sydney

For more professional property investment advice, contact Rass Global Investments..

Real estate has always been a risky market. At any given time, property value can be grossly undervalued or inflated depending on the mood of buyers and fluctuating interest rates.

Emotions and sentiment often factor into decision making which accounts for some random fluctuations. At the end of the day, property will always be worth what someone is willing to pay for it which is why many savvy property investors employ a counter-cyclical approach to buying property.

Counter-cyclical investing basically involves operating independently from market trends. Rather than selling at the first sign of trouble or reacting to a slight upturn, counter-cyclical investors look to learn from previous cyclical patterns rather than getting caught up in group hysteria or sentiment.

Counter-cyclical investors can capitalise on the reactionary nature of others who panic at the first sign of downturn and look to offload their assets at bargain prices.

Though some troughs and peaks are longer than others, markets, including property, will always ebb and flow in cycles. This is where a little bit of patience, rationality and opportunism can go a long way for investors.

In any sort economic climate, concrete assets such as property are invaluable investments if handled effectively. If worst comes to worst and another financial crisis hits, far less vulnerable than stocks, property will always hold substantial value. A counter-cyclical approach to the market could be the way to make the most of your investments.

Property Investing in Perth

If you are keen to get into the property investment market but are unsure of where to start, getting the right property investment advice is essential. To find out more about property investing, speak to the experts at Rass Global Investments..

Once you get a foothold in the property market, the next logical step is to expand and maximise your investment portfolio.

The vast majority of Australian property investors tend to only have a couple of properties. The main obstacle in buying more is the daunting task of having to manage it all, and understandably so. Property is a substantial investment on any scale, particularly for those who are new to the game and perhaps not yet seeing the financial fruits of their investment.

Get the Ball Rolling

Buying your first property is, predictably enough, the key to getting the ball rolling. Investors always maintain that the first property is the most difficult. No doubt there will be mistakes made and, hopefully, learned from which will help to inform your future investments.

Add Value

Add value to your property wherever possible. Many investors look for properties with the best potential for value increase – that is, bad houses in good locations. By renovating or upgrading, you could increase value exponentially, not just of the sale price but also the rental income.

Keep Your Eye on the Prize

Though you’ll occasionally need to roll up your sleeves and work to get the most out of your property, it is just as important to know when to cut your losses. It’s unlikely that all your investments will be winners, so if you can identify better opportunities elsewhere, there’s no shame in selling.

Get Advice

Property investment advice at every stage of your portfolio is essential. Make sure you speak to the right people and get the right property investment advice by contacting Rass Global Investments..

Bidding at a property auction is not as simple as yelling out your price. If you are planning on bidding at an auction in the near future, best to get some tips from the following video.

First of all, identify your maximum price. This means using all your research, as well as factoring in your own budget to establish a walkaway price. In the heat of battle at auction, however, you need to make sure you stick to it. Remember to bid high, bid strongly, and don’t shy away from bidding first. This will identify you to other bidders as a serious contender.

Have your finances already in place. Don’t speculate on potential funds you might have in the future. You want to be able to bid with confidence on the day. And don’t forget to bring your chequebook to provide a deposit.

In order to gain an insight into the auction atmosphere, attend other auctions beforehand to gain experience. This is particularly useful for new homebuyers.

Make sure you request any contract changes prior to the auction date. This might include long settlement periods or deposit terms and need to be agreed to in writing before the time of auction.

Arrive early to give yourself plenty of time to register, find a good spot and size up the competition. The most important tip for buyers, however, is to make sure that you do actually make a bid. If the property is passed in, the highest bidder has the first rights to negotiate with the owner. Many people make the mistake of not bidding, in the hope of negotiating with the vendor afterwards, but with this approach you risk missing out entirely.

To make sure you get the exact property that you want, get professional property advice from Rass Global Investments..

Mortgage offset accounts are an avenue some homeowners may find useful to explore. While it requires a little bit of excess cash to set up, it enables you to utilise your savings to minimise your loan interest as well as saving you some tax in the process.

Put simply, an offset account is effectively a savings account tied to your mortgage. Rather than accruing interest on your regular savings and incurring interest on your loan separately, your offset account balance is subtracted from your outstanding loan when interest is tallied.

For example, consider a loan of $400,000 with an interest rate of 6 per cent. If you have $50,000 in your offset account, the 6 per cent interest will only be charged on $350,000 of your loan.

At tax time, the benefits are definitely noticeable. Whatever is in the offset account is not considered taxable income. So, not only do you pay less interest on your mortgage but you also lose less of your income to tax, enabling you to pay off your loan quicker on two fronts.

Of course, with all these benefits, you might wonder why everyone doesn’t take this route. There are some downsides to note. Some lenders will factor in the possibility of an offset account by charging higher interest on the loan in the first place. The numbers really depend on your own personal circumstances so dust off the calculator and work out the figures before committing to a mortgage offset account.

For more property investment advice, talk to the property investment mentors at Rass Global Investments..

Property ‘hot spotting’ is the name that some property investment experts have given to the trend of hunting out the next investment ‘hot spot’ – that rapidly gentrifying suburb or mining town that’s, supposedly, just about to boom.

Not So Hot After All?

The term ‘hot spotting’ tends to have a slightly pejorative tone to it – turning the overenthusiastic claims about ‘the next property hot spot’ of so many headline writers and self-interested spruikers back upon themselves.

Those who are sceptical about hot spotting point out that it’s highly speculative – essentially a high-stakes gamble – and while a small number of people do make a lot of money off chasing trends, just as in any casino most of the punters end up worse off than when they started, or at best breaking even.

The trick to hot spotting is being ahead of the curve – get in too late and you’ll pay too much for too little. That sounds easy, but how do you know if you’re far enough ahead of the coming boom to make the profit that you expect to? It all depends on how big the boom turns out to be.

A safer option is to invest in areas with proven long-term capital growth, and to look for properties that are undervalued or where there is potential to add significant value through renovations or refurbishments. That’s a long-term investment strategy rather than a short-term money-spinner, but it’s also much more likely to yield solid results.

Property Investing in Perth

For more information on property investing in Perth and Sydney, contact Rass Global Investments.

Looking to pay off the mortgage on your home or investment property faster? Here are a few tips that can help you be debt free as soon as possible.

Increase the Frequency of Your Repayments

Mortgage interest accrues daily, so making payments as soon as possible can decrease the interest accrued, even though you are still paying the same amount in total towards the mortgage. Try rearranging your payment schedule to fortnightly rather than monthly.

Make Lump Sum Payments

When you find yourself with an unexpected cash lump sum, put it towards the mortgage. Check with your lender about their rules regarding lump sum payments, as there may be limits to the amount you can pay off in this way without penalty.

Arrange a Mortgage Offset Account

A mortgage offset account is a transaction account linked to your home loan. For the purposes of calculating interest, funds in the account are offset against the value of the loan. This can save you a substantial amount of interest, especially if you are also saving for a large purchase such as a car or a holiday. Generally, there should be a minimum amount in the account at all times for an offset account to work in your favour.

Take out a Loan with Yourself

When you get a raise at work or if interest rates go down, don’t see this as extra disposable income. Instead, aim to keep putting the same percentage of your income towards the loan. This will allow you to be debt free sooner over the long term, and won’t mean any drop in your existing quality of life – it will just mean continuing to live as you have been rather than indulging in new luxuries.

Property Investment Coaching

Add a granny flat to pay off your mortgage in approx 10 years.

Do a development and pay your mortgage off in 1 year.

For more property investing advice, contact Rass Global Investments.