The long and short of property investment

When we hear of properties selling at eye-watering profit margins it is tempting to think the vendors got ‘lucky’. Shows such as ‘The Block’ also create the impression that it is easy to jazz up a bargain buy (if you can find one!) and then ‘flip it’ for a quick profit.

In reality, research from the March 2017 quarter reveals properties that resold at a profit have typically been owned for an average of 9.1 years (houses) and 7.6 years (apartments). The same report found properties that resold at a loss have typically been owned for less than 7 years.

Whether you are considering your first investment property or another one, if investing in property is on your mind, then contact us.

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Beware your spending footprint!


Whether you are a potential first home buyer or a current property owner looking to invest further, chances are you may be subject to this increased level of scrutiny if you apply for a new loan.

Many lenders now have greater visibility over your spending. Have you noticed that your transactions are grouped into categories such as groceries, utilities, cash out, retail spending etc on your online statement? It is also important that you and your partner are on the same page when it comes to managing your finances.

So how can WE help?

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Are you a reluctant refinancer?

Research shows nearly half of all Australian homeowners have never refinanced.

It’s interesting that when our insurance renewals arrive many of us take the time to shop around and check we’re still on a good deal, yet some of us are happy to sit on the same home loan for decades!

With the RBA cash rate still at an all-time low and various lenders continually offering new rates and loan products we are often asked by our clients WHEN and WHY they should review their loan.

So when should YOU consider refinancing?

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Change is coming 1 July… Super!


A recent study found up to 50% of older working Australians are expected to retire with debt and around 20% are expected to retire with a mortgage.

So what do you think is one of the primary reasons for this level of debt? It’s the sandwich!

The trend has largely been attributed to our current older generation being the first ‘sandwich’ generation. Many over 50s are under financial pressure from inter-generational dependency resulting in almost $200 billion being contributed to both their parents and children in their lifetime.

So do you think this trend will continue for the NEXT generation of retirees?

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Planning for Retirement. Will you have enough money?

Our recent client survey revealed 48% of our respondents told us they have an investment property! That’s music to a finance specialist’s ears – it’s satisfying to hear those people have a financial strategy that could lead to a more comfortable retirement.

However, 66% of respondents also said they are worried about having enough money in retirement. This is a concern for many of us as almost 80% of Australians over 65 receive the Aged Pension. For 66% of those retirees the pension is their main source of income. Coincidence?

It is NEVER too early to start planning for retirement – but it can certainly be too late.

So have YOU started thinking about retirement?

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First home buyers stay tuned…..

The Federal Budget is looming AND there are rumoured initiatives to help first home buyers (FHB’s) into the property market. So if you – or your children – are potential FHB’s it might pay to stay tuned….

Housing affordability has been a hot topic as a barrier to entry into the Australian property market. Despite this, the younger generation ARE starting to enter the property market in a variety of ways – as singles, couples, rent investors, in co-ownership and also with help from family.

So if extra government initiatives are possibly in the wings what NEW opportunities might this open up for the potential FHB’s?

Will you be ready to act?

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What’s that all about? The cash rate remains steady but our bank interest rates rise??

The cash rate remains steady but our bank interest rate rises???

Once upon a time when the cash rate moved (up or down), most lenders would typically move their interest rate in alignment with the cash rate change.

Have you noticed that when the cash rate moves up the lenders are quick to pounce on an increase and pass these increases on to us – the consumer – immediately?

AND have you noticed that when the cash rate goes down it can take at least a month for them to respond and for them to pass on the savings?

If you have been paying attention over the last few weeks, the major banks have increased their rates independently of the Reserve Bank’s monthly decision to keep the cash rate unchanged.

Not only are they penalising investors (those who provide public housing), but now owner occupiers are taking a hit as well. Even small business variable loans are being increased.

We hear all the time that the banks are hiking up their rates in response to increased funding costs (which are true – but that’s another story), however it is still a hard pill to swallow when they announce their multi-million dollar profits each year.

So what can YOU do as a consumer of lending product?


Download the full article here.

Debt Got You Down?

A recent survey revealed 41% of Australians have credit card debt and of those nearly 4 million cannot afford to repay it!

In addition:

  • The average Australian household has a debt of around 185% of their annual disposable income.
  • Australian households have the fifth highest debt levels in the world with household debt increasing fourfold since 1988.
  • Average debt levels are $12,643 for personal loans, $3,114 for credit card balances and $16,320 for car loans.

So what does this mean for the ‘average’ Australian?

Did you know if you are a prospective home buyer and have these ‘average’ levels of accumulated debt it could affect your borrowing power by almost $100,000?

With the median Australian house price at $623,0003 what impact might this have on your home ownership dreams?

Download the full article here.