Property Investment, Investment Properties, Retirement, Melbourne
What is LVR? LVR is the Loan to Value Ratio. It is the loan amount (how much you are borrowing) divided by the value of the property (how much you are putting up as security against the loan). If you borrow, for example, $800,000 against a $1,000,000 property, your LVR is 80%. Why is it ...
It hasn't been long since the last interest rate cut of 0.25% by the RBA. Has it affected you? If you have property loans, has your lender passed on the cut? In full? In part? If yes, what does that mean to you? Imagine you've got a $400,000 mortgage on a property (your home or an investment). Let's ...
A property investment is negatively geared if the monthly or yearly costs or expenses are more than the rent. What are the benefits? There are two main benefits of negative gearing. 1. If you are willing to buy a negatively-geared property, you can spend more on your asset. By borrowing ...
LMI (Lenders Mortgage Insurance) is a fee charged by banks when you borrow more than 80% of the value of a property. This fee is charged because the bank is outsourcing insurance to protect themselves in case you default on the loan. We have seen banks charge anywhere up to $20,000 or more for LMI ...
Yield in property investment usually refers to the purchase price divided by the annual rent. For example: You are looking at a $370,000 property. It has a weekly rent of $320, which equates to an annual rental income of $16,640. Calculated as a percentage, this equates to a rental yield ...
So often we meet people who say they've thought about investing in property. They want to invest in property. They plan to invest in property. They've even explored several options for investing in property. They've just been too scared, too careful, too worried to take the leap. This is incredibly ...
I’ve got two investment properties, and I’ve (thankfully) kept good records since buying them both. I’m actively saving for a deposit on a third property and I’m making cuts to spending wherever possible. Do you think I can get by without an accountant? It depends. I’m not sure what your background ...
Q: I’m 35 and I hate my job. On the plus side, I've recently bought an investment property and now I’m hooked! I love the money rolling in – between the rent and the tax breaks, I’m clearing about $2,000 a year. I’d like to buy another this year and a couple more next year. I read in a magazine a ...
For generations, Australians have bought houses to secure their financial futures. Many of us own our home – just under 70% according to the 2010 Australian Bureau of Statistics census. Many don’t only invest in their own home, though. Approximately 20% of Australians live in housing owned by ...
Dreaming of getting rich quick? Then property is probably not the best investment for you. Here’s another typical question: My husband and I are both 47. We would like to retire at 50. I’ve got about 50,000 saved for retirement, and my husband has $90,000. We’d like to have at least $500,000 saved ...
