Why it is better to own a home than renting?

If you are a first home buyer, you must be thinking whether it is worth to buy a new home, or you should just go ahead with renting a one. When you take a look at the Australian property market, you will figure out that buying a home is not an easy thing to do. But if you can somehow afford to buy a home, you will be provided with a large number of benefits.

Here are some reasons that explain why buying a home in Australia is always a good option available for you to consider, instead of renting a home.

1. It would be a good investment
You will have to spend a considerable amount of your money to purchase a new house. This investment property can benefit you in the long run. Therefore, it is even better to go ahead with a mortgage loan, if you are not in a position to spend the full amount of purchasing a new home.
When you become a homeowner, you will be provided with financial stability and a valuable asset. But you need to make sure that you are purchasing your house from an area, where there is appreciation of assets. Then the value of your house will increase along with time. Therefore, you will even be able to sell your house at a higher price tag in the future. This investment can also provide an excellent assistance for you to create a financial foundation for the upcoming generations.

2. You have the freedom to make your own modifications
When you purchase your home from one of the real estate agents, you will be provided with the chance to go ahead and do all the modifications in it according to the specific requirements that you have. After purchasing a house, you need to create a personalized living space in it. Then you will be provided with the chance to enjoy your stay. But when you are renting a house, you will not be provided with the ability to do it. You cannot even do a simple modification without the permission of the property owner.
When you become one of the home owners in Australia, you don’t need to get permission from anyone to do the modifications in your house and create a personalized living space. For example, if you want to paint one of your rooms in a specific color, you can go ahead and do it. Likewise, you can add a deck, replace the cabinets and do many other modifications according to the preferences that you have.

3. You know how much you have to spend per month
When you buy a new home with a mortgage loan, you will be provided with predictable monthly repayments. In other words, you know how much money you will have to allocate for the house on every single month. But this will not be valid for renting a house. That’s because the landlords would tend to increase the prices of homes along with time. This can lead you towards financial issues in the long run.

4. You have a Tax Free asset
Owning your own home or “Principal Place of Residence” PPOR does not attract any tax. Property in Australia doubles around every 10 years so if you buy an investment for $500,000 and it doubles in value to $1 million, you will be required to pay tax on the profit you have made. When that property is your home, there is no tax.

5. It’s yours
Last but not least, you need to understand that purchasing your own home can provide you with the chance to keep peace of mind in the long run. That’s because the property you buy is yours and you will not have to return it to anyone else.

Renting a house can be considered as a financially stressful thing to do. You are spending a lot of money to rent the house, but you will not be able to get them back. But when you buy a house, even with a housing loan, you will be able to make sure that you are getting the return out of your investment in the long run. This will provide you with the opportunity to go for your retirement peacefully as well. That’s because you know that there is a place of your own, which you can spend the rest of your life.

Why property investment? Here is just one of many reasons

As we all know population growth is inevitable, Australia is a young fast growing country with no signs of slowing down. Population growth is a key factor when considering investment property and your financial future.

Australia’s current population is 23.9 million and climbing, we are currently seeing a new born just under every two minutes, and one death just under every 4 minutes. We are also receiving a net gain of one international migration every two and a half minutes, this is currently giving us an increase of 1 person every one and a half minutes.

When learning how to get started in property investment, knowing this information is a huge asset. Natural growth and overseas immigration has always been good news for property investment. With having this brief layout of information in mind, do you think housing will/could lose its demand?

Great news of Interest Rates.

Great news for investors today as the RBA has decided to keep interest rates at historical lows of 1.75%. Reading through the RBA commentary we can determine what factors have influenced the RBAs decision not to move. While the labor market is expanding and more jobs are being created, overall wage growth has kept inflation low. This has eased the cost of living for families.

Lower interest are not only good news for investors but also for Australian businesses looking to put money into expansion. Our low dollar means that exports are also looking stronger.

With interest rates so low at the moment and yields so high, it has never been a better time to buy and hold investment property. If you buy the right property at the moment it should be cash flow positive.

Are you missing out on an extra $5,784 off your tax?

As the laws currently stand investors are allowed to claim expenses incurred in holding their investment property against their normal income earned. However, a recent study showed that many people are missing out.

According to statistics released by the Australian Taxation Office (ATO), 2.8 million property investors claimed deductions relating to their rental property over the 2012 – 2013 income year.

Among these investors, just over one million received an average capital works deduction of $2,113 while almost two million property investors claimed an average deduction of $1,179 for depreciation of plant and equipment, making the total average deprecation claim made by property investors who claimed both years an average of $3,292.

Comparing with the statistics released for the 2011-2012 income year, there was an increase close to 100,000 in the total number of investors claiming deductions for their rental properties.
Despite this increase in people claiming, there was next to no change in the overall deductions claimed for capital works or plant and equipment assets. The average capital works deduction compared with the previous year increased by $83 and the average plant and equipment deduction increased by $40.

Based on data collected from tens of thousands of quantity surveyor’s depreciation schedules, the average deduction found claim within this time was $9,076 for both plant and equipment and capital works, an increase of $5,784 that investors could be claiming.

It can therefore be reasonably presumed that investors are not calculating or claiming their depreciation deductions correctly. This “missed claim” could easily equate to an extra $50 per week in the average investor’s pocket, if done correctly.

I would advise everyone to check their claims thoroughly and have an expert prepare a QS report to no deductions are missed.

Why Brisbane?

There has never quite been a better time to invest in Brisbane property, unless you were lucky and smart enough to buy up 30+ years ago, not many of us had that opportunity including myself. Recently the Brisbane City Council has prepared a 118 page document outlining the overall plans for infrastructure investment through to 2031, and there is a lot happening!

A simple cornerstone of property investing is to know that you need an excess demand over supply for the values to increase above inflation.

Population in South East QLD expected to grow by around 1.3 million by 2031 to nearly 4.5 million people, roughly 14.1% increase. This will require a lot of new dwellings as you can imagine.

Currently, new house starts are lagging behind this demand. Hence we get boom years. South East QLD is currently going through one of those periods where demand is outstripping supply. That is why prices are increasing. If you would like to find out more please feel free to inquire today on 1300 148 178 or send an email through to info@rogerspropertygroup.com.au

First Home Buyer but no deposit? We can help!

If you are a First Home Buyer looking to get into the market but do not have a deposit then we may be able help you.

Did you know that the government has just increased the “First Home Builders Grant” from $15,000 to $20,000 from the 1st of July 2016? Although that may not be enough for you to enter the market, if you combine that with a cash builders rebate, it may just be enough to get you into your new home.

So, if you are tired of paying rent, have a job and want to live in your very own brand new home, then please contact us on 1300 148 178 or info@rogerspropertygroup.com.au and we may be able to help you.

Investment lending requirements eases

The investment lending landscape appears to be softening. Not long ago APRA starting clamping down on banks and insisting that they reduce the growth in their lending to investors. Westpac was the first to reduce their LVRs to 80% allowed to investors to the detriment of many borrowers.

After losing market share and bringing their investment lending loan book within acceptable parameters, Westpac have now eased the policy on LVRs. They are now allowing lending up to 90% for investors. This is good news for property investors that have assets tied up with either Westpac or St. George which they own.

Brisbane continues to impress investors

Brisbane continues to lead the country for strong capital growth rates according to the latest findings from the quarterly PPA update.

Brisbane’s constant population growth and low unemployment rate are factors that continue to make the city Australia’s number one place to invest. Residential population growth in Brisbane over the past decade or so has grown by around 27%. That’s approximately 400,000 new residents in the CBD with this number expected to double over the next 20 years. That will take the city’s population from 1.7m up to almost 3m people by 2035.

The strong population growth coupled with great affordability makes it excellent value for investors. House prices rose by a little as 15% from 2008 to 2015 while income over the same period grew 31%. Couple this with falling interest rates and Brisbane’s residential stock remains extremely inexpensive. Its affordability index is currently sitting at a very strong 27%.

If you are thinking about getting into this market, it would be advisable to get in before the market rises too much as per Sydney and Melbourne.