As we approach the Federal Election, who’s feeling confident about a achieving a decisive result?
Last month’s cash rate cut to 1.75% has delivered another saving for mortgage holders with a further cut predicted by some economic commentators later this year. The RBA’s June meeting resolved to leave the official cash rate unchanged.
This month we look at the pros and cons of the Budget for Australian property and follow up last month’s article on extreme downsizing with 5 reasons why you might want to keep your family home.
If you want to take full advantage of the latest rate cuts, give me a call. I will be happy to layout all your options so you can make an informed decision to suit your circumstances.
Call me now on 0402 408944
Federal Budget 2016: the bottom line for property owner.
Just before we went to press last month, the Turnbull government brought down its Federal Budget 2016. Now that the dust has settled, let’s take a look at what it means for property across the country.
The good news: Investors can breathe easy for now with no changes to negative gearing or capital gains tax discounts as announced by Treasurer Scott Morrison.
“Those earning less than $80,000 a year in taxable income make up two thirds of those who use negative gearing,” he said. “We do not consider that taxing these Australians more on their investments, including increasing their capital gains tax, and undermining the value of their own home and investment is a plan for jobs and growth.”
The bad news: As negative gearing and capital gains tax discounts continue to support property investors, Mr Morrison’s ‘no change’ announcement isn't great news for first home buyers and owner occupiers trying to compete in this market.
The government hopes the upward trend in housing prices will gradually stabilise and ease without the crash some pundits are claiming is bound to happen. In the short term however, renters seeking to get a foothold in the property market will still face record prices, particularly in the big cities.
Thinking about investing or buying your first home? I can help you choose a great mortgage option. Let’s talk.
When not to downsize.
Last month we looked at extreme downsizing, so this month I thought it might be good to consider when downsizing isn’t for you. If the kids have left the nest, you probably feel like you’re rattling around in your house. Do you really need that extra space? If there’s no financial imperative for you to move, here are 5 reasons why you might want to stay in the family home:
1. You’ve spent years getting your home just right. You love your home. You love spending time in your garden. Everything has been designed over your lifetime to fit your needs exactly. Plus your home’s in a great location, close to everything you need. If this is the case, why should you move?
2. You hear the patter of tiny feet. Your days of changing nappies are over, right? But what about grandchildren? If you’re expecting to look after the grandkids regularly (or even just now and then) you’ll be glad of the extra space.
3. You work from home. If you’ve invested in a home office, it might be a good idea to keep your address rather than go through the upheaval of telling your clients you’re changing locations. If clients visit your home office, having a dedicated space separate from your living areas is also better for your work/life balance – you might not be able to do this in a smaller home.
4. You love entertaining. If you’re the sort of person who regularly entertains friends and family, you’ve probably spent years getting your kitchen and dining spaces perfectly set up. Can you imagine doing so in a space a fraction of the size of your family home?
5. You want to pass your property down. A childhood home is more than just bricks and mortar. If you love the idea of future generations enjoying the home you’ve built, you might want to think about staying put.
Remember, downsizing is a big decision. If you’re at all unsure, maybe the time’s not right for you to move.
Don’t move, renovate! If you’re looking to update your current home, let’s chat about accessing some of the equity you have built in your home. This is an ideal time to review your finance structures to ensure you have access to funds with maximum flexibility for now and your long term future. Please call me to discuss.
