On The Couch

There is literally hundreds of topics that can be discussed in the property world – some ADF Housing Entitlements (DHOAS, HPAS and HPSEA) related; and some are available to all of us (FHOG, First Home Guarantee, Stamp Duty exemptions, tax effects). In the “On the Couch” series, Strike Property’s resident Qualified Property Investment Advisors (QPIAs) – Dan Irwin & Dane Roche – distil the key topics into the information you need. They are quick (less than 5 minutes usually) and cut through the red tape and policy documents like PACMAN – meaning everything that you need is here … or it will be soon. 

Episode 44 - What Is Capital Gains Tax

Capital gains tax (CGT) in Australia is a tax levied on the profit made from the sale of assets. It was introduced in 1985 and is a part of the broader income tax system rather than a separate tax. Understanding CGT in Australia is crucial for effective tax planning and compliance. It involves various rules, calculations, and exemptions, and it’s advisable to seek professional advice to navigate the complexities of CGT.

Episode 43 - Cash and Non-Cash Deductions

In Australia, owning an investment property allows you to claim various deductions on your tax return to offset your taxable income. These deductions can be broadly categorized into cash (immediate) and non-cash (depreciation) deductions.

Episode 42 - Choosing an accountant

Finding a good accountant in Australia requires considering several key factors to ensure they meet your specific needs and can effectively manage your financial matters. Whether you are an individual looking to optimize your personal finances or a business owner aiming for growth and efficiency, an accountant can be a valuable asset.

Episode 41 - Biggest fear when purchasing an investment property

Investing in property in Australia can be a rewarding venture, but it also comes with its fair share of challenges and fears. By addressing these fears with strategic planning, research, and professional guidance, investors can navigate the challenges of property investment more effectively.

Episode 40 - Common mistakes made when investing in property

Avoiding common mistakes when investing in property requires careful planning, research, and due diligence. It’s also beneficial to seek advice from professionals such as mortgage brokers and property experts to make informed decisions.

Episode 39 - Rental yield vs capital growth

Choosing between rental yield and capital growth when investing in property often depends on your investment goals, risk tolerance, and financial situation. Both rental yield and capital growth are important factors to consider, and they represent different aspects of property investment returns.

Episode 38 - What should you do if you max out on your borrowing capacity?

Each lender has different lending criteria, so it’s essential to shop around and compare different home loan options to find the one that best suits your needs and financial situation. Building a strong financial profile and improving your borrowing capacity takes time and effort. Be patient, stay focused on your goals, and continue working towards improving your financial situation.

Episode 37 - When is the right time to sell an investment property?

The right time to sell an investment property varies for each individual and depends on their unique circumstances and goals. It’s crucial to do thorough research, consider all factors, and make an informed decision that aligns with your financial objectives.

Episode 36 - Do mortgage brokers have access to DHOAS lenders?

While some borrowers may assume that brokers have access to all DHOAS lenders, this is not the case. Certain lenders, such as Australian Military Bank, Defence Bank, and NAB, may be off-limits for brokers. Therefore, borrowers must be vigilant in their search for a suitable mortgage broker.

Episode 35 - How many investment properties do I need to retire?

Retirement isn’t a one-size-fits-all journey and your retirement aspirations play a pivotal role in determining the number of investment properties you might need. Are you dreaming of leisurely strolls through European cobblestone streets for six months every year? Or perhaps your idea of retirement bliss involves casting your fishing line into the crystal-clear waters of the Great Barrier Reef for weeks on end? Whatever your dreams, they shape your financial strategy.

Episode 34 - Can you get a loan using incapacity payments?

At first glance, incapacity payments might seem akin to stable employment income. After all, both offer a consistent financial stream, contingent upon meeting certain criteria. However, despite this similarity, the banking industry’s perception of incapacity payments can be markedly different. While banks readily extend credit to those with conventional jobs, they often hesitate when it comes to considering incapacity payments as a viable income source for loan approvals.

Episode 33 - How much deposit do I need to buy a property?

The decision between saving a 20% or 5% deposit requires careful consideration of individual circumstances, financial goals, and market conditions. While a 20% deposit offers financial security, lower repayments, and greater negotiating power, it may delay homeownership and require significant savings efforts. On the other hand, a 5% deposit allows for quicker entry into the market but comes with higher mortgage payments, LMI costs, and increased financial risk.

Episode 32 - Does Rental Assistance (RA) boost your borrowing capacity?

Rental Assistance (RA) is a non-taxable government allowance to help you meet the cost of private rental accommodation. It may look impressive on paper having extra income however, rental assistance is assessed differently from bank to bank meaning, it may even hinder your borrowing capacity depending on the amount and if it assessed by the bank as taxable income.

Episode 31 - If you have $200k in savings, should you invest in one property or two?

Do you have $200k burning a hole in your back pocket and you are tossing up between buying one or two properties? It’s really going to come down to what your borrowing capacity is and what goals are you trying to achieve. At the end of the day, quality over quantity every time!

Episode 30 - Are Airbnb Properties a Good Investment?

In recent years, the rise of Airbnb has transformed the real estate landscape, offering property owners an enticing opportunity to generate income through short-term rentals. However, like any investment, owning an Airbnb property in Australia comes with its own set of advantages and challenges.

Episode 29 - Should you wait for the interest rates to drop before purchasing a property

The decision to buy property in Australia is a significant one, and with recent discussions around interest rates, many potential buyers are wondering whether they should wait for rates to drop or dive into the market right away.

Episode 28 - Ownership Structure - Buying property in a trust

Before establishing a trust, it’s advisable to consult with legal and financial professionals who can assess your specific situation and help you determine if a trust structure aligns with your goals and needs. A trust structure may be beneficial for certain individuals or entities, but it is not a one-size-fits-all solution

Episode 27 - Tax Agent vs Accountant

Choosing between a tax agent and an accountant depends on your specific needs and the complexity of your financial situation. Both tax agents and accountants play crucial roles in managing financial matters, but they have distinct roles and responsibilities.

Episode 26 - Do I lose my housing entitlements if I buy an investment property first?

If you decide to purchase an investment property before your principal place of residence, you may still be eligible for certain grants and concessions when you eventually buy your first home. Before pulling the trigger on a purchase, ensure you have a solid plan.

Episode 25 - Is the Brisbane market overtaking the Melbourne market?

The Property Market- Melbourne versus Brisbane. This month (January 2024) the Brisbane median house price was listed on Core Logic as $787,000, whereas Melbourne only $780,000. Melbourne has always been at the top of the Australian property market, but it seems Brisbane is slowly overtaking. Why is that? Well it all comes down to the fundamentals of economics, supply and demand.

Episode 24 - Having the right team of professionals behind you

So, who constitutes the BIG4 in your property dream team?
1. Mortgage Broker
2. Conveyancer or Solicitor
3. Property Advisor
4. Accountant
Each member of this BIG4 plays a pivotal role in elevating your property journey. A weak link here could potentially constrain your progress, while a stellar team can propel you toward unprecedented success. Remember, the right team propels your property journey to new heights

Episode 23 - Using retention benefits to buy a house

Retention benefits have shown remarkable promise, offering substantial financial incentives, sometimes up to a whopping $30,000 or more. When coupled with existing grants like the HPAS or the First Home Owner Grant in Queensland, the potential pool of funds swells impressively. Picture this: a sum of $60,000 that could significantly bolster your deposit. However, while this injection of cash might seem like the golden ticket to homeownership, there’s a few crucial aspects to consider.

Episode 22 - New Master Planned Community vs Infill

The housing landscape in Australia is a tapestry woven with master-planned communities, infill blocks, and a shifting perspective on block sizes. It’s a tale of accommodating a growing population while balancing infrastructure, connectivity, and individual preferences.

Episode 21 - Finance Killers

Welcome to another insightful discussion shedding light on the hurdles that might be hindering your financial aspirations. This week, let’s dive into what could potentially impede your journey towards securing that much-desired financing.

Episode 20 - 2024 Boom and Bust Report

SQM Research have put out their 2024 Boom and Bust Report where they predict the market over the next 12 months. It may seem like all doom and gloom, but just remember, properties move in cycles.

Episode 19 - Will upgrades to your home get you more rent?

Are you considering upgrading your specifications on an investment property and are weighing up the pros and cons? It is important to consider if the selections you are making will have a huge impact on the rentability of the home. Will upgrading your tile selection, mean an extra $100 per week rent… most likely not.

Episode 18 - The ACCC- New penalties and expansion of the unfair contract terms laws

The Australian Competition and Consumer Commission have introduced new penalties and the expansion of the unfair contract terms laws to protect everyday Aussies when entering into a contract.

Episode 17 - QLD $30,000 First Home Owner Grant

The increase to the First Home Owner Grant in Queensland from $15k to $30k, means ADF members have the opportunity to get into the market sooner.

Episode 16 - Transitioning your home into an investment property

Turning your home into an investment property can provide a source of passive income, but it requires careful planning and ongoing management. Professional advice from real estate experts and financial advisors can be invaluable throughout this process.

Episode 15 - Where to avoid buying property

Location, Location, Location! Investing in property can be both an exciting and daunting experience. It’s one of the biggest decisions you’ll make in your life, so it’s important to get it right. Here are some locations we would avoid.

Episode 14 - The importance of portfolio oversight

Property portfolio oversight is essential for managing risks, optimizing returns, ensuring compliance, and building long-term wealth. It requires continuous monitoring, analysis, and strategic decision-making to maximize the benefits of property investments.

Episode 13 - Why choose Strike?

We understand that this is a very daunting experience. There are conflicting strategies and information which can be overwhelming. Strike Property has qualified and experienced professionals with a shared background and ethos dedicated to getting you on the pathway to success.

Episode 12 - How to recover from a bad investment

Have you come to the realisation that your purchase hasn’t been performing as well as you hoped? Acknowledging you have chosen a bad investment is step one in the recovery. It may be more beneficial to cut your losses and get out.

Episode 11 - Is HPSEA all it's cracked up to be?

Home Purchase or Sales Expenses Allowance (HPSEA) is an entitlement available to defence members to assist with buying and selling costs, but is it worth chasing? Unlike the DHOAS and HPAS entitlements, HPSEA can be quite vague. Don’t let HPSEA drive your decision to buy or sell, ensure it fits within your plan and you are using it for the right reasons.

Episode 10 - Tips to pay off your mortgage quicker

Don’t get stuck in the 30 year mortgage trap! Dan and Dane have some very easy tips on how to shave years off your mortgage by simply changing the frequency and amount of repayments and using an offset account.

Episode 9 - HPAS traps costing you $$$

The Home Purchase Assistance Scheme (HPAS) is an entitlement available to the ADF to assist in the purchase of a new home. Although it seems pretty straight forward, there are some rules around HPAS that we see time and time again trapping people. This could see them miss out on thousands of dollars. Or worse still – they end up being worse off by taking the entitlement. 

Episode 8 - A trip down memory lane - Saving a deposit in the 1980's

Damn the Baby Boomer Generation! They got it so easy. It only took them (on average) 2 years to save a house deposit in the 1980’s. These days, it takes up to four times that long. 

It’s easy to be disheartened when you look at the past, but this video considers what might happen if you decide to wait even longer. How long will it take you to save your deposit into the future? 

Episode 7 - Maximising the Effectiveness of DHOAS

The Defence Home Ownership Assistance Scheme (DHOAS) gets a lot of attention – and rightfully so. It is a really useful tool to use when you are accelerating towards paying your home off sooner. Using your DHOAS subsidy, you can take years off your loan and save hundreds of thousands of dollars in interest repayment. That’s not even an exaggeration. 

Episode 6 - Our thoughts on how to improve DHOAS

At the back end of 2022, there were some positive changes made to the DHOAS program. Some of the changes introduced even more ‘oversights’ in the program while there are some fundamental changes that could be made to really benefit the veteran. Are there any other ideas that you would like to see implemented? 

Episode 5 - DHOAS Frequently Asked Questions

Maximising your ADF Housing entitlements and the use of DHOAS are like fish & chips, or wine & cheese – they just go together! That is why you can’t have a discussion about property with veterans without the DHOAS program being brought up. Everyone has heard of the ‘wave top’ information – it’s a monthly contribution paid by DVA towards your mortgage with select lenders – but this video takes you deeper. 

Episode 4 - Where are Interest Rates going in 2023?

The third quarter of 2023 is when the world will end. At least that is what the economists looking for social media clicks are telling you. Why? Because that is when the days of 2% fixed interest rates will end. This episode discusses why the interest rate increase can be a good thing if you look at the bigger picture. 

Episode 3 - Salary sacrificing investment loan interest

Not too many ADF members know how to use salary sacrifice programs to benefit their circumstances. This episode won’t dissect all the options that are out there, but the pros and cons of salary sacrificing the interest payment on your investment loan is considered. Is it the right thing for you to be doing right now? 

Episode 2 - The State Of The Market (July 2023)

We have just gone through one of the most tumultuous periods ever in the property sector EVER. Builders were going bankrupt, interest rates were increasing at record speeds and all the while the economy was also experience phenomenal growth. How do all of these elements come together to affect the property market? In this episode we look at interest rates, the property cycles, growth post covid and migration.

Episode 1 - Keeping RA vs using DHOAS and HPAS.

What are the pros and cons to keeping your rental assistance provided by the ADF and purchasing an investment property, versus buying your own home utilising your Defence Home Ownership Assistance Scheme (DHOAS) and Home Purchase Assistance Scheme (HPAS)… along with using all your other state and federal government grants. 

Do you have a topic that you would like discussed?

Don't take our word for it...

Don't take our word for it...

 

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You’ve probably heard whispers about your HPAS, DHOAS and HPSEA. You’ve probably even got some mates who have used them.

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If you are in the ADF and decide to invest in property, it is like starting a 100m sprint already half way down the track.

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