What's your strategy?

There are several property ownership strategies...what is yours?

Home Ownership

Most Australians aspire to own their own home; the great Australian dream...

Your principal place of residence (PPoR) has capital gains tax (CGT) advantages if you live in it for more than 12 months.  Further benefits include the freedom to renovate or make property improvements to add value, or if you're not in any hurry add equity, the property will increase in value over time.  There are several schemes available for first home buyers, make sure you check these out.


Property Investing

Investment can take a few different forms - buy and hold, positive gearing, negative gearing, manufactured growth strategies. 


A long term strategy, buy and hold, is buying a residential or commercial property and renting it out.  It's important to research the area well to ensure the best rental yields and outcomes.  Costs such as mortgage, rates, utilities and insurance are tax deductible.  The best outcome is to have positive cashflow where the rent received is greater than the ongoing hold costs, or positive gearing.  The extra income could be used to pay down your mortgage faster!


Negative Gearing is generally used as a strategy to minimise tax, i.e. if your portfolio is highly positive geared, a negatively geared property could contribute to the overall taxable earnings.  This is not my preferred option, if only holding 1-2 properties the costs that are not being covered by the rent will come from your own pocket.


One manufactured growth strategy is renovation flips - generally speaking, the greater the renovation, the higher the returns.  There are three main levels of renovations; cosmetic (minor works), structural (possibly add bedroom and/or bathroom but doesn't change the structure of the house), or extension (adding additional rooms or space to the original layout).  It's possible to renovate your PPoR to refinance and extract equity from your home to invest, or purchase a property specifically for renovation.  Significate due diligence and research should be undertaken before entering into a purchase agreement for a renovation project.


Property Development

Another manufactured growth strategy is property development including subdivision or multi-dwellings.  Subdivision is dividing one parcel of land into 2 or more lots, requiring a various approvals.  Multiple dwellings include granny flat, dual occupancy/duplexes, townhouses, units, and more.  These strategies are usually conducted by experienced investors, and thorough due diligence and research should also be undertaken before purchasing.


What strategy do you like?  Are there other strategies that you're considering?

Check before you invest

by Dana Dobson • 4 January 2024
ASIC recently released an updated Investor Alert List , a useful resource for individuals considering investments, offering insights into the legitimacy of entities. This new list supersedes the former ‘companies you should not deal with’ and encompasses both national and international entities. ASIC flags concerns about these entities operating in Australia without proper authorisation or engaging in fraudulent activities, including ‘impostor’ entities, also known as impersonation scams. Additionally, ASIC has revised its investor checklist , offering guidance on pre-investment measures. However, it’s essential to note that the list is not exhaustive, the list may not cover all dubious sites/entities, as ASIC might not have detected them yet. ASIC urges industry participants to contribute to identifying suspicious investment platforms by reporting them to Scamwatch for further investigation and action. For further assistance in making informed investment choices, ASIC’s website provides several articles, starting with the check before you invest page .

How long to sell in the current market?

by Dana Dobson • 6 October 2022
Houses are taking longer to sell, with the average number of days on market (sale by private treaty) now stretching to 29 days plus. Days on market often depends on vendors' expectations and, with price growth softening, some vendors are taking longer to adjust to the current market. The market has shifted to one for 'buyers', where purchasing decisions are no longer driven by FOMO (fear of missing out). In June this year the average days on market were at its lowest (31 days), compared to 41 days in August 2022. Other capital cities have also seen a rise - Sydney now 48 days, Melbourne 58 days, Perth 54 days, Hobart 46 days, and Canberra 49 days. Darwin has the highest days on market at 102 days, whilst Adelaide has remained relatively stable averaging 60 days since June. Yet, the rapid rise in interest rates, coupled with high inflation, has unsettled many buyers. Feeling uncertain and apprehensive, consumer confidence has dropped, with many waiting to see what's next before making purchasing decisions. Those that are still willing are finding adjusted lending criteria is making it more difficult to get a loan or more contribution is required in the deposit. On a brighter note, according to Domain, the fastest-selling suburbs in Australia in August 2022 were in Queensland (i.e. 9/10 houses and 7/10 units were Queensland suburbs). What are your thoughts on the property market leading up to Christmas?

Good news for Queensland home owners...

by Dana Dobson • 30 September 2022
In welcome news for property owners and investors across Australia, the Queensland government has today announced it will shelve the proposed changes to land tax. The planned changes were to come into effect from 1st July 2023, land tax would have been calculated using a formula taking into account the value of other land owned across states. Currently in Queensland, an individual who owns land is not taxed until the land value exceeds $600k, with exemptions for principal place of residence. The new rules would have calculated the amount of land tax based on the Queensland proportion of all total land value across Australia, which lead to many investors expressing concerns for annual land tax bills at an additional $15k-$30k. The complexity of the tax requirements and reliance on the self-disclosure of individuals and data-sharing across states, reinforces the plan should be completely scrapped, not just shelved. Thankfully common sense has prevailed! Investors can hold on to property, the rental market won't see an exodus of properties, we should see confidence restored in the Queensland investment market, which ultimately should help the housing crisis. This is great news for all Queensland property owners, and with current vacancy rates in Queensland at an all time low (~0.07 per cent), should be positive news for renters.

Property 2022

by Dana Dobson • 23 September 2022
Sydney and Melbourne are losing some value as property prices continue to slide however, Dr. Andrew Wilson from My Housing Market is forecasting only a 6% drop over 2022. He also predicts that Brisbane, Adelaide and Perth should finish the year with 11%, 12% and 9% growth respectively.

Brisbane Queensland

by Dana Dobson • 6 September 2022
Living in Brisbane...

The Home Buyer's Glassary

by Dana Dobson • 29 August 2022
Let's talk terminology used in borrowing...

The Benefits of Using a Buyer's Agent

by Dana Dobson • 19 August 2022
Your best interest at heart A traditional real estate agent will always work to get the best outcome for a vendor, as a buyer's agent we are always looking out for only you! We take the time to listen to your needs and goals to develop a purchasing plan to find the best property for you and at the best price. Save you money With extensive knowledge of the property market, a buyer's agent understands the latest trends and best opportunities. This market insight, combined with expert negotiation skills, means the best property for the best price and terms. Save you time A focus only on property purchasing, a buyer's agent knows where to look to find the best home or investment to meet your needs. An established network, and access to exclusive property buying opportunities, provides the formula to locate properties to meet your specifications, this can save you valuable time in finding the right property for you. Commitment to clients Our goal is to make your property buying experience as stress-free and enjoyable as possible. We coordinate all the supporting services that go into buying a property, including collaborating with solicitors, mortgage brokers, building and pest inspection, real estate agents and more. What are you looking for in a buyer's agent, comment below?

Is Toowoomba a good place to invest?

by Dana Dobson • 19 August 2022
According to Terry Ryder, Director of Hotspotting.com.au, The Garden City has one of Australia's strongest property markets, so what makes it so? Toowoomba region has a population of over 173k and growing and ABS statistics show an unemployment rate as low as 1.6%. Homes in Toowoomba are still affordable, offering a very attractive life style, and with rental yields at 5-6%, low vacancy rates, and billions of dollars being injected into the region for major projects including rail, hospital, airport and various energy projects, it ticks all boxes for property investors and potential for capital growth. What are your thoughts? Is Toowoomba one of the regional hotspots to invest and why? Place your comment below...

Make the most of the season by following these simple guidelines

by duda • 19 August 2022
The new season is a great reason to make and keep resolutions. Whether it’s eating well or cleaning out the garage, here are some tips for making and keeping resolutions.