Next week marks the start of winter and also the last month of what has surely been the most bizarre financial year in history. June 30 is a deadline for a whole range of things, so in this article we want to remind you of some of them. As the weather has gotten colder, why not make yourself a nice warm drink and read on.
It has been a while since we spoke about property. For now, the state of the property market is particularly inconclusive, and this is probably not a time for immediate action. But it is a good time to think about what your medium to long-term response to changes in the property market will be.
You may have heard the phrase, ‘asset rich, cash poor.’ No one likes to hear anything with the word ‘poor’ in it, but if you have to be poor, this is the best way! If you or someone you love is asset-rich and cash-poor, there are various ways that you can use those assets to improve your financial situation.
For households with at least one person aged 65 or over, the Australian Bureau of Statistics recently compared average household wealth between those that owned their own home and those that did not. The difference was enormous and the message is clear: owning a property – or a similar kind of asset - is critical in creating wealth. Our job often includes identifying that similar kind of asset.
Compared to previous years, the 2017 Budget was a bit of an anti-climax. In previous years, there have been a number of big-ticket changes - such as the big changes to superannuation that we have been discussing in recent articles. But this year there have simply been a whole lot of small changes, some of which will be of benefit and others will represent a small loss.
In property investing positive gearing is where the rent received exceeds the interest on money borrowed to finance the purchase. You often hear about positive gearing – especially from people with a property they want you to buy! But is positive cash flow property actually worth pursuing? The answer depends on what is creating the positive cash flow situation. Sometimes, these factors combine to make positive gearing a wonderful way to reduce risk. But at other times, the factors creating the positive gearing can make an investment very risky indeed. This article shows you how to tell the difference.