End of Financial Year Property Planning

By Janet Spencer

If you are doing your end of financial year property planning, I would like to share my best tips for the year ahead.

What’s your property plan for the 2017/2018 tax year?  Mine is to buy another investment property.  I will be careful though and buy the right type of property.  The apartment market in Melbourne has been very shaky for some time.  Buyer Solutions has been extremely cautious when buying apartments and will continue to be going forward.

With off the plan stamp duty concessions for new property being removed for investors from the 1st of July, this may dampen things further.

Finance has been tougher to secure and when attending opens of some newly finished properties we are hearing this first hand.   Some unlucky buyers from overseas cannot fund their purchases with changed lending criteria or may be choosing not to.  Agents are approaching Buyer Solutions to nominate onto the contract to allow the original buyer to be free of the property.  We are not recommending this to our clients for two reasons:

1. the Purchaser has usually paid too much, and
2. this type of property will potentially have little capital growth going forward over the next decade.

So, capital growth is not implied or guaranteed when you invest in real estate.  Some properties go down in value.  Some go up.  This depends on many factors including supply and demand.  With so many new towers being built in Melbourne, the supply could outpace demand.  This could be compounded by investors finding the new and off the plan market less appealing now that they don’t attract significant stamp duty savings.

So, how to develop your plan.

1. Do your tax return for 2016/2017.
2. Know your financial position.
3. Get advice from your accountant and financial planner.
4. Approach your lender and see how much you can borrow.
5. Work out if you have any capital of your own to contribute and or how you will use your equity in another property to secure your next investment.
6. Book your 45-minute obligation free consultation with Buyer Solutions, OR
7. Contact Buyer Solutions for a referral to a REBAA accredited Buyers Agent in another state in Australia.

It’s never too early to plan.  Even if you put the platform in place for the future, at least you are being proactive and surrounding yourself with a qualified team of reliable professional advisers.

For independent advice on buying or selling real estate, contact Janet Spencer at Buyer Solutions +61 3 9816 8555 or email jspencer@buyersolutions.com.au

Buyers Advocate, Buying property, Home buying, Investment, Investment property

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