We know what you really want to hear about - PROPERTY!

Click here for your invitation to our FIRST EVER PROPERTY SYMPOSIUM.

What a month - a 5 year record high for the Australian sharemarket, the US market keeps going gangbusters, and we have a new Government (more on that next month)!

So what about our property market?

It was only twelve months ago that we were worrying about a major fall in house prices, but now everyone's talking about another housing bubble!

The annual capital city average house price growth is running around 5%, and property is still a HOT topic.

As a Financial Planner I'm often accused of a bias to shares and of not liking property, which is simply untrue - I've owned investment properties in my portfolio since my early 30s.

However, my experience as both a Financial Planner and a Landlord has taught me that there are risks involved in property investment and you can get it wrong.

So what do you do?  Your homework of course!

In particular, we always recommend giving particular consideration to:

1. Which property you should buy - type, location, age, growth potential, income potential.
2. The best way to finance your property - institution, interest rate, type of loan, term, repayments.
3. Managing and renting the property - self-manage vs an agent, rent, tenants, maintenance.
4. Tax - avoiding paying more tax than you have to, what's deductible, negative vs positive gearing, capital items vs income items, after-tax cashflow.

Get expert advice in all four areas before you sign the contract.  It may seem time consuming BUT it may save you a lot of time in the long-run.  Let's face it, spending a bit of time with a few experts is negligible compared to the cost of a poor decision...

And if you are thinking about buying a property, we've made it really easy for you by getting the experts in one room and one time at our FIRST EVER Property Symposium - "Buying your next property - the full story."

We've sourced four experienced specialists for an enlightening and content-driven evening to help you make informed decisions about your next property purchase.  You'll hear educational presentations about buying your property, financing your property, managing and renting your property and the tax tips you need before you sign a contract.  This is your chance to hear what the experts have to say and ask all your questions about buying your next property.

The symposium is aimed at people who already have at least one property, but if you're buying your first and would like some extra information you're very welcome. 

The symposium will be held on Tuesday 15th October at 7pm, and it's just $25 per ticket (and you'll receive a free ticket so that you can bring along a partner, friend, colleague or family member).

Click here for full details including how to register.

Talk soon,

Caren 

Are you the risk in your rental property?

Ok, so I stole the idea for this blog entry from my brother Dean. Doesn’t make the message any less valid right? He has no copyright on it, so I’m more than justified (methinks the lady doth protest too much).
Watching The Block a few weeks ago was a fairly grim experience. Fact - Melbourne’s property market is struggling a little at the moment. Even though most (all??) of the properties sold afterward, it was pretty clear that potential buyers are wary and holding their cards pretty close to their chest at the moment.

I read in the paper that the average purchase price of the homes on The Block including stamp duty was apparently $950,000.

Major renovations including stumping, plumbing and re-wiring etc averaged $300,000 per property. With cosmetic renovations averaging $100,000.

According to what I was reading, the average total cost per house was $1.35 million….

Now it was a TV show, and I really have no idea of how much of their own money contestants had to spend over and above prize money, all I know is that when it comes to property these days we’re dealing with pretty big numbers.

Along with the big numbers, tends to come the big loans.

We prepare hundreds of tax returns at The Hendrie Group, and we’re always surprised by the number of people with rental properties, but no income protection insurance.

A rental property is a huge investment in your long-term financial security, and no one wants to be in the position of having to sell in a downmarket because you’re unable to work for a while. It makes sense to spend a comparatively small - and tax deductible - amount to protect yourself.

Something I’ve always told my clients is that when it comes to property, if you need money quickly, you can’t just sell the bathroom, you have to sell the whole house. And times like these are a good example of why you don’t want to be forced into a position where you have to sell.

I have a very close friend who was diagnosed with breast cancer on Melbourne Cup Day last year, and she still hasn’t been able to return to work. And it looks like she won’t be able to go back to work until about June next year – that will be almost 2 years! Imagine two years unable to work. Fortunately she does have Income Protection, so can concentrate on getting well without having to worry about being able to service her debts, let alone her day-to-day living needs.

My advice to anyone that owns a rental property (or frankly, anyone earning $40,000 or more) is if you don’t have income protection cover, then you should explore your options. At the very least, you should be in the best position to make some informed decisions about your financial security.

Talk soon,
C

PS. I have oodles (technical term) more information on income protection insurance if you’d like to know more. Just email me at askcaren@hendrie.com.au.