Planning for property investing success in 2018
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Planning for property investing success in 2018


♪ Music plays ♪ A New Year is here and with it comes new opportunities. As we look towards the year ahead, it’s safe
to say that the landscape for property investing in 2018 will be a little different to what
we have experienced in the past. One of the key changes is an investor’s ability
to secure a loan. In recent years, the Australian Prudential
Regulation Authority have implemented measures to slow investor lending. In some cases, this has resulted in investors
requiring larger deposits to meet loan requirements, interest only loans are more difficult to
obtain and investors are currently being
hit with higher interest rates. The latest Housing Finance Statistics from
the Australian Bureau of Statistics released in December 2017 indicates that investment
housing commitments continue to fall. A half a percent drop occurred in October 2017
when compared with September 2017. This downward trend appears to be influenced
by a slowdown in investment in metropolitan areas rather than regional areas. Combined regional areas had a slight median
value increase to $355,000 in the December Home Value Index. This entry level price point and continued
growth in dwelling values could make regional areas worth considering for those looking
to invest in 2018. Given the changes occurring in the property
market, it is essential for investors to be as prepared as they can before making their
next purchase. One key factor that can’t be undervalued is
research. There is a substantial amount of resources
available on property investing that investors should make themselves familiar with. At BMT we provide a range of valuable tools to
assist property investors in crunching their numbers when making these investment decisions. One of these tools is our new online platform,
MyBMT. Users in MyBMT can research and monitor
key property metrics in any area, they can also access PropCalc
powered by homesales.com.au. This calculator allows users to calculate
the after-tax cash flow required to hold any property. PropCalc also has the ability to compare the
cash flow of multiple properties, save properties and monitor the real after-tax cash flow of
your property portfolio. MyBMT will keep users aware of any new infrastructure
or planned developments giving investors a good indication of the growth
potential in the area and things that may impact
on the future of their investment. Data sourced from MyBMT
suggests that users are looking at an average purchase price of around is $584,000 with Loan to Value Ratios averaging
78 per cent. An investor looking to purchase a property in this price range will require
a deposit of around $128,000. If successful in obtaining a loan, the median
interest rates available from a bank or lender that an investor would be looking at is 4.37
per cent. MyBMT data also suggests that the average
rental return for a property in this price range is $450 per week, or an
annual income of $23,400 showing an average yield of 4 percent. My BMT also allows investors to view, update
and download their depreciation schedules. Also, they can share their live
updated depreciation schedules with members of their investment team such
as their Accountant, their Property Manager and it’s all in one handy location. Discovering what deductions are available
has become increasingly important following the changes to depreciation legislated by the
federal government towards the end of 2017. The changes restrict the purchasers of second-hand
residential properties from claiming depreciation on previously used plant and equipment assets. Despite these changes, there are still thousands
of dollars in deductions available for investors to claim Obtaining a depreciation estimate from BMT
can help these investors to bridge the gap to determine a property’s
cash flow potential. The team at BMT Tax Depreciation are here
to help with any questions you may have. To arrange a free estimate of the likely deductions
on any investment property contact one of our experts on 1300 728 726 or
view our full range of complimentary tools at bmtqs.com.au. We value your continued support and wish you
all the best for a successful year ahead. ♪ Music plays ♪

One thought on “Planning for property investing success in 2018

  1. Hey Bradley
    It seems the Gvt did not allow or review our submissions. I am very disappointed by the Gvt lipservice responses to our concerns. I am putting my money into something else.
    I am wondering if the rule of grandfathering previously acquired properties applies to travel to inspect properties bought before this new rule.

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