Target on trusts for tax perks

Target on trusts for tax perks

A new anti-avoidance rule announced in the federal budget put the kibosh on some aggressive tax-planning techniques. Relate to distributions from trusts, which is something the Australian Tax Office is also keeping a close eye on through its trust task force.

The measure is an anti-avoidance rule applying to circular (or round-robin) distributions by family trusts. Some trustees seek to make distributions through a chain of trusts so that the identity of the ultimate beneficiary is disguised and no tax is paid.

How will the Royal Commission impact your mortgage?

How will the Royal Commission impact your mortgage?

The Financial Services Royal Commission is currently underway and while the final recommendations are not due until early 2019, there are some likely outcomes that will have a significant impact on how much you pay on your mortgage and how much you can borrow.

Would you suffer financial hardship if your monthly mortgage repayment increased by 40%?

Would you suffer financial hardship if your monthly mortgage repayment increased by 40%?

Much has been written recently by the RBA, banks, rating agencies and financial commentators regarding the “looming crisis facing home owners and investors” as Interest Only Loan terms expire.

Back in 2010 when the great majority of ten year interest only loans were written, home owners would seek an equity release secured against the family home to pay the deposit on an investment property they were seeking to purchase.

Property Flipping Report

Property Flipping Report

Property “flipping” isn’t as popular as it once was in Australia, according to a new report from CoreLogic.

Yes, the process of buying a home, putting a lick of paint on the walls before attempting to sell it for a profit isn’t growing in popularity — despite an influx of television shows showing Australians how to do it each and every night — driven lower by high, and in many instances increasing, transactional costs.

Rethink tax on the family home

Rethink tax on the family home

Retirees are relying less on the family home as a sore of wealth in retirement, strengthening the argument to end tax rules that favour home ownership over other assets, a new report by think thank AHURI says. 

The share of owner-occupied housing in a retired household's asset portfolio fell from 46 per cent in 2002 to 39 per cent in 2015. Over the same time, property other than the family home grew to become the third-largest component of pre-retirement portfolios in 2014 from the fifth-most valuable in 2002.

Keep a close eye on credit availability to spot housing market turning points

Keep a close eye on credit availability to spot housing market turning points

It’s intuitive that housing market conditions would have a close relationship with credit flows; when funds are flowing freely and rates are low, home buyers and investors step up their presence in the housing market and when credit is harder to come by or more expensive, things slow down.

Since 2015, things have become a bit more complex, and the correlation between dwelling value appreciation and housing credit has become tighter; especially when measured against investment credit.

Airbnb: with growth comes mounting pressure on investors

Airbnb: with growth comes mounting pressure on investors

Australians are increasingly choosing to stay in rented houses or rented serviced apartments when they travel. Some 10.4% of travelers stayed in this type of accommodation on their last trip according to Roy Morgan travel research conducted in the year to March 2018. This is substantially higher than a decade ago when only 7.1% stayed in rented accommodation.

Ten most in demand suburbs in Australia

Ten most in demand suburbs in Australia

Across Australia, prices have increased by 6.3% over the year. Over the past quarter, however, we have seen a significant slowdown. Sydney and Perth are experiencing the biggest declines, yet there is a very different outlook for each. 

Dealing with late payments on a credit file

Dealing with late payments on a credit file

The recording of payment histories is now well underway in Australia.

This means that credit files will contain a lot more information about a person’s credit behaviour, one of the more controversial being the ability for a credit provider to record late payments. In the past, a credit provider could record a payment default given an account was more than sixty days late, however now they are able to record a delinquent payment in as little as 14 days after the account falls due.