Brenton Goodall - SONI Wealth

Did your parents teach you to save hard for a deposit to buy a family home, and work just as hard to pay it off?

Mine did.😀

Imagine if they bought 2 properties 30 years ago.

Property is a long term journey. The longer you hold the luckier you get.

Gotta love Melbourne!😎

One of many success stories!
There are many different people in different stages of their life's.
No 2 success stories are the same.
Congratulations to our clients for achieving such great results!

👉Today we share a success story of one of our clients and how helped them to begin their journey with limited savings.

𝗕𝗮𝗰𝗸𝗴𝗿𝗼𝘂𝗻𝗱:
✅ Our clients Daniel and Sara are a professional couple working in the IT sector who migrated to Australia in 2016.
✅ They bought their owner-occupier home in Melbourne in 2020.
✅ They had the aspiration to do better financially for themselves and were keen to learn and build their wealth through investing in property.

𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲
🚧 The biggest challenge they had was their limited savings, $15k to be precise.
🚧 The second challenge was that Sara was working in a casual job.
🚧 Third, they believed they would need to wait at least 2 more years for them to be ready to start investing.

𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆
📈 Our team analysed their profile and assessed their goals, cash flow, and borrowing capacity.
📈 Provided them with an actionable roadmap and a 5-year plan to get to where they want to be.
📈 With the help of our finance partner, we refinanced their home and managed to access the equity of $40,000.

𝗢𝘂𝘁𝗰𝗼𝗺𝗲
💰 Our team sourced an exclusive 4-bedroom House & Land package in a growing suburb and helped them secure it with less than a $40k deposit.
💰 Clients also embraced a savings target recommended by our team to save as a deposit for their next investment.
💰 While the first investment property is under construction, due to its location and it being an off-market opportunity, it has already grown in value.

𝐂𝐥𝐢𝐞𝐧𝐭 𝐅𝐞𝐞𝐝𝐛𝐚𝐜𝐤
✅ Daniel & Sara are amazed to see the sharp turnaround in their mindset from believing that they are a couple of years away before they can start to invest, to having secured an excellent opportunity within a space of one and half months after meeting our team.
✅The education our team provided, coupled with the well-defined roadmap, has helped them gain a wealth of knowledge and provided them with clarity for their investment journey ahead.
✅ They are waiting with excitement for the first investment to be completed by the end of this year and are actively looking forward to achieving their 5-year goal within 2 years.

𝐓𝐞𝐚𝐦 𝐒𝐎𝐍𝐈 𝐂𝐚𝐧 𝐇𝐞𝐥𝐩
If you are willing to start investing in property, Team SONI can help. A simple chat with our experts can clarify your questions and give you the confidence you need to get started. Book your Wealth Consultation today.



* Client names altered for privacy reasons.

Have you set your 𝐠𝐨𝐚𝐥𝐬?

Most of us have new year’s resolutions, right?

Though a very few of us end up sticking to the resolutions and following it throughout the year.

Why?

Having just a resolution is not enough. It is equally important to have a strategy or a plan to accomplish the task, and then take regular actions to achieve the outcomes.

Most Property Investors who have achieved success have followed a similar path. Setting up meaningful goals, breaking them into smaller bite sized tasks and continually working towards achieving them.

Without an actionable plan, a 𝐠𝐨𝐚𝐥 is just a wish.

Property investment is a long-term game. 𝐆𝐨𝐚𝐥 𝐬𝐞𝐭𝐭𝐢𝐧𝐠 helps provide the focus and commitment required to build a successful portfolio.

Have you set your 𝐠𝐨𝐚𝐥𝐬?

𝐖𝐡𝐚𝐭 𝐒𝐡𝐨𝐮𝐥𝐝 𝐁𝐢𝐥𝐥 𝐝𝐨?
#𝟓

🤩 𝐁𝐢𝐥𝐥 𝐡𝐚𝐬 𝐟𝐨𝐮𝐧𝐝 𝐚 𝐦𝐞𝐧𝐭𝐨𝐫!

After an introduction through a common friend and an initial conversation, he believes he has found someone who has achieved the results he wants and is willing to help.

For their next meeting, Bill has several questions he wants to ask.

Bill is really keen to get into the market and wants to buy a property straight away. After all he has already saved $100,000 for a deposit which to most is the hardest thing about buying a property.

Here is a summary of their first official meeting:

𝐁𝐢𝐥𝐥 : “What type of property should I buy?” Bill asks. Expecting to hear a one size fits all response, he was met with…

𝐌𝐞𝐧𝐭𝐨𝐫 : “Depends, what your long-term goals are?”
Nobody has asked Bill that question before…

𝐁𝐢𝐥𝐥 : “Why is that important?”

𝐌𝐞𝐧𝐭𝐨𝐫 : “It’s much easier to get somewhere when you know the precise way of getting there. But first you need to know where you are going.”

They spend the next hour figuring out what Bill’s 𝐬𝐡𝐨𝐫𝐭-𝐭𝐞𝐫𝐦 𝐚𝐧𝐝 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐠𝐨𝐚𝐥𝐬 are.

Bill is starting to realise that “there is a lot more he needs to learn.”

𝐆𝐞𝐭𝐭𝐢𝐧𝐠 𝐞𝐝𝐮𝐜𝐚𝐭𝐞𝐝 𝐢𝐬 𝐭𝐡𝐞 𝐤𝐞𝐲. There are so many factors that form part of a building a sustainable property portfolio.

His Mentor explained to him several factors such as - Deposit/Equity, Borrowing Capacity, Risk Profile, Money discipline, Cashflow and most importantly Mindset.

Bill has left the meeting with a smile on his face 😊
He is very keen to learn more next time they meet!

Stay tuned…

𝐖𝐡𝐲 𝐝𝐨𝐧’𝐭 𝐦𝐨𝐫𝐞 𝐩𝐞𝐨𝐩𝐥𝐞 𝐢𝐧𝐯𝐞𝐬𝐭?

Most of us attended school during the first 2 decades of our life.

And we were often taught to be good at studies which will help us get a good job in future.

During apprenticeships, university, and work placements we were eager to learn to master our craft in our chosen areas of interest, which will allow us to progress ahead at work and earn good income.

Why is it that we are never taught to make our 𝐦𝐨𝐧𝐞𝐲 𝐰𝐨𝐫𝐤 𝐟𝐨𝐫 𝐮𝐬?

That is a big reason why people are hesitant or scared to invest. Most do not understand investing knowhow and that leads them to believe, they can’t.

The truth is anybody who wants to put their money to work, can.

It’s about the developing the right mindset and getting educated. I have experienced the change myself and have helped many others along the way.

A friendly catch up for 45 minutes can change your life, it did mine 10 years ago! Reach out, if you are thinking about investing and I would love to help you out.

𝐖𝐡𝐚𝐭 𝐒𝐡𝐨𝐮𝐥𝐝 𝐁𝐢𝐥𝐥 𝐝𝐨?
#𝟒

Bill has decided that the 𝐛𝐮𝐲 𝐚𝐧𝐝 𝐡𝐨𝐥𝐝 strategy is the right way forward for him.

He has come a long way and has learnt so much, but there are still many more questions that have surfaced in the process of all his research.

Some of those questions are:

1. What type of property – a house, townhouse, or an apartment

2. Invest in a brand new/off-the-plan or an established property

3. Many questions in relation to finance such as - How much he should spend on his first property, how much can he borrow, does he need a pre-approval, how much deposit he will need, and the list goes on...

While he is getting clarity on some matters, many more questions are surfacing along the way. And it is getting increasingly harder for him to just ask his mates Mr. Google, Ms. Friends, and Mrs. Family.

Bill has realised one thing that he surely needs professional help to get him started on his journey to build wealth!

He is smart to realise that it doesn’t make sense to take advice off someone who hasn’t achieved the results he wants and is on hunt for a mentor/coach who owns a few investment properties himself/herself.

I can’t wait to tell you more about when Bill finds his Mr. Mentor!

It is an absolute pleasure to work with these remarkable women.

Thanks Ladies.

✨Happy International Women’s Day! Today, we take this opportunity to celebrate the achievements of women and wish all a very Happy International Women’s Day.

This year’s Women’s Day theme is 🙅🏻‍♀️ in recognition and celebration of the women and girls to honour their leadership and contribution towards a sustainable future.

At , we take pride in shaping inclusive work culture for women by providing equal opportunities, creating flexible working arrangements, and encouraging leadership to unlock their full potential. has a strong representation of women (50%) and we continue to focus on preserving the gender diversity.

We would also like to take this opportunity to give a massive shout-out to our female investors 👏 👏, who value their independence and are able to create a better future for themselves and for those they care about.

SONI Wealth strongly believes that people should have access to the same opportunities. We are truly committed to making a positive difference for Women every single day.

𝐖𝐡𝐚𝐭 𝐒𝐡𝐨𝐮𝐥𝐝 𝐁𝐢𝐥𝐥 𝐝𝐨?
#𝟑

Bill has decided that most of the population desires a roof over their head. For this reason, 𝐑𝐞𝐬𝐢𝐝𝐞𝐧𝐭𝐢𝐚𝐥 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 makes the most sense to him.

In the process of coming to this conclusion, he realises that there are more ways to invest in 𝐑𝐞𝐬𝐢𝐝𝐞𝐧𝐭𝐢𝐚𝐥 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 to count than he has fingers on his hands and toes.

He reaches for his pen and narrows down the list.

𝟏, 𝐑𝐞𝐧𝐨𝐯𝐚𝐭𝐞 𝐚𝐧𝐝 𝐟𝐥𝐢𝐩.

Good way to do a value add to “the worst house in the best street”.
Will take up a lot of capital, wouldn’t generate passive income and there is negative cashflow until it sells as there is no rental income during the renovation. Also, a gamble on the market conditions hoping for quick growth.

𝟐, 𝐒𝐡𝐨𝐫𝐭 𝐭𝐞𝐫𝐦 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐠𝐫𝐨𝐰𝐭𝐡 𝐨𝐫 𝐓𝐢𝐦𝐢𝐧𝐠 𝐭𝐡𝐞 𝐌𝐚𝐫𝐤𝐞𝐭.

Buy and sell for profit sounds great but the reality is that most people have not gained as much as they thought they would because the transaction costs are so high. Especially if you pay full stamp duty when you buy and agent fees when selling. Combining these two items you would need to make at-least 7% just to break even.

𝟑, 𝐁𝐮𝐲 𝐚𝐧𝐝 𝐡𝐨𝐥𝐝, 𝐓𝐢𝐦𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐌𝐚𝐫𝐤𝐞𝐭.

Although quick gains are attractive, real wealth has been achieved by most Australian property owners by holding for the long term. At a minimum, if held for one complete property cycle, it will more than likely be worth more than what was paid for it.

In the meantime, the rental income should pay for most of the expenses and any shortfall can be claimed against personal income during the tax returns.


Which path do you think Bill should take to invest in residential property?

𝐖𝐡𝐚𝐭 𝐒𝐡𝐨𝐮𝐥𝐝 𝐁𝐢𝐥𝐥 𝐝𝐨?
#𝟐

Now that Bill is satisfied by the numbers, 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 makes sense. He turns his attention to how he can build wealth via property investments.

Again, he asks his mates to realise that very few have invested in property. And out of the ones that have bought, most have old properties in undesired locations. They bought those because they were “cheap”, but those haven’t performed well for them.

As most of us do he turns to Google and is overwhelmed by the amount of ways to profit from property.

He grabs a pen and paper and narrows the search into 3 broad categories of property and starts identifying pros and cons for each of them.

𝐎𝐩𝐭𝐢𝐨𝐧 𝟏, 𝐑𝐞𝐬𝐢𝐝𝐞𝐧𝐭𝐢𝐚𝐥.

𝐏𝐫𝐨𝐬. Everybody needs a roof over their head, migration leading to more demand.
Less capital needed, meaning as banks consider property less risk and can have a higher Loan to Value Ratio.
Tax incentives claimable on personal income.
Good track record of long-term appreciation.
𝐂𝐨𝐧𝐬. Lower rental yield. Owner responsible for ongoing costs.

𝐎𝐩𝐭𝐢𝐨𝐧 𝟐, 𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐢𝐚𝐥.

𝐏𝐫𝐨𝐬. Generally higher rental yield. Tenant responsible for outgoing costs.
𝐂𝐨𝐧𝐬. Businesses moving away from traditional office and retail space and trending towards work from home and online retail business.
Cash to buy is higher as a percentage because banks will lend less money. In the banks eyes it has more risk.
Higher mortgage interest rates.

𝐎𝐩𝐭𝐢𝐨𝐧 𝟑, 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐚𝐥.

𝐏𝐫𝐨𝐬. Capable of large returns.
𝐂𝐨𝐧𝐬. Significantly large capital outlay. High risk. Heavily regulated.

What category of property do you think Bill should start with?

𝐖𝐡𝐚𝐭 𝐬𝐡𝐨𝐮𝐥𝐝 𝐁𝐢𝐥𝐥 𝐝𝐨?

Bill has done hard yards and saved up $100,000 over the course of few years.
He has it sitting in his bank account with minimal growth due to low interest rates and is contemplating to get better returns.
After chatting to his mates, he decides to invest the money. But where - Is the big question?

He runs some numbers.

𝐎𝐩𝐭𝐢𝐨𝐧 𝟏. Move the 𝐂𝐚𝐬𝐡 to a Term deposit. He gets a great deal at 2% per annum, and after 1 year has a total of $102,000, and after 2 years has $104,040 in his account.

𝐎𝐩𝐭𝐢𝐨𝐧 𝟐. 𝐒𝐡𝐚𝐫𝐞𝐬, Buy A Diverse portfolio of blue-chip stocks. Returning 10% per annum after 1 year he has a total of $110,000, and after 2 years $121,000.

𝐎𝐩𝐭𝐢𝐨𝐧 𝟑, 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲, Buy a $400,000 property with 20% deposit (or $80,000) and $20,000 settlement costs (stamp duty, fees etc.). So, he invests $100,000 of his savings and borrows the remaining $320,000 from the bank.

If the property grows in value by 5% per annum, his property would be worth $420,000 After 1 year and $441,000 after 2 years. That’s a return of $41,000 (assuming rent covered all other expenses) on an investment of $100,000.

Where do you think Bill should invest his money?

𝐌𝐢𝐧𝐝𝐬𝐞𝐭 𝐢𝐬 𝐧𝐮𝐦𝐛𝐞𝐫 𝟏.

When it comes to successful investing there is one aspect that rules over everything else.

𝐈𝐭'𝐬 𝐭𝐡𝐞 𝐰𝐚𝐲 𝐰𝐞 𝐭𝐡𝐢𝐧𝐤.

Mindset is the one element we must get right. If your mindset is set to “I can’t” achieve something or you believe that the task is too difficult, then the reality is that you won't achieve it. Your mind is already been made up.
If your mindset is set to “𝐡𝐨𝐰 𝐜𝐚𝐧 𝐈” achieve something, then you are more likely to head towards achieving that goal.

The good news is that you can condition and alter your mindset.

Start by learning from the people who have walked the path that you want to follow.

Are you willing to learn and change your mindset?

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐋𝐕𝐑 𝐚𝐧𝐝 𝐡𝐨𝐰 𝐭𝐨 𝐮𝐬𝐞 𝐢𝐭 𝐚𝐬 𝐚𝐧 𝐚𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞?

The Loan-to-Value Ratio (LVR) is the amount you borrow for a property, represented as a percentage of the value of the property. Your LVR is dependent on the value of the deposit you use; higher the deposit, lower the LVR.

Smart investors can use higher LVR to their advantage and accelerate their Property Investment journey. Let me explain that with an example:

An investor decides to purchase a $500k investment property.

𝐎𝐩𝐭𝐢𝐨𝐧 𝟏 - Under the standard 80% LVR, the investor would need $100k deposit plus additional closing costs (stamp duty & other settlement related costs) of approx. $30k, resulting in $130k out of pocket.

𝐎𝐩𝐭𝐢𝐨𝐧 𝟐 - Whereas going in with a 90% LVR, the investor would need only $50k deposit and $30k closing costs. Hence, saving on the $50k deposit which can allow it to be used for another investment, subject to the investor having enough borrowing capacity.

Higher LVR (>80%) does come at a cost known as LMI (Lenders Mortgage Insurance) but LMI can be added to the loan amount and spread over the length of the mortgage.


What type of investor are you and which option would you prefer?

The Work year has begun.

Ready and excited to be back to help my clients accomplish greater things this year.

Time to get going and start kicking goals.

I wish you all a wonderful year ahead.😀

It felt wonderful to be recognized with the "𝐓𝐞𝐚𝐦 𝐏𝐥𝐚𝐲𝐞𝐫 𝐨𝐟 𝐭𝐡𝐞 𝐲𝐞𝐚𝐫" award at the 2021 SONI WEALTH Christmas party.

To explain the shirt. The Dress code was Dressy Summer Casual. And it also helped in taking out the "𝐁𝐞𝐬𝐭 𝐃𝐫𝐞𝐬𝐬𝐞𝐝 𝐌𝐚𝐥𝐞" award 😊.

We had an awesome Celebration to see out the year. Thanks to the entire team at SONI Wealth. Feels proud to be a part of this fantastic team.

𝐂𝐨𝐮𝐥𝐝 𝐧𝐨𝐰 𝐛𝐞 𝐚 𝐠𝐨𝐨𝐝 𝐭𝐢𝐦𝐞 𝐭𝐨 𝐈𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐭𝐡𝐞 𝐂𝐁𝐃?

There is no doubt the way Australians live and work has changed considerably in the past 2 years.

With more people working from home we saw a shift from apartment living to the need for bigger space with townhouses and houses becoming a more popular option. Melbourne CBD also saw a decline in the rental demand and the rental returns over the last 18 months as lock downs and lack of migrants and international students affected the supply and demand economics. Having said that things have started to turn around.

Demographic shifts across the CBD have had rental prices level off as locals are finding it more affordable to live in the CBD where they have access to shops, pubs, cafes, stadiums all at their doorstep.

In further good news the number of property listings available for rent in the CBD have been falling rapidly. With the International students being able to return to Australia from 15 December 2021, there are signs for a much more positive outlook with significant increase in enquiries and faster leasing process.

We have also started to notice increase in rents at specific buildings with high demand.

When it comes to supply, it is true that there have been many completions of apartment buildings in the CBD. But the planning pipeline of CBD apartments paints a different picture. The supply of new apartments in CBD is extremely low and if the trend continues there is a good chance that we will see undersupply in the near future.

This might be a great opportunity for savvy investors with Melbourne CBD price points still relatively affordable with rebates and heavy discounts on stamp duty on offer meaning more money remaining in your pocket and potential for great cash flow options.

If you would like to know more about excellent opportunities to invest in Melbourne CBD, feel free to reach out.

𝟓 𝐐𝐮𝐢𝐜𝐤 𝐓𝐢𝐩𝐬 𝐟𝐨𝐫 𝐟𝐢𝐫𝐬𝐭 𝐭𝐢𝐦𝐞 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬.

Investing in property is one of the most effective ways to build wealth and exit the 9-5, but often it is difficult to even know where to start.

Here are some simple tips on how to get the ball rolling.

𝟏. 𝐒𝐞𝐭 𝐚 𝐠𝐨𝐚𝐥
It may seem simple but knowing where you want to go allows you to set the course and head in the right direction instead of just drifting through life with no end in sight.

𝟐. 𝐊𝐧𝐨𝐰 𝐲𝐨𝐮𝐫 𝐍𝐮𝐦𝐛𝐞𝐫𝐬 𝐚𝐧𝐝 𝐨𝐰𝐧 𝐭𝐡𝐞𝐦.
It is extremely important that you are aware of your cashflows that factor in the income and the expenses. Cash flow and cash management is a major factor for investing in property.
Do you know how much money you can save? If not, set a budget to at least identify all the gaps in spending where money has been allowed to escape.

Get disciplined. Again, it’s a simple thing but if you are not so good at managing money then now is a good time to learn.

𝟑. 𝐅𝐢𝐧𝐝 𝐚 𝐭𝐞𝐚𝐦.
It’s a real challenge to be proficient at all the elements that are required to be a successful property investor. The good news is that you don’t have to be an expert if you have the right team supporting you.

A team that communicates and works well together and is accountable to each other will no doubt add value to your portfolio by leveraging their combined skillsets and experience.

𝟒. 𝐆𝐞𝐭 𝐞𝐝𝐮𝐜𝐚𝐭𝐞𝐝
The bad news is there is no degree in building a property portfolio that can help you to retire early.
The education system is just not designed that way.

Good news is that there are many books, articles, and video’s out there to help. The hardest thing is deciphering all the available information and identifying what’s relevant to your goals.

Part of your Team should be a mentor, someone who understands what you want and is willing to teach you how to achieve it.

𝟓. 𝐓𝐚𝐤𝐞 𝐀𝐜𝐭𝐢𝐨𝐧
Now that you have a goal, managed your budget, found a team and got educated, the next thing to do is Take action.

There is no point putting it off and suffering from analysis paralysis as the market will keep changing whether or not you participate.

Remember, Time in the market is the most proven way to build wealth over the long term, the earlier you start, the longer you can hold, the luckier you get.
Reach out to learn how you can start your property investment journey.

𝐇𝐨𝐰 𝐌𝐮𝐜𝐡 𝐌𝐨𝐧𝐞𝐲 𝐝𝐨 𝐲𝐨𝐮 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐑𝐞𝐭𝐢𝐫𝐞?

Some people plan for early retirement, while others leave it too late to plan, that leads to extended working life or not having enough financial reserves to enjoy comfortable retirement life.

According to ASIC’s Money Smart, an average person at retirement age would need 67% of their pre-retirement income to live a similar lifestyle in retirement.

It means that someone earning $100,000 a year, would need approx. $67,000 to have a similar lifestyle in their retirement years as if they were still working. And they would need this $67,000 each year in their retirement.

Having a right plan or a strategy and starting early can make the difference in having a comfortable retirement or depending on external support for your daily needs.

One of the best ways to ensure a safe, secure and fun retirement is to start planning and investing as early as possible. And when you think about investing, what’s better than investing in property?

If you would like to learn more on how investing in property can set you up for comfortable retirement, please reach out and I will be happy to educate you on the how it can be achieved.

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐃𝐞𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐢𝐨𝐧?

Depreciation can be a very useful tool in a Property Investor’s toolbox. It is a tax deduction that can be claimed for the natural wear and tear of an income-producing asset over time, for example an investment property.

Different from actual costs such as council rates, maintenance and insurance, 𝗱𝗲𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝗮𝗻 𝗲𝘅𝗽𝗲𝗻𝘀𝗲 𝘁𝗵𝗮𝘁 𝗱𝗼𝗲𝘀𝗻’𝘁 𝗰𝗼𝗺𝗲 𝗳𝗿𝗼𝗺 𝘆𝗼𝘂𝗿 𝗽𝗼𝗰𝗸𝗲𝘁. It is just on paper. It is generally the 𝘀𝗲𝗰𝗼𝗻𝗱 𝗯𝗶𝗴𝗴𝗲𝘀𝘁 𝘁𝗮𝘅 𝗱𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 for property investors, after mortgage interest, though it is often missed.

The government offers incentives for the investor to help them improve housing supply, to cater to an ever-increasing population.

There are 2 parts that make up how much can be claimed each year, which comes from a document called as a Depreciation Schedule that needs to be compiled by a qualified Quantity Surveyor.

Once the property is built and available for lease, the depreciation on the build price of the property can be claimed @2.5% per year for 40 years. This is based on the build price of the property only and does not include the value of the Land. This Is Called, Capital works deduction.

The other Part is Depreciating Assets. Claiming the cost of plant and equipment as part of a new build or any cost of plant and equipment that you paid for. For e.g., Dishwasher, Carpet, and light fittings etc.

There are also options available on the method you use to claim these tax breaks i.e., Diminishing Value or Prime Cost.

Brand new properties have much higher tax depreciation benefits, and it is one of the keys to boosting cashflow for investment properties.

Depreciation is an extensive complicated topic, knowing more about it will allow investors to understand how it can be an advantage to building a Property Portfolio.

Reach out to learn more about Depreciation.

𝐀𝐭𝐭𝐫𝐚𝐜𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐛𝐞𝐬𝐭 𝐑𝐞𝐧𝐭𝐞𝐫.

The importance of attracting the most suitable Renters (formally Tenants in Victoria) cannot be overstated enough. The landlords (or Rental Providers) would love to have someone who can look after the property as if it was their own, who takes pride in the cleanliness, would report issues promptly and will pay the rent in full and on time.

The secret is to invest in a property that these potential renters would like to live in.

The new age Renters are not just interested in any property. They tend to redirect their views towards factors like quality of property, it’s convenience and access to cafes and restaurants, public transport, and other amenities. Newer buildings and housing estates with access to additional facilities like gym, pools, and parks are also a major attraction that the new age renters are happy to pay higher rents for.

By investing in properties that people want to live in, allows the investor a probability of achieving higher rental returns.

You also need the right property management team behind you to ensure the entire renting process is managed professionally.

Ultimately a lot of these points narrow down primarily to buy the right investment property in the first place. Having an expert team is the easiest way to ensure you have the best chance of success.

Reach out if you have any questions about attracting a quality Renter.

𝐃𝐈𝐘 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠?

There are few things that give you more satisfaction than completing something that you did from start to finish, rolling up your sleeves and giving something a red hot go.

Building a deck, restoring old furniture, installing a retaining wall or even a big project like home renovation.

𝐁𝐮𝐭 𝐢𝐬 𝐃𝐈𝐘 𝐚𝐥𝐰𝐚𝐲𝐬 𝐭𝐡𝐞 𝐛𝐞𝐬𝐭 𝐰𝐚𝐲 𝐭𝐨 𝐠𝐨 𝐚𝐛𝐨𝐮𝐭 𝐢𝐭?

For starters, one question I always ask myself - “Is that really worth my time”.
Spending 3 weekends digging holes for my retaining wall, when you could pay somebody with an excavator to come in and dig those same holes within a matter of hours. And do a much better job.

It’s no different in Property investing, it looks easy, but when you start to 𝐃𝐨 𝐈𝐭 𝐘𝐨𝐮𝐫𝐬𝐞𝐥𝐟 you start to realise that its often not that simple. We see people start without a plan, spend countless hours researching and finding properties and struggling to connect with the right team of professionals that can make the difference.

The vast majority of investors end up with just 1 rental property and they try and manage it themselves. There is nothing wrong with that, but the whole point of investing in property is to give you and your family more choices in life, not to take up more of your time.

The right team of Professionals will allow you to have to best chances of building and holding on to a successful Property Portfolio.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗟𝗠𝗜 𝗮𝗻𝗱 𝗵𝗼𝘄 𝗰𝗮𝗻 𝗶𝘁 𝗯𝗲 𝗮𝗻 𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲.

LMI or (Lenders Mortgage Insurance) is payable if the amount you borrow is more than 80% of the value of the property. It is often charged to the borrower in a one-off payment that can be included in the total loan amount at the time of loan settlement. The higher percentage you borrow the more LMI you will pay.

LMI is one of the only insurances you pay to cover the Lenders position. Not the borrowers.


𝗛𝗼𝘄 𝗰𝗮𝗻 𝘁𝗵𝗶𝘀 𝗰𝗼𝘀𝘁 𝗯𝗲 𝘂𝘀𝗲𝗱 𝗮𝘀 𝗮𝗻 𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲?

Simply put it can allow you to get an entry into the market 𝗾𝘂𝗶𝗰𝗸𝗲𝗿 and with a 𝘀𝗺𝗮𝗹𝗹𝗲𝗿 𝗱𝗲𝗽𝗼𝘀𝗶𝘁.

Let’s use an example. If Bob wants to buy a home for $500,000 and is a good saver who can save approx. $20,000 per year. It would take Bob 5 years to save enough money for a 20% deposit ($100,000) and avoid paying LMI.

Let’s not forget that there is a strong chance that property values could increase in that time, meaning he would need to pay more to purchase that property in the first place.

But if Bob is happy to pay LMI and Borrow 90% of the Value of the home he would only need to save for 2.5 years ($50,000) and take a loan for $450,000. LMI cost in this case may range from $8,000 - $10,000.

If property prices were to grow at a very conservative rate of 4% per annum. In the 𝟮.𝟱 years of saving the extra deposit to avoid the cost of LMI, it would have cost Bob approximately $50,000 of capital growth potential.

So now, in this example LMI does not sound bad at all and can be used as an advantage to get an early entry into property investing or to buy an owner occupier home.

Everyone has their own story and a unique situation. This example is just that. It is used just to represent that LMI could be advantages for someone looking to buy property.

Reach out if you would like to learn more about how to leverage LMI to build long term wealth.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗥𝗲𝗻𝘁𝗮𝗹 𝗬𝗶𝗲𝗹𝗱 𝗮𝗻𝗱 𝘄𝗵𝘆 𝗶𝘁 𝗶𝘀 𝗼𝗻𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗳𝗮𝗰𝘁𝗼𝗿𝘀 𝗳𝗼𝗿 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀?

𝗥𝗲𝗻𝘁𝗮𝗹 𝗬𝗶𝗲𝗹𝗱 can be a helpful indicator when evaluating your investment property’s returns. Rental yield simply means the 𝗜𝗻𝗰𝗼𝗺𝗲 you generate each year from your investment property as a 𝗽𝗲𝗿𝗰𝗲𝗻𝘁𝗮𝗴𝗲 of its 𝗠𝗮𝗿𝗸𝗲𝘁 𝗩𝗮𝗹𝘂𝗲.

While most investors chase capital growth, they undervalue the power of having good rental yields as that provides the cashflow for investors to be able to hold on to the property for long term.

If property prices grow at average 5% per year, it will take 14 years and 4 months for the property to double in Value. With an 8% average annual growth rate, it would take 9 years for the property to double in value.

So, the 𝗺𝗼𝘀𝘁 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗳𝗮𝗰𝘁𝗼𝗿 is to be able to hold on to your investment property until you achieve the desired capital growth. However, it is the rental yield that will help you to manage your cash flow while the property appreciates in value over that period.

Many investors fail to consider the 𝗽𝗼𝘄𝗲𝗿 𝗼𝗳 𝗿𝗲𝗻𝘁𝗮𝗹 𝘆𝗶𝗲𝗹𝗱. It is pointless to buy a property that you cannot hold on to it for long enough to realise its capital growth. To be successful what you really need is a 𝗯𝗮𝗹𝗮𝗻𝗰𝗲 in your portfolio.

We love educating everyone on simple principles like these and work with each client to strategize their investments, based on their financial situation. This ensures they build a balanced and sustainable portfolio.

Feel free to reach out to me if you would like to learn more.