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April 22, 2020

What do decreasing infection rates mean for property investment?

The COVID-19 pandemic has been devastating for so many. Thankfully, there is some good news worth celebrating. Here are the facts: Australia's efforts to slow the spread are working Fewer people are testing positive In turn, these cases are infecting fewer additional people The "curve" is flattening Health Minister Greg Hunt said, “We’ve come down from over 25%, nearly 30% a few weeks ago, on a daily basis to the lower teens, to then below 10% and now below 5%.” So that's the good news. Here's the thing though... At the moment, there are some phenomenal investment opportunities due to…
borrowing capacity covid email header Uncategorized
April 20, 2020

Your Borrowing Capacity Has Probably Improved

The current historically low interest rates have bumped up the borrowing capacity for most people, which in turn is allowing them to get into the market. Increased borrowing capacity also allows people to release some of their equity, to help them through tough times. It's important to understand how banks lend money. They want to know who is borrowing the money. They want to know if you've got dependants and what the purpose of the funds is for. But as you can see in the image below of a bank calculator, banks are primarily interested in your cash flows. They're…
graph of the cash rate Uncategorized
April 20, 2020

The Property Market Turns Cash Flow Positive

Note: If you would like to learn about the impact of low interest rates, you may prefer to watch this video instead.   Globally, we have are facing some challenging times. But it's not all doom and gloom. There is some good news worth sharing, in particular for investors. This unique situation we are all in has created some amazing opportunities. Impact of low interest rates Let's first talk about what the impact is on our property market with regards to these record low interest rates. As you can see in the graph below, Currently we're sitting at 0.25% in terms…
coronavirus image Property Market
March 20, 2020

Coronavirus

The coronavirus (CoVID-19) has sparked a lot of questions from our clients about how this will affect the economy and property market. We put together this coronavirus property investment resource to answer these questions: How will the coronavirus impact the property market? How will it effect the economy? Is it a good time to buy? What if I can’t work or lose my job? What about the share market? How can I protect myself? How is AllianceCorp supporting the community? The media has created a lot of fear and panic. Our resource shows the reality of the situation using historical data.…
people walking Uncategorized
February 28, 2020

Q&A: What does walk score have to do with property?

Question: I keep hearing about “walk score” in relation to property. What is it and does it matter? Answer: Walk Score is becoming increasingly significant in terms of property value. Firstly, Walk Score is a measure of a community’s walkability. That is, how easy it is to walk from your home to key amenities - shops, parks, schools, work. Population density and block length are also taken into account. Walk Score ranks properties on a scale of 1 to 100 with a high Walk Score estimated to add between $30,000 to $50,000 to a property’s value. While the proximity of key facilities has always been important to homeowners and renters, it’s becoming even more…
LifestylePortfolio
January 17, 2020

4 tips to protect your lifestyle when property investing

If you're thinking about investing in property, you may have concerns about how this will impact your lifestyle. We want to build secure futures but we don't want that to mean we can't enjoy our day to day living. So I've created this video with 4 key tips to ensure your property investment doesn't negatively affect your cash flow. Have a watch and if you have any questions about cash flow, you can call an AllianceCorp Property Coach on 1300 728 838 https://www.youtube.com/watch?v=3VZx6fx5PLs
children Helping your Children
January 10, 2020

Q&A: Helping my kids get into property investment

Question: We have a few older kids now. We want to help them get into the property market but it's just getting very difficult. What can we do? Answer: If you have a look at twenty year-olds and home-ownership, it's actually on the decline. And it's only getting harder and harder due to affordability. So how do we help them? I've got three tips on this: 1. BE A ROLE MODEL You've got to do it yourself. If you want to get your kids involved in property investment, learn how it works. You may already have a home with some…
home with foreclosure sign FinanceProperty Types
November 28, 2019

Q&A: Protecting the Home

Question: We live in Melbourne and own our home. How do I protect our home if we invest in property? Answer: This is a really important question and a common concern. One of the first things I would say is don’t cross-collateralise. What does that mean? If you walk into a bank, and say that you want to invest in property, they’ll often recommend that you secure the investment loan against your home - providing your home as security. You don’t need to do that. Secondly, release your equity first. By releasing your equity first, through what we call a Master Facility, you will be able to cover all the…
Finance
November 13, 2019

5 unbelievable depreciation deductions & how they can lead to cash positive investment

I can’t wait to share 5 unbelievable depreciation deductions with you because I know this will give you an edge when investing.  Before I jump into that, I want to give you a quick refresher on what depreciation is, how depreciation deductions can benefit you and what on earth they have to do with the reality show The Block. So quickly, depreciation is when an asset loses value over time because of wear and tear. As a building gets older and items within it wear out, the ATO lets you claim depreciation deductions - sometimes in the millions. So where…
why dont women invest more image jen Finance
October 23, 2019

Why Every Woman Needs a Property Investment Strategy

There are so many reasons why every woman needs a property investment strategy. We interviewed AllianceCorp’s Marketing Director, Jenelle Paetow, who is also a property investor. We learnt how she got started, what’s holding women back and why all women need to start taking control of their financial future today.  What does the current landscape look like for female property investors?  At AllianceCorp we have so many female clients who are doing great things with Property Investment and the number is growing all the time.  There is an increasing number of single, young women in their twenties and early thirties…
interest rate cuts Finance
October 2, 2019

What Do Interest Rate Cuts Mean For Property Investors?

As you may know, on October 1st The Reserve Bank of Australia cut interest rates to 0.7% (down 25 basis points). I wanted to jump on here to talk about what this means for you, the investor. The rate cut today was widely expected and is a historic low. There is bipartisan support for the big four banks to pass the cuts on to you, the customer.  There is also strong reason to believe there may be further cuts ahead. This is an extract from the RBA statement: “It is reasonable to expect that an extended period of low interest…
Finance
September 30, 2019

Reduce your tax and save money NOW!

Over your lifetime, you lose a significant amount of money to tax. If you are on an income of $100k per year, that’s $26k tax a year - over ten years, that’s $260,000 down the drain.  The sad thing is, most people don’t need to pay anywhere near this amount. There are basic tax minimisation strategies to ensure that your hard-earned money remains yours. How can you reduce tax and save money? You can transform a negative cash flow from your investment property into a tax reduction strategy.  If you are on an income of $100k, just by owning 3…
Superannuation
September 26, 2019

Switch to a SMSF NOW!

Over the last few years, there has been a huge increase in the number of people who have opted for a self managed super fund (SMSF).  What is a self managed super fund?  A self managed super fund is a superannuation fund that somebody both runs and is a member of. In other words, the members decide where their super money is invested, meaning they have more control. These funds are sometimes referred to as DIY. Do self managed super funds perform well? Self managed super funds are now outperforming other types of superannuation funds, according to a new analysis…
Superannuation
July 23, 2019

Just 130k combined super could get you owning this property!

My client bought this property using his Self Managed Super Fund that only had $130k in it. Doesn’t seem enough? Well it is and he did!130k in your superannuation fund is more than enough to start your dream property portfolio! Clients are absolutely mind blown when we tell them this as they often receive advice saying it is near impossible unless you have at least 250k in your super fund. They always say they wish they had known sooner, they wouldn't have wasted so much time waiting! We work with financial planners and our finance team to enable you to…
Property Types
July 18, 2019

Buying House & Land Packages

When I started my business over ten years ago we used to mainly help our clients buy established properties in the inner suburbs of Melbourne and Sydney. While this was a GREAT strategy then and those clients saw their properties double in value, these properties are now out of reach for most investors. As the market changes, as investors we need to adapt with it and buying a house and land package is an AWESOME strategy for many reasons – a number of our clients have achieved over $140,000 growth in 2 years through buying house and land – all…
Locations
July 16, 2019

Buying Interstate

A couple of weeks ago I visited Brisbane and checked in on one of the estates where a number of our investors have purchased properties. I was really pleased to see how nice this estate was looking and that it has given our clients great returns.  But only a few kilometres down the road was another estate that was built purely to profit developers. Anyone who invested there is now kicking themselves.  Our clients can rest assured that when we help them buy interstate we conduct a huge amount of due diligence. This ensures that they are buying a premium…
Finance
May 21, 2019

The Deposit Power Program!

⚡ Our NEW ground-breaking Deposit Power Program that will have you owning properties in just months! ⚡ For instance, has the bank told you you do not have enough money to invest? Above all, are you put off and scared to make a move in property investment? 😨 Rubbish Not a day goes by where I do not hear something about the ever changing property market and the seemingly “impossible” chances for people to invest. So, I had to start up a program like no other. The Deposit Power Program. I designed this program for YOU! 🏠 After all, my goal…
Locations
May 7, 2019

You need to invest on the Sunshine Coast!

A HUGE mistake property investors make, is ONLY INVESTING in the one location but why not try the Sunshine Coast? WHY CREATE A DIVERSE PORTFOLIO? I had a new client come to see me last week who had bought three investment properties. Great! However, they were all in the same street! While this is better than doing nothing it all, investing in the one city exposes you to financial risk. IMAGINE THIS For instance, if you had $600,000 to invest in shares would you put it all in the one company? As you build a large portfolio your properties should…
Property Market
April 26, 2019

Property Types and Strategies

Often, people are wrapped up in the suburbs they want to buy in that will optimise their wealth. Sure, we all want that wealth creation but the issue is this. It is not found in the suburb we choose to buy in, but the type of property we choose to buy. There are many different property types and strategies out there on the market. They include, flipping, commercial, buy and hold, dual occupancy, developments, syndicates and the list goes on! CAN'T I JUST CHOOSE ANY STRATEGY? Choosing the WRONG strategy can cost you millions.  It is so CRUCIAL you choose…
Finance
April 11, 2019

Your Borrowing Capacity Explained

UNDERSTAND YOUR BORROWING CAPACITY In order to develop a large property portfolio, you need to be strategic with the types of properties you buy. Therefore, you need to understand the impact they will have on your future borrowing capacity. In other words, if you do not purchase correctly this can jeopardise your future in the market. YOU NEED A LARGE PORTFOLIO As I always say to my clients, in order to be a successful property investor (and by successful, I mean generating a passive income that is enough to retire on comfortably), you need to develop a portfolio of at…