Navigate the rising tide of interest rates with confidence using our expert tips! In our latest article, "5 Tips To Manage Your Mortgage Repayments With Rising Interest Rates," we provide essential strategies to help you stay financially resilient. Discover proactive approaches to safeguard your budget, make informed decisions, and ensure a smooth mortgage repayment journey.
Six - Year Capital Gains Tax Rule can be game-changing in your wealth-building journey.
When it comes to capital gains tax (CGT), this rule can benefit homeowners who decide to rent out their property when they upgrade or move to a new home, temporarily or permanently.
How does it work?
If you own a property that is classified as your primary residence and then you choose to rent it out, you can continue to treat is as your main residence for up to six years. During this time, you wonโt be liable to pay CGT on any increase in the propertyโs value.
๐๐น๐ถ๐ด๐ถ๐ฏ๐ถ๐น๐ถ๐๐: To qualify for the six-year rule, you must have initially lived in the property as your main residence.
๐ง๐ถ๐บ๐ฒ ๐๐ฟ๐ฎ๐บ๐ฒ: The six-year period starts from the date you moved out of the property or when it was first rented out, whichever occurred first. If you move back into the property within a six-year period, it resumes its status as your main residence.
Tax laws can be complex, and individual circumstances vary. If you are considering utilizing this CGT benefit, it is best to consult with a qualified tax professional or an accountant.
When it comes to building wealth, tax benefits play a significant role and staying informed and seeking professional advice can help you navigate your financial decisions more effectively.
If you are seeking a trusted partner for your property investment journey, Team SONI can help! Reach out for a no-obligation consultation today!
PROPERTY INVESTMENT TIPS
Investing in Property is a significant step with long-term financial commitments, and here, emotions often come into the playโ. - Bindiya
The real estate market can indeed be an emotional rollercoaster, especially when buying your investment property or first home. It is natural for your heart to take the lead! So how do you strike the balance?
Our Relationship Manager, Bindiya, shares Four valuable insights on staying calm and making informed decisions based on her personal investment journey.
1. Stay Calm & Think Rationally
While our gut feelings have their place, they can also cloud our judgment, leading to costly mistakes. When overwhelmed, step back and assess the investment decision rationally. Conduct thorough research, analyse the market trends, and set clear investment goals.
2. Create a Non-Negotiable Checklist
Emotions may push you towards expensive features but knowing your non-negotiables upfront will helps you stay focused. Ensures that your decision aligns with both your desires and practical considerations. Be specific, realistic and flexible.
3. Stick to Your Budget
Emotions can lead to stretching beyond your financial capacity, resulting in an unfavourable financial situation. Calculate your monthly mortgage payment, property taxes, insurance, and other expenses to avoid guessing.
4. Seek Professional Advice
Consider starting your journey with a mentor or property investment expert. They provide valuable insights, market knowledge, and a level-headed approach. Their perspective can counterbalance emotional impulses and ensure informed decisions aligned with your financial goals.
If you are seeking a trusted partner for your property investment journey, Team SONI can help! Reach out for a no-obligation consultation today!
Australian Home-Owners sell and move every 5-7 years. Interesting right?
Moving houses isnโt just about changing addresses; itโs a journey of transformation, filled with new experiences, challenges, and opportunities.
From space constraints to career opportunities, letโs explore the motivations driving Australians to make the leap.
โ๏ธ๐จ๐ฝ๐๐ถ๐๐ถ๐ป๐ด ๐ผ๐ฟ ๐๐ผ๐๐ป๐๐ถ๐๐ถ๐ป๐ด
As families grow or shrink, homeowners may need a larger home to accommodate a growing family or opt for a smaller, more manageable property as children move out and independence grows.
โ๏ธ๐๐ต๐ฎ๐ป๐ด๐ถ๐ป๐ด ๐๐ถ๐ณ๐ฒ๐๐๐๐น๐ฒ
Lifestyle changes drive homeowners to seek new locations and amenities. Urban living offers convenience and proximity to city life.
โ๏ธ๐ฅ๐ฒ๐น๐ผ๐ฐ๐ฎ๐๐ถ๐ผ๐ป ๐ณ๐ผ๐ฟ ๐ช๐ผ๐ฟ๐ธ
Career advancement often requires relocation, prompting property changes as people move for work.
โ๏ธ๐๐ผ๐บ๐ฒ๐ผ๐๐ป๐ฒ๐ฟ๐๐ต๐ถ๐ฝ
Many move from rentals to homeownership once financially and personally ready.
โ๏ธ๐ก๐ผ ๐น๐ผ๐ป๐ด๐ฒ๐ฟ ๐๐ฎ๐ป๐ ๐๐ผ ๐ฏ๐ฒ ๐ต๐ผ๐บ๐ฒ๐ผ๐๐ป๐ฒ๐ฟ๐
Life changes, and so do interests. Homeownership can hinder travel and nomadic lifestyles. Some sell homes to fund adventures.
โ๏ธ๐๐โ๐ ๐๐ต๐ฒ ๐ฟ๐ถ๐ด๐ต๐ ๐๐ถ๐บ๐ฒ ๐๐ผ ๐ฐ๐ฎ๐๐ต ๐ถ๐ป
In Australia, capital gains tax exemptions and property value appreciation drive homeowners to sell, generating profits for education or new ventures.
No matter what the reason is for you to move, or if you are unsure if it is the right next step for you, Team SONI can help. Book your no-obligation consultation today!
TEAM SONI CAN HELP
If you are a renter looking for guidance to secure your first home and not sure where to start, Team SONI can help.
Book your free Wealth Consultation today. A simple chat with our experts can clarify your questions and give you the confidence you need to get started:
Youโll get an accurate understanding of your potential as a property investor.
We will help you define your financial goals together with realistic milestones.
Youโll discover personalised strategies to make your money work harder for you.
You will experience our proven system to help you reach your financial goals faster.
Why are most Australian investors unable to go beyond one investment property?
Have you ever wondered why so many Australian property investors seem to hit a roadblock after purchasing their first investment property?
Surprisingly, more than 70% of Australian Investors own just one investment property and approximately 20% own two investment properties. Less than 10% of investors have ventured beyond two investment properties.
So, what really holds most people back from investing in more than one property? Letโs find out.
NO STRATEGIC PLAN
Most investors fail often to have a well-defined plan. They donโt have their property investment goals defined before starting on their property investment journey.
Ask yourself this - What do you want to achieve with your investment? How much is your borrowing capacity? Can you comfortably hold on to the property for long-term?
You need to have clarity on many such questions before you purchase your investment property.
THEY LET EMOTIONS IN
The property market is cyclical, and it's easy to get caught up in the hype. Many investors make the mistake of buying with FOMO when the market is hot, or getting too worried when there are negative media headlines.
Investing in property is like investing in a business, and whilst it is ok to think emotionally, getting the right facts is essential in ensuring that emotions do not negatively impact your investment decisions.
NOT HAVING THE LONG-TERM MINDSET
Most investors in Australia sell their investment properties within the first five years as they are either focused on gaining short-term profits or influenced by negative media.
Trust the magic of compound growth! It doesn't matter when you buy a property, as long as you hold it for the long term.
THEY DEPEND ON DIY, RATHER THAN A TEAM OF EXPERTS
While DIY may work in many other areas of life, it may not be the best way forward when it comes to property investing.
Having a professional team can allow investors to learn from their experiences, mistakes, and successes, providing a much clearer roadmap for building a winning portfolio.
TEAM SONI CAN HELP
At SONI Wealth, our team is dedicated to helping you build knowledge, and prepare you to make the right investment decisions with confidence.
If youโre looking for the right partner in your property investment journey, reach out to us today!
Did you know that almost one-third of Australian households are renters, a number steadily increasing over the past decade? With rental prices soaring nationwide and vacancy rates hitting historic lows, the competition in cities like Melbourne is fierce.
Melbourne's rental costs have reached unprecedented levels, with houses averaging $480 per week and units at $436. The average weekly cost of rent in Melbourne now stands at $480 for a house and $436 for a unit.
Given the fierce competition in the rental market, it's understandable that renters are grappling with the question of how much of their income they should allocate towards rent. To determine this, you may consider using one of the rent-to-income ratios available. Letโs have a look:
Example: If you earn $3,200 per month before taxes, you should spend about $960 per month on rent.
The 30% rule is a general guideline that renters can follow, but you should also consider other expenses and factors. For example, if you have credit card debt or student loans to pay off, it may be a good idea to find an apartment with rent below 30% of your monthly income, so you can put more of your budget towards reducing your debt.
If youโre spending more than 40% of your income on rent, you could be experiencing rental stress.
Therefore, it's essential to consider your financial situation and goals carefully. By considering your income, location, and other expenses, you can find the right balance between affordable rent and achieving your financial goals.
Renting can be an excellent option for many, providing flexibility and convenience. By following these guidelines and considering your unique circumstances, you can make sure you're spending the right amount on rent.
If youโre a renter and looking for a property, reach out to us today!
We offer reliable renter selection, efficient maintenance, and transparent communication in all stages of the lease.
Our dedicated property managers will provide you with the best customer experience. Benefit from our negotiation skills and real estate expertise to maximize your returns.
Whether our clients are looking to purchase their own home or invest in their first (or next) investment property, the majority of people often hit a roadblock when it comes to borrowing money from the bank.
The key lies in understanding your 'Serviceability' โ i.e., your borrowing power, which determines how much the banks are willing to lend you. It's a crucial factor that can impact the properties you can purchase โ their type, number, size, and location.
So, what can you do to improve your borrowing power? Letโs explore some expert tips that have empowered countless clients to secure efficient loans from the bank.
Debt can be either good or bad for wealth creation.
Bad Debt
Bad debt includes non-income producing and non-tax-deductible lifestyle expenses, like credit cards, personal loans, and car loans, negatively impacting your borrowing power.
Good Debt
Good debt helps build wealth, generates income, and is tax-deductible, such as investment property loans and equity for investments.
Life's unpredictability can lead to financial distress, with mounting debt from credit cards, personal loans, and car loans. High-interest rates and repayments can impact future borrowing.
Some potential ways to deal with it include:
Consolidating more than one debt into a new loan with manageable repayment and loan terms.
Moving to interest-only repayment on home or investment loans for a while to increase cash flow to pay off high-interest loans.
Longer-term loans mean lower monthly repayments, which can be beneficial to boost your serviceability. However, it also means that the interest you pay throughout your loan can be higher.
For example, repayment on a $500,000 home loan with a 3% mortgage interest rate over 30 years Principal and interest repayment can be as below:
For 25 years loan term: $2,372 monthly
For 30 years loan term: $2,109 monthly
Remember, there are other ways to pay off your home loan faster apart from having a shorter loan term.
Your credit score plays an important role in how lenders will see your application. A credit score is one indication of risk. The higher the score, the stronger your application.
Some simple ways to improve your credit score:
Pay all your bills and loan repayments on time.
Avoid applying for too many loans within a short span of time.
Make payment arrangements with your lender if you are unable to make repayments on time.
Get your credit report at least once a year to keep a check on your score and watch out for any fraudulent activity that may have occurred.
The best way to inspect is to inspect your budget is by looking into your last three monthsโ bank and credit card statements and evaluating where the unnecessary spending is.
Below are some quick tips:
Stop digital subscriptions like Spotify, Netflix etc. that you may no longer use.
Review and see if you can get cost-effective options for your utility's suppliers, insurance etc.
If you have high credit card limits, you can consider lowering them as it will help increase your borrowing power. For example, a $10,000 credit card limit can reduce your borrowing capacity by almost $50,000.
While the tips are simple and it can really add value to your cashflow, trying to figure it out all on your own can be overwhelming. Seeking professional help from an experienced professionals can go a long way.
If you would like to find out more or speak to one of our Team members, Book your No-Obligation Consultation now.
We would love to help you make the decision with confidence.
If you are a young investor keen to kickstart your property journey, here are ๐ฑ ๐๐ฒ๐ ๐ง๐ถ๐ฝ๐ from Team SONI that will guide you on the path to success. ๐ก
The golden rule: Start early and hold onto properties for maximum benefits.
โEscape analysis paralysis in property investingโ. - Deepak Mehta (Wealth Coach, SONI Wealth)
Do your research, but donโt overthink it! Focus on key factors like location, quality property and rental potential.
โProperty investment is a marathon, not a sprintโ. - Mandy Meng (Co-Founder, SONI Wealth)
Practice patience, stay committed to your goals, and avoid making impulsive decisions based on short-term market fluctuations.
โUtilize leverage to start investing soonerโ. - Purvi (Property Assistant, SONI Wealth)
Learn how bank loans, government grants and incentives can expedite the acquisition of your first property.
โDonโt wait for the right time to invest in propertyโ. - Chirag Soni (Founder, SONI Wealth)
Timing the market is challenging. Focus on a solid strategy, start within your means, seize opportunities and hold on for multiple market cycles.
โDitch DIY approach, when investing in propertyโ. - Bindiya Parekh (Relationship Manager, SONI Wealth)
Partner with Property Professionals and leverage their expert knowledge and strategies to fast-track your property investment success.
We understand that building a portfolio of properties can take time, and often it is hard to do it alone.
At SONI Wealth, our team of experts lead by example when it comes to property investments. We have designed and executed an effective step-by-step system with our clients to guide and empower them to make investment decisions with confidence.
By implementing a tailored investment strategy, you will have a detailed roadmap to start and succeed in your property journey.
โ To learn more about how we can help you win as a property investor, book a free no-obligation Wealth Consultation today.
The Australian property market is constantly changing and so are property investors. Letโs look into some interesting insights:
๐ 15.7% of Australian taxpayers have an investment property.
๐On average, property investors own 1.28 properties.
๐ฅThe 50 to 64 age group is the most likely to own an investment property.
PROPERTY INVESTORS IN AUSTRALIA
Over half of Australian property investors are under the age of 50. Interestingly, the share of property investors aged 60 years and over has almost doubled in the last decade.
70% of investors still own only a single property, while 20% own two, and just 10% own three or more.
Professionals like lawyers and doctors account for the largest share of property investors, 22% of all investors.
The number of female property investors has increased by 20% in the last decade, with 47% of all property investors now being female.
The face of property investment is evolving, reflecting a diverse range of individuals from various age groups and professions.
At SONI Wealth, our team of experts lead by example when it comes to property investments. We have designed and executed an effective step-by-step system with our clients to guide and empower them to make investment decisions with confidence.
If you would like to use equity from your existing properties to get ahead with Property Investments and make the most of what you have, book your No-Obligation Wealth Consultation today.
Rentvesting is the strategy of building a property portfolio that allows property investors to rent and live in the location that suits their lifestyle needs while getting into the market and investing in property where they can afford.
In recent years, the term "rentvesting" has become increasingly popular. It simply means renting a property to live in while simultaneously investing in another property.
Rentvesting strategy is particularly very popular among younger generations. With rent rates at an all-time high, having achieved 11% growth nationwide in the last 12 months, young investors have a prime opportunity to get into the property market and reap the benefits of rentvesting.
It not only allows first-time property buyers to enjoy the benefits of living in a location that suits their lifestyle but also helps build equity in a property with better rental yields or capital growth prospects.
Letโs learn why Rentvesting can be a smart property investment strategy:
As a rentvestor, you can rent a place depending on your needs and budget. Rentvesting enables you to live in the area you want, without having to compromise on your lifestyle. It also gives you the flexibility to move from the location if it no longer matches your needs.
Buying own home in the location you prefer can be expensive and may take a while to save for the deposit. However, you can get an early entry into the property market by using rentvesting as a strategy. It allows you to purchase something that fits you budget now.
Owning an investment property can provide tax benefits which are often not available on owner occupied home. You can claim for expenses associated with the investment property such as interest on loan, maintenance, depreciation etc.
Investing in property can potentially provide capital growth over time, which can lead to increased wealth and financial security. While you continue to rent in your preferred area, building equity in your investment property could help you to secure your home a lot faster.
We have helped many Rentvestors to build wealth and diversifying their Investment Portfolio, while still living in their dream location.
RENTESTING - A ROADWAY TO GETTING INTO THE PROPERTY MARKET
If you are committed to starting or accelerating your property investment journey or looking to explore if Rentvesting is the right strategy for you, Team SONI can help!
Book your free Wealth Consultation today. A simple chat with our experts can help you clarify your questions and give you the confidence you need to get ahead. Working with our team:
โ Youโll get an accurate understanding of your potential as a property investor.
โ We will help you define your financial goals together with realistic milestones.
โ Youโll discover personalised strategies to make your money work harder for you.
โ You will experience our proven system to help you reach your financial goals faster.
Lender's Mortgage Insurance is a one-off, non-refundable fee that the buyer must pay to the banks if they have a deposit of less than 20% of the purchase price of the property.
This insurance protects the lender against the risk associated with the borrower's unable to meet the loan repayment requirement or if the property is sold for less than the outstanding loan balance.
It is important to understand that LMI protects the lender, not the borrower (or any guarantor), even though the lender will usually pass on the cost of LMI to the borrower.
๐๐
๐ฎ๐บ๐ฝ๐น๐ฒ
If you want to buy a house thatโs worth $500,000, the bank will usually require you to have a deposit of $100,000 (20% of the propertyโs value).
If you do not have enough deposit saved, you may still be able to secure the loan with a higher Loan To Value Ratio (LVR) of more than 80% by paying LMI. The cost of LMI can be paid as a lump sum. Some lenders may offer to add it to your loan amount.
Faster Access to Loans: It enables property purchasers to access loans for their home or investment sooner even when they havenโt saved usually requiring a 20% deposit.
Unlocking Investment Opportunities: LMI can help investors access equity from their homes to invest for further investments, enhancing financial flexibility.
Every home buyerโs situation and financial goals are unique. A bigger deposit will save you from paying the LMI premium.
On the other hand, if youโve found the property you want and believe the purchase price could rise before you save enough deposit for such a property, LMI may help you get into the market quicker.
โ
At SONI Wealth, we have designed and executed an effective step-by-step system to help our clients make investment decisions with confidence. We have helped our clients to venture into the property market with minimal savings, starting from as low as $20,000.
If you are keen to learn more, reach out to us today!
The FIRE movement stands for ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐๐ป๐ฑ๐ฒ๐ฝ๐ฒ๐ป๐ฑ๐ฒ๐ป๐ฐ๐ฒ, ๐ฅ๐ฒ๐๐ถ๐ฟ๐ฒ ๐๐ฎ๐ฟ๐น๐ ๐ฅ
Itโs a growing trend that is gaining popularity among people of all ages. The core objective of the Fire movement is to achieve financial independence at an early stage in life, allowing individuals to retire early and live a life of financial freedom.
๐๐ผ๐ ๐ฑ๐ผ๐ฒ๐ ๐๐๐ฅ๐ ๐๐ผ๐ฟ๐ธ?
To achieve FIRE, the most common approach involves saving and investing a large portion of your income, often up to ๐ณ๐ฌ%. By doing this, your wealth grows over time, eventually reaching a point where you can sustain your lifestyle solely from investment returns.
The goal is to generate enough ๐ฝ๐ฎ๐๐๐ถ๐๐ฒ ๐ถ๐ป๐ฐ๐ผ๐บ๐ฒ from their investments to cover their living expenses in retirement.
๐๐ผ๐ ๐บ๐๐ฐ๐ต ๐ฑ๐ผ ๐๐ผ๐ ๐ป๐ฒ๐ฒ๐ฑ ๐๐ผ ๐ฟ๐ฒ๐๐ถ๐ฟ๐ฒ (๐ฒ๐ฎ๐ฟ๐น๐)? ๐ฐ
FIRE principles suggest that you need to accumulate ๐ฎ๐ฑ ๐๐ถ๐บ๐ฒ๐ your annual expenses in investments. During retirement, it is recommended to withdraw no more than ๐ฐ ๐ฝ๐ฒ๐ฟ ๐ฐ๐ฒ๐ป๐ per annum from them.
๐๐ผ๐ ๐๐ผ ๐ฎ๐ฐ๐ต๐ถ๐ฒ๐๐ฒ ๐๐๐ฅ๐?
๐กSave as much as possible by cutting non-essential expenses.
๐กPrioritize paying off high-interest debts.
๐กSet a budget that aligns with your financial goals and stick to it.
๐กEstablish a detailed financial plan and budget to stay on track.
๐กSeek opportunities to increase your income, such as side hustles or career advancements.
๐กInvest consistently and strategically towards your retirement.
FIRE is not a one-size-fits-all approach. Achieving FIRE requires considerable discipline and financial sacrifice, and it may not be suitable for everyone.
However, even if you're not ready to fully commit to the movement, adopting some of its principles can significantly accelerate your progress toward your financial goals.
So, Is FIRE for you? ๐ฅ
Note: The term FIRE originated from the book "Your Money or Your Life" by Joe Dominguez and Vicki Robin, which discusses how to achieve financial independence and live a fulfilling life.
If you want to find out which strategy is right for you, we can help you. In our extended partner network, we have several mortgage brokers and home lending managers whom we can work with and find the best solution for your situation.
We help you lay the solid foundation for your finances by implementing tailor-made strategies that can not only help you pay off your home a lot earlier but also help you build a multi-million-dollar portfolio of investment properties.
To learn how you can make your money work for you and build wealth, book your 60-minute no-obligation and FREE Wealth Consultation NOW via this link https://lnkd.in/ezYrnFi
