Almost five years ago, I shared evidence that pointed to investment-grade apartments entering a growth cycle within a few years. That prediction hasn’t materialised as prices have remained relatively flat since 2020. But could that finally be about to change? My past work on this subject As noted above, I published a report in October …
Most investors tend to own property in their personal names. Regarding alternatives to personal name ownership, I have previously explained why I generally avoid using family trusts to own property – primarily due to higher land tax rates and the likelihood of not immediately benefiting from negative gearing. Additionally, last month, I discussed the potential …
Several businesses in Australia provide property planning services. Generally, a property plan starts by evaluating your borrowing capacity and cash flow. It then strategically allocates these resources towards building a property portfolio. This might involve borrowing to purchase multiple properties, diversifying across various property types, and possibly investing in different geographic locations. Typically, these property …
Rentvesting has become an increasingly popular strategy for wealth creation, especially as a response to the challenges of home ownership in major Australian capital cities. This approach involves renting where you desire to live while investing in property. It has emerged as an alternative to traditional home ownership, particularly with the rising issue of housing …
Typically, accountants tend to advise against using a private company structure to hold geared property investments. However, investors shouldn’t automatically dismiss this approach, as it can provide substantial capital gains tax (CGT) savings. Commonly cited disadvantages of a company ownership structure There are two main disadvantages of using a company structure for property investment: Although …
Since the start of 2020, property prices in relatively affordable regional markets have risen strongly compared to capital cities, partly driven by Covid lockdowns and higher interest rates. I have come across numerous posts from buyer’s agents on social media showcasing the strong short-term gains their clients have made. For example, “Bought this property four …
There are generally three ways to make money: through passive investing, starting, and building a business, and speculation. This blog primarily focuses on pure investing, which in simple terms, involves investing capital to achieve high returns with the least amount of risk. It’s crucial to distinguish between these approaches because they can sometimes overlap, complicating …
I have written a lot about the importance of investing in the highest-quality, investment-grade property that your budget allows. The quality of the asset you choose will likely have the greatest impact on its future capital growth rate over the long term. Simply put, you can’t expect above-average capital growth from an average-quality property. To …
In last week’s blog, I compared the financial and tax effectiveness of investing in property through your super (with borrowings) versus investing in property outside of super or sticking with the traditional approach of investing your super in an industry super fund, for instance (no gearing). I concluded that while the potential benefit of avoiding …
In recent years, borrowing by SMSFs has increased marginally from $24 billion in March 2019 to almost $27 billion in September 2024 – a modest growth of just 2% p.a. Most of these loans are repaid on a principal and interest basis, meaning investors are actively reducing their debt over time. However, the gross value …
Level 8, 31 Queen Street
Melbourne VIC 3000
Office: (03) 8624 4600
Postal: PO Box 475,
Collins Street West, VIC 8007
advice@prosolution.com.au
© 2025 Prosolution Private Clients
You can find our disclaimer, Financial Services Guides, Tax Agency disclosures, dispute resolution policy, CPD policy, and privacy policy here.