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 …
It’s always fascinating to explore how property prices might move over the coming year. While short-term price fluctuations aren’t particularly relevant for long-term investors, this kind of analysis can be incredibly useful for those planning to sell or buy property in 2025. Last week, I joined James Kirby on The Australian’s finance podcast to dive …
Australia is likely heading for a federal election in May 2025, and as always, housing affordability will be a major talking point. Sadly, these discussions often end up more about rhetoric than effective policy change. However, at some point, a solution will have to be found. For property investors, who typically hold assets for decades, …
When it comes to property investment, many investors strive to strike a balance between the income and the capital growth a property generates, hoping to maximise both. However, I have written a lot about the fact that the income from a property, after expenses, probably won’t help you achieve financial independence. It’s the power of …
The average investment loan size stands at just over $600,000, which means that half of all investors borrow more than this amount to acquire an investment property. However, in my experience, most investors tend to spend less than $1.5 million on a single investment property. It’s important to note that many individuals own more than …
Changing the ownership of a property is typically cost-prohibitive. This is mainly due to the potential stamp duty and capital gains tax liabilities that can arise. Therefore, it’s vital to carefully consider the ownership structure right from the start. Once you’ve made that decision, it is likely that you will have to live with the …
There’s an endless stream of news articles discussing the economic factors that influence property prices: interest rates, unemployment, the supply of new homes, rezoning, and population growth – just to name a few. Having followed the property market closely for more than two decades, I have two observations to share. First, I’d love to have …
The main difference between property and shares lies in the depth and reliability of historical data. The share market offers extensive and dependable data, making it a valuable resource for financial decision-making. In contrast, property data often lacks the same level of reliability due to various factors, which I discuss below. Therefore, when making decisions …
When an investor first borrows to buy an investment property, almost always the rental income does not cover the associated expenses, including loan repayments. This means the investor will need to cover any shortfall out of their pocket each month. While you can claim a tax deduction for this shortfall (known as negative gearing), it …
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.