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What Defines a Great Property Manager?

Posted on 3 October 2018 | by mmhadm

The Australian real estate market has been booming, with 2024 seeing significant rent hikes across the country. The median weekly rent in Australia is now at $627, which is 8.5% higher than this time last year.

This record surge in rent prices presents a great opportunity for you to maximise returns on your investment property. But with higher returns come greater responsibilities, and managing a rental property can be challenging, especially in such a competitive market.

To truly get the most out of your investment, you need a reliable and experienced manager who can handle everything from tenant screening to maintenance, rent collection, and legal compliance. A skilled investment property manager keeps your property well-maintained, tenants satisfied, and your income steady.

But how do you find someone so good?

Let’s find out.

6 Things to Look for in a Skillful Property Manager

1. Strong Communication Skills

One of the first things to look for in an investment property manager is their communication skills. As managers deal with property owners, tenants, maintenance workers, and real estate agents, their job heavily relies on proactive and professional communication.

Clear and prompt communication helps avoid misunderstandings, which is often at the heart of property management. For instance, if a tenant reports a leaky tap, a skilled manager will act quickly and inform both the landlord and the tenant about the next steps. This helps build trust between tenants and landlords.

2. Organisational Skills

With multiple properties under their wing, a property manager must stay organised. Handling maintenance requests, lease renewals, inspections, and financial reports require excellent time management and organisation. If these tasks aren’t managed properly, things can slip through the cracks, leading to bigger problems.

For example, in Australia, regular property inspections are legally required, especially when renewing or ending a tenancy. A good property manager must ensure these inspections are timely and thoroughly documented. While a property management software can help, the ability to manage everything without feeling overwhelmed is still a critical skill.

3. Knowledge of the Local Market

Setting the right rental price is perhaps the most important role of a manager, without which your investment property wouldn’t fetch the desired profit. A great manager knows the local market and understands what influences rent prices, like location, property size, and market demand.

Rental markets can vary widely from one suburb to another, even in the same city. For example, Adelaide’s rental market is vastly different from a small town like Gawler. So, your property manager should be aware of the ever-changing real estate regulations.

Failing to keep up with compliance can lead to hefty fines. But with a professional handling your property, you shouldn’t have to worry about changes in rules. This means staying updated on tenancy laws, rent controls, and bond regulations, which may differ between cities and states.

4. Financial Management

Your manager must be good with numbers. Investment property management involves collecting rent, managing a budget for repairs and maintenance, and handling invoices, which requires your manager to be good with numbers.

If your rent collection gets delayed or repairs go over budget, it affects the profitability of your investment property. Likewise, your manager needs to know how to handle security deposits in case of damages. All of this rests on meticulous record-keeping and transparency.

5. Tenant Management and Retention

Happy tenants tend to stay longer, reducing the cost and hassle of finding new ones. Your investment property manager should know how to maintain a good rapport with tenants.

This includes:

Promptly addressing tenants’ concerns
Ensuring the property is well-maintained
Conducting regular check-ins

While it’s not mandatory, your manager should also know how to screen tenants properly. It’s a standard practice to keep your investment property safe. As a professional, your manager should run background checks, review rental histories, and verify employment details.

When your tenants decide to leave, a skilled manager makes it as smooth as possible. This includes final inspections, returning bond money, and finding new tenants quickly to minimise vacancy periods.

6. Problem-Solving Skills

In investment property management, problems may arise from time to time. Whether it’s a broken vent, a dispute between tenants, or a delayed rent payment, your manager needs to solve them efficiently.

As a manager, they should not ignore any issues, even if it seems something minor like a noise complaint. Instead, your manager should mediate the situation and ensure the complaint gets addressed as amicably as possible. This means the manager must remain calm under pressure and find practical solutions that work for everyone.

Why Choose My Money House

A great manager will look after your investment property with due care and ensure that your investment property is maintained, and your tenants pay their rent on time.

At My Money House, our property manager will undertake the following tasks for you:

Utilise our superior web-based property management system to ensure your property is maintained.
Ensure that high-quality tenants are obtained.
Take pictures during inspections to assure you that your property is being looked after.
Maximise rental income and minimise maintenance costs.
Receive regular communication and routine inspections on your property.
Ensure superior returns through rent increases, low vacancy rates and a zero tolerance to rent arrears.
Obtaining quality tenants that are reference and employment checked.
National exposure through being Members of the Real Estate Institute in SA (REISA), QLD (REIQ), NSW (REINSW) and VIC (REIV).
Accessing a large network of renters in an up-to-date database.

Conclusion

A great property manager is more than just someone who collects rent. They communicate protectively, keep every aspect of your property organised, and keep your tenants happy. They also understand the local real estate market, stay updated on legal requirements, and keep your investment property in top shape. In short, they are the connecting link between maximising your returns and creating a positive experience for the tenants.

If you are a landlord in Australia looking for a great property manager, My Money House can help you. We are your one-stop shop for all things property management. Contact us to know how we can help you.

Why the Pension Is Not a Good Retirement Plan

Posted on 3 October 2018 | by mmhadm

The government-backed Age pension has been the bedrock of retirement planning in our country for decades. By March 2023, 63% of Australians aged 65 and over relied on income support, with 92% of them receiving the Age Pension.

But is this pension enough?

We live in a world where living costs are skyrocketing, and economic uncertainty is at its peak, which makes it challenging for most Aussies to survive on just the government-sponsored retirement pension plan. Although it promises a secure income for your retired life, it’s not enough for comfortable living in your golden years.

Let’s break this down for you.

5 Reasons You Should Not Relying on a Pension Plan

While a pension plan does offer a sense of security, depending solely on it is not a good idea.

Here’s why:

1. It’s Not Enough

By the time you retire, you are used to a certain lifestyle, which requires a steady income when you plan to retire. That’s going to be an ordeal when you are living on nothing but a government-backed retirement pension plan.

The current maximum government-age pension for couples is $40,004 a year and $26,535 a year for single seniors. Can you live on this amount of money?

If you have been working hard all your life, then this retirement pension plan will not sustain your current standard of living. You will need to consider saving for retirement to maintain your current standard of living.

That said, your superannuation funds may not be enough. Plus, there are conditions that you must meet to access your superannuation. You must be permanently retired at 55 to 60 (depending on the year you were born) to access your super with extra conditions attached. Once you are 65, you may access your super without being retired, but there will be conditions attached.

2. It Fails to Keep Up with Inflation

Although the government-back pension plan for retirement includes adjustments to cope with inflation, they often fail to keep pace with the actual increase in living costs. That means the real value of your pension payments can go down over time, forcing you to lower your standard of living. When your regular expenses grow faster than inflation adjustments, you may find it hard to afford even basic needs.

3. It’s Susceptible to Political and Economic Instability

The Australian government controls the pension plan for retirement. In other words, it may change when the economic and political winds shift. It’s not unheard of for budget cuts or economic downturns to lead to shutting down a government scheme altogether. This could mean you get a less-than-expected pension when the next government comes into power.

4. It Has Limited Flexibility

Another significant drawback of this retirement plan is the lack of flexibility. Unlike your savings or investments, where you have control over how and when you use your funds, the age pension provides a fixed amount determined by the government.

You cannot adjust your retirement income based on personal needs or life changes. This makes relying on the Age pension plan risky. It leaves you with no room to provide for unexpected expenses.

5. We Are Living Longer

Australians are living longer, which means you will have to rely on this pension plan for retirement a lot longer than you think. But as you age, your healthcare and lifestyle needs may change, requiring you to manage your funds more carefully. The meagre pension income may not be enough to support your changing needs. This might force you to rely on other sources of support, such as family or social services.

While the government-backed retirement pension plan offers security, it’s not enough to live comfortably. Other options like your super may not be easily accessible or have limitations in supporting your lifestyle after retirement. But if you want access to your finances when you need them for retirement, which is not dependent on your age, consider investing in property.

Why Property Investment Makes Sense for Your Retirement Plan

Investing in properties other than the house where you live currently is an excellent way to secure income for your retirement. It offers several benefits, such as:

1. Steady Income Stream

One of the most notable advantages of property investment is that it provides a steady income in your golden years. If you rent your property, you can get a fixed monthly income, which can increase annually. Conversely, selling your property can help you arrange funds for unexpected expenses.

2. Capital Growth

Real estate appreciates over time. The Australian property market saw its value rise for the sixth straight quarter, with Perth house prices increasing by 6.6%, reaching $852,240 for the June quarter of 2024. This growth provides a financial cushion for your future needs.

3. Inflation Adjustment

When inflation increases, the cost of living also goes up. But, unlike the government-backed pension plan, your property investments can adjust to the economic changes quickly and efficiently. With the right rental appraisal, you might be able to supplement your retirement income with a steady cash flow from your property. This can help you live more comfortably after your retirement.

4. Tax Benefits

Property investment may also offer tax benefits, depending on where, how, and when you invested. For example, if you own the property for more than 12 months and you’re an Australian resident, you may be entitled to a 50% discount of the capital gains tax. This typically makes property investment a more desirable option for your retirement pension plan.

How My Money House Can Help You Invest in Property

Property investment can be a lucrative option to build your wealth if you invest with the help of an expert like My Money House. We have a team of property specialists that can help you to do the following:

Figure out the right way to invest in property.
Understand the financial outlay required, your weekly contribution or weekly income to be received.
Identify the hot spots to invest in by using a property matrix formula.
Build an investment property using a turn-key solution.
Find the best finance.
Look for and manage your tenants.

Start Your Property Investment Today

Real estate investment can provide you with a steady retirement income. But if you aren’t sure where or how to invest in property, we are here to help. Our experts listen to your requirements, assess your current finances, and recommend an investment plan tailored to your goals and budget. This helps you put your best foot forward while securing your retirement.

For more information about how to invest in property, contact our team today.

Everything You Need to Know About House and Land Packages

Posted on 24 September 2018 | by mmhadm

There are 2 types of house and land packages which include:

Buy your land and secure a builder and construction loan – this is a more difficult option as you will have a contract to purchase the land and a contract to secure a builder
Turnkey packages which include the house and land with all the fittings and fixtures completed on the house – it is ready to move in

Turnkey packages are supplied by My Property House and include several options in different suburbs to suit the home owner’s needs. These turnkey packages are a fixed price for the house and land. There will be no nasty surprises during the build. A turnkey package will give you a new home without the stress of dealing with separate land and building contracts.

A turnkey package will have a list of items which are included in the build. You will also be able to select from a range of fixtures and fittings to suit your needs and style.

Everything that is included in the build will be covered in the building contract. You will know exactly what you will be getting.

For more information about house and land packages, call 1300 870 838.

Total and Permanent Disability Insurance

How do I Protect my Assets and Family for the Future?

Posted on 24 September 2018 | by mmhadm

So, have you ever asked yourself the question – how would you pay your mortgage and support your family if you got injured or sick and were unable to work?

We know this isn’t a pleasant topic to discuss, but securing your family’s future to cover your living expenses should anything happen to you is a MUST. There’s a lot you can do to protect your family and assets. But this process typically involves assessing your current financial situation, setting up a proper asset protection plan, and safeguarding your family from creditors and debtors.

At the end of this guide, you will know how to protect your assets and family.

Let’s get started.

Assess Your Current Financial Situation

Before you put an asset protection plan into place, you’ve to assess your current financial situation. Typically, this involved two steps:

1. Check Your Finances

The first step would be to take stock of your current financial situation. This means looking at your current debts, savings, income, real estate investments, and other investments. While this may seem simple enough, it’s an ordeal for around one-third of the Aussies who are not financially well-versed.

Whether or not you understand finances, you need to know where you stand. Taking this step will bring you closer to securing your future from any financial burden.

Here’s what you must do:

List all your properties, investments, bank accounts, and valuable possessions.
Get a clear picture of your income, including salaries, rent, investments, or other sources.
Define your liabilities, such as credit cards, mortgages, loans, and personal debts.

Use these details to define your current net worth, which will largely define your financial goals and asset protection plan. Knowing what you can afford helps you set realistic goals and stay on track for a better future.

2. Set Your Financial Goals

Everyone has different financial goals for the future based on their present commitments. For instance, parents are more concerned about investing in their children’s education. But for a young couple, saving up for their first house or a new car would be a top priority.

Whatever your situation may be, we recommend setting up three types of goals:

Short-term goals are about repaying your credit card debts, car loans, and student loans.
Medium-term goals include strategies like life insurance, income protection, trauma cover, or total and permanent disability cover.
Long-term goals focus on securing the future of your family, which involves buying your dream house, saving up for your children’s education, and securing income for retirement.

Create Your Asset Protection Plan

Once you know where you stand, you’ll have to come up with a realistic asset protection plan. There are different ways to protect your assets, from your business to your personal property, like your house and car.

But you’ve to follow a few cardinal rules:

1. Diversify Your Assets

Never keep all your eggs in one basket. That’s the first rule of asset protection. Spreading your investments not only reduces risk but also increases your chances of getting higher returns.

Like most Aussies, you can invest in:

Superannuation
Property
Company Structures
Shares (Equities)
Managed Funds and Exchange-Traded Funds (ETFs)
Bonds

2. Plan Your Estate Strategically

Estate planning is at the heart of your asset protection plan. With a well-defined estate plan, you can distribute all your assets as you wish and protect them from creditors and debtors.

You can use different strategies like:

Create a Will and nominate your heirs to avoid family disputes.
Build a trust and transfer all your assets in its name to protect your legacy.

While most Aussies create Wills, creating a Trust is a better way to protect your assets. A Trust takes effect immediately and helps you manage your assets while you are alive. It can help you handle accidents, disabilities and complex finances without stress, which makes it as important as getting income protection or life insurance.

3. Manage Your Debt

The sooner you can pay off your debts, the easier it is to protect your assets and your family’s future. But the reality is quite grim, with ASIC saying 5 million Aussies struggle to pay off their debts.

If you are struggling to pay your debts, you should consult a financial advisor as soon as possible. You might also want to approach your debt management more aggressively.

You should:

Repay your high-interest debts first, such as credit cards, to save money in the long run.

Combine all your debts into a single loan with a lower interest rate to make repayments easily and quickly.

Track your income and expenses using an app like Goodbudget or Frollo. This simple step will help you cut unwanted expenses and pay your debts faster.

Protect Your Family from Creditors and Debtors

While savings and pension can help, relying on this alone is not enough to protect your family’s future. You will need to keep your investments safe from your creditors and debtors.

Here are a few things you can consider:

1. Low-Risk Spousal Ownership

Low-risk spousal ownership is one of the most popular asset protection strategies. It involves transferring the ownership of your assets to your spouse. This strategy protects your assets from business risks and creditors if you fall into debt or get sued. It’s an excellent strategy for business owners, who are often at a higher risk of market fluctuations.

2. Invest in Different Insurance Covers

When you think of insurance, medical cover and life insurance are probably the two things that come to your mind. However, there are different types of insurance covers, meant to protect different financial aspects of your life.

These insurance policies include:

Life Insurance – a lump sum payment in the event of your death that will cover outstanding debt and the future costs of your family to live including education, childcare expenses, estate planning and business buyouts. There are a range of policies available to suit your needs.
Income Protection – covers 75% of your income should you be unable to work due to sickness or injury. This tailor-made product has different waiting periods and the premiums are generally tax deductible.
Total and Permanent Disability Cover – provides a lump sum benefit of up to $5 million in the event you become total and permanently disabled resulting from sickness or injury.
Trauma Cover – provides a lump sum benefit of up to $2 million if you are diagnosed with a specified medical condition (40 plus medical conditions are listed) and survive for 14 days after diagnosis.

Whether you want income protection or trauma cover, My Money House has a Personal Insurance Specialist on-site to help you to understand different insurance policies and how they are relevant to you.

Protect Your Family’s Future

As you can see, asset protection is a long game. But taking proactive steps now will help your family live without any financial burden in future. Starting today, you should consider diversifying your assets, planning your estate, paying off your debt, leveraging low-risk spousal ownership, and investing in different life covers.

That said, you don’t have to do this alone. MMH Group is here to help you. Our experts can help you choose the right policy covers to protect your family and assets. If you would like a quote for any of these policies, fill out the linked form.

How do I Secure My Income for Retirement?

Posted on 24 September 2018 | by mmhadm

When you are young, retirement is hardly on your mind. But like most Aussies, if you intend to retire between 65 and 67, you will need to have a proper retirement income plan in place. A well-planned retirement assures financial security in your golden years, which is all the more necessary with increasing lifespans and growing job insecurity.

Planning a steady income for retirement may seem daunting, but it doesn’t have to be. Whatever your retirement dreams may be, there are many ways to build a fixed income that supports your lifestyle.

In this post, we’ll help you understand how to plan your retirement income stream.

Let’s start.

Start Early

According to the Association of Superannuation Funds of Australia (ASFA), an average single person retiring at age 67 who seeks a comfortable lifestyle needs a retirement income of $48,074.77 a year, and couples need at least $67,049.86 a year. It’s easier to secure this income if you start planning your retirement in the early twenties.

For one, it reduces your financial stress, allowing you to set aside a budget for your retirement income without stretching your resources thin. Secondly, it helps your investments grow substantially over time thanks to the power of compound interest.

Another benefit is it allows you to pay off your debt early, ensuring a debt-free retirement. Early planning also helps you plan big-ticket expenses like your kid’s education, property investment, and healthcare without added stress.

Set Your Retirement Goals

Everyone dreams of a different retirement. While some aim to live modestly, others may want a more comfortable or high standard of living. Having a clear idea of what your golden years should look like helps you plan your retirement properly.

When planning income for your retirement, consider your:

Living Costs: What will be your daily expenses after retirement? This includes expenses like groceries, utilities, housekeeping, and food.

Healthcare Costs: Do you foresee any significant health expenses? You may not have any health issues at a young age, but you might need regular medication when you retire. Be sure your healthcare plan can cover these costs while your retirement income can pay for out-of-pocket expenses.

Leisure Activities Costs: How often do you plan to travel or eat out after retirement? Perhaps you want to take up piano lessons or learn to paint. Whatever you plan to do, factor those expenses in when planning your income for retirement.

Create Your Retirement Savings Plan and Stick to It

Once you know how much you need to set aside for retirement, you can create a savings plan. Whether $100 or $500 a month, whatever you decide to save, stick to your plan. Financial discipline is critical for planning your retirement.

Here’s what you can do to stay on track:

Monitor Your Expenses: Track all your daily expenses, even if a nickel and decide where you can cut back. Goodbudget, WeMoney, and PocketSmit are a few apps you can use to track and manage your daily expenses. Remember, money saved is money earned.

Start Investing: Set aside a specific portion of your income for retirement savings and investments. It can be 10% or 20% of your income, depending on your retirement goals. But while doing this, make sure to pay off your debts like car and home loan and credit cards. This helps you retire without any unrealistic financial commitments.

Don’t Put All Your Eggs in One Nest

Diversification is the cardinal rule of retirement planning. Don’t put all your income for retirement in one savings account or retirement plan. Diversify your investments as much as possible. It lowers the risk of your portfolio because different assets do well at different times.

Some of these options include:

Superannuation: It is considered the best income stream for retirement, with nearly half the retirees in Australia (48%) relying on superannuation in 2023. As this is your primary retirement savings account, you can invest more in your Super to benefit from compound growth.

Usually, your employee will contribute a portion of your fortnightly wages to your Super directly. But we recommend you choose the amount as it will help you meet your retirement goals.
Real Estate: Real estate can also serve as one of the best income streams for retirement. Unlike shares and mutual funds, real estate is a relatively stable class of financial assets. Plus, your investment property can fetch a higher value over time. Although you may have tax obligations, you can benefit from this investment in different ways.
Sale: You can decide to sell your property once you retire, which provides you with a lump sum retirement income.
Rent: Alternatively, you can rent your property and build a steady retirement income stream. You can use this regular income to pay for your living expenses or retirement activities.

Stay Informed and Adapt Your Plan

Planning income for retirement is a long-term goal, meaning you will need to keep up with the changing market trends, economic conditions, and personal circumstances. Every quarter, you can review your investment portfolio and see if you are on track. You can modify your investment strategy according to the changing market conditions and your finances.

Why Choose My Money House?

All you want is to have a good lifestyle in your retirement. So just how do you secure your income so that you can use it in retirement. My Property House can assist you with purchasing an Investment Property that can secure your income in retirement.

My Property House have a range of investment property packages that include residential properties in popular Australian suburbs. Property is a secure investment in the long term, is relatively simple to understand, and easy to leverage. My Property House can assist you to create a property investment portfolio by:

Teaching you to understand property as an investment.

Helping you in setting your budget and understanding your financial capacity.

Providing research and information on specific properties and their potential return on investment.

Guidance in understanding the numbers including cash flow, equity, negative gearing, and tax benefits.

Ongoing access to a team of professionals who can research the property market, and find you the best property and loan to suit your needs.

Manage your property portfolio to ensure high rental returns.

Talk to Our Property Investment Experts

Everyone deserves a comfortable, stress-free retirement, which begins with careful planning. If you start early, set your investment goals, maintain financial discipline, and diversify your investments, you can turn your dream retirement into a reality.

MMH Group can help you strengthen your retirement income plan with property investments. For more information about property investment and building your own property portfolio book a strategy session today.

How Do I Own My Own Home Sooner?

Posted on 14 September 2018 | by mmhadm

The great Australian dream of owning your own home may seem impossible, but My Money House can assist you to reach your dreams.
My Money House can work with you to understand what kind of home you can afford; the suburbs that you could afford to live in; and how you can own your own home sooner.
The best ways to own your own home sooner include:
• Set a realistic budget that you can follow and save money for a deposit or go towards your home loan;
• Work out ways to reduce your discretionary spend (money that you don’t have to spend) and put that money on your home loan or put it towards a home deposit;
• Consider ways to increase your income by taking on a second job, walking dogs, house sitting, baby-sitting, or selling your unwanted items on ebay;
• Take our Home Loan Comparison Test, your current home loan could be costing your thousands.
Remember, owning your own home is a goal and it will take time to own your own home. By reducing your discretionary spending and increasing your income you will own your own home sooner.
My Money House Consultants have worked with thousands of Australians to own their own homes. They can assist you to own your own home sooner.
Contact My Money House for an appointment today.

What is Rent Invest?

Posted on 14 September 2018 | by mmhadm

With property prices and interest rates rising, many Australians are finding it hard to buy their dream home in the area they love.

But rather than taking on a big mortgage, more people are choosing ‘rentvesting’.

Rentvesting, or rent investing, means someone rents a home in their preferred area while purchasing an investment property in a more affordable location. It’s a clever way to get into the market without sacrificing lifestyle. About 15% of renters in Australia are now ‘rentvestors,’ according to the Australian Bureau of Statistics (ABS).

So, what is rent investing? And is this the right step for you?

In this post, the My Property House team will explore rent investing, its risks and rewards, and whether it’s a good idea.

The Rent Investing Approach

Let’s say you’re currently renting in an expensive city like Sydney or Melbourne. You want to stay in the area, but purchasing a home there seems impossible.

Instead, you buy an investment property in a more affordable suburb or even a different state where the market has better prospects for growth. Meanwhile, you continue renting in the location you prefer.

Benefits of Rent Investing

Rent investing offers a range of benefits that make it an attractive strategy for many young Australians. Here’s what they are.

Flexibility to Live Where You Want: Renting and investing allows you to enjoy living where you want without the financial burden of owning a home there.
Potential for Higher Returns: By choosing growth areas, you can build wealth through property appreciation and rental income, even if you don’t live in the home you own.
Tax Benefits: Rent investing comes with financial perks, like tax deductions on loan interest, maintenance costs, and management fees. You can leverage these to make your investment more affordable.
Diverse Portfolio: Rentvesting allows you to spread your investment risk by owning property in multiple areas. This way, you benefit different market conditions and protect your investments from downturns in any one location.

Turning a Liability into an Asset: In renting and investing, the property isn’t just a cost—it’s a money-making asset. Rent from your investment can help cover your mortgage payments.

Who Should Consider Rent Investing?

Rent investing can be a smart move for:

Young professionals who want to live in bustling city centres, but can’t afford to buy there.
First-time buyers who want to get their foot on the property ladder without giving up their ideal living spot.
Investors who want the freedom to choose where they live and invest.

Finally, those unsure about where they’ll settle- perhaps due to job changes or family plans- can use rentvesting as a way to stay flexible while growing their financial future.

How Rent Investing Differs from Traditional Homeownership

Rent and invest is quite different from traditional homeownership because it separates where you live from where you invest. Most homeowners buy a property with the intent of living in it. In contrast, rent investors treat properly solely as a financial asset.

The shift in mindset is key to rent investing. You’re no longer tied to the idea that your home must also be your greatest financial asset. Instead, you choose properties that will give you the best return, regardless of where you want to live.

Risks to Consider

Like any investment, investing rent comes with its risks- and you must be aware of them.

Market Fluctuations: Property values can rise or fall over time. Picking a location with solid growth potential can help mitigate this risk, but no investment is immune to market changes.
Ongoing Costs: While rentvesting offers flexibility, you still need to cover costs like property management, repairs, and mortgage payments. These expenses can add up, especially if you’re managing multiple properties.
Vacancy Risks: If your rental property remains vacant for a long time, you’ll be responsible for covering the mortgage and other expenses out of pocket- which could put a strain on your finances.

What to Consider Before Rent Investing

Before jumping into rent investing, there are a few key factors to think about:

Financial Readiness: Make sure you’re in a stable financial position. You’ll need to manage both your rental expenses and the costs of owning an investment property, including mortgage payments, maintenance, and possible vacancies.
Property Location: Do your research on areas with strong growth potential. The right location can help you get a good return on your investment.
Long-Term Goals: Rent investing works best when it aligns with your long-term plans. Consider your financial and lifestyle goals, and whether rentvesting helps you achieve them.
Tax Implications: While rent investing offers tax benefits, it’s important to understand how they work. Consult a financial expert to make the most of these deductions.

Risk Tolerance: Are you comfortable with the risks involved, such as market fluctuations or vacancies? Make sure you have a plan to handle potential downsides.

Final Thoughts

Rent invest is a fantastic opportunity to enter the market and purchase a home and rent in an area you would like to live in, but may not be able to afford to purchase. It’s an increasingly popular strategy for younger buyers or anyone struggling to afford property in expensive areas.

My Property House can source a property for you that is in a suburb where property prices are likely to increase, and great tenants are easy to find. They can assist you in working out your finances and develop a home-owning strategy that will meet your needs.

The present tax system is great for property investors. You could get various tax deductions on your property investment and property maintenance costs. Our Property Specialists are aware of these deductions and how you can use them to become a homeowner.

If you are currently renting a home because you can’t buy a home, consider talking to a My Property House Consultant. They are experienced and have assisted many renters become property owners and realise the great Australian dream of owning their own home. To find out more contact My Property House today.

How Can My Money House Assist Me with The Best Home Loan?

Posted on 14 September 2018 | by mmhadm

It’s natural to feel overwhelmed when looking for a home loan. The average new home loan in Australia is $626,055, with an average interest rate of 6.27% p.a. That’s a commitment of repaying $3,863 a month over 30 years.

Given this situation, you would want to secure the best home loan when buying your dream house. That means selecting a home loan with repayment flexibility, the lowest possible interest rate, and adjustable tenure with minimal fees.

The good news is you have plenty of options, and with an expert home loan broker like My Money House on your side, you can find a loan that best fits your needs.

In this post, we’ll tell you how you can find the best home loan. But first, let’s go through the basics.

What Types of Home Loans Can You Get in Australia?

While a home loan is offered against the property you are buying, its terms and conditions can vary depending on:

The lender
Your credit score and income
Property size and location
Market conditions

Each lender will create its own products with specific terms and conditions. In Australia, you can typically come across the following types of home loans.

1. Fixed Home Loan Options

In a fixed loan, your interest rate remains unchanged for a set period. Most Australian banks offer fixed rates for 1-5 years, while ANZ bank and RAMS are the only major lenders offering 10-year fixed-rate mortgage products. The main benefit here is your initial payments are predictable, which helps you better manage your finances.

2. Variable-Rate Home Loans

In variable-rate home loans, your interest rate changes depending on the market conditions, and so will your payments. While you can benefit from the drop in the interest rate, your repayments would also increase if the rate goes up.

3. Split-Rate Home Loans

These home loans combine the benefits of fixed and variable-interest loans. You can nominate a portion of your loan to have a fixed interest rate, and the remainder will be charged a variable interest rate. You can split it 50/50 or 60/40 – the choice is yours. But be sure to consult your home mortgage broker or consultant before making this decision.

5 Things You Must Consider When Choosing a Home Loan

Choosing the best home loan is often easier said than done. With so many options available, you may feel overwhelmed and need more time to decide which mortgage fulfils your needs. But if you keep the following things in mind, you might come to a decision sooner than you think.

Here’s what you need to consider:

1. Interest Rates

It is the most critical component of your home loan. Usually, a higher interest rate means steeper monthly repayments, which may affect your bottom line. Australian lenders offer two types of interest rates – fixed and variable.

Fixed rates offer more stability with a set interest rate for typically 1-5 years, while variable rates can fluctuate with market conditions. You can also opt for a split-rate home loan, where one part of your mortgage attracts fixed interest while the remainder is charged a variable rate.

Whether a fixed, variable, or slipt-rate loan, compare the interest rates. You can use a loan comparison calculator or consult a home loan broker to decide which mortgage is more cost-effective in the long run.

2. Loan Term

The loan term is the length of time over which you agree to repay the loan. It typically ranges from 15 to 30 years in Australia. While a shorter term may seem attractive due to less interest paid over the life of the loan, it requires higher monthly repayments.

Conversely, a longer term will have lower monthly payments but more interest overall, making it expensive in the long run. You will need to understand your current financial obligations when deciding the term of your loan. If you can afford to pay more, go for a shorter term. But if you want to save more money right now, you can choose a longer home loan term.

3. Repayment Options

Lenders offer different repayment options, including principal and interest or interest-only repayments. Principal and interest repayments reduce your loan balance over time, while an interest-only mortgage lowers initial monthly payments but does not reduce your principal.

Use loan repayment and interest-only calculators to know which option best suits your requirements. You can also consult your home mortgage broker to understand your options. You shouldn’t have to make your ends meet while repaying the mortgage. It puts pressure on your financial and emotional well-being. Choose an option that aligns with your financial goals and current budget.

4. Fees & Charges

See if there are any extra charges or fees associated with the loan.

Most Australian banks charge different fees. If you are stuck with a lender who loves charging fees, they can quickly add up, making your home loan more expensive than you imagined.

Typically, you may have to pay:

Application or settlement fees, often ranging from $150 to $600 or more.
Around $100 to $300 in property valuation fees, depending on the type, location, and value of your property.
Conveyance fees, which may be anywhere between $500 and $1,000.
Ongoing maintenance fees ($5 to $15).
Annual fees ($200 to $400) and redraw fees that can be up to $50 per redraw.
Government charges and legal fees as applicable.

In addition to this, your lender may charge an early exit fee if you repay the loan within the specified period. Most lenders charge this fee if you repay your home loan within five years. It depends on your loan amount, term, and other loan conditions. Understand how these fees might affect your bottom line when deciding on your home loan.

5. Loan Features

Most mortgages in Australia come with features that offer flexibility and convenience. These may include offset accounts, redraw facilities, and flexible repayment options, which can help you manage your loan more effectively. An offset account, for example, can reduce the interest you pay by offsetting your loan balance with the money in your account.

When shopping around for a home loan, ask if the lender will allow you to make additional payments or change your repayment schedule without attracting fees. This helps you repay your loan faster without stretching your finances too thin.

How Can My Money House Help Me

The My Money House team is the expert in getting their customers the best home loan that suits their needs. All My Money House Finance Specialists are fully qualified and licenced. The team have assisted our clients in providing in excess of $850 Million in home loan approvals.

My Money House can assist you to get the best home loan by:

Understanding how much money you earn and how much money you can afford to borrow.
Talking with you about what kind of loan would suit your needs. For example, variable rate loans, fixed-rate loans, extra repayment facilities, redraw facilities, offset accounts, interest-only loans, guarantor loans, low doc loans, line of credit loans and non-conforming loans. My Money House Finance Specialists can explain to you the different loans available and discuss which would best suit your needs.
My Money House will take the hassle out of applying by completing the entire process for you, from application through to approval/settlement.
My Money House can also get your home loan pre-approved so that you know how much you can spend.

Final Thoughts

Getting the best home loan is possible if you know what and where to look. Always compare interest rates, lean features, loan term, fees, and repayment options when shopping for a mortgage. Remember, you don’t have to go through this alone. My Money House team is with you every step of the way.

We can help you get the mortgage you deserve. Contact a My Money House Consultant today to get your loan approved.