Rising interest rates and the change in interest deductibility rules are making a lot of investors to re-think their property investment strategy. A lot of our investor clients have recently sold or are looking at selling the existing stock to purchase new builds for obvious reasons.

New build properties are exempt from LVR rules, meaning you can purchase a new build investment property with as low as a 10% deposit as compared to a 40% deposit on an existing property. New builds are low maintenance, Interest can be claimed as an expense for tax benefits, and the bright line test is only 5 years vs 10 years on existing properties.

The team at Ray White AT Realty can help you to secure one of many new build projects they currently have on the go. This strategy may not suit everyone, Hence, it’s best to discuss your personal situation with a financial adviser and your accountant.

I also had a huge amount of people recently request the option of looking at a new bank now that their mortgage is coming up for renewal – or if it is coming up for renewal in the next 3-6 months. There is a significant amount of people coming off low-interest rates from 2021 over the next 6 months and they are wanting the best advice on what they should do going forward.

Lots of it has to do with your individual financial position and your future goals, but at the same time – there are lots of new deals & incentives the banks are constantly coming out with to bring you over to them as a customer.

For example, most banks are now offering 1% cashback on the total loan amount to come across. Some of the smaller banks are offering nearly 0.75% discount on their 1-year fixed interest rate, compared to the big four. But be careful of break fees, previous cash contributions or solicitors fees that may come up as part of leaving your old bank.

We can help you make sure we work these out correctly and make sure that the move is the right one. There are so many different deals available right now, one bank is even offering to cover the solicitor’s fees on top of the cashback as an even bigger incentive! (give me a call to find out who that is!).

We have also had a lot of clients asking about the new ‘ANZ Good Energy’ offer. If you haven’t heard of it before, basically what they are doing is offering up to $80,000 of additional lending at a 1% interest rate to purchase solar panels, double glazing, hybrid & electric vehicles etc as long as you have your existing lending on your property with ANZ, or would move your home lending to ANZ. That 1% rate can be valid for up to 3 years!

Overall, the moral of the story is to call us first. We are doing lots of refinancing to various banks at the moment for clients to get better rates & incentives. But more than anything else, we want to make sure the change is done for the right reason and links to your current & future financial position. These deals and incentives are changing every week too and we have this information so can keep you updated on the current state of play.

I trust that you have found that informative but feel free to give us a call if you need some help.Rising interest rates and the change in interest deductibility rules are making a lot of investors to re-think their property investment strategy. A lot of our investor clients have recently sold or are looking at selling the existing stock to purchase new builds for obvious reasons. 

New build properties are exempt from LVR rules, meaning you can purchase a new build investment property with as low as a 10% deposit as compared to a 40% deposit on an existing property. New builds are low maintenance, Interest can be claimed as an expense for tax benefits, and the bright line test is only 5 years vs 10 years on existing properties. 

The team at Ray White AT Realty can help you to secure one of many new build projects they currently have on the go. This strategy may not suit everyone, Hence, it’s best to discuss your personal situation with a financial adviser and your accountant.

I also had a huge amount of people recently request the option of looking at a new bank now that their mortgage is coming up for renewal – or if it is coming up for renewal in the next 3-6 months. There is a significant amount of people coming off low-interest rates from 2021 over the next 6 months and they are wanting the best advice on what they should do going forward. 

Lots of it has to do with your individual financial position and your future goals, but at the same time – there are lots of new deals & incentives the banks are constantly coming out with to bring you over to them as a customer.

For example, most banks are now offering 1% cashback on the total loan amount to come across. Some of the smaller banks are offering nearly 0.75% discount on their 1-year fixed interest rate, compared to the big four. But be careful of break fees, previous cash contributions or solicitors fees that may come up as part of leaving your old bank.  

We can help you make sure we work these out correctly and make sure that the move is the right one. There are so many different deals available right now, one bank is even offering to cover the solicitor’s fees on top of the cashback as an even bigger incentive! (give me a call to find out who that is!).

We have also had a lot of clients asking about the new ‘ANZ Good Energy’ offer. If you haven’t heard of it before, basically what they are doing is offering up to $80,000 of additional lending at a 1% interest rate to purchase solar panels, double glazing, hybrid & electric vehicles etc as long as you have your existing lending on your property with ANZ, or would move your home lending to ANZ. That 1% rate can be valid for up to 3 years!

Overall, the moral of the story is to call us first. We are doing lots of refinancing to various banks at the moment for clients to get better rates & incentives. But more than anything else, we want to make sure the change is done for the right reason and links to your current & future financial position. These deals and incentives are changing every week too and we have this information so can keep you updated on the current state of play.

I trust that you have found that informative but feel free to give us a call if you need some help.