Can I use an Automatic Acquisition Plan (AAP) to buy my first home, or does it have to be an investment property?
Yes, you can. To be eligible for the first home owners grant however, you must live in the property for 6 months before being able to rent it.
Some of my friends and colleagues are in the market for an investment property. Can I tell them about Massland’s AAP?
Absolutely! An AAP is available to anyone looking to start or grow their investment portfolio. In fact for every person you refer who settles on a Massland property you receive $2,500 in cash.
When do I have to start paying my mortgage payments?
As soon as your property is fully built and settled (also known as ‘registered and titled’).
What does ‘buying off the plan’ mean?
This means that the property has not yet been constructed. You are buying off the plans approved by Council.
When do I have to pay my deposit?
Once you have received unconditional finance from your lender.
What does ‘borrowing capacity’ mean?
Your borrowing capacity is the amount the bank is willing to lend you, based on your current financial position.
What things do banks/lenders look at to determine ‘borrowing capacity’?
A bank/lender should only assist you in buying a property you can afford. How much they will let you borrow depends on your income, assets, debts, liabilities etc. They will also look at your credit rating, length of time you have been in employment, your savings and spending history. In addition, they consider your ‘serviceability’. This is essentially the amount of money you able to put into the property on an ongoing basis, as a shortfall between your rent and mortgage payments.
Who will manage my property?
Massland recommends you appoint a professional, experienced property manager. This affords you the time and energy to look at further investments, without having to deal with small on-going issues. We do recommend you jointly screen your tenants and their references with your property manager, before agreeing to a rental agreement.
Does Massland recommend any financiers/accountants/solicitors?
We are happy to introduce you to our trusted team of advisors, who can assist you with all your needs.
What is PAYG Income Tax Withholding Variation?
PAYG Income Tax Withholding Variation (ITWV)applies to people on the PAYG (Pay As You Go) taxation system (almost everyone who is on a salary). It means that your employer is withholding the tax payable on your salary and sending it to the Australian Taxation Office on your behalf. This is of benefit you if you have tax deductible expenses, such as interest on an investment property, land rates, water charges, property management expenses, etc. Your employer, who doesn’t know about these tax deductible expenses, will usually withhold too much tax from your salary and at the end of the financial year, you will receive a tax refund for them. We highly recommend you always speak to a qualified accountant to assess your situation.
Do I need a specific type of financial structure to start investing (e.g. an individual, trust etc.)?
Everyone has unique circumstances – however as a general guide, if you are an employee and receive wages, the best (and most tax effective) option to begin with, is to purchase in your personal name. By also using an income variation to help fund the property investment, you’ll minimise any cashflow impact on your week-to-week living.
Does Massland give advice to experienced investors?
Yes. We offer specialised advice to experienced investors or people with ‘substantial assets’. In these instances, our knowledge of and expertise with different structures and estate planning can be of great value.
How do I know if I am in a position to invest now?
It’s easy. Simply complete a Financial Snapshot and send it into the Massland Property Team. They will be able to advise you of your current position, based on your Financial Snapshot.
Is the Financial Snapshot an application for finance?
No. The snapshot simply helps us determine whether you are in a position to purchase and if so, within what price range.
Why does Massland recommend capital growth focus properties to accelerate my portfolio?
We recommend this because you will be able to use the capital growth (or equity) from your property as a deposit for your next property, and so on, all without the need for saving or using hard cash. The process is able to be duplicated much more rapidly when focussing on high growth areas (i.e. those with population, economic and infrastructure growth), as opposed to a positively geared property, which focuses on weekly cashflow and is mainly only found in regional areas.
Why does Massland not recommend units and apartments?
Land appreciates, while buildings depreciate. For example, if you bought a unit within a 200 unit complex, you would only own a very small piece of land, i.e. one two hundredth. In addition, by buying units, you expose yourself to ‘fire sales’ – sales brought about by divorce or liquidation, that automatically lower the value of your property due to comparable valuations.
How do I secure a property?
To secure a property, simply complete an Expression of Interest for the property you have selected. Submit this to the Massland Property Team along with a $1,000 holding deposit and we will arrange for that property to be taken off the market for you.