Defencewealth in Canberra, Australian Capital Territory | Property investment firm

Defencewealth

Locality: Canberra, Australian Capital Territory

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22.01.2022 Regretful Sale - Priced below replacement cost for quick sale - Fantastic established investment opportunity in Toowoomba! Only 3 years old with great depreciation still intact and a 5.4% gross yield! Major projects and population growth still underway in Toowoomba and when combined with the international status of Brisbane West Wellcamp airport, this asset is set-and-forget for both yield and growth. https://www.realestate.com.au/property-house-qld-glenvale-1

22.01.2022 G’day All, 3-minute read Doom & Gloom Really?...Continue reading

20.01.2022 G’day All, Interest Rates Official rate remains on hold at 1.5%. Expect this to remain for most of the year. Actual mortgage rates however will be increased by the banks. If you’ve got relatively high debt spread across multiple assets, you’ve probably got until the end of the year to lock in a decent 2-5 year fixed rate at sub-5%. If you’re still in acquisition though and have ample buffer funds, then fixing may not be required. Get in touch if you’d like to discuss further.... DHOAS Some NAB DHOAS loans have come down to a 4.07% variable rate. If you’re currently paying more than this, it won’t hurt to call NAB and seek a pricing request. Market South-east Queensland still remains prime for investment. New estates to watch are within Sunshine Coast and Moreton Bay to the north and new estates east of the Ipswich CBD. Population is steadily increasing together with land price, rents and sales volumes. We still have packages available in the mid-$400K bracket that satisfy our investing and TWO-50-TEN strategy criteria. The Brisbane median house price is now also half that of Sydney at $540,758. With a strengthening commodities market (gas, iron ore and coal), and some major public and private projects (Adani coal mine and Queen Street Wharf upgrade), there is plenty of upside potential to be had, especially when the law of economic-rent is understood. Strategy The Defencewealth strategy of TWO-50-TEN is based on acquiring a $2million portfolio at 90% LVR over a 6-8 year timeframe. Once acquired we work to reduce the LVR to 50% over the next 4-7 years using a combination of capital growth, offset accounts and principal repayments. Once at 50% LVR, you will have some serious financial options but it will take time (10-15 years) to achieve. The types of properties we recommend are investment-grade based on experience and results and are selected for their balance in anticipated cash flow, capital growth and risk. Quote Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius - and a lot of courage - to move in the opposite direction - Albert Einstein Ripley Valley On Track To Receive $1.5 Billion Town Centre - http://modo.ly/2gdFjjq - http://modo.ly/2lUSREi

20.01.2022 G’day All, 2-minute read Quick reminder these updates are designed to help inform and educate on key things to monitor when investing in property. The aim is to help build a solid and sustainable wealth/capital base ideally early on in one’s career. Having an understanding of historical cycles will also aid in future investment decision-making. ...Continue reading

17.01.2022 Newcastle, New South Wales, like you’ve never seen #AusAirForce #Newcastle500

16.01.2022 G’day All, 2-minute read: Finance -Official cash-rate left on hold at 1.5% for May. This is the longest period in history that the RBA has left this rate on hold. Underlying inflation is still <2%. There is an expectation that wages and inflation will begin to pick up at the end of the year resulting in a possible rate rise....Continue reading

16.01.2022 G'day All, 3-minute read Interest Rates If you’re still considering whether to fix or split your lending (owner-occupied & investment), now is a good time to get onto it. Because the economies of Europe, Asia and the US are greatly improving, expectations are that interest rates there will be increased within the next 12-18 months. This affects us as Australian banks source a lot of their wholesale funding from these overseas markets. ...Continue reading

09.01.2022 G’day All, Well we’re well and truly into 2019 and a lot has happened in the property investment space over the last few months. Main events are the Banking Royal Commission and reports of the Sydney and Melbourne property slow-down. Royal Commission... Whilst this was a good thing and uncovered a lot of bad practices, bank shares actually increased after the final report was released. Pretty surprising and is an indicator that the market thinks that the worst is actually over for the big banks. It doesn’t look like any new laws will be introduced although consumers (you and I) may have to pay upfront in the future for lending advice. This will prove anti-competitive and end up shifting more power to the banks. We’ll have to wait and see for what happens after the federal election in May. Expect lending standards to still remain tight which will constrain supply and force up rents over time - a good thing for those that either already own property or who can qualify for new lending in the current market. Market Slow-down Yep, Sydney and Melbourne prices have come back in the last 12-18 months but this was anticipated and is very similar to what occurred in the late 90’s and early 00’s. It’s also one of the reasons why we have avoided recommending properties in these markets. Notwithstanding, residential rents in Melbourne and industrial property nationally are performing well. Only Sydney and Darwin saw rents fall in the last 12 months. Key affordable markets to watch remain south-east Queensland and Adelaide. Queensland defence industry has again been boosted with the Loyal Wingman by Boeing - https://www.thedailybeast.com/boeing-just-revealed-the-loya Although still at concept stage, if aircraft manufacturing does go ahead, it will further boost the Queensland economy and of course land prices. Going forward, we expect the commodity-based economies of QLD, SA, WA and NT to really begin leading around 2021-22. QLD and SA especially so with the submarine and frigate builds, emerging space industry, Land 400 and the large infrastructure projects planned in and around Brisbane. Strategy The Defencewealth strategy of TWO-50-TEN is based on acquiring a $2 million portfolio at 80-90% LVR over a 6-8 year timeframe. Once acquired we work to reduce the LVR to 50% over the next 4-7 years using a combination of capital growth, offset accounts and principal repayments. Once at 50% LVR, you will have some serious financial options but it will take time (10-15 years) to achieve. The new property packages we recommend are considered investment-grade based on experience and results and are selected for their balance in anticipated cash flow, capital growth and risk. Quote The best time to plant a tree was 20 years ago. The next best time is now Chinese Proverb

09.01.2022 G’day All, 1-minute read: Interest Rates... Official cash-rate was left on hold at 1.5% in February. There may be a rate rise towards end of year as employment, wage growth and inflation start to slowly pick up. There hasn’t been much movement in investor rates but I recommend fixed rates for the next 2-3 year period be explored depending on your personal circumstances. Serviceability and lending policies are still very tight. This will further constrain new housing supply (a good thing) but policies will eventually change and with it some solid capital growth if you can acquire now. Property Cycle The transition into the second half of the real-estate cycle is now slowly underway. Sydney values are very slowly losing steam and we can expect a shift of focus away from finance and services based economies (NSW & VIC) to the manufacturing and resources based areas such as QLD, SA and WA. This will take around 2-3 years to play out but opportunity is brewing. Broad 2018 expectations: -Sydney: prices lower by end of year -Melbourne: prices slightly higher by end of year (tends to lag Sydney by 6-12mths) -Hobart: probable double-digit growth (catch-up period after almost 10 years of zero growth) -Adelaide: prices higher by end of year (bulk of 10-year $200billion defence spend is in SA) -Perth/Darwin/Canberra: prices to remain stagnant (Perth & Darwin primarily resources-based economies) -Brisbane: prices higher by end of year (increased interstate migration, infrastructure and median price gap between Brisbane and Sydney is now at its widest in history). Strategy Always remember that property is a long-term play (min 10-years). Our TWO-50-TEN strategy and asset selection process is designed on this principle and based on experience. The aim of building wealth is to provide choice and manoeuvrability in the future. From the whole Defencewealth Team, here’s to a great 2018! If you or anyone you know would like to discuss finance (including DHOAS) or tax/accounting options, then please get in touch. Quote If you do not plan your future, someone else WILL plan it for you - Unknown Defencewealth Australia - http://modo.ly/2EZOC3F

07.01.2022 G'day All, 3-minute read Interest Rates:... Whilst the official RBA cash rate remains on-hold at 1.5%, you can expect investor rates to rise throughout the year to around 5% (discounted). Your risk profile will determine whether to fix, remain variable or split. Please get in touch if you'd like to assess your current lending. APRA have upped the ante on all investor lending and want to especially cap interest-only loans. Whilst getting a loan may become harder going forward, this is the natural real-estate and business cycle unfolding and is actually bullish. Time period is very similar to 1998-1999. Economy: There’s too much upside potential when you consider national commodity prices are increasing; Malcolm Turnbull talking up free-trade with India (the new China); QLD, NSW and VIC posting budget surpluses; national unemployment below 6% and property price growth in every capital and major regional city except Perth and Darwin. Whilst some markets are now super-hot like Sydney and Melbourne, they weren’t like this back in 2009-2013 when Perth and Darwin were all the rage. It really is peaks and troughs and the aim is to identify and get ahead of that economic growth curve as best we can whilst balancing the factors of cash-flow, capital growth and risk. Investor Education Part IVA Tax Avoidance: Word of caution to be weary of investment groups that promote the allocation of rent from an investment property to pay down your owner-occupier (non-deductible) debt and in return receive higher tax deductions because you’re also using borrowed funds (and claiming its interest) to repay the interest on the investment loan. Whilst the ATO can’t tell you how to spend your rental income, they will disallow tax deductions and impose severe penalties if an arrangement is deemed to fall within Part IVA. If unsure, please speak to your accountant or get in touch for a referral. ATO clear on tax avoidance schemes - http://modo.ly/2oZUh2d Strategy: The Defencewealth strategy of TWO-50-TEN is based on acquiring a $2million portfolio at 90% LVR over a 6-8 year timeframe. Once acquired we work to reduce the LVR to 50% over the next 4-7 years using a combination of capital growth, offset accounts and principal repayments. Once at 50% LVR, you will have some serious financial options but it will take time (10-15 years) to achieve. The new property packages we recommend are investment-grade based on experience and results and are selected for their balance in anticipated cash flow, capital growth and risk. Quote: The best way to predict the future is to invent it Alan Kay From all of us at the Defencewealth Team, we wish you and your families a safe and happy Easter!

07.01.2022 G’day All, 4-minute read: Interest Rates Official RBA cash rate remains on-hold at 1.5%. All lenders have now increased investor rates out-of-cycle to around 4.5% - 5.5% variable (discounted) especially on interest-only loans. If your risk profile is such that future rate rises are of concern, then a finance review to look at fixed rates is recommended. I personally prefer to remain variable for flexibility but will be looking to fix some lending over the next 12 months. Get ...Continue reading

07.01.2022 G’day All, 2-minute read: Firstly welcome and congratulations to our newest investment and owner-occupier clients! ... We’ve increased our partner network to now include trusted tax & accounting services as well as DHOAS lending through Australian Military Bank (AMB). Economy -Official cash rate remains on hold at 1.5%. The RBA meets again in February and consensus is for rates to again remain on hold due low inflation at sub-2%. -We expect improving economic conditions going into 2018. Trump got his tax cuts passed and Europe is powering along economically despite all the Brexit worry. Asian middle-class is strengthening which bodes well for Aussie tourism, agricultural exports, commodities and international student numbers. What happens overseas matters to us as Australia is well and truly part of the global economy. -Aussie banks will continue to capitalise on the improving economy and increased APRA regulations by independently raising rates (investor loans especially). I agree that now is the time to fix (strategy & asset dependent) and should be aiming for sub-4.8% interest-only or sub-4.2% P&I. Fixing for 3 years now should time well for an expected mid-cycle slow-down in 2019-20 where interest rates will likely drop momentarily. Property Market Key land markets to watch in 2018 are: -Greater Brisbane (heavy infrastructure spend) -Adelaide ($85 billion in naval spending) We'll be talking more about Adelaide in 2018 - http://modo.ly/2kBPoIP -Perth (cyclical low) -Townsville (Adani Carmichael mine flow-on effect) -Cairns (tourism and tight vacancy rates) and -Darwin (approaching cyclical low combined with defence, tourism and livestock increases). Sydney and Newcastle will likely plateau with Melbourne expected to increase for the next 12-18 months. On behalf of the Defencewealth Team and partners, I wish you and your family a very Merry Christmas and safe, prosperous New Year! As we recharge and refresh, I encourage you to take stock of what you’ve achieved in 2017 and we’ll be sure to hit the ground running in 2018! Quote The project you are most resisting carries your greatest growth - Unknown Strategy The Defencewealth strategy of TWO-50-TEN is based on acquiring a $2 million portfolio at 80-90% LVR over a 6-8 year timeframe. Once acquired we work to reduce the LVR to 50% over the next 4-7 years using a combination of capital growth, offset accounts and principal repayments. Once at 50% LVR, you will have some serious financial options but it will take time (10-15 years) to achieve. The new property packages we recommend are considered investment-grade based on experience and personal results and are selected for their balance in anticipated cash flow, capital growth and risk.

06.01.2022 G’day All, 2-minute read: Interest Rates -The RBA July cash rate remains on-hold at 1.5%. ... -Australian lenders source a lot of their funding from overseas and interest rates globally are now rising. -We can expect lenders to now begin lifting rates as has already begun with the majors. -Now may be a good time to discuss the merits of fixing over the next 2-3 years remembering that P&I is the new norm for investment lending. Also don’t forget we can also assist with your DHOAS home loan requirements through Australian Military Bank! Federal Budget -Main take-aways are no changes to negative gearing (ability to claim expenses related to your investment property against other income) -Developers will no longer be able to claim deductions on vacant land. -This does not affect future clients who build a new investment property under a two-part (house & land) contract with the clear intention to rent it out. The other big mention is $75 billion in national infrastructure spending. Land owners in vicinity of these projects will reap the greatest increases in land values and therefore personal wealth. Tax Time -It’s upon us once again. Make sure you’re claiming your full deprecation entitlements and don’t forget that travel to visit an IP is no longer deductible. -If you’d like a quote to process your ADF and investment property tax return, please get in touch as the team based in Sydney has some very good packages available. Market -As mentioned previously, we are slowly moving into the second phase of the real-estate cycle, but not before an anticipated slow-down in 2019-21. -From there we will see a growth-shift towards the commodities producing economies of QLD, WA and NT. -South Australia will also bode well with the submarine and future frigates projects being confirmed (approx. $85billion). -Terry Ryder’s article below sums up nicely the relationship between economy and land value and you will do well to spot this early and acquire where you responsibly can. Strategy The Defencewealth strategy of TWO-50-TEN is based on acquiring a $2 million portfolio at 80-90% LVR over a 6-8 year timeframe. Once acquired we work to reduce the LVR to 50% over the next 4-7 years using a combination of capital growth, offset accounts and principal repayments. Once at 50% LVR, you will have some serious financial options but it will take time (10-15 years) to achieve. The new property packages we recommend are considered investment-grade based on experience and results and are selected for their balance in anticipated cash flow, capital growth and risk. Quote The few who do are the envy of the many who only watch Jim Rohn https://www.propertyobserver.com.au//85750-terry-ryder-sta

06.01.2022 Fantastic acquisition in an early-stage estate close to amenity and infrastructure and leased on a 4.6% gross yield

03.01.2022 G’day All, Interest Rates Official rates in the US were increased by 0.25% (to 0.75%) due to an improving economy and unemployment rate. Expect that interest rates here in Australia have now reached their bottom. The RBA may cut again by April 2017, however the banks will be reticent to pass this on. I now recommend we start looking into 3-5 year fixed rate options (including splits) over the course of 2017. ... Before doing so though, ensure that your medium-term strategy accommodates a fixed-rate option especially if you’re still in Acquisition phase. Break-costs associated with breaking a fixed-rate loan can be expensive although if you fix prior to a major rate hike, then these costs won’t be incurred. Key take-away - If you can lock in a 3-year rate at less than 4.5% interest-only then I’d be doing so remembering that the gross rental yield we aim for in all our investments is 4.5%. Feel free to get in touch with us to see what your options are. South-East Queensland This market is still ticking all our investment boxes. Latest announcements are a $1 billion surplus in the State budget (thanks to a coal comeback), the go-ahead of Adani’s Carmichael coal mine (to be world’s largest), first stage of Ipswich City $150 million redevelopment and continued expansion of RAAF Amberley with arrival of approx 2000 extra personnel over the coming years. There’s also still a lot of activity going into Gold Coast infrastructure in preparation for the 2018 Commonwealth Games and the Sunshine Coast is not far behind especially with the University Hospital and Kawana health precinct. As always, land value will absorb this increase in economic growth. We just need to put a business (housing) on top of it so that we can afford to hold it. Price-points in this market are still also affordable compared to Sydney and Melbourne. DHOAS Some push-back recently about the NAB and their refusal to lower DHOAS interest rates below 4.35%. Defence Bank now have a 3.95% comparison rate offer on DHOAS loans plus $1600 cash-back if applied before 31st December. If you currently have lending with Defence Bank, it may be worthwhile putting a call in to see if they can also lower your current rate. DHOAS Home Loans - Defence Bank - http://modo.ly/2hGXehA Merry Christmas! From all of us at the Defencewealth team, we wish you and your family a very Merry Christmas and safe, prosperous new year! As always, please get in touch if you’d like to start looking at your property investment and finance options over the holidays. Quote Wealth is like energy. It can never be destroyed. It simply transfers from one entity to another Mike Maloney

02.01.2022 http://www.realestate.com.au/property-house-qld-ripley-4194

01.01.2022 G’day All, Interest Rates The official cash rate has been kept on hold at 1.5%. Some analysts expect another cut in November but will all depend on inflation data. Majority of interest rates on investment lending are around the 4.2-4.5% range with some lenders offering sub 4% if packaged with an owner-occupied loan. If you currently have a NAB DHOAS loan greater than $250K your target rate should be 4.4% or below....Continue reading

01.01.2022 G’day All, 3-minute read: Interest Rates Although the RBA cash rate remains on-hold at 1.5%, lenders are still increasing their investor loan rates out-of-cycle. I believe there is merit now to seriously consider fixing your investment lending for the next 2-3 years. This will shield against further out-of-cycle rate rises brought on by APRA and the federal government’s new bank levy. ...Continue reading