COVID-19 and rental property

COVID-19 and rental property AMP Capital looks at what the coronavirus outbreak means for Australian rental property investors Australians love property. From beach houses to city apartments, suburban blocks to trendy townhouses, our continuing love affair with real estate shows no sign of fading, particularly when it comes to investing in rental property. But the coronavirus has thrown property investors a curveball that no-one saw coming. So, whether you own a rental property or you’re …

Property development in an SMSF: direct ownership | AMP Capital

Property development in an SMSF: direct ownership In the previous article on property development in an SMSF, we covered the main things that should be considered no matter what type of structure is used for the property development. This week we will look at a fund that has been instructed to purchase a property and owns it directly. When a decision is made for an SMSF to purchase or acquire a property, who the property …

The residential property market won’t escape the fallout from COVID-19 | AMP Capital

A cloud of uncertainty is hanging heavily over the Australian residential property market, as it is over most parts of the global economy. The simple truth is that we don’t know the end destination for this COVID-19 health crisis, and until we do, it is hard to predict the long-term effects on asset values. We can, however, read the indicators as they arise and at least gain an understanding of the dynamics currently driving the …

Have a property in your SMSF? COVID-19 relief could be on the table | AMP Capital

Have a property in your SMSF? COVID-19 relief could be on the table COVID-19 and possible rent relief for SMSF property tenants As the COVID-19 pandemic continues to affect our lives, SMSFs are impacted by its financial consequences. Not only do we see the downturn in share markets worldwide, but related or third parties who have leased property from SMSFs may end up having to default on rent. But what can be done where a …

Making the most of record low interest rates

Making the most of record low interest rates The Reserve Bank of Australia (RBA) took the cash rate to a record low of 1% in July, bringing mortgage rates to their lowest level in more than half a century. However, the low cash rate also means your money in the bank could be earning less interest. Why did the RBA cut rates? Rate cuts are a way for the RBA to help stimulate the economy. …

First dollars out of the wallet

First dollars out of the wallet Falling house prices and rising debt costs are causing financial stress for highly leveraged Australian home owners, impacting patterns of consumer spending. In light of this wallet tightening, investors should take care that their equity exposure is concentrated on those businesses capturing the first dollars out of the wallet each pay day. Where did all the wealth come from? During the upwards phase of the economic cycle, Australians took …

How to invest in property without actually buying one

How to invest in property without actually buying one You don’t have to be a landlord, deal with tenants or put a deposit down on a home to get your foot in the property market. While investing in property may be a dream of yours, saving for a deposit, dealing with tenants and paying off a mortgage mightn’t be. The good news is there are opportunities where you can invest in property without actually buying one, with …

Boom turns to bust – falling Australian home prices.

Boom turns to bust – falling Australian home prices. How far and for how long and what’s the impact on the economy? Key points Property prices in Sydney and Melbourne are likely to see top to bottom falls of around 20% as credit conditions tighten, supply rises and a negative feedback loop from falling prices risks developing.   Other cities will perform better having not seen the boom of the last few years.   Property …

Should your investment journey start with property?

Should your investment journey start with property? When you’re priced out of owning a home in your neighbourhood, is property investing a good solution for growing your wealth? Will renting for the rest of your life cost more and make you more vulnerable? We talked to CERTIFIED FINANCIAL PLANNER® professional Rebecca Fergusson, financial planner at Main Street Financial Solutions, about the pros and cons of property investing as a strategy for securing your financial future. …

A quick guide to property investment

A quick guide to property investment Not only is property the largest asset class in the world, for many Australians it’s also the largest component of their household wealth. Indeed, of the top five people listed on the AFR’s 2018 Rich List, three have accumulated their wealth through property investment. Part of the appeal of property has been that it has proven to be a great ‘store of value’ with prices rising over the long …