Investopoly
Episodes
Why blue-chip property values will rebound by > 10% in 2021
22 Sep 2020
Contributed by Lukas
n May, I wrote a blog after CBA released its bearish ‘worst case’ forecast for the property market. It predicted a 32% drop in prices! I outlined ...
How long will your super last after retirement?
16 Sep 2020
Contributed by Lukas
The compulsory superannuation contribution rate is set to increase by 0.5% each year for the next six years (i.e. from 9.5% to 12%) beginning from 1 J...
It's not the size of the return, it's the length that matters
10 Sep 2020
Contributed by Lukas
Investing well is important. However, investing well over long periods of time is most important.Everyone would agree that making a one-time 50% retur...
How to tell if your accountant is missing valuable opportunities?
01 Sep 2020
Contributed by Lukas
The difference between a great and an average accountant can be significant. Not only is tax one of your biggest annual expenses, but a great accounta...
Why the next property you buy is the most important one
26 Aug 2020
Contributed by Lukas
This blog’s title is a bit deceptive, because every property you buy is important, for either lifestyle or financial reasons.I contemplated using th...
Property data is not always right, or helpful
19 Aug 2020
Contributed by Lukas
My professional life has been all about “the numbers” for more than two decades! So, as an accountant and financial advisor, it pains me to say th...
5 steps to (safely) maximise your borrowing power
12 Aug 2020
Contributed by Lukas
Slides - Click here Watch the video - click here Do you have a question? Email: [email protected] or for a faster response, post a comment ...
Why would you refinance? (Other than to get a lower rate)
05 Aug 2020
Contributed by Lukas
According to the ABS, the number of people refinancing their mortgage increased by over 63% in the year to May 2020. Quite often people think the only...
Why you should stick to your day job
28 Jul 2020
Contributed by Lukas
There are three ways to generate passive income; start a business, invest or speculate. The key word in that sentence is passive. Passive means you ca...
Which super fund produced the best returns in 2019/20?
23 Jul 2020
Contributed by Lukas
Despite the share market volatility as a result of Covid-19, all major industry super funds produced a positive investment return over the past financ...
Why is the stock market crazy?
14 Jul 2020
Contributed by Lukas
You may have read commentary that the share market isn’t reflecting reality at the moment. For example, the share market can rise by 3% on the same ...
What impact will Melbourne's virus lockdown 2.0 have on property and economy?
08 Jul 2020
Contributed by Lukas
Melbourne’s Covid transmission outbreak has been widely publicised by the media. Melbourne’s daily positive test rate is relatively benign by worl...
Proof that 'what' you buy, not 'when' or 'how much you pay', matters the most
30 Jun 2020
Contributed by Lukas
The price you pay for an investment property will only matter if you purchase the wrong asset. An investment grade asset will, in the long run, mask a...
Not all low-cost indexes exhibit the same risks and opportunities
24 Jun 2020
Contributed by Lukas
Over the past decade, investors and large institutions have been deserting expensive active fund managers in return for using their cheaper index equi...
How low interest rates can help build your super
16 Jun 2020
Contributed by Lukas
If you have a couple of thousand dollars surplus cash each month, what is the most effective way to invest it?You could invest in the share market, re...
Tax planning ideas for 2020
10 Jun 2020
Contributed by Lukas
With the financial year coming to a close, I thought it was timely to share some of the common strategies we consider when helping clients minimise th...
What is quantitative easing, and should we be concerned?
02 Jun 2020
Contributed by Lukas
Global ratings agency, Fitch estimates that the value of Quantitative Easing (QE) implemented this year could reach $9 trillion! To put that in contex...
Why I think the property market and economy will be okay
25 May 2020
Contributed by Lukas
There have been a number of economists and commentators who have predicted that property values will fall anywhere between 10% and 32% this year. It s...
Will 'working from home' change how we invest in property?
19 May 2020
Contributed by Lukas
If many employees continue to work from home, then perhaps demand for property in close proximity to capital city CBD’s will fall. And conversely, p...
What happens (to rents and prices) when it's cheaper to own your home than rent it?
13 May 2020
Contributed by Lukas
With interest rates at all-time lows, in some situations, it is now a lot cheaper to be an owner-occupier than a renter. And with the prospect of inte...
Mastering cash flow management during the pandemic
05 May 2020
Contributed by Lukas
Due to the impact of coronavirus, many people are having to navigate unexpected changes in income and expenses for the first time in their life. This ...
Which strategy? Upgrade your home or borrow to invest?
29 Apr 2020
Contributed by Lukas
A few months ago, a reader of this blog asked me to analyse two options. Option one is to borrow more money to fund an upgrade of your family home and...
Will property prices fall by 10% because of higher unemployment thanks to COVID-19
22 Apr 2020
Contributed by Lukas
CBA Economics stated last week that property price declines are “inevitable”. It has forecast that prices will fall by circa 10% in Melbourne and ...
How to make financial decisions in times of high uncertainty
15 Apr 2020
Contributed by Lukas
If there is one certainty in life, it’s that there’s always going to be some uncertainty.Of course, there are times in our lives where there’s h...
Property and loan related FAQ
08 Apr 2020
Contributed by Lukas
We provide answers to a number of frequently asked questions below. We will continue to add new questions and update our answers as events and governm...
Working from home (home office) tax deductions
01 Apr 2020
Contributed by Lukas
With most people being required by their employer to work from home, I thought it would be timely to update you on what deductions you can claim and w...
Investing is more a game of lending than it is investing
25 Mar 2020
Contributed by Lukas
Author and property investor, Michal Yardney says “real estate investing is a game of finance with some houses thrown in the middle”.People think ...
What financial actions should you take in response to coronavirus?
18 Mar 2020
Contributed by Lukas
Given many people are worried about the unknown consequences of the Coronavirus, I thought it was timely for me to share my thoughts and advice. Like ...
My insights on the power of a gearing strategy
11 Mar 2020
Contributed by Lukas
Borrowing to invest, particularly in property, has been a very popular investment strategy in Australia. A mortgage is a wonderful servant but a terri...
What impact will coronavirus have on your investments?
03 Mar 2020
Contributed by Lukas
Coronavirus’ impact on share markets is a hot topic at the moment. We’ve seen global markets fall by over 10% between 21 February and 2 March 2020...
The cost to hold an investment property hits an all-time low
26 Feb 2020
Contributed by Lukas
Over the last few weeks, lenders have aggressively cut fixed rates, particularly for investors that borrow on an interest only basis. Three and five y...
Major and important changes to income protection insurance
19 Feb 2020
Contributed by Lukas
I wrote a blog in December last year about how difficult personal risk insurance (e.g. income protection, Life and TPD) is becoming to obtain. Also, i...
It's a perfect time to sell dud investments
12 Feb 2020
Contributed by Lukas
With share markets at an all-time high and sentiment in the property market recovering, it is a great opportunity to divest of any underperforming (du...
Are investment-grade apartments primed for growth in Melbourne and Sydney?
05 Feb 2020
Contributed by Lukas
Over the past few years I have observed a strong trend of investment-grade house prices growing stronger than apartments. It is true that all markets ...
What are the best alternatives to term deposits?
28 Jan 2020
Contributed by Lukas
With term deposit rates currently ranging between 1% and 2% p.a., and the prospect of further rate cuts by the RBA, many investors are contemplating w...
Tax benefits associated with investing in shares
22 Jan 2020
Contributed by Lukas
Investing in shares can produce tax benefits. But it can also result in tax liabilities too. Terms such as “franking credits” and “imputation cr...
What does (should) a financial planner do for you?
14 Jan 2020
Contributed by Lukas
An independent financial advisor does a lot more than just tell you how to invest your money. In fact, a lot of the work they do is ‘behind the scen...
Warning: Personal insurance is becoming impossible to get!
11 Dec 2019
Contributed by Lukas
Personal insurances such as Income Protection, Life insurance and Total and Permanent Disability (TPD) are becoming impossible to get unless you are i...
How can you invest well and help the planet at the same time?
03 Dec 2019
Contributed by Lukas
The bushfires in NSW and Queensland recently reinvigorated the conversation about global warming and whether the Australian government is doing enough...
2020 Vision: What investment risks and opportunities will next year bring?
27 Nov 2019
Contributed by Lukas
With the 2019 calendar year quickly drawing to a close, I thought it would be good to have a look at what next year might bring in terms of investment...
How to invest in Emerging Markets such as China and India
20 Nov 2019
Contributed by Lukas
According to global bank Standard Chartered, the Chinese and Indian economies are expected to more than triple between 2017 and 2030. In fact, China’...
Not all information is useful information
13 Nov 2019
Contributed by Lukas
Not more than 7 months ago, according to the media, investing in property was no longer a smart way to build wealth. Labor wanted to ban negative gear...
What are your options if your interest only term is expiring?
22 Oct 2019
Contributed by Lukas
Most investors and some homeowners have interest only loans. However, the option to repay interest only doesn’t last forever. Most mortgages have a ...
Global recession. US/China trade war. Brexit. Low interest rates... What to do?
09 Oct 2019
Contributed by Lukas
It feels like there is more global uncertainty at the moment. Things such as a global or domestic economic recession, US/China trade war tensions, Bre...
The best way to help kids get into the property market
02 Oct 2019
Contributed by Lukas
According to the Australian Bureau of Statistics, first homeowner activity has increased by 51% since March 2016. First home buyers now account for ju...
Does you partner understand your finances?
25 Sep 2019
Contributed by Lukas
In my experience, it is common for one spouse to have a greater interest in the family’s finances. In fact, the spouse that is ‘most interested’...
Property Market Prediction: what will the market do from here?
18 Sep 2019
Contributed by Lukas
The media loves to talk about the property market; will prices rise or fall over the next year? It’s really not that important. “Timing” the mar...
Investing in shares 101: A beginner's guide
11 Sep 2019
Contributed by Lukas
Many people feel investing in the share market is a complex and scary concept. This is often due to a lack of understanding.I have written a number of...
How should your split your wealth between shares and property?
03 Sep 2019
Contributed by Lukas
Australian’s have a well-documented love affair with property. Many people pursue the “great Australian dream” of owning their own home and over...
How will zero interest rates affect investors?
27 Aug 2019
Contributed by Lukas
You would be excused for thinking that developed economies all over the world are gradually making their way to a zero interest rate environment.Long ...
The ATO is on the warpath! Here's what it's up to...
22 Aug 2019
Contributed by Lukas
We all want to stay on the ATO’s good side. No one wants to invite a tax audit. But, at the same time, it is prudent to investigate all opportunitie...
Are property buyers' agents worth the money?
14 Aug 2019
Contributed by Lukas
A buyers’ agent is a real estate professional that will help you identify and negotiate the purchase of a property according to your specifications....
How are you going to repay all your loans before you retire?
07 Aug 2019
Contributed by Lukas
Borrowing to invest (in property or shares) is typically a good wealth accumulation strategy as long as you do it prudently and adopt a proven methodo...
You can't earn your way to financial freedom
01 Aug 2019
Contributed by Lukas
I have written about cash flow management a couple of times previously (here and here) because it is the most important thing to master in order to bu...
Making the most of a recovering property market
24 Jul 2019
Contributed by Lukas
To watch the full presentation, go to https://www.prosolution.com.au/recovering-property-market/Do you have a question? Email: [email protected]...
Borrowing capacity has increased - but by how much?
17 Jul 2019
Contributed by Lukas
Two weeks ago, APRA told the banks that it no longer expects them to use a benchmark interest rate of 7.25% when testing an applicant’s borrowing ca...
What investment returns can we expect from share markets?
09 Jul 2019
Contributed by Lukas
The Australian and US share markets reached all-time highs at the end of last week. This is great news for superannuation returns and existing share i...
Why I reject potential clients... and some important lessons
03 Jul 2019
Contributed by Lukas
I say “no” more often than I say “yes”. That is, I decline or defer the opportunity to work with more people than I agree to work with because...
Australia's property challenge could be your investment opportunity
25 Jun 2019
Contributed by Lukas
Every few years The Economist magazine writes a story about how property in Australia is overvalued compared to other countries – or something to th...
11 important tactics to become 'loan ready' in this tight credit market
19 Jun 2019
Contributed by Lukas
Over the past two years, I have highlighted how tight the credit (mortgage) market has become a couple of times. In the past, borrowing was simple. Th...
What should you do about Labor's proposed tax policies?
16 May 2019
Contributed by Lukas
Last week Jarrod McCabe and I recorded a presentation about the ALP's proposed changes to tax laws that impact investors. You can watch it here: ...
Changes to capital gains tax are 5 times more costly than negative gearing
09 May 2019
Contributed by Lukas
The ALP’s proposed ban on negative gearing has been well publicised and debated. However, its proposed changes to Capital Gains Tax (CGT) have recei...
The importance of receiving advice without boarders
02 May 2019
Contributed by Lukas
Different professionals are able to give advice about a specific field – but who’s taking responsibility for looking at the big picture? How do yo...
Commonly missed investment property tax deductions
26 Apr 2019
Contributed by Lukas
An investment property should be selected based on the likelihood of it generating strong capital growth rather than secondary benefits such as rental...
Understanding property growth, markets and being strategic
18 Apr 2019
Contributed by Lukas
Understanding how property growth behaves is critical when making buy, hold or sell investment decisions. Unfortunately, I have seen lots of people ma...
This is your biggest Achilles heel... and two ways how to avoid it
11 Apr 2019
Contributed by Lukas
“First rule of business is never get emotional about stock, clouds the judgment.” Gordon Gekko, from the movie Wall StreetThe quote above is from...
5 things you can do to prepare for the negative gearing ban (and should you invest before 2020?)
03 Apr 2019
Contributed by Lukas
The ALP announced on Friday (29/3/19) that it will ban negative gearing from 1 January 2020 if it wins the election next month. I wrote an article for...
The importance of becoming more professional with your approach to investing
27 Mar 2019
Contributed by Lukas
I’m a huge fan of Seth Godin’s work. He’s a presenter, author and entrepreneur and if you have any interest in marketing or business, you must s...
Where are interest rates heading and what should you do?
20 Mar 2019
Contributed by Lukas
For many Australian’s, their home loan is their largest expense. And property investors should seek to minimise their borrowing costs (interest) as ...
Who's going to manage your family's finances when you're gone?
12 Mar 2019
Contributed by Lukas
A client was telling me a story about how the Chief Financial Officer (CFO) of a business he used to own passed away unexpectantly. Of course, it was ...
How to get more control over how your super is invested and the fees you pay (and lower fees)
06 Mar 2019
Contributed by Lukas
How to get more control over how your super is invested and the fees you pay (and lower fees)Accountants often recommend establishing a Self Managed S...
How much is "reasonable" to spend on living expense?
28 Feb 2019
Contributed by Lukas
What is the best way to manage cash flow? Do you need a monthly budget to track every single cent? Or is high-level budgeting ok? And, how much is too...
Advantages of upsizing or downsizing your home in a softer property market
19 Feb 2019
Contributed by Lukas
Perhaps a softer property market will allow you to buy a future home now for below intrinsic value – especially if you plan to upsize or downsize in...
How important is it to buy a property at the bottom of the market?
12 Feb 2019
Contributed by Lukas
If you are contemplating investing in property, should you buy now or wait? What if prices fall further this year? Maybe you would be better off waiti...
Three strategies to fund children's education costs
06 Feb 2019
Contributed by Lukas
It was reported over the weekend that private school fees have increased by 3.6% over the past year. However, the longer-term trend is closer to 5% p....
Warning: Don't make your strategy fit your investments (or let anyone else do it)
30 Jan 2019
Contributed by Lukas
One of the biggest mistakes that people make is deciding to invest in a few assets/investments and then, after that, figure out what their strategy lo...
Banning negative gearing will force you to become a better property investor
23 Jan 2019
Contributed by Lukas
If the ALP wins the election in May and ban negative gearing on established property (as proposed), does that mean property is no longer a good asset ...
Can you fund retirement from capital growth?
16 Jan 2019
Contributed by Lukas
When working out a retirement strategy, often people try to work out the value of investments they will need by multiplying the amount of annual retir...
Three questions you must ask yourself to kick start 2019
10 Jan 2019
Contributed by Lukas
Question one: What didn’t work well in 2018?When planning, a good place to start is to ask yourself what were the one or two things that didn’t wo...
The psychology of investing: house prices and fear mongering
12 Dec 2018
Contributed by Lukas
Last weekend, The Australian newspaper published the blog I sent you last week where I predicted that the property market is close to the bottom and t...
I'm calling the bottom of the property market
05 Dec 2018
Contributed by Lukas
I think we are very close to the bottom of the property market – if not already there. In fact, I believe that price growth next year will be positi...
Three things Paul Nugent taught me about investing in property
28 Nov 2018
Contributed by Lukas
Paul Nugent, the co-owner of Melbourne-based buyer’s agency, Wakelin Property Advisory, sadly passed away recently. I first met Paul back in 2004. O...
Livevesting: a strategy that might suit some higher income earners
21 Nov 2018
Contributed by Lukas
Nice family homes in blue-chip suburbs are becoming increasingly difficult to acquire from an affordability perspective. This also puts pressure on on...
How do you change your investment strategy to suit your borrowing capacity?
14 Nov 2018
Contributed by Lukas
With the tightening in credit and the reduction in borrowing power, many investors capacity to invest has been adversely impacted. For example, an inv...
What if the property prices drop further after I buy? I will feel like a fool!
08 Nov 2018
Contributed by Lukas
No one wants to buy at the peak of the property market! Imagine if you buy a property and then a month later property values fall and it takes more th...
Value investing: what is it, why it works and how to do it
31 Oct 2018
Contributed by Lukas
You must have a robust methodology for selecting the right share, property or bond to invest in. If you select the right asset, your investment return...
We're in a credit crunch - here's 5 strategies to deal with it
23 Oct 2018
Contributed by Lukas
There has been a lot of commentary in the media about the “credit crunch” that we are in at the moment. Why is the credit crunch going to impact y...
How many investment properties do you need to fund retirement?
17 Oct 2018
Contributed by Lukas
How many properties do you think you need to own to generate enough wealth to fund a comfortable retirement? Most people think they need more than 3 p...
How to structure your will, testamentary trusts, avoid fights and what else to do
11 Oct 2018
Contributed by Lukas
The two certainties: death and taxesThere are two unfortunate certainties in life; death and taxes. And, unfortunately, tax cannot be avoided (legitim...
Asset protection: when to be concerned and what to do
04 Oct 2018
Contributed by Lukas
The last thing you want to happen is that you work hard throughout your whole career, invest successfully and then lose a large amount of your wealth ...
Does minimising your taxes impair your ability to borrow?
26 Sep 2018
Contributed by Lukas
Paying minimal tax probably appeals to most people. And as tax is often our biggest lifetime cash outflow, it might seem logical that minimising it is...
Specific risks facing property investors at the moment and 4 tactics to mitigate them
20 Sep 2018
Contributed by Lukas
Significantly tighter credit, the potential abolition of negative gearing and increase in the capital gains tax rate, falling property prices, new apa...
Stories about how tax and financial advice are so interrelated
13 Sep 2018
Contributed by Lukas
According to the ATO, over 70% of people engage the services of a tax agent/accountant. However, according to Blackrock, only 15% of Australians have ...
How to not get ripped off. Questions to ask before you pay for a financial plan
06 Sep 2018
Contributed by Lukas
Over the past few weeks I have seen a couple of financial plans produced by firms that have experience in providing advice on investing in residential...
Do Bill Shorten's policies spell the end for property investors?
30 Aug 2018
Contributed by Lukas
All the clowning around in Canberra last week is likely to have increased Shorten’s chances of winning the next election. Given the ALP’s proposed...
Why you should never contribute your own cash into a property investment
23 Aug 2018
Contributed by Lukas
I typically strongly recommend to property investors to never contribute any cash into an investment property acquisition. I’m not suggesting that y...
ATO crackdown on work related deductions and business expenditure
14 Aug 2018
Contributed by Lukas
Whilst historically ATO audits were targeted at big business and the wealthy, this has changed. Now more than ever, individuals, business and self-man...
What makes a better investment? A house or apartment?
09 Aug 2018
Contributed by Lukas
Last week, I highlighted some evidence that indicates investment-grade apartments in Melbourne are perhaps intrinsically undervalued. The topic of thi...
Evidence is mounting that investment-grade apartments are positioned to appreciate
02 Aug 2018
Contributed by Lukas
I wrote this blog in February suggesting that I thought investment-grade apartments were intrinsically under-valued. Well, according to Jarrod McCabe,...
New data: Interest rates, super returns and more
26 Jul 2018
Contributed by Lukas
Some interesting information and data has been released this week which I would like to discuss with you.Variable mortgage rates will probably rise so...