Residential real estate, particularly the rental sector, has been notably slow to experience the same radical disruption that many other industries have seen with the digital age (e.g. retail, finance, transportation). Companies like Zillow and Redfin have democratized MLS listings and the home search process, but the way we buy and rent homes are still fundamentally the same as it always has been. This has a lot to do with the fact that real estate is such a capital-intensive industry. It’s much harder to remove friction from a process that’s much more complicated (and has bigger stakes) than, say, ride-sharing.

A capital gain occurs when the sales price you received for an asset is greater than your basis in that asset. The “basis” of an asset may be the price you paid for it. However, if you’ve made improvements to the asset, the cost of the improvements increases your basis. If you’ve depreciated the asset, that decreases your basis.

If you already own a property in Australia and only have 60-70% remaining on the mortgage, you can actually use your equity for buying property overseas. Your Australian lender won’t accept a foreign property as security outright but you can do a cash out with the help of your mortgage broker.

A distressed property is any property that is under foreclosure or being sold by the lender. Normally, a distressed property is a result of a homeowner who was unable to keep up with the mortgage payments and/or tax bill on the property. It is common for a distressed property to be sold below market value.

Deeper definition
Not all distressed properties have been repossessed due to late payments. On occasion, lenders, banks and credit unions seek to repossess a property to protect their investment. Lenders may take this action due to other claims being made on the property or due to a discovery of mortgage fraud.

There are at least two good reasons to buy a distressed property:

Price. The below market value price on a distressed home allows those who might not otherwise be able to afford a particular neighborhood to buy there.
Potential Profit. If you buy a distressed property at a good price and know which repairs and updates will add the most value, it is possible to build equity and sell at a profit.

Distressed property examples
It may be tempting for a first-time buyer or investor to purchase a distressed property without fully considering the ramifications. As great a deal as it might seem, there are two red flags to look out for:

You have to compromise on location. Not all, but many distressed properties are located in low-income neighborhoods. Buying in such a neighborhood severely limits how much you can invest in upgrades, without making your home too valuable for the area.
You are not sure you can make repairs. It is common for distressed properties to be in less-than-pristine condition and need a number of repairs, immediately and in the near future. If you are not certain that you can make the repairs yourself or have it done at a price you can afford, that is a red flag.

I do not use the services of a grant foley but I can suggest you a better advisor for it if you wanted to.

Self-managed superannuation funds with less than $1 million in assets perform ‘significantly worse’ than institutional funds because investment returns are heavily eroded by the costs of running the fund. This raises the question of whether creating an SMSF is worth it for most investors.

Australia is a diverse land that is home to a wide range of fascinating natural landmarks and iconic destinations. It is a multicultural nation that is warm and accepting of people from all over the world.

Boasting some of the world’s most beautiful natural wonders like the Great Barrier Reef (the world’s largest coral ecosystem), Australian Alps and home to special faunas such as the kangaroos and koala.

As the world’s 12th largest economy, Australia is one of the most well-developed countries in the world. Property is one of Australia’s largest assets and a strong contributing factor that influences its economic wealth.

On a global ranking, Australia has had the 6th highest rise in annual property prices over the last five decades, with house prices surging at an average increase of 8.1% per year.

Research by BIS and UBS shows 9 out of 10 properties made a profit in spite of the slowdown in the housing market. However, the market saw a moderation in 2018 with Sydney being the hardest hit, it affected investor’s appetite due to the stricter regulatory and lending measures.

A prominent factor that underpins the Australian economy is its population growth. Australia’s population grew by another 1.6% to 24.7 million in the 12 months to the end of September 2017.

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