EPI119 | Adjusting to a changing property market

EPI119 | Adjusting to a changing property market

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Obtaining Finance
- update your approval if you got it a couple of months ago or more!
- adjust your budget
- consider borrowing at lower LVR to decrease risk of finance being declined
Talk of changes to SMSF borrowing
- Some banks exiting this space
- Lower LVR
- Talk – Considering changes to prohibit borrowing for property
- Try not to buy unconditionally
Changes to depreciation allowances
- ensure you are abreast of changes, get in any trips to rental properties before July 1st
- unable to claim any trips to rental properties
- unable to claim plant and equipment on rental properties that owner hasn’t paid for themselves, applied to properties purchased after May 9th 2017
Soft rental market
- Make your house appealing!
- Be realistic about rental expectations
Changes to first home owner grants
- In QLD, $20k on new builds or OTP until 30th June, then back to $15k
Talk of negative gearing changes
- Consider less negative gearing to mitigate risk
Interest rate changes
- Lower LVR
- Give yourself a buffer for interest rate changes
Growth rates slowing
- Choose locations well

Have a look at your properties and your circumstances
Assess whether any of the changes we talked about may impact you and how you can change your strategy or actions to help
What are your interest rates and LVRs, insurances – landlord, building insurance, income protection
Assess whether you are sensitive to changes in the market, personal circumstances or circumstances outside your control and look at ways you could reduce your risk or act quickly where need be