In life, uncertainties abound, including the inevitability of death. In Australia, the absence of a will can lead to complexities in estate distribution. Unlike some countries, assets aren't automatically distributed. Instead, they're almost immediately frozen, prompting a meticulous process. Who Inherits Your Estate Without a Will? If you die without a valid will, then an application for a Grant of Letters of Administration may be made to the Supreme Court. Usually, it is the deceased’s next of kin who has to apply for this grant. For example, the spouse, domestic partner or a child of the deceased. If the person died and left behind a partner, then all of the estate goes to them. If there were children but no partner, the estate is distributed to the children equally. If the person had no partner or children, then all the estate goes to relatives in this order: Parents Siblings Grandparents Aunts and uncles Cousins. The estate does not pass to the government unless there are no living relatives. If you think you might benefit from a will, it is always best to get independent legal advice from a private lawyer. It can create a whole lot of administrative problems when retrieving the assets for distribution. What happens to your property if you die without a will? How the property is distributed will also depends on the title of the property ownership. A property can be registered under 2 forms of ownerships. - Joint Tenancy: Property ownership in which each party on the title to the property holds an individual interest in the property. An example of a joint tenancy is the ownership over a house by a married couple. In this situation, joint tenancy comes with the ''right of survivorship''. That means that when one of the joint tenants dies, the interest of the deceased joint tenant automatically passes to the surviving joint tenant or tenants and does not form part of the estate of the deceased. - Tenancy in Common: Do not automatically receive the right of survivorship. If one of the tenants dies, their interest in the property will be distributed according to their Will. If there is no Will, the rules of intestacy will be applied to divide the deceased person's portion of the property. Always seek formal legal advice This is for general information only and is not formal legal advice. It does not take into consideration your personal situation and circumstances. There are pros and cons to each form of ownership which may or may not apply to you. Always seek proper legal advice before purchasing any property to determine which works best in your situation.

Thinking of buying properties in a cooling (falling) market? Why not? Afterall, in a cooling market when not many buyers dares to buy, you can sometimes pick up very good deals. Here is what you need to know if you are planning to buy. Our property buyers advocates will show you: Should you buy in a cooling market? How to buy in a falling market? What should you buy? What should you watch for? What types of properties should you buy? What strategy is best for buying in quiet times? What types of properties will sell fast in a cooling market? Should you buy properties in a cooling market? Short answer: Yes. Buyers can buy in a cooling property market. And it is probably the best time to buy. But, should you buy? Yes, if you can afford it and afford to hold it for a year or two, through the downturn. In the Melbourne property market, Time in the market is a lot better than timing the market. The only bad time to buy, is to WAIT, and that includes waiting for the prices to bottom. Historically, Melbourne property prices have been growing at an average of 7% annually. Yes, that include GFC, Covid-19 pandemic, high interest rates, recessions, etc. Property buying and property investments are for the long term. Investors in Australia typically hold on to their investment properties for about 7 to 10 years. With a growth of about 7% annually, that means house prices will double every 7 to 10 years. Why wait for prices to drop a further 2-5% when you have 100% gain in 10 years time? Yes, you might save a further $50k, but, that's how much buyers advocates like us typically save our buyers anyway. One other fact is, buyers waiting for the bottom, have NEVER bought at the bottom. They are always 3 to 6 months too late. And by then, there will be all other waiting buyers and enough FOMO in the market to push prices a lot higher quickly. How do you buy in a falling market? Buying in a falling (cooling) market is similar to buying in a booming market. Do your due diligence, find the type of properties you want, and buy. In a falling market, you might have more time to do your due diligence, so, you have less of an excuse not to do it properly. Some good properties do sell fast, in a falling market though. What should you buy in a cooling market? Anything, really. Anything you need to set yourself up for success. As a buyer, you should understand that the Melbourne property market is made up of multiple sub markets. While some markets are cooling, some are still rising. When our buyers advocates analyse properties, we categorise them into 3 grades. Grade A - those in blue chip areas, good location, tip-top, move in condition. Grade B - those in lesser locations, and those that are generally in a move-in condition, but can do with some renovations. Grade C - those in lower socio-economic areas, and need extensive renovations. While the Grade Bs and Cs might fall, you might be expected to pay above asking price for the Grade As. Choose a property that fits your investment plan and strategy. Whichever you buy, there is definitely going to be lesser competition. What should you watch out for? As with any buying properties in any other times, watch out for property spruikers. Those who claim off-the-plan apartments will give you the riches to let you retire early... They are just feeding themselves with the huge commissions from the developers. They are the ones who will be retiring early, while you are still paying off your depreciating apartments or trying to dispose them. What types of properties should you buy in a cooling market? What you should buy, depends on your home or investment property buying goals. If you prefer something newish, in a move-in condition, go for the Grade As. But, do be prepared to pay more for them. You might even need to pay above market prices, if they are popular. If you are after the Grade Bs and Cs, you're in luck! Grade Cs deals are readily available now. While prices of these properties were insane in the past couple of years, vendors are very realistic now. Choose a property that fits your investment plan and strategy. Whichever you buy, there is definitely going to be lesser competition. What strategies are best for buying in quiet times? Buy when you can. Not timing the market. This is the strategy we've asked our successful investors to adopt. Go for the Grade As if you want something to live in, or to lease out for a premium. Go for the Grade Bs if you want something you can improve, and potentially fetch a higher rent. Go for the Grade Cs if you are a handy person, and you are prepared to get your hands dirty. Do note though, not all repairs or renovation works can be done by a handyman. You may need to get the relevant council permits and licenced contractors to do certain pieces of work. Where can you get help to buy? If you are not sure of where and how to buy in this quiet times, get in touch. Our buyers advocates are available to readily take over your buying headaches.

Property investment through a Self-Managed Superannuation Fund (SMSF) involves using the funds within the SMSF to purchase and hold investment properties. A SMSF is a private superannuation fund that you manage yourself, giving you greater control over your investments compared to traditional superannuation funds. Property investment is one of the options available for diversifying and growing your retirement savings within an SMSF. You can also use SMSF to manage other assets, but these are outside the scope of this article. To start off this article, let's take a look at what is SMSF. What is SMSF? In the Australian context, a Self-Managed Superannuation Fund (SMSF) is a private superannuation fund that individuals can establish to manage their own retirement savings. It is a legal structure designed to help hands-on investors save for their retirement and provides members with greater control over their investment decisions, investment strategies compared to traditional superannuation funds. How do you use SMSF to invest in properties? There are a few ways to start property investment through a Self Managed Super Fund (SMSF). Generally, here is hot investment through an SMSF works: Structure: An SMSF is set up with individual trustees or a corporate trustee. The trustees are responsible for managing the fund's investments and ensuring compliance with superannuation laws. Investment Strategy: Trustees develop an investment strategy that outlines the fund's objectives, risk tolerance, and asset allocation. This strategy guides decisions about investing in property and other assets. Property Purchase: The SMSF can use its available funds to purchase a property. The property can be commercial or residential. If the SMSF does not have enough funds to purchase the property outright, it can also use limited recourse borrowing arrangements (LRBAs) to borrow money for the purchase. Borrowing: LRBAs allow the SMSF to borrow funds from a lender to purchase a property. The property itself is used as collateral for the loan, and the lender's recourse is limited only to the property in case of default. This minimizes the impact on the SMSF's other assets. Ownership and Compliance: The property is owned by the SMSF, and all legal and regulatory requirements must be followed. For example, the property must be purchased at market value, and all expenses related to the property (e.g., maintenance, insurance, property management) must be paid from the SMSF's funds. Rental Income: Any rental income generated by the property is received by the SMSF and contributes to the fund's overall returns. Rental income must be used for the fund's expenses or invested according to the fund's investment strategy. Capital Gains and Tax: Any capital gains made from the sale of the property are subject to capital gains tax (CGT) within the SMSF. Different tax rules apply depending on whether the property is sold during the accumulation phase (before retirement) or the pension phase (after retirement). Compliance and Reporting: Trustees of the SMSF must ensure that the property investment complies with superannuation laws and regulations. This includes record-keeping, reporting, and adherence to the fund's investment strategy. It's important to note that property investment through an SMSF comes with responsibilities and considerations, including legal and regulatory compliance, costs associated with property ownership, and potential risks related to market fluctuations and property management. Before deciding to invest in property through an SMSF, it's recommended to seek professional advice from financial advisors, accountants, and legal experts with expertise in SMSFs and property investment. These professionals can guide you through the process, help you understand the risks and benefits, and ensure that your investment aligns with your retirement goals and complies with all legal requirements. Not Financial Advice Disclaimer General Advice Warning: This general information is meant for general educational purposes only. It is not professional financial advice from Concierge Buyers Advocates and does not take into account your personal needs and situation. You should not take this as your personalised and tailored financial advice. Concierge Buyers Advocates not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article. Always seek appropriate financial advice. We have a panel of advisor partners who will tailor their advice based on your personal situations.

A Self-Managed Superannuation Fund (SMSF) is a private superannuation fund that you manage yourself, rather than relying on a managed fund or retail superannuation fund. SMSFs can offer several benefits, but it's important to note that they also come with responsibilities and risks. Let's cover the benefits in this article. We will cover the risks in a separate article here. Benefits of SMSF Here are some potential benefits of having an SMSF: Investment Control: One of the main advantages of an SMSF is the ability to have greater control over your investments. You can choose where to invest your fund's assets, which can include a wide range of investment options such as shares, property, cash, and more. Tailored Investment Strategy: With an SMSF, you have the flexibility to create an investment strategy that aligns with your financial goals and risk tolerance. This level of customization may not be available in other types of superannuation funds. Cost Efficiency: Depending on the size of your SMSF, it may be more cost-effective than traditional superannuation funds. This is especially true, if you have a substantial amount of funds to manage. On the flip side, if you do not have a large enough amount of funds to manage, the overheads and additional costs can be a significant cost to the SMSF. Tax Planning: SMSFs can offer tax advantages through effective tax planning strategies. You have control over timing and allocation of contributions and withdrawals, which can have implications for your tax liability. Your tax accountant or SMSF consultant will explain the situation specific to you. Estate Planning: SMSFs can provide more control over how your superannuation benefits are distributed upon your death, allowing for more tailored estate planning strategies. Borrowing for Investment: SMSFs can borrow money to invest in certain assets, such as property. This can provide opportunities for leveraging investments that might not be available in other superannuation funds. In the case of getting a loan for an investment property under a SMSF, you may also find some restrictions in borrowing, which we will cover in our article on risks of property investment through SMSF. Consolidation of Assets: If you have multiple superannuation accounts, consolidating them into an SMSF can simplify the management of your investments and potentially reduce fees. Family Involvement: An SMSF can have up to four members, which can include family members. This can facilitate intergenerational wealth planning and management. Direct Ownership of Assets: With an SMSF, you can directly own assets like property and shares, potentially leading to greater transparency and control over your investments. Flexibility in Payouts: SMSFs offer flexibility in how pension payments are managed, which can be beneficial during retirement. Asset Protection: This is probably a good consequence of investing properties with a SMSF. By virtue of the strict superannuation fund rules, SMSF can offer better asset protection than most other methods. We will cover this in a later article. However, it's important to note that SMSFs also come with responsibilities such as compliance with legal and regulatory requirements, administrative tasks, investment decisions, and record-keeping. There are also costs associated with setting up and maintaining an SMSF, including professional advice and administrative expenses. Before establishing an SMSF, it's crucial to carefully consider your financial goals, level of investment expertise, and willingness to take on the associated responsibilities. Seeking professional financial and legal advice is highly recommended to ensure that an SMSF is the right choice for your individual circumstances. Talk to us about investment through a SMSF. Our consultants will tailor their advice to your specific circumstances. Not Financial Advice Disclaimer General Advice Warning: This general information is meant for general educational purposes only. It is not professional financial advice from Concierge Buyers Advocates and does not take into account your personal needs and situation. You should not take this as your personalised and tailored financial advice. Concierge Buyers Advocates not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article. Always seek appropriate financial advice. We have a panel of advisor partners who will tailor their advice based on your personal situations.

Investing in properties through a Self-Managed Superannuation Fund (SMSF) can be a complex but potentially rewarding endeavor. Here are some important considerations to keep in mind when investing in properties with an SMSF: 1. Sole Purpose Test: The primary purpose of an SMSF is to provide retirement benefits to its members. Any investment, including property, must be made with the sole purpose of benefiting the fund's members in their retirement. This means that you cannot use the property for personal purposes or provide benefits to related parties outside the scope of the fund's purpose. Legal and Regulatory Compliance: SMSFs are subject to strict legal and regulatory requirements. Ensure that your property investment complies with all relevant laws and regulations, including restrictions on certain types of property (such as residential properties acquired from related parties) and borrowing limits for property investments. Investment Strategy: Develop a well-defined investment strategy that aligns with the fund's objectives and risk tolerance. Consider factors such as rental income, potential capital growth, and the property's contribution to the fund's overall diversification. Property Selection: Choose properties that are likely to generate rental income and have potential for capital appreciation. These days, a property with both yield and growth from Day One is very rare, so, you will usually need to choose one. Research the location, rental demand, vacancy rates, and property market trends before making a decision. Borrowing Considerations: SMSFs can borrow money to purchase property through limited recourse borrowing arrangements (LRBAs). Understand the rules and restrictions associated with borrowing, including repayment terms, interest rates, and potential impact on cash flow. There are also a lot less lenders who are willing to lend to a SMSF, as there is almost zero chance they can repossess the property if you default on the loan. This reduced competition, plus the higher risk (to the lenders), means the available lenders tend to charge a higher interest rates, plus reduce the loan to value ratio (LVR). Investment Structure: Property investments can be held directly by the SMSF or through a separate entity known as a special purpose vehicle (SPV). Consult with a experienced and qualified professionals / accountant to determine the most suitable structure for your specific circumstances. Financing and Cash Flow: Assess the fund's ability to meet mortgage repayments and other property-related expenses. Adequate cash flow is essential to avoid financial strain on the SMSF. Property Management: Property management is crucial for rental properties. Decide whether the SMSF will manage the property itself or engage a property management company. Consider the associated costs and responsibilities. It is always attractive to manage the property rental yourself, to save costs, but with the ever changing rental property rules and SMSF requirements, you need to be well-versed with the responsibilities and regulations around both. Property Expenses: Factor in ongoing expenses such as property maintenance, insurance, council rates, and property management fees when evaluating the potential return on investment. Valuation: Property held by an SMSF must be valued at market value. Regular valuations are necessary to ensure accurate reporting and compliance. Thus you need to factor the effort and cost involved in organising the valuations. Diversification: While property can be a valuable addition to an investment portfolio, diversification is important to manage risk. Avoid over-concentration in one asset class or location. Exit Strategy: Have a clear exit strategy in place for the property investment. Consider how and when the property will be sold, especially as you approach retirement and need to access the fund's benefits. Unlike traditional investment funds, selling your property can take between 2 to 6 months or more. Professional Advice: Seek advice from professionals experienced in SMSFs, property investment, accounting, and legal matters. This can help ensure compliance, effective decision-making, and the avoidance of costly mistakes. Costs and Fees: Property investments can incur various costs, including property purchase costs, property management fees, legal fees, and SMSF operational costs. Factor these costs into your investment calculations. Long-Term Horizon: Property investments are typically best suited for the long term. Consider whether the investment aligns with the fund's long-term retirement objectives. Remember that property investment within an SMSF is a complex process, and the rules and regulations governing SMSFs can change over time. The Australian Tax Office (ATO) is very strict with SMSF compliance, and the investor should be ready for any audits. It's crucial to stay informed, seek professional advice, and regularly review your investment strategy to ensure that it remains aligned with your retirement goals and complies with all legal requirements. Not Financial Advice Disclaimer General Advice Warning: This general information is meant for general educational purposes only. It is not professional financial advice from Concierge Buyers Advocates and does not take into account your personal needs and situation. You should not take this as your personalised and tailored financial advice. Concierge Buyers Advocates not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article. Always seek appropriate financial advice. We have a panel of advisor partners who will tailor their advice based on your personal situations.

A Self-Managed Superannuation Fund (SMSF) is a private superannuation fund that you manage yourself, rather than relying on a managed fund or retail superannuation fund. Advanced investors and investors with significant funds in their superannuation funds have been turning to using SMSF as an structure to hold and manage their investment properties as their retirement portfolio. We've covered the benefits of property investing through your SMSF, but what are the risks? 12 Risks of Property Investment through SMSF While Self-Managed Superannuation Funds (SMSFs) offer potential benefits, they also come with various risks and challenges that individuals need to be aware of before deciding to establish and manage one. Some of the key risks associated with SMSFs include:

You would have heard of Glen Waverley Secondary College and how entry to its school is so competitive that property prices within the school zone is worth about 30% more than similar houses outside the school zone. In fact, you probably landed here while searching for Glen Waverley Secondary College properties. But, did you know, Glen Waverley Secondary College is not the only good public school in City of Monash? There are another 2 good secondary schools within Glen Waverley, and Brentwood Secondary College is one of the 2. Brentwood Secondary is probably the quiet achiever in the area. It is producing top students consistently every year, but it does this in a different way. Compared to Glen Waverley Secondary College, the teaching staff and students at Brentwood Secondary College embraces diversity a lot more. And by diversity, we mean students of ALL background. Different ethnic background, cultural background, education background, study needs, etc. It has a strong emphasis on student wellbeing and magically mixes study with fun and care, a lot better than Glen Waverley Secondary College. As buyers agents based in Glen Waverley, home buyers have been consistently asking us to help them break into the ultra competitive property market in Glen Waverley. We've been honoured to have helped many families buy their homes in the Brentwood Secondary College School Zone, enabling their children's enrolment into the Brentwood Secondary College, one of the top government secondary colleges in Victoria. For more information about Brentwood Secondary College the school zone and Glen Waverley, follow our link Glen Waverley Brentwood Secondary College Properties Buyer's Advocate . We are local to Brentwood Secondary College and we have been helping home buyers and investors find and buy properties in the Brentwood Secondary College School Zone. Get the facts right. Get it from a Buyers Advocate in the area. If your kids' and your circumstances fits the school enrolment criteria, we'll ensure you get the right property to qualify for enrolment into the Brentwood Secondary College. No other buyer agents can be so confident to get this right. Brentwood Secondary College vs Glen Waverley Secondary College So, how does Brentwood Secondary College compared with Glen Waverley Secondary College? Here is a brief of Brentwood Secondary College vs Glen Waverley Secondary College, compiled through student interviews and other public domain information. Where is the Brentwood Secondary College School Zone? The Brentwood Secondary College school zone (BSC/BSZ) is a tiny area of about 1 km by 2km around the school. Compared to other Secondary Schools of similar size in the Eastern Melbourne suburbs, Brentwood Secondary College has a smallish catchment area. This is primarily due to the fact that the secondary college is flanked by a few other secondary colleges in the area, and around Glen Waverley. The main secondary colleges flanking Brentwood Secondary College includes Glen Waverley Secondary College (GWSC), Mount Waverley Secondary School (MWSC), Wheelers Hill Secondary College, South Oakleigh Secondary College, Westall Secondary College and Wellington Secondary College. Why is Brentwood Secondary College so popular? Brentwood Secondary College has been consistently and quietly producing student with outstanding VCE results. It is one of the more competitive secondary schools in the Eastern Melbourne area, due to the quality of students it attract, and the academic curriculum and emphasis on student wellbeing. As the Brentwood Secondary College catchment area is relatively small and student capacity is limited, the school has to enforce its enrolment criteria strictly. Students have to meet strict residency criteria, before being considered for enrolment. These criteria includes where the student is residing in, if the student has any other siblings in the college, etc. The enforcement of these criteria are tweaked annually according to the expected student intake. Criterias are known to be added, modified or relaxed. Why is it important to get the right property in Glen Waverley? Because of strong enrolment competition into secondary colleges such as Brentwood Secondary College in Glen Waverley, prices of properties in its catchment areas in Glen Waverley and Wheelers Hill can vary a lot. The right properties in the Brentwood secondary school catchment area can be worth a premium above similar properties outside the school zone, and this gap is slowly widening, as the profile of the school rises and becomes more popular. What this means for buyers is, you need to choose the right properties, so you do not overpay or missed getting into the school zone. What happens if you are living just outside the school zone? Well, I'll say tough luck. Chances are, you will likely end up in your local school. Brentwood Secondary College is popular, and demand from students within its catchment usually outstrips the student capacity. As a public school, it follows standard Victoria Secondary School enrolment guidelines. It has no obligations to accept students, if they do not reside in the school zone. So, when it comes to enrolment, and selecting your secondary school, it will help if you simply apply for your local school. How to find the right property in the Brentwood Secondary School Zone? To find the right property for Brentwood Secondary College, you will need to know where the catchment is. You need to be exact. Brentwood Secondary College has been known to enforce its enrolment criteria quite strictly. Demand from students within its school catchment area outstrips the student capacity. And, as with standard Victoria Secondary School enrolment criteria, it has no obligations to accept students not residing in the school zone. Students had been rejected even if they are just 1 house on the wrong side of the school zone. You will also need to know the prevailing enrolment criteria, etc. If you need help to find the right property for the school, get in touch with us. We have been helping home buyers find the right property for the school since we started our buyers advocacy business. 100% of our clients buying their homes for the school, have been able to buy one that qualifies. Give our buyers advocates a call, to discuss how we can help you buy your home in the Brentwood Secondary School zone. Head over to Heraldsun to check how Victorian schools had been performing over the last 5 years. How every victorian school performed in naplan over five years.

Historically the Brisbane property market has always been a step or two behind the major Sydney and Melbourne property markets. Brisbane has always been seen as the more affordable city, as compared to Sydney and Melbourne. Investors tend to invest in Brisbane only when they are outpriced in Melbourne and Sydney. Lately, there have been a lot of interest in the Brisbane property market recently but is this a hype? Or is this going to be a long term, sustainable trend? Why are Investors Investing in Brisbane Properties? Let's take a step back and look at Brisbane. Investor have always been looking for a reason to buy into Brisbane. Traditionally, investors invest in Brisbane only when they are outpriced in the Melbourne and Sydney market and they do not see value in both Melbourne and Sydney. For now, property buyers are buying into the Brisbane market for 2 main reasons: People trying to get away from pandemic-hit states; and The 2032 Olympic. Affordability used to be cited as a reason, but this "affordability" is always relative, and this is always in comparison with the Sydney and Melbourne markets. What's going to happen in the coming years? 2021 COVID-19 Pandemic Since 2020, property investors have been buying into Brisbane to get away from the frequently-locked-down Melbourne and Sydney. As Victoria and Sydney opens up in coming weeks, Brisbane will have no choice but to open up eventually. It cannot be locked up forever. Let's give Brisbane 3 to 6 months. Most employers ar using the ability to work remotely to live in more affordable places while still getting Sydney and Melbourne salary rates. When Sydney and Melbourne opens up and businesses and offices starts to reopen, can people still "work from home"? Remember, many employees are currently "working from home", and many have used this opportunity to move further out into lower cost regional areas and Brisbane. Will workers start flying in and out of Brisbane, and back into Sydney and Melbourne daily? Maybe, but highly unlikely. People will want to start moving back to where their jobs are, or leave their current jobs and start looking for work locally in Brisbane. Is the Brisbane economy big enough to accommodate them? Probably. Probably not. And what's going to happen to the properties? Many will want to convert them into investment properties, and move back into Melbourne or Sydney. Vacancy rates in Brisbane will increase. Yield goes down, and when yield goes down, property prices will be affected. So, just by looking at the pandemic influenced trend, Brisbane property prices will start to slow in 6 to 9 months, assuming no other factors. 2032 Brisbane Olympics A second reason for Brisbane is, buyers buying and investing in the Brisbane property market in anticipation of the Olympics influenced property boom. Yes, there will be more demand for properties leading up to the Olympics, and there is going to be more infrastructure investments in Brisbane, in preparation for the Olympics. This demand is going to be temporary, in the few months leading up to the Olympics for the Olympics officials, visitors, and athletes and their family and friends. What's going to happen after the 2032 Brisbane Olympics, is anybody's guess. However, if we look at the Sydney Olympics and everywhere else in the world, property prices actually fell, AFTER the Olympics. This is primarily due to the fact that new accommodations for the Olympics visitors will instantly flood the market. There is going to be an instant oversupply of properties in the Brisbane property market after the event, as visitors and temporary workers leave. Sadly, it is typical for property prices to fall an oversupply situation. What does this mean for Brisbane in the next 10 years? Assuming no other factors, and if we overlay these 2 factors together, we'll see property prices continue to grow, up to mid 2022. It is likely to slow or fall, for a year or 2 before interests picks up again. But this interest will only be limited to the Olympic development areas though. More home and investment property buying news and tips here.

Investing in properties can be a rewarding venture, but it's not without its challenges. In the current climate of high interest rates, one significant hurdle that property investors may face is mortgage stress. What is Mortgage Stress? Frist, let's look at Mortgage Stress. What is mortgage stress? Mortgage stress occurs when property owners find it difficult and impossible to meet their mortgage repayments commitments. This is often when there is a continued significant reduction in their income or increase in their expenses. In the current economic and property market environment in 2023, it is the latter that caused mortgage stress. What caused the excessive inflation in 2022? In layman's terms.. We'll try to explain what happened over the past 10-15 years, in layman's terms. The decade-long post GFC historic low interest rates have led property owners to be over-confident with taking out mortgages which they would have otherwise not be able to afford. They have over-committed themselves over the past 10-12 years, due to the historic low interest rates, buying property after property using "equities" (borrowed) in their assets to fund the new purchases. In essence, they are digging themselves a larger debt hole with the ever-growing equity spade. All of a sudden, COVID-19 hit, leading to economic worldwide shutdown. Governments attempted to stop the world from collapsing into deflation, and started flooding the economy with billions of lockdown support "incentives" dollars to help consumers fund their expenses. Post pandemic lockdowns, the billions of extra equities in the economy led to massive price increase. Instead of having $1 to buy 1 dollar worth of stuff pre-pandemic, consumers now have $1.30 to pay for the same exact thing. This, of course, caused a massive price increase, or massive devaluation of cash. Your pre-pandemic $1 can now only buy the something that cost 60-70 cents, pre-pandemic. Resulting in economies around the world being hit with massive inflation. Now, in economics schools, leaders are taught to use interest rates to manage inflation in the capitalist economy. And that is exactly what our politicians do. 13 rounds of rate increases by RBA, caused mortgage rates to rise from a low 2% to over 8-9% now. This massive increase in mortgage rates caused mortgage repayments to rise. Putting that into perspective, for a typical mortgage of $800,000, interest only repayments jumped 400% from $1333 (@ 2%) to $5333 (@ 8%). How can you avoid Mortgage Stress? It is also important to remember, while mortgage stress is not ideal, it is also not insurmountable. It is stressful, but do not let this stress consume you. With the right help, it can be overcome and solved. Our investment buyers advocates can help you review your situation, asset performance and recommend solutions to help you restructure your portfolio, improve your income and/or reduce your mortgage burden. You can also seek help from other investment buyers advocates for the same review, if they provide one. It is critical to seek advice from an independent property investment advisor, instead of sales agents (they are only interested in your property listing). What can you do to avoid Mortgage Stress? In this article, we will explore the steps property investors can use to overcome mortgage stress and regain control of their financial situation: 1. Review and Assess your Financial Position: The first step in reviewing your mortgage stress situation is to take stock. Do a stocktake of your current financial situation, including your mortgage commitments. Analyze your income, expenses, and existing debts. Start by creating a comprehensive budget to gain a clear understanding of your cash flow. Take a spreadsheet, list down your monthly income on 1 column, and your monthly expenses on the other column, including your mortgage repayments. Have a separate section for EACH property you have, listing all income and expenses for each of them. Next, review each of these expenses and identify the "nice-to-have" and "must-have" expenses. For "nice-to-have" expenses, these are what you can stop spending on, and for those "must-have" expenses, search for lower cost alternatives, where possible. This evaluation will help you identify areas where you are currently spending your money and help you identify where you can cut back on expenses and potentially increase your income. 2. Seek Portfolio Review from a Property Investment Advocate: Independent real estate buyers advocates can help review your existing property portfolio, appraise your property values and advice which properties you can consider selling to minimise your debts and improve your asset holdings. However, selecting which property to downsize is a challenge to many investors, as there are too many factors to consider, and they usually have no clues which and how to identify them. Being in the stressful mortgage stress also created a mental block in the property investors, stopping them from reviewing each of these properties systematically and logically. It is critical that you find an independent advocate for this review, to ensure you receive an impartial, no-hidden-agenda review outcome. You may need to pay a small fee (typically under $1000) for such a review, but, hey, what is a small fee, if you can receive clarify of how each property is performing, and what you need to do to prevent your mortgage stress? The independent property buyers advocate can help identify the properties which have further growth potential in the current and immediate future market conditions, and which are the ones you that will give you constant pain, with little gain. Although it is often emotionally challenging, selling or downsizing your property portfolio is the most effective way to reduce your mortgage commitment and thus, reduce your mortgage stress, give a life line and let you to start anew, when times are better. We will cover this topic in part 2 of this series to help mortgage stress. So, subscribe and follow our blogs and updates. To maximise the effectiveness of this step, you need to have your portfolio reviewed BEFORE you fall behind in mortgage repayments. 3. Seek Financial Advice and Mortgage Review: Following the review above, you will have a clear understanding of what you want to achieve and which properties to retain, refinance or sell. You are now ready to seek financial advice from mortgage brokers. With a clear idea of how each property in your portfolio should be managed, you are now ready to give the mortgage broker something to work on. Remember, most mortgage brokers are NOT investment property savvy. Their job and expertise is to process a loan or refinance application for your property. 99% of them do not have the real estate licence and experience to advice if a property is a liability or an asset and keeper. Many are also in cohorts with sales agents who just want your listings, thus, you will need to be careful who to trust. Always take their property recommendations with a bucket of salt. They are not experienced and licenced to provide property advice, and many are in partnerships with real estate agents to encourage you to sell. 4. Communicate with your Lender: If you do not have a mortgage broker, we can recommend some of our trusted ones. Or you can alternatively communicate directly and openly with your lender. Contact them as soon as you anticipate or experience difficulty in meeting your mortgage repayments. Contrary to popular belief, banks have the obligation to review and help you manage your mortgage repayments. And it is, in fact, in the lenders interest to help you manage your repayments. Remember, they are in the financial industry and not the real estate industry. They would rather collect your money than engage someone to sell your house. Lenders may offer various support options such as repayment holidays, interest rate renegotiation, or loan restructuring. It's in their interest to help you find a solution, as foreclosure is typically a last resort for them. 5. Explore Income Producing Strategies: If your property is generating rental income, explore ways to maximize its potential. A property buyers advocate can help assess the current rental market and advise how and when the current rental rates should be adjusted to be competitive. Alternatively, you could also investigate the feasibility of converting your own home or spare rooms in your home into short-term rentals through platforms like Airbnb. In the right location and with the right pricing, these strategies can help increase your cash flow and alleviate mortgage stress. Conclusion Mortgage stress can be difficult and overwhelming for property investors, but with a proactive approach and careful consideration of available options, it can be overcome. Remember to assess your financial situation, seek professional advice, communicate with your lender, and explore strategies such as refinancing, renting, or downsizing. By taking these steps, property investors can often regain control of their mortgage before their banks take possession of the property, and work towards a more secure financial future. Get in touch with our property advocate to help review your portfolio. More home and investment property buying news and tips here.

$2 billion dollars. That's how much Australians had lost to scams in 2021 alone. And 35% (or $700million) of this is investment related scams. Sadly, this number is increasing exponentially annually. With more transactions being moved online and being made electronically, cashless and completed remotely, identifying a scam and scammers is getting harder by the day. Scammers are learning, evolving and becoming more sophisticated as more of their activities are being exposed and modus operandi published. How can you stay alert and avoid a real estate scam? Our Buyers Advocates Agency Director, Rayson, taps into his experience as a Certified Ethical Hacker, CISSP Information Security Advisor, to explain some of the most common real estate scams and how they work. We will also show how you can identify these scams and protect yourself from these scammers. It is not meant to be comprehensive bible of scams, as each scam is a topic on its own, if we were to completely dissect each scam. It is meant to provide sufficient information for you to be aware of what these scams look like and how not to be scammed. What are the types of real estate scams? Real estate scams are usually related to or originate from a non-real estate scams. As scammers starts to be more familiar with the real estate industry and the property selling and buying processes, they start to exploit loopholes and weaknesses in the processes to their advantage. Scammers and exploiters are usually after 2 things: Money; and Identity. Money is what they want ultimately, and in order not to get caught and/or get access to more sources of data for scamming, they need to hide their real identities behind someone else's identity. In the case of real estate related scams, scammers usually combine real estate specific scams with other common security exploits or process loopholes to maximise their impact. Real estate scams take on many shapes and forms. Here are some of the more common ones; and one of them is so common, not many people can immediately identify: Real Estate Rental listing scams Real Estate Sales listing scams Payment redirection scams Man-in-the-middle hack Identity thefts Phishing scams Property Investment Scams 1. Real Estate Rental Listing Scams In a tight rental market like Melbourne, scammers are actively taking advantage of the low rental vacancies and scamming desperate renters. How does a Rental Listing Scam work? Rental listing scams start with having a fake rental listing or a fake rental advertisement. The property address is highly likely to exist, as it is too easy to verify an address. But it may or may not actually be ready for rent. What is certain is, the advertiser is a scammer, hiding behind a fake identity. We see a lot of such scam ads in free listing sites like Facebook groups, Facebook forums, Facebook Marketplace, Gumtree, Whirlpool, etc. Essentially, most scammers exploits the free advertisements platforms to their advantage. How do you identify a Rental Listing Scam? Some characteristics of a Rental Listing Scam includes: people looking for housemates refusing to allow in-person inspection of property/room lower than usual rentals asking for renters details prior to inspection, even if you are not keen asking for inspection deposit prior to inspection offering you to move-in ASAP, in exchange for a fee/early deposit Insisting on a few months rental payments before accepting your interest. In Melbourne (and many other states in Australia), it is illegal to accept more then 1 month's rent. Legitimate agents knew this. Scammers don't. How to protect yourself from a Rental Listing Scam? Always check to ensure the person listing the ad is a real person. Call to speak to the person. Check the person's real estate licence, if he/she is a licenced real estate agent. Check against your state's real estate agent register. Check the address. Google the address. See if the property is actually exist. Check if the property specs tallies with what's describe in the ad. Check if the property is actually bring listed by someone else, somewhere else, etc. Redflag, if it is. Avoid making any payments before you inspect. Licenced agents do not collect payments for inspections. If you have to make any payments, ensure it goes into the real estate agencies' Trust Account. NOT to any other bank accounts or even the person's personal account. 2. Sales Listing Scams How does a sales listing scam work? Sales listing scams are similar to a rental listing scam. It starts with having a fake sales advertisement. Just like the rental listing scam, the property is likely to exist, but it may or may not actually be ready for sale. The advertiser is also likely going to be hiding behind a fake identity. We usually see a lot of such fake listings in free listing sites like Facebook groups, Facebook forums, Facebook Marketplace, Gumtree, Whirlpool, etc. How to identify a Sales Listing Scam? Some typical characteristics of a Sales Listing Scam includes: people looking for quick sale refusing to allow or tries to delay in-person inspection of property lower than usual asking price asking for buyers details prior to inspection asking for a payment / deposit prior to inspection How to protect yourself from a Sales Listing Scam? Always check to ensure the person listing the ad is a real person. Call to speak to the person. Check the person's real estate licence, if they are selling a property that's not theirs. They must be a real estate agent if they are selling on behalf of someone else. Check against your state's real estate agent register. Check the address. Simply Google the address. See if the property is actually exist. Check if the property specs tallies with what's describe in the ad. Check if the property is actually bring listed by someone else, somewhere else, etc. Redflag, if it is. Avoid making any payments before you inspect. Licenced agents don't usually collect any payments for inspections. Do not make any offers or payments until you receive the contract of sales and vendor declarations (Section 32 in Victoria) for the property. If you have to make any payments, ensure it goes into the real estate agencies' Trust Account. NOT to any other bank accounts or the agent's personal account. 3. Payment Redirection Scams How does a payment redirection scam work? This is very similar to the payment redirection scam in the non-real estate world. It usually involves the victim receiving a notice for payment / invoice, usually from legitimate source. A source which they are expecting. However, the legitimate notification has been compromised and banking details replaced with the scammer's banking details. Someone has gained access to the company / agency / agent's billing system or email system. The payment notice / invoice is real, and the victim is expecting the payment notices / invoices, but, the hacker / scammer has compromised the notices / invoices, replaced the legitimate bank details with the hackers' bank details. When the victim makes a payment, the payment goes to the hacker, hacker sends the victim a 'receipt', to fool them into thinking the payment had been received, while an email could be sent to the real agent, asking for a longer payment timeline or similar reasons for delay. This buys the hacker time to transfer the fund to a different (usually offshore) account, and give the hacker time to shut down the scam. How to identify a Payment Redirection Scam? There isn't a lot of telltale signs for this, unfortunately. But we can try our luck to identify poor english, spelling mistakes, etc. In some cases, these "mistakes" are intentional, so the hackers / scammers can identify who or where the money should be sent to. How to protect yourself from a payment redirection scam? The best way is to look up the agent / agency's contact number from the agency website, and call the agent / agency, to verbally confirm the payment details. Note: DO NOT USE the phone number provided in the invoice / payment instruction. If it is a deposit for a house, marketing expense, rent, also ensure the payment is sent to the agency's trust account, not anyone else's personal bank account. 4. Man-in-the-Middle Hack How does a man-in-the-middle hack work? This is essentially similar to the payment redirection scam above. The hacker intercepts the email / message / webpage, and replace the legitimate information, eg bank account numbers, with the hacker's information. How to identify a Man-in-the-Middle Hack? No usual telltale signs. But as per the payment redirection scam, watch for bad english, spelling mistakes. Again, as per the above, some of these bad spellings or bad english is intentional. How to protect yourself from a man-in-the-middle hack? As with the payment redirection scam above, the best way is to call the agent / agency, to verbally confirm the payment details. If it is a deposit for a house, marketing expense, rent, ensure the payment is sent to the agency's trust account, not anyone else's personal bank account. 5. Identity Theft When the scammers are scamming their victims, they would definitely not reveal who they really are. They need legitimate identities, in order to scam their next victims, and thus they have to either illegally access secured IT systems to download their customer base, or get their innocent victims to provide their real identity. How does Identity Theft work? This can happen in any way, shape or form. You could come across some free lottery for some attractive prices. These are popular channel for data sellers to collect real information. Everyone wants to win, and they are more than happy to submit their real name and contact details for the lucky draw. You could come across an interesting invite to decrypt your horoscope or foretell your fortune / future, usually in social media sites. You could also have lost your bank statement or utility bills in your mail. Someone has stolen these statements and bills from your letterbox. Sometimes, you may not even realise your identity has been hacked until it is too late. Like the major Optus and Medibank hacks in 2022 m. How to identify an identity theft? As above, they can happen anywhere. Be vigilant. Always trust this: Nothing is free. If it is free, you are the product being sold. In the real estate context, some of these could come in the form of asking renters / buyers for excessive information, claiming these are needed for verification or needed for your application. If you need to provide anything more than your name, email address, contact number to register for an inspection, be careful. How to protect yourself from identity theft? Be vigilant, do not be too liberal with your identity and data. Be wary when someone were to ask for your identity. Disclose your personal data only on a need to know basis. 6. Phishing Phishing is another scammer tool to steal your identity. It usually involves an email or webpage that looks like a legitimate email / webpage. The victim will then be prompted to provide their personal data or login in user ID and password to access their account. How does Phishing work? The phishing starts with the attacker sending out an email, creating a sense of urgency for the victim to take action. This victim will then be sent to a website that looks like a legitimate website, but is fake. Recall the so-called emails from your banks NAB, Commonwealth Bank, ANZ claiming your account or credit card has been frozen or blocked, asking you to click a link or call a number to verify your details? Or your Amazon, Netflix subscriptions being renewed for some obscene subscription fees? That is the hackers call-to-action for you to access their fake webpage or fake contact centre where they will ask you for your personal details and credit card numbers, so they can "verify" your details and billing records. How to identify a Phishing Scam? Identify these phishing scams are usually easy. These days, they usually come via emails. Emails are free. Phishing scams are so rampant, it is very common and very easy to set up. When you receive an unexpected email, it probably is fake. Other tell tale signs includes spelling mistakes, poor grammar, a sense of untidiness, etc. Some of these mistakes / errors, might seem like an oversight, but some are intentional so the hackers / scammers / attackers know who originated these, and where the victims were supposed to be directed to. Phishing websites are designed to look very similar to a legitimate website. So similar that even the URL for the website is similar. eg, instead of commonwealthbank.com.au, it could be c0mm0nwealthbank.com.au. Or instead of raywhite.com.au, it could be raywh1te.com.au or raywhile.com.au How to protect yourself from Phishing Scam? As mentioned above, phishing scams are so rampant and common these days, that when you receive an unexpected email / call, it is likely a scam. Delete the email. Hang up the call. If you believe the email is legitimate and want to verify it, do not click on the link provided in the email. Manually type in the website on your web browser. EG, if you want to verify your amazon subscription, or NAB account, type amazon.com.au or nab.com.au on your browser. Do not use the link provided in the emails. If the emails are part of a phishing attack, the links provided in the email will be fake. Clicking on these fake links will bring you to their fake log-in pages where your log-in user ID, passwords, personal data and billing records will be collected and misused / sold. That's usually how your bank or subscription accounts get compromised. And what is the most common scam in real estate? 7. Property Investment Scams This is, by far, the most common scam. In fact, this is so common that no-one actually thought they would be scams. Most investors will not even realise it is a scam, if you are not in the industry. These scams (or misinformation, as some prefer to call it) masquerade themselves as investment planning advice, selling you a dream. But these dreams are no more than marketing bluffs. Look for the disclaimers. it is usual that these investment plans or sales talks are hidden behind 3-4 pages of disclaimers, in fine prints. One such organisation has a disclaimer (in fine prints) that is 5-8 times longer than the email!! How does a property investment scam work? Promises of financial freedom through property investing. Investors were promised outstanding investment properties, extremely high yield, zero-dollar deposit, guaranteed rental returns for x number of years. But these spruikers / scammers are no more than a property sales person, (most are not even appropriately licenced, or they might claimed that licensing is not necessary as they are "operating under someone else's licence"). They are doing nothing but selling properties which the developers have problem selling. These are usually sub standard properties in over supplied locations. How to identify a Property Investment Scam? These scams are usually more elaborate than other scammers. 1. Be wary of free seminars / webinars or "training sessions". Spruikers / scammers usually organise free seminars and webinars, to provide "updates on property markets", "free property investment course" or teach you how to retire early. Some tried to create a sense of exclusivity, by claiming their sessions are "by invitation only", while some openly advertise them on social media platforms such as Facebook, Instagram, Linkedin, etc. All you need to do, is sign up with your name, email, and phone numbers, and you will receive an invitation to attend. Attending these seminars and webinars is the start of their "education" campaign. Some call this a brain washing campaign though. You'll be promised how, with a very low deposit, you can replace your income, be financially free and retire in as little as 3 years. Simply ask for their financial planning licence, if they claim they can build a plan for you. if they cannot show it, they are just sales persons or scammer, selling properties. 2. Watch out for these common telltale sales pitch: they said they had just bought one, a few houses away. they said the customer, seated 2 tables away had just bought 1 a nearby property was sold for x times more. there're only 2 houses left, and you have to buy one soon, if you do not want to miss out disclaimers that are over a page in length, and in fine prints. These disclaimers are sometimes 3-4 pages or more in length. How to protect yourself from a property investment scam? Verify Real Estate Licences: check to ensure these sellers are licenced real estate agent. Anyone selling real estate must be licenced and insured. And this include the person you are dealing with. That's right, he / she needs his / her own licence, not his boss's, his friend's, his uncle's licence. Verify Financial Planning License: check to ensure they have the appropriate financial planning licence. Anyone claiming to build your personal investment plan must be a licenced financial planner. It it vital that the person you are interacting with must be licenced, not using his / her boss's, aunty's / uncle's / friend's licence. Conduct Independent Due Diligence: Take charge of your investment decisions by conducting thorough due diligence. Verify the information provided to you and separate facts from fiction. These spruikers are experts in mixing facts with fiction. While some facts might appear to be true, you will often find that they are not applicable to the property they are selling to you. We had come across a group which used the good Melbourne property market average annual growth rate of 7% while promoting a rural Queensland property (!!). Or they may use the 7% growth rate for a typical Melbourne house, for the apartment they are marketing. Apartments in Melbourne (and in most areas throughout Australia) are money losing purchases. Beware of Catchy Business Names: They have catchy business names promising freedom through property investment, claiming to be able to help propell your investment plans, or selling you a next property to help iron-clad your goldfish properties. Scrutinize their claims, conduct research, and rely on reputable sources before making any investment decisions. This scam is so common and widespread and has claimed so many victims that the Australian Consumer Watchdog, ACCC, has issued this scam advisory. Conclusion - how to prevent being scammed. Scammers are forever trying to stay one step ahead of any detection technology and education. In order to prevent ourself from being scammed, we will need to: stay alert, keep yourself updated of scam activities, never click on emails or links which you are not expecting. check the real estate agent's personal licence, not their bosses', uncle's, partner's. check the investment advisor's personal licence, not their bosses', uncle's, partner's. If you are buying your property and want to be safe and avoid being scammed, you can also engage a licenced pro-buyer real estate buyer advocates to help with your purchase. Our licenced buyers advocates have over 20 years of real estate investing and buying experience, and we are more than willing to assist to help you buy your home or investment properties. Our agency director, Rayson is a certified ethical hacker and cyber security advisor. He has seen these and newer scams and would be able to help our clients verify and avoid them.