First Home Owners Grant Extended

First Home Owners Grant Extended

Instead of scrapping the First Home Owners Grant (formerly called the Great Start Grant), the Queensland Government have extended it until the end of the year! So if you are a first home buyer you could be eligible for benefits of up to $28,750! No, that is NOT A TYPO! Seriously – with the $20,000 building grant and the additional $8750 stamp duty rebate – you could be able to finally purchase your own home! If you are looking at purchasing an existing home (one that is already built), then unfortunately  you are not eligible for the First Home Owners Grant, but you may be eligible for the stamp duty rebate. So here’s how it all works…. To qualify for the first home owners grant of $20,000 you must – be at least 18 years old from the date of the purchase, be an Australian citizen or permanent resident, If you’re buying with a partner/ spouse / friend then at least one applicant needs to be an Australian citizen or permanent resident to qualify. not have previously received a first home owner grant in any state or territory of Australia build your own home, buy off the plan (buying usually a unit / townhouse off the plan from a developer before it is actually built), buy a new home that hasn’t been lived in previously, be substantially renovating (and that means a home that has almost been knocked down and then fully rebuilt). not have owned or part owned any property in the past in your personal name (this includes overseas property ownership) purchase a block of land and sign...
Statistics Are IN! Sea / Tree Changes Are Where It’s At

Statistics Are IN! Sea / Tree Changes Are Where It’s At

Every year data is released by the Australian Bureau of Statistics on the national migration across Australia. The latest publication is showing that a growing number of interstate migrations are those looking for a sea / tree change or are heading to the outskirts of the capital cities. This year the Gold Coast topped the list with 6,248 people migrating from interstate or other areas of Queensland.  The Sunshine Coast was only 48 people behind the top spot which is surprising as the Sunshine Coast has nearly half the population of The Gold Coast. In fourth place with 4,216 people arriving to it’s boarders is Geelong.  This number is forecast to increase dramatically with the incentives given by the Victorian Government such as doubling the FHOG in regional Victoria and cutting Geelong’s pay role tax by 25%.  This margin is by far the lowest tax in the country and will attract many new businesses to the city in the coming months and years. The below table shows the top and bottom performers for for net internal migration nationally over the 2015-16 financial year. This national data has been collected since 2006  and the Gold Coasts figure of 6,428 persons migrating to the area from within Austraia is the highest on record and 39.4% higher over the past year. It was also the first time since 2006 that the Gold Coast had seen the nation’s highest rate of net internal migration. Of the top 25 regions, 13 were located outside of the capital cities. These regions were a mix of sea change and tree change type locations. Coastal and hinterland regions, especially those within...
Welcome On Board Nikki!

Welcome On Board Nikki!

Blue Wave has been under the pump lately putting all your finance deals together so we have decided to expand our finance arm and have welcomed Nikki Ireland on board! Nikki has worked in the ­financial industry for more than four years and holds a Certi­ficate 3 in Financial Services and Certi­ficate 4 Finance and Mortgage Brokering. Coming from a retail and customer service background, including the Bank of Queensland and the Commonwealth Bank of Australia, her passion and pride in customer service has made her want to assist her clients the highest level possible. Nikki decided to become a finance broker after realising that being confined to the one bank and their products was not beneficial to her clients and what they were trying to achieve. She now has access to over 30 banks and their varying products and is now able to find the best deal for her clients at whichever bank suits their individual needs. She highly values truth, honesty and integrity and is known for her work ethic, which drives her to go above and beyond for her clients today, tomorrow and in the future. In her spare time she enjoys spending time at the beach, in her garden and with her...
Victorian Government Scraps Stamp Duty

Victorian Government Scraps Stamp Duty

The Victorian Government has recently announced a range of initiatives aimed at making housing more affordable for first-home buyers. Stamp duty will undergo major reform, with two significant changes set to affect the off the plan industry. Up until now, stamp duty savings have been a huge incentive for investors and owner-occupiers to buy property off the plan. However under the new changes, first-home buyers of any property under $600,000 will no longer face stamp duty charges. Furthermore, the existing stamp duty savings for investors of off the plan will be abolished. Only buyers who intend to live in the property or are first-home buyers will benefit from the tax concession. The move is a blow to the off the plan industry in Victoria, with many expecting it will negatively impact the market. Victoria is one of the only states in Australia that offered stamp duty savings on off the plan projects, which has made it a popular option amongst both local and international investors. While the state government says the removal of the changes will level the playing field for first home buyers, the Urban Development Institute of Australia lobby group said it would reduce investment and the supply of new homes. They argue that without the tax break investors would look to other asset classes, reducing demand for new projects. Accounting firm KPMG’s state taxes partner Michelle Bennett agreed, telling the AFR the move could have negative consequences for the property market. “There are risks in reducing off-the-plan concessions for investors, as it could put the brakes on new residential development,” Ms Bennett said. The changes won’t...
Harmony – Sunshine Coast’s EnviroDevelopment

Harmony – Sunshine Coast’s EnviroDevelopment

Harmony is the latest housing development to be launched here in the Sunshine Coast. Nestled in between the pristine coastline and lush green hinterland; it  has all the heart of a village community – with all the soul of beachside living. Here, you’ll find everything you’ll ever need……. that year-round sunshine, un-spoilt beaches and the tranquillity of the tropical hinterland, all right at your doorstep. Inspired by the great outdoors, Harmony is a living tribute to the 378 hectares that it lies on. A big 1.5km linear park (the length of 10 football fields) sits in the centre of Harmony, similar looking to the world famous Champs-Elysee in Paris. Forest hikes, bike and walking trails thread through it all, bringing the whole place to life and the people closer together. No matter where you choose to live in Harmony, you’ll never be more than 500 metres or 5 minutes walking distance from a park or an open green space. The Sunshine Coast offers a world class learning destination and is one of Australia’s best lifestyle locations. Harmony rests in the centre of everything the coast has to offer including cafes, restaurants, shopping and entertainment. The Coast’s unique casual culture is genuine and welcoming, and Harmony will emulate this desirable, authentic way of life. Set on 378 hectares, Harmony will deliver more than 4800 homes for 12,000 future residents as well as a town centre and 100 hectares of parklands. With a development timeline of 15-20 years, it is anticipated that Harmony will create around 9000 jobs and the first land release will take 12 months to complete. AVID General Manager Bruce Harper said Harmony was...
Brisbane Property Values on The Rise!

Brisbane Property Values on The Rise!

While the general price growth for the greater Brisbane property market has been steady for most suburbs, there are some which have well and truly over performed. Some in demand suburbs in the greater Brisbane area chalked up massive median price increases and “earned’’ more than a typical worker during the past year, which according to the Australian Bureau of Statistics is $78,832 per annum. 23 suburbs in greater Brisbane achieved median house price growth of more than the above figures in the past year. Inner city Teneriffe and its neighbour New Farm topped the list. Teneriffe’s median house price leapt from $1.47 million in 2015 to $1.9 million last year – a difference of $430,000. New Farm also performed well with its median house price jumping by $316,000 to $1.675 million. Inner city suburbs were not the only ones to achieve such strong growth during the year. In the outer suburbs south of Brisbane, Robertson “earned” well above the average yearly wage last year with its median house price up by $227,000. SUBURBS THAT EARNT MORE THEN THE AVERAGE WORKER……… Suburb Median 2016 – Suburb Median 2015 – Difference Teneriffe:                2016 –  $1,900,000          2015 – $1,470,000          Difference – $430,000 New Farm:              2016 – $1,675,000           2015 – $1,358,750           Difference – $316,250 Milton:                     2016 –  $951,000              2015 – $695,500             Difference...
Australia’s Top 10 Googled “where is” Questions…

Australia’s Top 10 Googled “where is” Questions…

I came across this article and thought it was worth a share! As we are all travel enthusiasts here at Blue Wave this one is quite relevant – and also shocking as the number one googled where is question asked by Aussies is…. 1. Where is NSW? NSW (or New South Wales, if you want to know what it stands for too) is an Australian state, situated on the east coast and bordered by Queensland to the north, Victoria to the south and South Australia to the west. It’s Australia’s largest state by population. You may have even heard of such landmarks as the Sydney Harbour Bridge, Bondi Beach and the Big Banana – all of these are located within NSW.   2. Where is Brussels? Brussels is Belgium’s capital city, and it’s is located in central Belgium, a western European country which shares borders with the Netherlands, Germany, Luxembourg and France. From Paris, it takes less than 1.5 hours to reach Brussels by train. Its most famous landmark? The Manneken Pis, a tiny statue of a boy peeing into a fountain. 3. Where is my phone? We know it’s not technically a destination, but sadly, we’ve all been there. We recommend setting up Find My iPhone. or Find my mobile. 4. Where is Bora Bora? Somewhere between heaven and paradise, right? To be more exact, Bora Bora is in the South Pacific, roughly halfway between Australia’s eastern states and the west coast of the US. Bora Bora is one of the Leeward Islands, a coral-reef surrounded archipelago which is part of the Society Islands, which is in turn...
The Economic Implications of President Trump

The Economic Implications of President Trump

Chief economist Stephen Halmarick outlines what newly-elected president Trump will mean for the global economy. The election of Donald Trump as the 45th president of the United States has come as a great surprise in the US and, evidently, to the majority of financial market participants. This was evidenced in the initial market reaction that saw a significant ‘risk off’ move or a shift to lower risk investments before a recovery in US trading. Importantly, Mr Trump won a comfortable majority of the electoral college votes and, in addition, the Republican Party has retained a majority in both the Senate and House of Representatives. Words being used to describe the result are ‘tectonic’ and ‘revolutionary’, as the result is considered a significant vote against the political status quo. The implications are likely to be far reaching, in both a political and economic sense. President Trump Mr Trump’s policy priorities are expected to include substantial income tax and company tax reductions, health care reform focused on repealing Obamacare, increased spending on defence and veterans’ programs, immigration reforms to reduce the flow of both legal and undocumented immigrants, and an increased infrastructure spending program. Additionally, a Trump administration is anticipated to adopt a much more aggressive trade policy, including naming China as a currency manipulator and imposing tariffs on selected Chinese imports, changing the terms and conditions of the North American Free Trade Agreement (NAFTA) and abandoning the Trans-Pacific Policy. It is important to note, however, that there is considerable uncertainty on whether Trump, as president, can act unilaterally on trade policy, or whether he would need the support of Congress −...
Cash Rate Drops to New Low of 1.5%

Cash Rate Drops to New Low of 1.5%

With a newly formed government now in power, and extremely weak inflation levels, the Reserve Bank of Australian (RBA) has decided to reduce the official cash rate by 25 points, taking it to the new historical low of 1.5%. Governor Glenn Stevens of the RBA had this to say in his official statement: “Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.” “Supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. The most recent information suggests that dwelling prices have been rising only moderately over the course of this year, with considerable supply of apartments scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in lending for housing purposes has slowed a little this year. All this suggests that the likelihood of lower interest rates exacerbating risks in the housing market has diminished.” So, what does all this mean for you? Well if you have a mortgage then the news is good there are some great rates around. The banks however have not passed on the full cash rate drop as they often buy money from external providers (Over Seas Banks). If you are looking to leave your money with the banks in a savings account then the news...
How is the Federal Election Going to Affect Your Property Portfolio?

How is the Federal Election Going to Affect Your Property Portfolio?

Well the election has finally been decided and the Liberal government is back in power…. some people are happy and some not so much. I personally find it funny that every time there is an election people stop investing and wait for a party to form government. If you are waiting on the government to make a decision around your investing, then you have probably got marbles in your head. To base your investing on whatever party is in power is crazy. Yes, some parties have better policies towards investors and property purchasing, but most property investing should be with a long term view – where you would look to hold the property for 10 years plus. Unless of course your strategy is to be the developer or you have a short term strategy, where you know the number stack before getting into the investment. So if you are holding your property for 10 years plus then you are probably going to go through 3 different governments with policies that are not even invented yet – so why wait for the out come of this election?? Don’t get caught up in the media hype and political party spin. If you are a property investor, then you will probably see more pros come out of the liberals winning the election than another political party. It seems like negative gearing is safe for the time being, but we need to watch how they will tax our super. So for all those that have Self-Managed Super Funds, make sure you have your finger on the pulse. You must also look at what...
Great Coffee – Why it’s important

Great Coffee – Why it’s important

Well this week’s blog post is on the importance of having a coffee! In Australia we love our coffee…..  I often have meetings over coffee with clients, referrers, other professionals or catch ups with friends and family. It’s a great way to get back to the face to face communication – it enables us to express what we are feeling in real emotions, none of this misconstrued text or email.  Being present allows us to express how we are, where we would like to be and general a bit of networking or gossiping (depending on the company). It is also a great ice breaker when meeting clients for the first time – before we get down to finding out a little more about them and some of the goals they would like to achieve. I also use coffee for my planning of the day, what do I need to do? who do I need to call? Everything seems easier to organise with a coffee in hand. As I live on the beautiful Sunshine Coast most of my coffee shops are opposite the beach so I like to sit and smell the salt in the air and get some fresh oxygen into the lungs. (those are NOT my thongs)   Now I’m a coffee snob, I like a good crema, velvet frothed milk and the art of a great coffee. I only have select places that I will go for coffee. So next time you are in the Sunshine Coast sing out – we can have an informal chat about your current portfolio or let me know what your kids...
Negative Gearing – what is it and why it is a stupid idea to scrap it!

Negative Gearing – what is it and why it is a stupid idea to scrap it!

There has been a lot of talk in the media lately about Negative Gearing. You are probably asking yourself – what is this negative gearing? How does it work? How will it affect me? Well I am going to explain. All the pollies are happy to go on about this Negative Gearing, but not once have any of them stopped to explained what it is or how it works, and to be honest I don’t even think they understand it themselves. So…. what is Negative Gearing? Negative Gearing is when an asset you purchase costs you more to own than the revenue or cash coming in to cover its expenses.  This provides a loss on the property / asset. You then get to claim that loss against your income.  Now this is where it gets complicated as the amount you get back from the loss on the property depends on what tax bracket you are in. If you are on the top marginal tax rate i.e. over $180,000pa then you pay $0.47c in every dollar you earn. So if you have a loss on your investment property of $10,000pa you would then be able to claim that loss against your income – therefore dropping your gross taxable income by $10,000. So say you earn $200,000 with the negative gearing loss from the property of $10,000 your new taxable income would be $190,000. So because you would have already paid tax on $200,000 you would then get a $4,700 tax refund from the ATO.  Now it gets less if you earn say $80,000 as you only pay $0.30c in the dollar...
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