PROPERTY MARKET & INVESTMENTS
Pros and cons of ‘ rentvesting ’ your property
RENTVESTING is when an aspirational home owner purchases a property , within their budget , to lease out and rents a property where they would prefer to live .
Essentially , the rent and invest strategy is to buy an investment property first , and rent where you want to live .
It ’ s a tactic that overcomes financial obstacles and expensive property prices , because you can buy in a location that fits your budget and then rent in a location that suits your lifestyle .
It works because even though you ’ re renting , the property you buy is an asset that ’ s growing in value ( assuming you pick the right investment ) and being paid off by your tenant .
Not only that , but you ’ re gaining equity that can launch you into other property purchases down the track , including ( when the time is right ) a home to call your own . Rentvesting is a helpful strategy for those who are required to live near expensive cities like Sydney . Sydney is a booming economic hub that command high prices due to supply and demand . Similar in other main cities of Australia .
As such , many white-collar workers , particularly Millennials who make up a high proportion of middle-income employees face few choices if the inner suburbs are too costly . They can buy in a less expensive
HEALTH MATTERS
By JERONE BALAGTAS
Mortgage Broker
outer fringe suburb and live with a timely commute , or they can rent .
Rentvesting also works for people choosing lifestyle as a priority .
There are other reasons as to why people are better suited to rentvesting :
• zNeed to move around a lot for work
• zLike to travel for lengthy periods
• zPrefer the flexibility of renting ( eliminates buying and selling fees )
• zWant to live in upmarket suburbs or near entertainment hubs that are out of their buying budget
ADVANTAGES
1 . Rentvesting gets you into property sooner . Time is money and the earlier you can get into a property the more chances you will reap capital growth .
Capital growth needs time to work effectively , which means that buying today rather than five or 10 years from now while you wait to accumulate a deposit or grow your income is an essential step to successfully growing your future wealth . 2 . You can choose a financial structure that allows for a smaller deposit . If properly structured , a smaller deposit for an investment loan is still a feasible tactic
as long as the mortgage is offset by the rental income . You don ’ t want an asset that is a crippling financial burden . I can help you calculate your minimum deposit requirements in line with your financial situation .
3 . You can choose an investment property in your budget , without location constraints . Your investment property doesn ’ t have to be in the same neighbourhood as you . Before you buy , you should create a plan based on longterm goals , and then find a property that fits in with your strategy . For example , you might decide that you ’ re going to build a new duplex to bolster tax deductions and generate duplicate rent . Or , you might buy purely for capital growth , but choose a location near a different city where prices are within your means .
4 . You can live in a location you can ’ t afford to buy , and have the flexibility to move or upsize / downsize . The advantage of renting is the flexibility to move without significant expense , which can be beneficial to those who move around for work , or when personal circumstances change . 5 . Tax deductions from the investment property help to offset the mortgage repayments . Numerous expenses related to your investment property will be tax deductible , including improvements and repairs you make along the way . At the end of the financial year , these deductions will help to cover the costs of owning your asset .
6 . Without a huge mortgage to pay , you can save for your own home or next investment . If circumstances allow , rentvesting can create more margin in your finances so you can put money aside and all the while , your investment property is growing in value and being paid down by your tenant . DISADVANTAGES
1 . You ’ re still renting . Some people will always think that rent money is dead money .
2 . You don ’ t have the security of owning your own home . Renting always has the risk that you will be asked by the landlord to move on after your lease ends .
3 . You may miss out on the first homebuyers grant . Eligibility for the grant when you ’ ve bought an investment property depends on the state or territory you live in .
4 . Capital Gains Tax will most likely be applicable when you sell . Capital gains tax can be a hefty expense if your property has done its job and grown significantly in value . •
Jerone is a local successful Filipino mortgage broker and one of the Executive
Director of the One Solutions group , he has 16 years experience in the accounting / finance / banking industry . He walks the talk as he is a successful avid property investor himself .
Important notes toward understanding Melanoma
|
MELANOMA is a type of skin cancer which develops on parts of the body that have been overexposed to the sun .
Compiled by :
FE WATMORE
Registered Nurse
|
DIAGNOSIS :
The doctor examines the suspicious spot or mole using a dermascope and ABCDE method to identify symptoms and make a diagnosis : A – Asymmetry , irregular B – Border , uneven C – Colour D – Diameter , ( usually over 6mm ) E – Evolving ( changing and growing )
|
|
|
|
It is a deadly cancer but the easiest to treat when caught early .
However , if it goes undetected , it may spread to other areas of the body and becomes dangerous .
Most often , melanoma has no symptoms , but the first sign is generally a change in an existing mole which may include : colour – the mole may change in colour , shades or become blotchy . Size may appear bigger . Shape may have an irregular border or may increase in height , elevation – may develop a raised area , itching or bleeding . Other symptoms include dark areas under nails or membranes lining the mouth , vagina or anus .
Melanoma risk increases with exposure to UV radiation , particularly sunburn , family history , and complexion .
|
TREATMENT :
Staging - The thickness or presence of ulceration in melanomas predicts its outcome .
Early-stage melanoma – Surgery can be curative for thin . melanomas and requires that melanoma be removed with at least 1-2 cm of normal skin around it .
Advanced melanoma – Surgery should be the mainstay of treating relapsed melanoma if possible to remove all of the disease .
Chemotherapy – May benefit patients with advanced melanomas .
Radiotherapy – May be of benefit in treating some forms of melanomas .
|
|
PROGNOSIS : The prognosis depends on the type and stage of cancer , including the age and general health at time of diagnosis . |
PREVENTION :
• zMinimise exposure to the sun .
• zStay under shade .
• zWear sun protective clothing , sunglasses and hats . Wear sunscreen .
• zCheck skin for irregular or changing lesions and have regular checks by doctor .
|
References : The Heinemann New Family Medical Encyclopaedia Melanoma-Cancer Council Australia Understanding Melanoma-Melanoma Institute Australia • |
www . kalatas . com . au AK NewsMagazine , Vol 8 No 8 | MAY 2018 13