What is the AIPN?

Who is James Cagney?

Interested in the other services we provide then click on the Tabs above OR call James Cagney on +61 1300 563 543 OR on Skype at +61 7 5660 6573 or Fax +61 7 5657 7094. Please call between 09h00 to 18h00 Australian Eastern Standard Time (AEST).

Buying Investment Property in Australia and New Zealand

Research has shown that property in Australia doubles in value every 7.2 years. Therefore buy an investment property and make money while you sleep?  How easy is that!

Not all the sections on this page may be of interest to Australian Residents or Foreign Investors so click on the highlighted questions below that link directly to your area of interest to save you time:

 
 

Why should we buy an investment property?

There are many benefits for Australian residents purchasing investment property including:          

* Appreciation   

* Depreciation   

* Tenant paying the mortgage                                                                          

* Tax rebates from the Australian Tax Office (ATO)

 

Do you want to know more OR do you have another question? To save you time simply scroll to the top of the page and click on the questions you want answered and it will take you to the relevant section.

 


Can overseas residents buy in Australia?         

Well not everybody in Australia can afford or has the desire to live on the water. However, Australia is a wonderful country where you will have an equal opportunity to become unequal. That is of course if you do not want to be classified as "average" which means being happy to live like everybody else (which means you will need support from the government to survive in your retirement) and being part of the "flock". If you would like to be part of the 5% of Australians who retire independently wealthy you need to invest your money wisely. Making your money work for you instead of working your whole life for money.

James Cagney's interest in Real Estate was kindled when he realized that immigrants have the opportunity to buy investment property in Australia whilst still living outside of Australia.  Many migrants mistakenly believe they can only do this when they arrive in the country. However buying property is in fact more difficult once migrants settle because they have no credit record or equity in their new country - two ingredients essential in order for the banks to lend money to purchase a home. As a result many migrants have to wait several years before they can buy a home, which can be very stressful. Housing prices continuously rise in urban areas, and new migrants find it difficult and can't afford to buy and therefore have to rent. Unfortunately rents are rising continually and migrants are finding almost impossible to save for a deposit for a property. Unbeknown to most migrants, they can actually borrow between 70% to 80% on the property from Australian banks, whilst they are still living and working in their home country. A deposit of around 20% plus purchase costs is required and most investors from developed countries have no exchange control and can easily deposit the money into a solicitors account. The easing of the South African Reserve Bank exchange control restrictions has helped many South Africans to fund the deposit and costs to enter into the property market prior to their immigration to Australia.  

James Cagney is a registered Real Estate Agent in Queensland. James is able to help you with Queensland and New South Wales investment property. James has reliable contacts with real estate agents around Australia i.e. Melbourne and Victoria property; Adelaide and South Australia property; Canberra and ACT property; and Darwin and Northern Territory property, Hobart and Tasmania and Perth and Western Australian property. Investment property anywhere in Australia can be sourced through registered and local experts so give us your destination. James has reliable and licensed real estate agents who will help you find an investment property in New Zealand. Just click >>>>here and give us your destination and price range for Australia and New Zealand.

Do you want to know more OR do you have another question? To save you time simply scroll to the top of the page and click on the questions you want answered and it will take you to the relevant section.


What can the Australia Investment Property Network do for you?

At the Australia Investment Property (AIPN) network we work hard for our clients to assist them in purchasing exceptional Australian property for owner-occupier and investment purposes. These include houses, villas, townhouses, apartments and land purchases. We offer an integrated system to help our clients purchase quality real estate which offers maximum capital growth and sustainable rental returns. To find out more about how you can benefit by joining the Australian Investment Property Network click >>>> here.

 What we will do for you:
  • Help you understand the Australian property market.
  • Source the best property to fit your budget and circumstances.
  • Arrange mortgage finance and bank accounts with favorable terms and conditions.
  • Refer you to independent and reputable professionals to complete the purchase and look after the property after the purchase e.g. Solicitors, Mortgage Brokers, Bankers, Accountants and Property Managers etc.  

James Cagney has in-depth knowledge of the Australian property market and he is willing to assist you with your investment in Australia. James is a member of the Property Investment professionals of Australia. This is an organization dedicated to delivering a high standard of ethics and services within the Real Estate Industry and has stringent standards to meet before membership is approved.

James is the founder of Wealth Mentors, a group of investors that assist clients to invest wisely. If you would like to speak to a Wealth Mentor to and help you sift through the plethora of investment advisers and consultants wanting to sell you shares, futures, commodities, property etc. etc. please click >>>>. here . Let's face it advisers have their own wheel barrows to push and it is hard to get unbiased opinions. They will justify themselves by stating they have a living to make but how does that help you? Take action and contact us today.

For more information on AIPN, please click here.

Do you want to know more OR do you have another question? To save you time simply scroll to the top of the page and click on the questions you want answered and it will take you to the relevant section.


What makes Australia a desirable destination for migrants?

  • Despite the world economic crises Australia has one of the most stable economies in the world. 
  • The Asia Pacific region is an area of economic growth, albeit slower than in previous years. Australia’s trading arrangements in Asia such as China and India are still predicting good growth in their economies whilst the USA and Europe are in trouble. Global demand will decline but Australia will gain market share at the expense of higher-cost producers like the USA and Europe.
  • Australia has good prospects for the future despite the global financial crises and economy. Although there is a decrease in global demand the prices for commodities is holding and the AUD is rising against the USD and the Euro. 
  •  The Australian Government has been proactive in stimulating the economy. They decided to inject vast amounts of money into family grants and into new infrastructure to create jobs and to stimulate the economy.
  • The population growth rate of Australia has over the past decade has been a major factor to economic growth. For example during the 12 month period to June 2009, the population increased by 1.9% equating to over 680 000 new residents. A large percentage of migrants (64%) are in the skilled category. This means that many of these migrants are buyers and renters of quality real estate. 
  • The home affordability increased by 2.4% and the average household needs 38.8% of the family income to service the home loan. Interest rates have increase from the 54 year lows in 2013 This will reduce many of the marginal property buyers who will opt to rent which will increase returns on investment properties. For more updated information please go to the "NEWS" Tab and browse through the recent Articles and Updates James Cagney has written on property Or click >>>> here .

Do you want to know more OR do you have another question? To save you time simply scroll to the top of the page and click on the questions you want answered and it will take you to the relevant section.
 


Why should international investors buy property in Australia? 

Because you can!  Non Australian residents can legally purchase Australian property. There are regulations in place for non residents which are not too arduous which we will explain to you if you wish to learn more about it.   Below are a few of the reasons why you should buy an Australian property:

  • It’s a hedge against unstable currencies against the AUD. Why would you not invest in a democratic country which has a stable economy, strong currency and a secure future?
  • The median price of residential property in Australia has increased at an average of 10.5% per year over the last 50 years. You need to get into the market as quickly as you can to take advantage to ensure you can afford a home. Do not wait until you settle in Australia to buy property. You will pay more.  
  •  Purchasing a property prior to settling in Australia is smart because it gives you automatic credit-worthiness even before you take up your Australian residency. The alternative of paying cash for everything when you first arrive because you have no credit record is hard on your pocket.
  • Because the property market in Australia is growing purchasing an investment property before you settle gives you equity to buy a home in an area where you and your family want to live. Many families have to wait years before they buy their first home wasting their hard earned income paying rent.   
  • Your investment property will give you personal income tax credits in Australia, which you can use when you start earning income in Australia. Paying the tax man less when you get to Australia means more money in your pocket.  
  • The landlord in Australia is protected by the Residential Tenancy Act. The landlord is considered King and /or Queen as we have some of the strictest tenancy laws in the world. Ask AHP for more information about your rights as a landlord and how we can assist you in getting the right property management in place.

For more updated information please go to the "NEWS" Tab and browse through the recent Articles and Updates James Cagney has written on property Or click >>>> here . Do you want to know more OR do you have another question? To save you time simply scroll to the top of the page and click on the questions you want answered and it will take you to the relevant section..


Where should you purchase an investment property?

Do not become emotionally involved or “loyal” to the state where you initially plan to settle when purchasing an investment property in Australia. Think of the property as a money box into which you, the tenant and the taxman (ATO), make deposits prior to your arrival. You must invest where you get the best capital growth and sustainable rental return. Queensland and Northern NSW is the place to buy even though you may live in another state when you do settle in Australia. You just use the equity in the investment property to buy your home.

Many migrants choose the major cities to settle.  The population of Sydney, Melbourne Brisbane and Perth and the surrounding towns has grown dramatically in recent years. A great proportion of this growth has come from overseas migration.  Property prices have once again started  to rise in most major cities and particularly in Brisbane.  
  • Capital growth more than rental returns will give you the opportunity to increase the number of properties you buy because of the increased equity in the property, which increases your capacity to borrow money. Once you own a number of properties then rental returns become more important than capital growth. So go for capital growth first and then rental returns. 
  • The inner suburbs in the capital cities are popular for the younger and up and coming home owner and renter. We call them DINKS in Australia (Double Income No Kids). However, these properties are expensive and often need renovating. For the offshore investor this is a huge challenge and  they should stick to new properties to avoid the stress.
  • In the near future Sydney, Melbourne, Adelaide  and the surrounding cities and towns  will be more affected by the frequent global recessions and crises  than other areas because of it's large manufacturing sector.  The high cost of Australian labour is forcing many of the Australian manufactures to go offshore to Asia to remain competitive. Qantas, Ford, Holdon and Alcam are the latest victim and more retrenchments will follow and this will put pressure on the growth of real estate in these areas.  The withdrawal of Holdon in Adelaide by 2017 and Ford in Geelong and the adverse affect  on allied industries unfortunately following suit making real estate in other areas in Queensland a better proposition for now. 

For more updated information please go to the "NEWS" Tab and browse through the recent Articles and Updates James Cagney has written on property Or click >>>> here

Do you want to know more OR do you have another question? To save you time simply scroll to the top of the page and click on the questions you want answered and it will take you to the relevant section.

 


When should you buy property?      

  • Despite the posturing by the political parties in Australia to gain votes prior to Federal and State elections the property market follows the usual property cycles. Australia’s proactive immigration policy and increasing birth rate in the country has the population projection over the next 30 years increasing by as much as 40%. This will push the population in Australia to around 30 million people within the next 10 years.
  • The global credit squeeze has put many property developments on the back-burner as developers struggle to raise funds. This has resulted in a huge housing shortage, which will in turn cause housing prices and rents to rise over the next few years.
  • Mortgage interest rates in Australia are the lowest in 53 years. It is much easier to secure a loan for a home or investment property and it costs a fraction of what it did two years ago.
  • Property is subject to fluctuations and follow a cycle. James Cagney has studied the property cycle over the years and he will give you his tried and tested interpretation of the Property Cycles. Members of the Australian Investment Property Network (AIPN) have benefited greatly from his advice over the years. To find out more about the benefits of joining the AIPN click >>>> here. For more updated information please go to the "NEWS" Tab and browse through the recent Articles and Updates James Cagney has written on property Or click >>>> here .

Do you want to know more OR do you have another question? To save you time simply scroll to the top of the page and click on the questions you want answered and it will take you to the relevant section.


What is NRAS and how do you benefit from the income tax rebates?

NRAS is a Government program that will pay you tax free money for 10 years after purchase of a new investment property. The Australian Government has given this to assist to alleviate the huge shortage of rental housing on a national level and has created the National Rental Affordability Scheme, called “NRAS”.

The NRAS program is designed to focus on affordable housing and not social housing. The government is well aware of the previous problems created through public housing schemes and does not want to repeat the problems of the past.The Government has enlisted the support of the public sector to ensure the most favorable outcomes. It’s doing this by providing substantial incentive is to property investors. These incentives can be as much as $103,500 over a ten year period.

National Rental Affordability Scheme — discontinues incentive allocations in the May 2014 Budget. The Government will achieve savings of $235.2 million over three years by not proceeding with Round 5 of the National Rental Affordability Scheme (NRAS).
Funding for incentives from earlier rounds that are uncontracted or not used within agreed time frames will be returned to the Budget. Funding for tenanted NRAS properties is not affected.

The Government has now confirmed its commitment to funding incentives for 35,000 NRAS properties. With the recent floods in Queensland and NSW it has forced the federal government to announced that NRAS funding is to be partially diverted for rebuilding damaged houses. This has now reduced the overall NRAS allocation by 15,000 houses and $264 million. How long this will last before the scheme has reached its full allocation is the unknown.

We have talked to numerous NRAS investors achieving many more benefits over and above all that is currently available for them that negatively gear. This is an opportunity for investors to get in quick before the scheme is sold out.

What can the investor receive?

NRAS offers annual incentives for 10 years. There are two key components.

(1) A Federal Government Incentive is indexed to inflation for 10 years at 1st May 2013 is $7,763 per dwelling as a refundable tax offset or payment.

(2) A State or Territory Government Tax Free Incentive indexed to inflation for 10 years at the 1st May 2013 is $2,587 per dwelling for the year. The incentive is given annually on the condition that throughout the ten year period the dwelling is rented at 20% below the market rent to eligible lower and moderate-income households.

The Federal and State or Territory Tax incentives total $10,350. The rent component, weighted average of eight capital cities is 3.7% for 2013 – 2014. If the weighted index continues at this rate you will receive approximately $103,500.00 over 10 years. The beauty of this is the Federal Government incentive is a tax offset not a tax deduction. A tax offset is better because it is a direct reduction in the tax payable whereas a tax deduction is a reduction in the taxable income, which is then taxed. The State Government incentive is also tax free.

The Federal Government tax offset is a refundable tax offset. Whilst most tax offsets can only reduce your tax payable to zero, according to the Australian Tax Office, “refundable tax offsets can reduce the amount of tax you are liable to pay to an amount less than zero, which results in a refundable amount”. Therefore under NRAS, the State and Federal Governments are contributing by way of cash and a refundable tax offset or payment. So the investors rent out their property through the NRAS scheme giving a 20% discount on rent, the incentive in 2012 - 2013 financial year equates to $10,350 tax-free. The value of the incentive is adjusted yearly in accordance with the rent portion of CPI using the weighted average of the eight capital cities across Australia in any given year.

The data will then be forwarded to the relevant government agencies and after the annual audit is completed, you as the investor will be issued with your NRAS Tax Offset Certificate in June each year (for ten years) which you will use to claim your Federal Government Tax Offset through your tax return. Your State Government NRAS Tax-free payment will be paid at the end of September each year or ten year

NOTE: The NRAS Incentive is indexed according to movements in the Rents component of the Housing Group Consumer Price Index for the year, December quarter to December quarter as at 1 March, using the weighted average rate of eight capital cities housing component, and is effective from 1 May.

What to be wary of with NRAS?

Investors need to be aware that when borrowing for the NRAS property NRAS properties not all Banks will treat NRAS as standard security. This is because NRAS properties are rented at a minimum of 20% below market rent. This can reduce how much you can borrow from the banks, and this is why you need a qualified person to assess your financial situation and approach the right lender.

Many NRAS properties are often approved in areas of lower household income and your capital growth potential will be retarded. Developers have found a way to offload their land in these lower income areas. Always look for capital growth first rather than focusing only on tax reducing programs before you buy an investment property.

NRAS was developed to reduce rents for the lower to middle income earners  Too many NRAS properties in one suburb will affect the capital growth potential of the entire area. Although the scheme was introduced to reduce rents for lower to moderate income families pressed by high rents this does affect the perception of the neighborhood by future investors, There are areas in all cities that are predominantly rental and these suburbs have never been high capital growth areas. 

To Summarize….The benefits of investing in an NRAS Approved Property are:                                                                                                

• Increased income through the Commonwealth and State / Territory incentives
• The growth in the property value over the 10 years
• Negative gearing income tax benefits using full deduction of interest payments and property depreciation
• Good opportunity for a positive cash flow
• Tax Free income indexed to inflation for 10 years
• Tax Offsets indexed to inflation for 10 years

If you would like to know more about the Government's NRAS scheme please click >>>>> here.

Do you want to know more OR do you have another question? To save you time simply scroll to the top of the page and click on the questions you want answered and it will take you to the relevant section.


Investment properties for sale right now? 

PROCRASTINATION will keep you BROKE and FEAR will keep you POOR and the worst thing about being POOR is it takes up all of your time. . How many of us know elderly folk who agonize over every dollar they have to spend. Make a decision today not end up like them. It is your choice so chose today what you want from life and where you want  to be at retirement. If you choose to be WEALTHY then you need to ACT now.  Australia Hot Property have value for money properties that are in high growth areas. James spends time every day researching areas and contacting developers in the growth areas. Unfortunately there are too many marketing organisations and property spruikers selling overpriced properties in areas that are showing no growth or limited growth.   Please contact us so  we can give you more details of the properties we have for sale right now. that will make you money.

The fact is that many properties you find on property search websites have been there for months because they are either overpriced or undesirable. There are over 1.7 million properties listed and if you spend 2 minutes studying each one it will take you 159 years to get through them all. It's impossible and ridiculous for you to even contemplate this. .  Australia Hot Property (AHP) do the research for you. We buy most of the research because academics are very good at research and James does not have the time to do it himself. Trying to get through the insurmountable data available yourself is like trying to get through the jungle with a machete. It will take a lot of hard slog, time and money on your part. We have the CHAIN SAW to get through the jungle which is more effective and less time consuming. Stop trying to do all the work yourself. and rely on others otherwise you will get "analysis paralysis" and never make a decision.

You will be thinking "Whats in it for you" (WIIFY) and "What's in it for me" (WIIFM). Well AHP make commission when you buy a property. We obviously need to make money to stay in business. However, if we get you what you want.......you will give us what we want. It's the  "Law of Reciprocity"  and it works.

Contact James Cagney  >>>>here or call James on his mobile 0416 137 645 for this information.

Do you want to know more OR do you have another question? To save you time simply scroll to the top of the page and click on the questions you want answered and it will take you to the relevant section.


How are you protected when you purchase a property from AHP and AIPN  

Australia Hot Property (AHP) (ABN No.BN20574423) and the Australian Investment Property Network (AIPN) are a subsidiaries of IRPS Associates Pty Ltd, which is a registered Real Estate Agency in Queensland (No.3048759). The CEO, James Cagney, a former migrant from South Africa now living on the Gold Coast in Queensland, and is a registered Real Estate agent in Queensland. James is a member of the Property Investment Professionals of Australia (PIPA). This organisation's goal is to uplift the ethics and standard of service within the Real Estate industry.  Members have to abide by this strict "code of conduct" or be forced to resign from the PIPA organisation. 

James is an advocate for property investors in Australia. Unfortunately the Real Estate industry in Australia has a very bad reputation. This reputation is not unfounded as many people have been conned by unscrupulous agents. James is constantly fighting for the rights of people who spend their hard earned money trying to secure their future through investment property. James is the founder of "a-fair-go", which stands up for the rights of property investors in Australia.

If you have a complaint about any real estate agent please contact James and he will investigate on you behalf so you can have  "a fair go". Just click >>>here a share your concerns.

James is the founder of the Australia Investment Property Network to which property investors can join and share their knowledge and experience. We are looking for people throughout Australia who want to associate with other people who want to enjoy a retirement with lifestyle and dignity and not be broke and ashamed. If you want to know more about the benefits of owning investment property or want to continue investing and expanding your property portfolio please contact us by clicking >>>>here.

Do you want to know more OR do you have another question? To save you time simply scroll to the top of the page and click on the questions you want answered and it will take you to the relevant section.

Disclaimer:

This is not financial advice. You should not act solely on the basis of the material contained on this website. Changes in legislation occur frequently and without prior notice. Items herein are general comments only and do not constitute or convey advice per Se. The data stated herein was taken from published data and the author and IRPS Associates Pty Ltd are not responsible for it's accuracy. 

IRPS Associates Pty Ltd, P O Box 838, Helensvale, Queensland, Australia 4212. 

Telephone +61 1300 563 543 Fax +61 7 5657 7094      

 


 

 

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