New Tax Rules - Just Crack On With It

About 10 days after the tax rules were announced, I noticed a real change. It seems that in the great Australian way, despite the huge generational tax changes proposed, people just decided to “Crack On With It”.

Clients who were sitting on refinances, purchases and renovations started moving again. Growth suburbs remain growth suburbs and there is more to life than tax.

Once people worked out exactly how the new rules affected them, well they started to take action.

For example, we have multiple clients who have bought homes in the past few weeks which they have purchased at 5-10% discounts to seller asking prices. Some clients have not got much of a discount, but they negotiated better terms and had more choice as there was less competition.

These changes affect literally everyone in some way. If you would like to discuss your situation, please book in below, we would love to chat:

Or just reply to this email!

Reduced Borrowing Power - The Real Driver of Property Markets

Interest rates directly affect what someone can borrow to buy a property.

Lets look at Joe. Last year Joe could borrow $997,000. Now after 0.75% of rate rises this year, he can now borrow $932,000. It may not sound like that much difference but as a first home buyer thats the difference between getting that home and not when competing with downsizers and people upgrading to their second home.

Other factors that affected his borrowing:

Credit card $10,000 - knocked $47,000 off his borrowing

Car loan $30,000 - knocked $122,000 of this borrowing.

Note we have helped Joe restructure these debts as part of his home loan application (as well as choosing a lender that looked at HECS more favourably) and improved his borrowing ability by $130,000, but this is why its so important we work with you to have a strategy in place ahead of your property search. We love having ‘road map conversations’ when you are still 6-12 months out to plan for these things.

Want to discuss? Lets catch up on the phone or via Zoom

That’s it for this week.

Keep showing up and keep cheering each other on — life is better when we support each other.

Reggie and the Thunderbolt Team