IS YOUR CREDIT CARD LIMIT KILLING YOUR BORROWING

Issue #5 | May | 2015
P: 07 3355 6845
F: 07 3855 9189
E: property@madeleinehicks.com.au
INVESTMENT
OPPORTUNITIES
ALLANAH WRIGHT
Property Manager
CONNECTING WITH OUR REAL ESTATE PARTNERS
AND PLANTING THE SEEDS FOR A SECURE FUTURE
IS YOUR CREDIT CARD LIMIT KILLING YOUR
BORROWING POWER?
Here’s an interesting fact: your high credit
card limit could be reducing the amount banks
will lend you.
2
1
Even if you religiously pay your card off and
have zero outstanding debt, the limit itself
could be hurting you.
1
If you’re investing in property, this could mean
the difference between being able to afford
that next investment or being stuck for options.
3/55 GRAYS ROAD,
GAY THORNE
Currently rented with a fabulous
tenant in place returning $340
per week it makes a perfect
investment or first home.
But why? Doesn’t a higher credit card limit mean my bank thinks I’m a low-risk
customer who can afford to pay back the higher balance?
Well, yes. But that’s not how some lenders see it.
Your ability to pay back the loan (and your overall security/risk profile) is what
matters, and your credit card limit could be directly affecting this estimated figure.
Say you have a $20,000 limit on a card that you barely use, and you apply for a
$200,000 loan.
Depending on your lender, they could be subtracting about 3% of your credit limit
from your monthly repayment ability, leaving you with $600 less in this case.
3
2
1
25/216 TROUTS ROAD,
MCDOWALL
Located only minutes walk to
Everton Plaza & all amenities, this
beautiful townhouse is currently
tenanted with an excellent tenant
at $420 per week. Flutterby and
ask to make it yours.
FOR MORE DETAILS,
CONTACT MADELEINE:
mhicks@madeleinehicks.com.au
0413 733 617
So, how do I find out if this is happening to me?
Simple: next time you refinance or apply for a new loan, ask them what effect your
credit limit is having on your maximum borrowing power, and ask them if lowering
your limits or cancelling some cards will help.
If you have a high income, this probably won’t make much of a difference either
way, but if you’re like a lot of mum-and-dad investors out there and living on an
average income, this could make all the difference.
And remember, always consult a qualified financial professional for any loanrelated queries – the information here is only a general guide and shouldn’t be
treated as financial advice.
WWW.MADELEINEHICKS.COM.AU
Issue #5 | May | 2015
P: 07 3355 6845
F: 07 3855 9189
E: property@madeleinehicks.com.au
INVESTMENT
OPPORTUNITIES
DO YOU OWN AN INVESTMENT
PROPERTY THAT DOES NOT HAVE
A PROPERTY TAX DEPRECIATION
SCHEDULE?
If yes, you are definitely not alone. Many property
investors that are new to the property market are not
realising the potential tax savings that can be generated
from incoming producing properties, which could
potentially be tens of thousands of dollars!!
More often than not, the property investor is generally unaware that property
depreciation exists or they think that it would not be worthwhile, as the property
is old or in poor condition.
2
2
1
1-16/29 UNION STREET,
NUNDAH
Ideal first home owner or investor,
architecturally designed boutique
development of 16 apartments.
The good news is that the boat has not left. Whether the property is old and/
or in poor condition or even renovated, it is always worthwhile obtaining a
property tax depreciation schedule for your investment property.
So take advantage of the potential tax savings now and put more money in
your pocket by contacting us either via email ben.griffiths@qs-ing.com.au or
phone 0401 673 762. We would be pleased to provide free initial advice
and help you unlock and realise the property tax depreciation potential of your
investment property!
Should you wish to proceed with obtaining a Property Tax
Depreciation Schedule, we guarantee that we will save you twice
your fee in the first full year or the report is free!
To order a Property Tax Depreciation Schedule by downloading the
Application Form here.
ALLIE COUTTS INVITES YOU
TO A FREE EVENING:
Mingle with the experts & learn
how to pizazz up your home!
QS-ING Quantity Surveyors and Cost Engineers are specialists in property
tax depreciation and our service provides an accurate and current report that
complies with the ATO requirements.
Wednesday, June 10th
7:00pm - 8:00pm
Ravens Street Reserve
www.qs-ing.com.au
Please RSVP: 4 June
0459 317 039
allie@madeleinehicks.com.au
For more information, see here
What is a Property Tax Depreciation Schedule?
A Property Tax Depreciation Schedule is the name of a report that determines
the amount of money that can be claimed for the wear and tear that occurs
on your investment property. The ATO allows property investors to claim a
deduction related to the building portion and plant and equipment items that
form part of the property.
WWW.MADELEINEHICKS.COM.AU
Market Roundup May 2015
The Big Picture
•
Cash Rate 2.0%
•
2015 Budget released
•
Investment loans 41% of all lending
It’s been an eventful few weeks, hasn’t it!
Along with the historic, record-low interest rate drop to 2.0% (which saw some
home loan comparison rates fall to as little as 4.1%), the Federal Budget 2015 was
also released this month.
Australia’s 1.9 million property investors were happy to hear that capital gains
tax, negative gearing, depreciation, superannuation taxes and SMSF property
investment escaped unscathed. The $20,000 small business tax break might also
free up some money for spending and lending – it’ll be interesting to see what effect
it has!
ABS statistics also showed that investment loans are now the most common type of
financial commitment in Australia at 41% of all lending. However, some banks are
increasing their fixed-rate percentages, so maybe they see interest rates going back
up. Who knows!
Happy EOFY everyone, and remember to claim those tax deductions on your
investment properties!
Thank you to Madeleine,
Robyn and staff who helped
in the sale of our house. The
whole process was very
well managed, very simple
for us and for the most
part stress free. Max and
I couldn’t have asked for
more. I wouldn’t hesitate to
recommend Madeleine Hicks
Real Estate to anyone looking
to purchase or sell a property
Linda & Max
Residential
SOLD
26 Blue Hills Drive, Bunya
5
3
4
$650,000
Private Treaty
240 Kitchener Rd, Stafford Heights
3
1
2
$470,000
Private Treaty
7 Boulting Street, McDowall
4
3
2
$665,000
Private Treaty
11 Phillips Street, Bracken Ridge
3
2
2
$455,000
Private Treaty
53 Sizer Street, Everton Park
3
1
4
$585,000
Private Treaty
10 Belafonte Street, McDowall
3
2.5
2
$655,000
Private Treaty
www.madeleinehicks.com.au