EBS Financial Management Services Pty Ltd
 
Property

EBS Realty

EBS Financial Services researches and sources high growth investment properties throughout Australia and New Zealand.

We prepare and present property investment plans, outlining tax advantages and the optimum management of the asset pertaining to your current financial position.

We will assist in determining the ideal investment for your specific requirements i.e. off-the-plan, completed, existing versus new.

If you already own an investment property, and wanting to sell, you can access investors through our extensive database of potential buyers.

Real Estate is an everyday part of life, and with the great Australian dream being home ownership this usually means mortgages are an everyday part of life.

EBS Financial Services tries and makes purchasing your home, investment property, as easy as possible. This is why we provide a hassle free service for all your real estate needs, whether owner/occupier, investment or commercial.

As a part of this service, we have compiled some real estate links below to help you find the property of your dreams.

Property Investment Information- starting out

Investing in property is a solid long term investment. It is a low risk strategic vehicle for creating wealth, securing future income and maintaining or improving your standard of living. We will initially assess your financial position and prepare a plan. We will inform you of how to direct your tax dollars into a property, then we source the optimum investment property tailored to your requirements. We will manage the purchase process working together with your accountant, solicitor and financiers. We also provide ongoing support and quarterly reviews of your asset.
How do we do this?

  • We access lenders who are providing the best interest rates.
  • We locate lenders that can provide the loan features you want, and with the lowest fees and charges
  • Our goal is to access the best loan for you

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Development Sites

We have access to over ninety different development sites throughout Australia and New Zealand from small boutique developments of 10 apartments to large 200 plus developments. Most small developers preclude any form of general advertising including web sites. Unless you just happen to be "in the neighbourhood" they are difficult to find.

If you seek information please click here to access our registration of interest form and we shall respond.

Leverage Equity

This is a term used to describe the difference of what is owed on the property and what it is worth and using the dollar value to secure financial assistance to enable the purchase of another property or shares.
For example if you have a mortgage loan of $200,000 and your home value is $290,000 then you have $90,000 in “equity” which is then used to assist with the purchase of shares or property.

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Negative Gearing

Negative Gearing is using expenses related to earning your rental income from your investment property and claiming the excess expenses after rent against your other income.
Expenses include interest rate payments, building depreciation, management fees and depreciation of fixtures etc. For most investors the expenses of maintaining an investment property on 100% borrowings will be greater than the income generated and is then off set against your salary income.

For more detailed information CLICK HERE

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Mortgage Planning

Mortgage planning is a new field in personal financing. It has evolved from the United States and has come about from competition in the home lending industry. Financing tools that once were only the domain of business, can now be used by homeowners to increase their wealth.

Should I go for the discount variable rate for the first year?

At EBS we can show you how to save money on your mortgage. Money saved each month can be applied towards paying for your investment property.

Usually taken by first home buyers to help them get started. Often they mean higher interest rates when the discount period is over, and often involve extra charges if you try and change the loan later on.

Fixed or Variable Rate

With a fixed rate, your repayments will remain the same for the period that the loan is fixed for, regardless of whether the Reserve Bank reduces or increases the interest rates. This is beneficial for budgeting as the repayments stay the same. However, often you are unable to make additional payments to help reduce your loan sooner.
Variable rates are subject to the increases or decreases of interest rates implemented by the Reserve bank. This particular rate allows you to make additional payments to help the repayment of your loan sooner.

Should I go for the discount variable rate for the first year?

Taking a discount variable rate for the first year does not work out the best in the long term. Often they mean higher interest rates when the discount period is over, and often involves extra charges, if you try to change the loan later on. What saves you money now will probably cost you money later.

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FAQ

Rental Income

It is highly recommended that you use a property manager. They will find and screen the tenant for you, advise you of your rights, track associated expenses of the property and, of course, collect the rental for you. Always begin the process of sourcing a good agent early, and allow a period of up to 8 weeks before you may receive any rental income. However, remember it cannot be claimed until the end of the financial year. This means you will have to meet the expenses in the meantime.
For more information on "starting out", or if you require an overview or assessment of your current or proposed investment property, please contact us.

Tax Variation Form

Expenses mentioned above are constant every year, although their amounts may vary. This allows you to lodge this form with the ATO and receive the deduction every pay period instead of claiming it at the end of the financial year. After settlement of your property, allow up to 3 months before this variation comes into effect. Please note that all other incidental claims are made at the end of the year.

What size deposit do I require?

The larger the deposits the better off you are, but the recommendation is at least 20% of the value of the loan you require. Especially if you are trying to borrow more than 80% of the value of a property as the lenders generally take out mortgage insurance which is an additional expense. Deposit for investment properties can come from cash or borrowing on the equity in another property giving a 100% loan. Note that first homeowners can generally borrow up to 95%.

What is Mortgage insurance?

This covers any shortfall between the proceeds of a mortgagee sale of the property and the loan debt. Mortgage insurance protects the lender not you and can be an indirect cost to you.

The above is general information, but EBS Financial Services can obtain loans up to 90% of the value without mortgage insurance.

Insurance

Key elements of insurance should be taken up in tandem with the purchase of an Investment whether it be property or shares. If involving borrowings the borrower can cover themselves for almost any contingency by taking out appropriate insurance. The annual cost should be measured against the "peace of mind' that insurance cover can bring.

Items that should be considered:

  • Income Insurance - consideration should be given to insuring the prime income earner for loss of income through accident/illness
  • Insure the Investment Property
  • Insure against damage from a malicious tenant
  • Insure the loan

Personal insurance for your home and car are a natural event - so should insurance for investments.
EBS can assist you in obtaining the appropriate insurance cover.

The benefits of a Portable loan

When you sell your property the current loan may be taken to the next property. This eliminates establishment fees and other costs, which are usually present when purchasing a new property.
These loans are of benefit to those who buy-sell property regularly.

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