Welcome to the latest issue of Eagle Eye Property Insights by our senior accountant Graeme Eagle, where we explore key updates in the property market, from interest rate shifts to tax considerations for homeowners and investors.
Last week we saw the first bank offer a sub-5% mortgage rate, with Westpac offering a 4.99% fixed rate for 3 years. The big question will be whether this will be matched by other banks and whether it was in anticipation of a reduction in the official cash rate this week? Regardless, this must be tempting for a lot of borrowers refinancing or even looking to refinance.
A lot of people have a perception that having boarders, homestay students, and flatmates won’t incur an income tax liability for them. Like a lot of tax situations, it depends. Where there is a profit made from the activity, there is tax to pay. For boarders and homestay students, a “standard cost” calculation method is used, and an “actual cost” calculation method for flatmates. Best to speak to one of your friendly Walsh & Associates accountants if you’re not sure.
I recently came across a situation involving a neighbouring homeowner who was unaware her home was sitting over the boundary line of her section. The woman had been to the local district council to discuss building a deck at the front of her house, only to be told she needed to move her house back on the section or apply to the council for a licence to occupy her own house! Needless to say, after the council had approved the building of her home 20+ years ago, she was consulting her lawyer.
Note: The above comments are for general information purposes only and do not constitute financial advice. We recommend consulting a registered financial advisor when considering your mortgage options.