Welcome to this month’s edition of the Dot Monthly!
I’ve just returned from Hong Kong, away for a few days to partake in a number of ventures – Business and personal for that matter. The Hong Kong derby was a load of fun too! I’m back home and quite frankly count my blessings we are offered such an amazing opportunity to live and work here in Aus!
Let’s get into this month’s hot topics
- ANZ Eases Up On Investor Loans
- ATO To Check Property Claims
ANZ has relaxed the restraints it placed on interest-only mortgage lending in 2017 and has indicated it’s easing its attitude to lending to property investors. The Big Four bank says it is once again offering customers an interest-only period of 10 years, up from the previous
maximum of five years. It will now offer interest-only loans to customers will a deposit of only 10%, whereas previously it required 20%.
The changes suggest ANZ is trying to lift growth in the investor market, after chief executive Shayne Elliott last month admitted the bank had been “over conservative”. It is also the latest sign of a loosening in restrictions on investor and interest-only loan growth, after APRA removed caps on these types of mortgages late last year.
“On recent review, we have made a decision to increase our focus on the investor market,” ANZ CEO Shayne Elliott says. “The upcoming changes demonstrate our continued appetite in the investor market, while ensuring we remain in line with our APRA requirements.”
ATO To Check Property Claims
Property investors will attract closer scrutiny from the ATO after audits of 300 investors revealed errors in their tax returns. “A lot of people are getting things a little bit wrong,” Tax Office commissioner Chris Jordan has told The Tax Institute’s national convention in Hobart.
Jordan says property investors are now his “next focus”, following a crackdown on inappropriate work-related expenses, which has yielded $600 million in extra tax revenue. “We’re seeing incorrect interest claims for the entire investment loan where it has been refinanced for private purposes, incorrect classification of capital works as repairs and maintenance, and taxpayers not apportioning deductions for holiday homes when they are not genuinely available for rent,” he says.
Property owners declare about $44 billion in rental income and $47 billion in costs associated with property ownership – including interest on loans.
The ranks of positively geared investors swelled over the first five financial years of this decade, the figures show, thanks to a combination of falling interest rates and higher rents.
It’s important to have your accountant across this as there may be implications/ penalties should your return be lodged in error.
What has Dot been up to for the month?
Don’t forget to read up on the 15 year itch which is an E book I’ve authored to equip you with strategies to pay off your mortgage in under 15 years. The e book is available on the website or you can get in touch via email to request a complimentary copy.
As always, we hope you enjoyed reading the blog and should you have any questions, please feel free to email Connecting@dotfinancial.com.au or you can call us on 1300 000 DOT (368).