1 in 5 first-time landlords are ‘accidental investors’

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first_img “Don’t worry about year-on-year changes. 4. Recruit a team of advisors to help MCG Quantity Surveyors MD Mike Mortlock survyed his clients and found 23% had lived in their investment property as their PPR.Brisbane couple Callum and Prudence Klaer found themselves owning an investment property without even planning to.They bought their unit in Woolloongabba in 2010 as first homeowners with the intention of living there long term. Mr Klaer lived there for 12 months with friends before he and Pru headed north for work opportunities and friends of theirs lived there while they were away.In 2014, they returned and planned to settle down in the unit, until 2016 when Pru fell pregnant. The couple then decided they wanted a back yard and put the unit on the market, only to find they couldn’t sell it after the normal marketing campaign.They decided to keep the unit after chatting with a bank and realising they qualified for an Interest Only loan.“We tried to sell, but the bank had valued it at $340,000 and we had it on the market at that price for about a year, but we had no offers, despite the mean price in the area being $450,000,” Ms Klaer said.“So, rather than lose money, we thought, we’d just wait for the market to improve, or keep it.” So, now they find themselves living in a PPR in Moorooka with an investment property in Woolloongabba, which they rent out for about $360 a week.“We have no trouble renting it out,” Ms Klaer said.“I like the idea of keeping it because it’s so close to the city and it would be good for our son when he grows up.” “I like to say to people, you can eat your lollies but you’ve got to have your veges first. “Buy a property for the long-term and don’t make kneejerk decisions — it’s expensive to get in and out of investment properties.” Prudence and Callum Klaer with son, Frederick, at their home in Moorooka. They’ve become ‘accidental property investors’. Image: AAP/Josh Woning.ONE in five first-time landlords may have fallen into the property investment game by accident.New data from a leading quantity surveyor has revealed more than 20 per cent of landlord clients have become property investors unintentionally — joining the nation’s 2.2 million of them.MCG Quantity Surveyors managing director Mike Mortlock said he had discovered a large number of his clients had become property investors simply because they had chosen not to sell their home when it was time to move on.“Many of these owners seem to have fallen into their first investment, rather thanmade a strategic decision to become a landlord,” Mr Mortlock said.“It’s a fairly stunning result given the broad perception of property investors as acalculated, high-earning cohort set to tactically snap up all the available real estate.” “Plan your exit strategy and what you’re trying to get to over whatever time frame.” “If you own a PPR in a market that has a high vacancy rate and minimal prospects for capital growth, it might not be the best decision to keep it,” Mr Mortlock said.“It might be worth selling it and buying in an area with better long-term growth potential.” One in five first-time landlords may have fallen into the property investment game by accident, new data shows.While preparing tax depreciation schedules, MCG asked his clients whether they hadpreviously occupied the property, and found 23 per cent had lived in their investmentproperty as their principal place of residence (PPR), with owners living in their former homefor four years and 11 months on average.Mr Mortlock said the time frame showed only a fraction of those investors werestrategic first homeowners who took advantage of stamp duty concessions or grantsby living in their properties for the minimum required period prior to moving out.“Such a group always planned on being investors, but they would be a very smallpercentage of those in our research, otherwise the average resided-in period wouldmuch be lower than five years,” he said.“We think it came down to people looking to upsize and realising they were in a position where they could hold on to their old property and upgrade as well.” 5. Be patient! It could be helpful to get a depreciation schedule at the point the PPR becomes an investment property.Mr Mortlock said he believed in holding on to property until retirement age if you could comfortably service the mortgage.“If you can convert your PPR into an investment, the more hotels you own on the Monopoly board, the better you are at the end of the game,” he said.More from newsParks and wildlife the new lust-haves post coronavirus15 hours agoNoosa’s best beachfront penthouse is about to hit the market15 hours agoThe rise of the accidental investor could also have broader political implications, according to Mr Mortlock.“Most of these landlords own just one property and are mum-and-dad style investorslooking to get a financial step up before retirement,” he said.“It’s this group who will be most impacted by any future changes to negative gearingand capital gains tax, or upward movements in interest rates.“In our experience, those with the largest property portfolios are the least likely tocare about negative gearing or tax changes because they tend to be positivelygeared.”According to the ATO, fewer than 20,000 Australians have an interest in six or moreinvestment properties.TOP FIVE TIPS FOR ACCIDENTAL PROPERTY INVESTORS1. Get a bank valuation If you are converting a PPR to an investment property, you should get a valuation done at the time the property becomes an investment to minimise capital gains, Mr Mortlock said. 3. Don’t keep your PPR as an investment property just for the sake of it (Source: Mike Mortlock, MCG Quantity Surveyors) “With changes to depreciation legislation, you won’t be able to claim plant and equipment items unless you purchased prior to the 9th of May, 2017, and rented it before the end of that financial year,” Mr Mortlock said.“But what hasn’t changed is building structure deductions.” 2. Get a depreciation schedule at the point the PPR becomes an investment property “Have a long-term plan,” Mr Mortlock said. “We too often see property investing as a bit of an afterthought,” Mr Mortlock said.last_img read more

‘Ready for Change’… Digital Fuel unveils GDPR compliant marketing platform

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first_img EGBA backs EU regulators demand for highest industry standards March 31, 2020 Toby Oddy – Digital FuelIndustry full-service marketing agency Digital Fuel has moved to expand its customer compliance dynamics, by launching a new tailored acquisition platform for the online gambling sector.The platform which will be unveiled at this week’s ‘ICE Totally Gaming’ & ‘London LAC Affiliate’ conferences has been specially developed to meet the rigorous new demands of the European Community’s  ‘General Data Protection Regulation’ (GDPR).Digital Fuel an industry marketing stakeholder since 2013, states that its wants betting clients to be ahead of the curve on EU-wide marketing policies which will require greater transparency on user data collection, promotional consent and accountability of a customer’s journey.Leading the initiative, Digital Fuel Founder & CEO Toby Oddy details to SBC that his agency sees their new acquisition platform as a ‘realignment of traditional lead-generation marketing techniques’.The tailored platform will allow for clients to develop compliant next-generation targeted marketing inventory at competitive CPAs (cost per acquisition).“Our new fully integrated acquisition platform enables us to deliver our partners the highest calibre of new customers thanks to an ultra-niche level of custom targeting, allowing for both quality and quantity of new leads.”  Oddy details.Presenting the launch of its GDPR compliant platform, Digital Fuel has released the following stakeholder presentation;  https://digitalfuel.marketing/consumer-friendly-acquisition-uk.php Submit EU research agency demands urgent action on loot box consumer safeguards July 29, 2020 StumbleUpon Share Related Articles Share Germany moves forward by presenting unloved framework to EU courts May 20, 2020last_img read more