20 NovShould you Purchase a Property with Friends?

‘The dream might look different for our generation, but it’s not necessarily over’.

This is a great quote I read recently in an article about how some buyers are choosing to get into the property market. Purchasing a home or investment property is getting harder, but the dream is definitely not over.

Buyers are now adopting alternative strategies such as RentVesting, asking their parents to stand guarantor on a loan, or even purchasing properties with friends.

I recently refinanced a loan for a group of 3 friends, all in their mid-40s, who had gotten together a few years back for a property investment project. The friends purchased an old house on a good plot of land that they rented out for a couple of years until the home was demolished. The vacant land was subdivided and the friends constructed two new dwellings that they kept as rental properties.

Benefits of buying property with friends

Collaborating on this project meant the friends could increase their purchasing and borrowing capacity, as well as share the risks and rewards.  They also had the opportunity to utilise each other’s skills to their advantage, which ranged from Finance to Construction.

Due to other commitments, individually they were unable to embark on a project of this size. However, pooling together their resources meant they could seize an opportunity that they would otherwise not be able to manage on their own.

What surprised me was that this group of trusting friends had no formal and legal written agreement drawn up to protect themselves. A formal agreement could be used to cover such things as what to do if one or more decided to sell, or how they’d handle any issues or disputes that may arise.

But this was a unique case as the friends have known each other most of their lives and didn’t see the need to enter into any formal arrangement. Should one of the friends want to sell or get in to financial difficulty, they’d all just sell the properties if they needed to. They were all pretty casual about things, as good friends tend to be.

They also had no real attachment to the properties, so selling meant they could free up some funds and move on to another new venture.

This type of casual partnership strategy is certainly not for everyone. Despite the benefits, some of which have been mentioned above, there are also a number of risks and disadvantages to be aware of when buying property with friends.

Cons – Factors that might make buying property with friends a bad idea

  • Although you have part share in a property, you can be 100% liable for any debt against that property. So if one or more of your friends is unable to pay their share of the loan repayment, you will then be expected to cover the full amount.
  • Future borrowing capacity needs to be considered if you intend on applying for other loans. Lenders will use the whole loan that you have with your friends when assessing your affordability on the new loan.
  • There may also be unexpected issues causing unnecessary disputes amongst the friends so having appropriate processes in place to deal with such issues is highly recommended.

You can reduce some of the risks of co-ownership by making sure you get good legal and financial advice before entering into any type of agreement. You should also speak with a conveyancer about your options, especially if you intend to subdivide land later down the track, as there may be stamp duty considerations to take into account

It’s also important to update your will and arrange for a formal co-ownership agreement to be drawn up by a solicitor. The co-ownership agreement should stipulate things like how all parties intend on paying for any maintenance and repair costs, how long you intend on keeping the property, what to do if one of the parties wants to sell, and how funds from the rent or sale are to be distributed.

If you have friends that you trust who are financially secure and have the same goals and values as you do, then purchasing an investment property with them might be a strategy worth considering.

But remember, get good advice first and do some more research in to the benefits and risks of purchasing a property with friends before entering in to any such agreement.


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Disclaimer: We recommend that you seek independent financial and taxation advice before acting on any information in our articles and newsletters. They contain general information only and have been prepared without taking into account your personal objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.


20 NovRentVesting: Champ or Chump Move?

What is Rentvesting?

This is a term given to the new 21st century breed of young first home-buyers who are taking advantage of Australia’s property market to invest and build their portfolios.

Rentvesting is the term used when a home buyer chooses to purchase their first home as an investment, instead of living in it.

It is currently one of the fastest growing trends among generation Y buyers, with statistics from West Australian broker group Mortgage Choice suggesting that one in four first home-buyers in WA are purchasing their first homes as investment properties. The trend is not limited to WA, with young buyers making similar investment strategies all around the nation!

Benefits of Rentvesting

It is not hard to see why – This reinvesting strategy allows investors to live in their dream location whilst at the same time getting their foot in door of the property market, and earning money on their investments. Some industry experts have even been quoted as saying ‘there’s never been a better time do it with rents and home prices so down’.

All the tax benefits of owning an investment property are available to these savvy young investors, and their rental income is often more than sufficient enough to cover their mortgage. Living with parents to reduce rent can even save these investors more money!

The Rentvesting strategy provides first-time buyers with many benefits, both financial and non-financial including the following:

  • Tax benefits: Buyers receive all the tax benefits of a property investor, including depreciation and negative gearing
  • Rental Income: The rent received from the investment goes towards the loan repayments and can, at times, be enough to cover the mortgage
  • Enter the property market sooner: you have the opportunity to get your foot in the door of the property market sooner
  • Opportunity to reduce mortgage balance: Sticking to your Rentvesting plan for a couple of years could help to pay down the amount of money you owe on your investment mortgage, which helps to build your equity faster
  • Flexibility: By renting, the investor is able to live where they want and in their ideal location where they can afford the rent but not necessarily afford to purchase a home in that area, i.e. Close to the CBD.
  • Choose where to invest: the suburb you want to live in won’t necessarily be the same area where you buy your investment property. You can choose to buy a property in an area with strong rental demand and good rental yields while you rent in the area where you prefer to live.
  • Fast-track plans to upgrade: taking advantage of rental income, plus tax benefits, plus the option of paying down your mortgage more quickly could all contribute towards fast-tracking your plans to upgrade to a nicer home in the area you want to live in
  • Build wealth: Rentvesting is ideal for those who want to start building wealth. The tenants pay rent that will help to cover your mortgage costs and you have the opportunity to take advantage of any potential capital growth over time
  • Opens up new markets: Rentvesting opens up interstate markets or locations that might not be where you want to live, but might be great for investment purposes
  • Easier to relocate: Renting also provides the young investor with the flexibility of being able to relocate more easily, or take advantage of extended travel

If you’re beginning to think that rentvesting may be for you – here are some tips that are relevant to today’s property market.

Top Tips for Potential Investors in the Current Market –

1. Consider older homes on large blocks close to the CBD. Houses that don’t have the best presentation are often overlooked real estate market however these types of houses can often have the best long term capital growth.

2. Look for suburbs that are currently oversupplied with properties but are growing or expected to grow.

3. Obtain pre-financing – this will allow you to act with certainty and take advantage of desperate sellers who will be more than likely to drop the price of their property for the promise of a rapid sale.

4. Emphasis should be placed on negotiation on price, not conditions of sale. The conditions of the current market have created the perfect opportunity to buy a home below the asking price! Buyers are a lot better off negotiating on price rather than adding conditions to sale – like the request for items to be repaired. This will annoy sellers and they will be less likely to lower their price.

We’d love to help

If this has got you thinking about the potential benefits that rentvesting could bring you, then contact us at Nieuvision today. We believe that your investment and financial dreams should be a reality. With the help of our friendly and experienced staff we will be able to provide you with the information and guidance required to reach your personal investment and financial goals!

19 NovPerth Property Forecast 2020: Top Suburbs and Market Outlook

Perth Property Market Update

Perth is a picturesque city overlooking the Indian Ocean; it makes a beautiful place to live for young families, retirees and young professionals alike.

With the property market experiencing a downturn in Sydney, Melbourne, and other major cities, Perth has also undergone a slight decline; however, property pundits believe that the market will experience a steady upturn in 2019 and beyond.

Perth Property Forecast 2019

With reference to the QBE Australian Housing Outlook for 2019-2021, the overall prediction is that Perth’s property market should experience some notable growth halfway through 2019 and through to 2021.

There are some crucial  things to consider here such as:

  • APRA credit restrictions
  • Reserve Bank could decide to raise interest rates if the markets are stable in 2020
  • Trade conflict between the USA and China over Iron ore could directly affect Perth’s housing market because Perth’s iron ore industry has recently seen an improvement.
  • If the Labour government passes a Negative Gearing Repeal, this might have an impact on rent prices.

Regardless of the issues mentioned, property experts predict that Perth’s property market will experience a positive upturn in the next two to three years.

Perth’s Property Prices in 2019

QBE’s predicts that Perth’s housing prices will drop -1.7% halfway through 2019, increasing +1.9% at the start of 2020, and 4.8% in 2021. The median house price in Perth will level out at $550,000.

These figures indicate a 5% growth between 2019 and 2021. With the mining industry growing at a steady rate, more and more investors could be setting their sites on Perth in the next two years.

With a decline in the property markets in Sydney and Melbourne, property experts predict that the Perth property market could be one of the fastest growing markets in 2019 and 2020.

Unit Oversupply

When the mining industry saw an upturn in previous years, there was a significant demand for unit style housing. However, when the industry experienced a sharp decline, the need for units drastically declined.

As a result, there has been a sharp unit price slump, with prices falling -5.4% in the past year. Prices are set to increase by approximately 2% by 2020.

The last year has seen a 1.0% population growth rate increase; also with an imminent mining industry revival, the oversupply problem could well be a thing of the past.

Best Suburbs To Invest in Perth 2019

House prices are relatively low in Perth at present; however, with forecast growth over the next two years, Perth could be a viable place to invest in property over the next two to three years.

Which suburbs should property investors be setting their sights on?

Stirling and East Fremantle

Stirling and East Fremantle experienced 1.9% growth whereas inner-city Perth experienced a -0.9 % decline. Outer Perth suburbs dropped -2.6%. Properties can be purchased for under $450,000.

Other suburbs to watch:


-City Beach






With the impending mining industry upturn and steady population growth in Perth, it could experience some notable increase in the next two years.

Property investors should keep an eye on the factors mentioned in this article that could have a direct impact on the property market such as interest rates, the trade conflict between the USA and China and possible policy changes.

That being said, Perth is looking like a viable place for property investors to set their sites on.

19 NovSydney Property Forecast 2020: Top Suburbs and Market Outlook

Sydney Property Market Forecast

The Sydney property market enjoyed ten years of steady and unobstructed growth; however, 2018 saw a slight softening of the market. The overall consensus is that 2019 will see much of the same. What is the general forecast for the 2019 Sydney property market?

The period of steady decline in the Sydney property market saw:

  • Credit restrictions
  • Less foreign investment
  • Increasing bank funding costs
  • Expensive housing
  • Oversupply of apartment units in some places

2020 Sydney Property Market Forecast

The median house price in June 2018 was $1,103,50, a 7.6% decline since June 2017.

Outer and Western suburbs experienced a 2.8% drop, in addition to this, vacancy rates increased from 1.8% to 2.5% in June 2018. There was a 7.4% decline for Sydney dwellings by October 2018.

2019 Predictions

Property experts SQM Research have predicted an underwhelming softening of the Sydney property market in 2019 and beyond.

An overall property pricing crash is not expected. They highlight a steady national economy, stable population growth and low unemployment to indicate that a significant property pricing crash is not on the cards for Sydney.


QBE’S Australian Housing Outlook has predicted a fall in prices between 2019 and 2020. Their predictions indicate that 2019 should see an 11 percent decline in prices with the median prices dropping -5.4% between 2019 and 2020.


CoreLogic highlights various factors that could affect overall property prices in Sydney in 2019:


-9% decline if there is no cash rate change, Labor government May 2019 and a slow economy

-11% to -6% drop if 0.20% interest increase and Labor government

-6 % to -3 % drop if cash rate stays the same, slow economy and Liberals stay in power in the upcoming election


Property analysts have predicted that Labor’s planned repeal of negative gearing policy could harm property prices.


Best Sydney Suburbs To Invest in 2019


Dubbed the next Silicon Valley, Eveleigh is a trendy inner-city suburb with lots of investment potential. Up and coming tech innovation projects will lead to new job creation and startups setting up shop in the area. With brand new apartment projects, art center and hip cafes, Eveleigh is the perfect suburb for young families, professionals, and creative communities alike.


Waterloo is set to become a hot zone for property investors, with brand new apartment developments, local parks, art galleries, trendy shops, cafes and restaurants, a possible Metro line could be in the pipeline. Waterloo is certainly looking like  one of the suburbs to watch in 2019.


Brookvale offers relatively affordable housing, close to beaches. There are plans to transform Brookvale into a bustling place to be, with new bars, cafes and new residential developments on the cards. The transport system is efficient, and things are looking up for the Brookvale area.

Baulkham Hills

Baulkham Hills is a family-focused suburb with lots of investor potential. 20% of the suburb is rented, which is excellent news for potential property investors. The brand new Sydney Metro Northwest rail line which is due to open in 2020 will add value to the up and coming suburb, making it one to watch in 2019 and beyond.


The  general consensus for the 2019 Sydney property market is that property buyers will most likely have more buying power with softening of the market set to continue, there is no indication that there will be a total property price crash in Sydney.

There is still lots of investment potential in the suburbs with continued infrastructure development, 2019 is set to experience a steady price decline overall, so it is still a case of buyer beware.


19 NovMelbourne Property Forecast 2020: Top Suburbs and Market Outlook

Melbourne Property Market Forecast

The Melbourne property market experienced the most significant quarterly decline in ten years. By the end of 2018, the Melbourne real estate market dropped by -4.7%.

The NAB residential property index highlights that property investors are losing interest in the city and as a result of this and the decline in Sydney’s housing market, Australian house prices have dropped by -2.7% in the last year.

Considering the overall state of the property market in 2018, how will 2019 fare? What is the overall market outlook for Melbourne in 2019?

What Happened in 2018?

After five years of steady growth, Melbourne’s property market experienced a sharp decline. Here are some of the possible reasons why the figures dropped:

  • Credit restrictions particularly for property investor loans
  • Reduced foreign investment
  • More properties, fewer buyers
  • Clearance rate reduction
  • Oversupply of apartment units

Despite the overall decline in the Melbourne housing market in 2018, some outer suburbs held their prices (+6.2%) In comparison, Melbourne’s inner and middle ring suburbs experienced some price reductions with middle ring suburbs declining -5.7% and inner suburbs -24%.

Melbourne Housing Market Forecast 2020

Property experts predict that by June 2019, the median house price in Melbourne will drop to $820,000, approximately 8.4% less than the recorded median for December 2017. Units are also set to experience a decline, with a predicted 3% drop expected.

By June 2021 the median unit price is forecast to be at $545,000, which works out 2% less than the recorded median in June 2018.

SQM Research suggests that one of the factors affecting the property market is the reduction in interstate migration in the past two years.

Migration to Victoria has reduced by 4,000 since 2017. Other factors include bank finance restrictions and weakening foreign investment.

Expected Price Changes in 2019

Some property experts have predicted price drops of -9% to -6% in 2019. Here are some of the factors that might affect property prices in 2019.

-9% decline to -6% decline if the cash rate stays the same, slow economy and Labor government elected.

-11% decline to -6% decline if interest rates rise by 0.20 % and Labor government

-3% decline to 0% decline if 0.50% interest rate reduction and Labor government.

If a Labour government is elected, their planned negative gearing repeal policy  could have a significant impact on the property market.

BIS Oxford Economics predicts median unit prices to drop -3.6% by 2020.

Top Melbourne Suburbs to Invest in 2019

It is certainly not all doom and gloom for the property market in Melbourne. These are just some of the top suburbs to carefully consider investing in 2019.

  • North Melbourne
  • Collingwood
  • Ringwood
  • Croydon

Growth is more likely on the outskirts of the city, for example, Werribee is up 17.86%, and Officer was up 30.55% in the past year.

Infrastructure development and expensive housing in the city center is luring first time buyers to Melbourne’s outer belts.

Lending restrictions, reduced population growth and weakening foreign investment are all factors affecting the Melbourne property market currently.

However, although further decline is expected in 2019, there is still hope for first time buyers and potential investors in the outer Melbourne suburbs.

Property analysts and major banks have recently modified their predictions for market growth in Melbourne, advising property buyers to tread with caution in 2019.


19 NovTasmania Property Forecast 2020: Top Suburbs and Market Outlook

Hobart, the capital city of Tasmania, has gained a significant amount of attention from potential investors and first-time house buyers in the past three years. The quaint scenery and quirky architecture and steady economic growth has made Hobart an attractive choice for property buyers.

The market downturn that affected Sydney, Melbourne and other Australian cities had little effect on the capital city of Tasmania. Hobart has experienced the most rapid growth in property prices in recent years, and it still maintains a relatively affordable median house price.

Considering the current market climate, what does 2019 have in store for Hobart?

What Happened in 2018?

Despite the market decline in other parts of Australia, Hobart remained mostly unaffected in 2018. It experienced notable growth, with a strong rental market and steady population growth, Hobart avoided much of the issues that plague Sydney and Melbourne.

QBE’s Australian Housing Outlook 2018-2021 states that Hobart’s median house price was $481,000 in June 2018, a 10.6% increase since June 2017.

The most notable growth happened in Brighton, a 17.3% increase in the past year.

Hobart City recorded a lower growth rate of 6.3% from 2017-2018.

The rental market recorded vacancy rates of 0.7% in June 2018, the same as in 2017.

Hobart Property Market Forecast 2019

Property experts predict that growth will continue in 2019. However, Hobart could experience a slight property market growth reduction in the next two to three years.

QBE Australian Housing Outlook predicts a +8% price growth for 2019-2021, thus bringing the median house price to $520,000. The median unit price is expected to increase to $420,000 which is a +9% rise.

Forecasted figures may vary depending on political climate, economic growth, and bank interest rates. Here are some of the factors that might affect Hobart’s property market in 2019.

+5% – +9% growth if the cash rate remains the same and the economy slows down, and Labor government

+4%- +7% and a 0.20% interest rate increase, no change in cash rate and Labor government

+5%- +9% with a 0.50% rate reduction by banks, and a Labor government

If Labour  government is elected in 2019, this could harm the property market; however, as it stands, Hobart’s property market looks relatively healthy.

Top Suburbs To Invest in Hobart 2019

As a potential property investor, understanding the best areas to invest your money is crucial. Here are some of the suburbs to consider when thinking about investing in Tasmania property.

Focus on affordable suburbs north-west of the city such as Glenorchy and Moonah. These areas provide good vacancy rates and strong rental returns. For example, Glenorchy’s rental yields are 5.4% currently, and the median house price is $365,000.

The outer ring suburbs are often the best choice because they offer the most substantial growth potential and they are less costly.

Kingston is a decent option if you are looking South of the city, with strong price growth, affordability, and 4.7% rental yields, it is a viable choice for potential property investors.

Lindisfarne is also a suburb to watch in 2019, North-east of the city, it provides, excellent living conditions, and affordability. As well as healthy rental yields of 4.6%, unemployment and crime rates are relatively low as well as good schools, shops, and efficient transport links, Lindisfarne is another excellent choice for potential property investors in 2019.

26 MarAsset Structuring For Property Investors 101


Asset structuring is a vital component of property investment however, it is often bypassed by newbie property investors or developers. Asset structuring should be tailored to the individual investor however, there are some crucial factors to consider when deciding on the best structure for your needs. Here are some of the key issues that you should think about when structuring your assets as a property investor:


25 MarSE QLD- Australia’s New Investment Hotspot


The Australian housing market and reports of declining property prices has created an air of uncertainty for potential and established property investors. However, there are still opportunities for in growth in Australian housing investment. The key to successful property investing in Australia is to find the most viable locations.


According to property investors and media coverage, Sydney and Melbourne have suffered the most in the property market downturn. However, smart investors are looking elsewhere, and South East Queensland is looking like an attractive option.


South East Queensland Property Outlook 2019

SEQ property prices are steadily improving, and it looks like growth is on its way. SEQ has never experienced massive growth like southern states. However, experts believe that SEQ could be an excellent place to consider when searching for properties to purchase.


According to CoreLogic’s Hedonic Home Value Index, Brisbane performed well compared to other capitals in Australia. The latter part of 2018 showed some obvious growth in the property market throughout Inner city Brisbane, in 2019 the predicted growth for inner city Brisbane is 4%.


Affordability is a definite pull for potential property investors and young families moving to Queensland and investors looking to invest in property in the Queensland market.


Queensland is a good place for potential investors to start. Residential vacancies are currently low and look set to stay that way for the foreseeable future. According to SQM Research rates declined from 3.4% in August 2017 to 2.8% in August 2018.


Population Growth

Queensland’s predicted upturn is directly related to affordability, rapid migration, ongoing population growth, and infrastructure development.


State Government predictions indicate that Queensland’s population is set to rise rapidly to 6.7 million by 2036.  A direct reaction to population growth will be widespread infrastructure development, meaning new roads, hospitals, schools, and recreational activities for a growing population of young families and professionals. To meet the demand, at least 30,000 new properties need to  be built each year for the next 25 years.


The potential for growth lies in the fact that there is a shortage of housing in crucial areas. Therefore, as the population grows, more housing will be needed to meet the demand.


Suburbs like Ipswich and Logan will need to increase property development to meet the needs of the growing population. For example, population growth is set to increase by 144% by 2036. Logan’s population is set to grow by 46% by 2036.


The Queensland Infrastructure Boom

Queensland will experience a massive boost in infrastructure spending over the next few years, with a predicted spend of $25 billion.


According to the Queensland State Infrastructure Plan March 2016, these are the main infrastructure plans to be completed by 2021:

  • $10.94 million transport plans with a $2 billion Brisbane Airport upgrade and multi billion Cross River Rail Initiative
  • $743 million arts recreation facilities
  • $2 billion Brisbane Live Entertainment facility
  • $2.03 billion in energy development
  • $5.37 billion for health and medical facilities
  • $504 million for education and training
  • $267 million for water projects


Significant infrastructure development is a vital sign that there are property investment opportunities in a particular area. This is not a surefire reason; however to invest in that area but in the case of South East Queensland, there are lots of reasons why investing in property is a good idea.


As stated earlier, extensive research is necessary when purchasing a property.


Analyse property cycles, and create a comprehensive risk management strategy before committing to anything.


There is definitely huge potential in Queensland for new and established property investors. However, it is necessary to conduct extensive research before committing to purchase a property.


Property investment requires comprehensive risk management strategies and in-depth research into the location, costs, interest rates, population growth, local business, and overall viability.


South East Queensland is being dubbed the newest investment hotspot nonetheless personal research, and intensive investigation is imperative.