Elite Tax and Wealth Advisory :: Collier Rd :: Morley

24/10/2026

Have you considered a second residence on your property?

Home owners looking to invest in a rental property without taking on significant debt are finding a solution in their own backyard.

The granny flat is regaining popularity as a solution to tight rental markets, an ageing population and metropolitan land shortages, thanks to more relaxed legislation in some parts of Australia.

Whether it's actually for granny, an adult child or an unrelated tenant, a second residence on your existing property can bring benefits, if you do your homework.

Not just a room for rent

Different states have different rules but generally granny flats:

Can be built only on residential blocks 450 square metres or larger that are not strata title, subdivided or community title property.
Must be owned by the same person(s) as the main dwelling.
Can have no more than 60-70 square metres of living space (patios, verandas or carports can be additional).
Can be attached to the primary dwelling or freestanding.
Must have a separate entrance (even if attached to the main house).
Regulations regarding construction and occupancy differ between states and territories, so do your homework before finalising plans. Planning rules can also vary among councils.

Managing up

Having the grandparents close by has all sorts of family advantages, providing everyone gets along! One of the biggest perks, apart from having built-in baby- sitters, can be lightening the financial load for both the senior and junior parties.

Often parents agree to cover the cost of building a granny flat as an affordable alternative for their retirement, while their child can benefit from increased value to their property and possibly a rental income further down the track.

But don't assume a granny flat will instantly add value above and beyond its cost. Often the value is derived from the opportunity for an extra income to help pay down the mortgage on the primary residence faster.

It will depend on the housing market in your area as to whether a second residence adds to the overall value of your property - another reason to do your homework.

It's also important you get legal advice for your circumstances so if someone dies or has to go into care, or the younger family decides to sell, the financial implications are clear for everyone involved.

Still in the nest

A granny flat can be a win-win for parents whose adult children are still attached to the family home and all of its convenience. The separate residence gives both parties privacy, while the younger generation can get a taste of independent living and save on rent.

Parents may have to set some clear boundaries with this option because, although the kids are at arm's length, they are still under your nose and may still need to abide by your house rules.

Investing close to home

Taking the plunge into investment property can be daunting for home owners. With a granny flat, you can dip a toe without hefty debt and be positively geared from the get-go. For an investment of around $120,000 in a capital city, you are likely to reap $220-$330 a week in rent.

Talk to local real estate agents to gauge the local rental market. Granny flats (either attached or detached) often appeal to single women who appreciate the extra security of someone else living on site or young people studying from out-of-town or overseas, especially if your residence comes fully furnished.

You should also research whether a one or two-bedroom residence would be more rentable in your neighbourhood.

Tax implications

Capital gains tax (CGT) doesn't apply to your main residence, no matter how much it appreciates in value from when you buy to when you sell. You can even rent it out for six years, CGT-free, providing you don't claim another property as your main residence for that same period.

However, the CGT exemption may no longer apply for part of your property when you add a granny flat, which means you may have to pay CGT when you sell up.

The rules can be complex and a little blurry, and hinge around how the granny flat is used, so make sure you get independent, professional tax advice to fully understand the tax implications for your situation.

Need extra money to fund the build?

Talk to your broker if you are considering creating a second residence. It might be a good opportunity to review your home loan and find a deal to better suit your circumstances.

24/10/2026

Know your rights as a borrower.

As a borrower, it pays to know your rights - and don't be afraid to exercise them!

It can all seem a little intimidating when you apply for a loan, and it seems like the lender is putting a lot of conditions on you as the borrower. But what are your rights? Borrowers are heavily protected by state and federal law, and you can expect your lender to keep up their end of the bargain too. You have:

The right to know what you're in for

The lender must provide you with a very detailed contract which outlines all of the terms and conditions of your loan in clear language. You should take the time to understand all of your obligations, fees and charges and make sure the loan amount details are all correct.

The right to know your interest rate

Your lender is required to communicate interest rate changes to you in advance - either directly, or by putting an advertisement in a major newspaper.

The right to know your repayment amount

The lender must provide you with written notice at least 20 days before your interest rate is due to increase.

The right to a copy of your loan statement

A loan statement must be provided to you every six months. You have the right to dispute any transactions that you don't feel are correct or justified.

The right to pay out your loan at any time

There may be some fees involved, but you do have the right to pay your loan out at any time. Accordingly, you also have the right to know your payout figure, which your lender must provide to you within 7 days of receiving a written request.

The right to terminate your contract before the funds are drawn down

You have the right to pull out of the transaction if the funds have not yet been drawn down for settlement to take place.

The right to get assistance in times of financial hardship

There is legislation in place to protect you if you experience financially tough times. It's worth investigating the relevant options so that you are ready for the unexpected.

But, you would remember from childhood that more rights usually equals greater responsibilities. There are a few obligations that you must keep to your lender as well:

Provide truthful, factual information when you apply.
- Make all of the repayments on the due date.
- Keep the property in good condition and don't make any big alterations without getting permission from your lender.
- Take out insurance for the full replacement value of the buildings/structures and keep the insurance policy paid and current.
- Don't sell, rent, or mortgage the property without your lender's permission.

24/10/2026

Do you wish that your superannuation was growing as quickly as the value of your home?

Did you know that you might be able to use your superannuation to invest in real estate? Many Australians have started very lucrative property portfolios with a single purchase using their superannuation.

But how does it work?

Here is how to invest in property via a Self Managed Superannuation Fund (SMSF)

Step 1 - Set it up

The first step is to set up your Self-Managed Super Fund (SMSF), which will take some time and you will need to consult your Accountant or Financial Planner to get their input.

This option doesn't suit everyone so it's vital to make sure that investing in property through SMSF is the best fit for your personal situation.

Step 2 - Roll over your existing super

If you need to roll your super over into a SMSF, this could take a month or so. Don't go looking for an investment property to buy until you have your SMSF set up with the funds rolled over.

Step 3 - Look into Trusts

Ask your Accountant or Financial Planner about setting up a trust before you take out a loan for the investment property.

The idea is to set things up so that the loan is only secured against the investment property, rather than throwing your family home into the mix.

This way, if something unexpected happens and you can't repay your investment loan, you won't lose your own home too.

Step 4 - Know your limits

Usually when you borrow through a SMSF, the maximum loan amount is 80% of the purchase price, and remember that there will also be purchase costs involved, just like any other property transaction.

Step 5 - Go shopping

Now for the fun part - looking for a property to purchase.

Usually you can choose any sort of residential property to invest in, but make sure you spend plenty of time researching your options, considering the growth that you want to achieve and the sort of tenant you want to attract.

Make sure you shop with your ideal tenant in mind. (Don't look for single bedroom apartments near a university if you only want to rent to a retired couple - you might be barking up the wrong tree!)

Step 6 - Remember the rules

There are a couple of rules about investing in residential property through your SMSF.

Generally speaking, you and your family members cannot live in the property. So if you thought it would be a good idea to purchase an investment as a home for your daughter, you might need to investigate other options.

Secondly, you can maintain the property but you cannot improve it. There could be a few grey areas here (is painting consider improving or maintaining?) but obviously you won't be able to add a second level to the home, or replace the kitchen.

21/10/2026

BUYER BEWARE THE BARGAINS

Limited cash flow and equity mean many first-time property investors feel the need to chase down a bargain to enter the market. But, like most things in life, you usually get what you pay for, which � in the case of property � can mean unrealised returns or even losses.

While there�s nothing wrong with paying less in the hope of making more, investors need to understand when a cheap property is truly a bargain and when they could be selling (or rather buying) themselves short.

Here�s our guide to help investors actually get what they bargain for.

Always ask �why�:

There�s always a reason a property is selling cheap. Your job is to find out why.

Some reasons are obvious � the property is on a main road or backs onto a railway line � but others may be less overt. There could be termite damage, rising damp or shifting foundations, which perhaps only a property inspection will reveal. While not irreparable, these can be big-ticket fixes and probably beyond your reach if you have limited funds.

Other factors may be even more concealed. For example, a very small property with poorly placed sewer pipes that prevent extensions, a new flight path planned for overhead or a property in a high-risk flood zone. These are variables you can�t control and should probably be avoided.

The best way to avoid being sold a lemon is to do your research, not just on the property for sale but on others in the vicinity. What�s the average price for similar properties in the same suburb? And what do they have that yours doesn�t, or vice versa (as in the case of aircraft noise).

That�s not to say all cheap properties have sinister secrets. Some are under-priced because the owners need a quick sale or the property is part of a deceased estate. Keep in mind, though, these sorts of genuine bargains tend to get snapped up quick, so have your suburb research on hand to be in a position to pounce.

What can and can�t be fixed:

Even in the property market there are lemons that can be turned into lemonade. It�s a matter of knowing which lemons are worth squeezing, which means accepting what can and can�t be fixed.

What you can fix:

- Minor noise (with insulation and double glazing).
- Interior design.
- Configuration of rooms (turning a study into a bedroom or vice versa).
- Storage.
- Natural lighting in a house (add a skylight, windows or glass doors).
- Under-cover parking for a house (add a car port).
- Landscaping.

What you can�t fix:

Location.
- Land zoning and covenants (restrictions on height, building type etc).
- Land size.
- Traffic.
- Infrastructure that imposes on your property (e.g. power poles).
- Flight paths.
- Aspect (which way the property faces).
- Natural lighting in a unit (you won�t be allowed to add windows).
- Unit block exterior (although you can try and influence the body corporate).

Just because a negative, such as traffic, is beyond your control, the property may still be worth pursuing at the right price. You just need to accept it may be harder to rent and harder to sell, and will probably take longer than desired to increase in value.

One of the biggest mistakes investors make when they purchase cheap properties with �unfixables� is to over-capitalise on renovations (see our story in this edition on this very subject).

There can be a temptation to compensate on what can�t be fixed by over-investing in what can. If you decide to invest in a bargain that has some obvious drawbacks, do your homework on which renovations will give you the best return on investment.

Short-term pain, long-term gain:

As with all investments, you need to weigh up your personal finance goals and individual circumstances before settling on a property. For many investors, a bargain buy (even with some of the unfixables) is going to be their best opportunity to gain a foothold in the market.

It�s worth considering, though, whether settling for something cheaper is the best strategy in the longer term.

A slightly more expensive property in a quality suburb with higher growth potential could be worth the extra stretch up front if the capital gain over time far outstrips a bargain buy elsewhere.

Buyers should also be wary of towns or suburbs billed as the �next big thing�. Where there�s a boom, there can also be a bust. Towns built on the back of mining are key examples of property markets that can lure investors with promises of high rental returns. But if the mine dries up or goes belly up due to external factors, you could be left with a property that is worth much less than what you paid with few prospects of tenants.

The key to taking a longer term view is patience, and ensuring you are in a financial position to stick to your plan, especially if it means holding onto a property for 10 or more years to realise its growth potential.

Get expert advice:

Your broker can help you assess your individual circumstances to determine what you can afford. Everyone�s circumstances are unique so it�s important your first investment takes into account your earnings now and into the future, plus any significant lifestyle changes that might affect your ability to service a loan.

Are you planning to start a family or travel? Do you have kids in private education?

It�s important to weigh up all of these factors when considering your financial future.

21/10/2026

Over 55% of Australian borrowers (including 65% of first home buyers) choose to use mortgage brokers to secure their loans. https://www.afgonline.com.au/broker/keep-competition-alive/

21/10/2026

We all know that interest rates are cyclical and that when rates go down they will eventually go up.

As a result, lenders have been assessing loan applications on the ability of borrowers to make repayments at interest rates approximately 2% higher than those currently available.

While lenders have been assessing your ability to make repayments at a higher interest rate, what is the reality of the fi nancial impact of your regular loan repayments?

To make sure you are ready, click here to read my "What goes down, must come up" article.https://www.mortgageaustralia.com.au/email/files/whatgoesdownmustgoup.pdf

20/10/2026

Working From Home? What Can You Claim?

Do you regularly work from home?
If you do, you may be entitled to claim some of the additional expenses you incur but it’s important to understand what the ATO allows and what records you need to keep.

Do you regularly work from home? If you do, you may be entitled to claim some of the additional expenses you incur — but it’s important to understand what the ATO allows and what records you need to keep.

19/10/2026

Six Steps to becoming mortgage-free - Step 6: Is the grass greener on the other side?

Do you ever wonder if the grass really is greener on the other side? The question today is: are you getting the best deal on your mortgage?

How would you like to make a few small changes that could lead you on the path to becoming mortgage-free and financially fabulous?

Well, there are six simple steps that you can implement today, that will help you knock over that home loan in record time.

In the past weeks, we learned how choosing the best possible loan product could make a big difference to your back pocket. How changing the frequency of your repayments could lower your interest. Why it makes sense to pay more off your loan whenever possible, how to make the most of handy features like offset accounts, and redraw facilities, and why refusing lollies from strangers is always a good idea.

Step 6: Refinance for a better deal

The fierce and ongoing competition between lenders in the home loan market can sometimes play out like a scene from Gladiator. But the clear victor emerging from this never-ending battle is you - if you keep your finger on the pulse.

Now more than ever, it's vital that you keep assessing your financial needs and look out for opportunities to get a better deal on your loan. Even though you compared your options and secured the best deal a few years ago, that doesn't mean that your current interest rate is the best, or even close.

By refinancing with another lender you could reduce your costs, and save time. Many borrowers who refinance are able to save as much as 1% off their interest rate, which could mean paying that loan off several years earlier than planned.

If you haven't reviewed your options for a while, it pays to speak with your mortgage broker and find out if the grass really could be greener on the other side. It could make all the difference if you want to pay your loan off sooner, and keep more money in your pocket in the process.

18/10/2026

How many ways can you buy a swimming pool?

Question: How many ways can you buy a swimming pool?
Answer: At least 8 different ways that I can think of.

And not all of those ways may be suitable for everyone - here is my list.

Not everyone wants a swimming pool either. But perhaps a new car, maybe a boat, a motorbike or a decent holiday? A caravan or a new garage? An aeroplane even?

Doesn't really matter what it is, but if you need to spend a serious amount of money, it may be worth looking at some of the things you can do with your home loan to facilitate your new purchase.

You see, 6 of those 8 different ways I mentioned actually involve your home loan, so it's probably worth a look first, just to make sure.

That's where I can help. It doesn't cost anything to check out what would work for you, and then you can actually make an informed choice.

The least I can do is point you in the right direction and the privacy act ensures our conversation is entirely confidential.

What do you think?

Contact me and we'll see where you stand.https://www.mortgageaustralia.com.au/email/files/8waystobuythatpool.pdf

18/10/2026

How to get a loan when it all seems hopeless?

Jason was 28 when he decided to start looking for his first home. A builder by trade - he had been working for the same employer for over 8 years and he had substantial savings - enough to pay a 10% deposit and cover stamp duties.

He usually paid the phone bills on time, and his credit card was barely ever used.

In spite of all this, Jason was unable to get a loan through traditional lenders. The reason - a mistake from the past.

Against the advice of his parents, he decided to help a previous girlfriend get car finance. She was only working a couple of days a week on a casual basis, and the finance company wouldn't approve her loan.

Always the nice guy, Jason offered to put the car in his own name - and trusted his girlfriend to keep the repayments on track.

When the relationship broke down a couple of years later, he was shocked to learn that no repayments had been made on the car for several months. To make matters worse, the news came from a grumpy middle-aged man who arrived early one morning trying to repossess the car.

A few years on, Jason was growing increasingly frustrated in his search for a home loan. Finally, he found a Mortgage Broker who suggested a 'Non-conforming' loan. Although the interest rate wasn't brilliant, Jason was finally able to get his foot in the door. The lender also offered to review the loan conditions after 12 months, if all of the repayments were made on schedule.

With the help of a non-conforming loan, Jason was able to realise his dream of home ownership, despite having a bad credit record.

Non-conforming loans are designed for people who don't conform to the traditional criteria used by lenders to assess a loan. Some borrowers have a bad credit history, and others might be struggling to get approved because they just changed jobs. Sometimes, even people who have previously been declared bankrupt can still be approved for a non-conforming loan.

Importantly, there is a big difference between 'Non-Conforming Loans' and 'Low-doc Loans'. While non-conforming loans are designed for people who have an imperfect credit history, low-doc loans are designed for the self-employed. Low-doc loans are often quite strict - borrowers usually need to have a 20% deposit, and a very healthy credit history to get approved.

Lenders usually charge a much higher interest rate for non-conforming loans. The good news is, many lenders will agree to review your rate after a set amount of time, providing that you meet all of your repayments.

Whilst it's never a good idea to take out a home loan if you can't afford to repay it, non-conforming loans can be very helpful when your financial position is good now - but your past credit mistakes continue to haunt you.