The Hot Summer of 2020

Many areas of Australia are now experiencing a very hot summer as we enter 2020.

In that respect, buying a property with a swimming pool may seem an attractive lifestyle option for property buyers as a feature that might appeal to tenants.

While swimming pools can be a fantastic lifestyle feature of a home, for property investors they can prove to be a financial burden that eats into cash flow.

Many investors buy a home with a swimming pool believing that they will prove attractive to tenants and therefore achieve a higher rental return.

In reality, prospective tenants tend to be split between those who would like a swimming pool and those do not want a swimming pool.

As a result, properties with a swimming pool generally does not command significantly more rent than a similar property without a swimming pool yet the investor can be saddled with high maintenance costs associated with swimming pools.

It is an unfortunate fact that too many people have fallen into the trap of buying a house with a swimming pool because over the last decade there has been a major focus on outdoor living in the property market with property owners spending larger amounts of money on enhancing the outdoor living features of their homes.

This focus on lifestyle is encouraging more property buyers to purchase homes with swimming pools.

The financial reality is that property buyers are unlikely to recoup the additional money they paid for the swimming pool in the short term.

This is because if they decide to sell the property after a short period of time, there will be as many buyers who do not want a swimming pool as those who want it.

For investors, the purchase of a home with a swimming pool can prove a financial headache. While swimming pools are attractive to some renters who have children, there are an equal amount of tenants who do not want a swimming pool.

In addition, the landlord has the problem of ensuring the swimming pool complies with all current Federal, State and Local Government regulations. They also have to pay the cost of regular local government inspections. Landlords also have to consider any public liability claims which may arise if someone is hurt using the swimming pool.

There is also the cost of maintaining the swimming pool. Swimming pool equipment needs to be regularly replaced and this can prove very expensive. For example, the cost of a swimming pool pump to purchase and install can be in excess of $1,000.

In addition, there are also the growing financial costs of paying for the water, maintenance, cleaning and chemicals associated with swimming pools. If you are buying an apartment in a complex which has a pool, then these costs can be shared. However, stand-alone property owners must carry the full costs.

If you have purchased a property with a swimming pool, it is important that you claim all the tax deprecation benefits associated with it including the swimming pool equipment. These tax depreciation benefits can help assist with the overall cash flow of the investment property.

Tax deprecation benefits associated with buying an investment property can account for up to 60% of its total purchase price.

To claim these generous tax benefits, property investors much use the services of a professional tax depreciation company like DEPPRO.

- Paul Bennion, Managing Director, DEPPRO

Gateway Bank Bulk Accreditation

It's quick and easy to become accredited just follow the steps below!

1. Please download and complete this Gateway VOW Accreditation Request Form
2. Forward your completed form direct to Vow for approval via accreditation@vow.com.au
3. Vow will review your form and forward it once approved, to Gateway's Broker Channel Support Team
4. Next you will receive an email from the Gateway Broker Support Team which contains a link to complete the online Gateway accreditation test in your own time. However, if you prefer face to face, simply contact us to arrange a short face to face accreditation session. Both the face to face and online accreditation processes aim to provide you with the appropriate product knowledge in order to provide information to customers on Gateway products and services.

Speak to the team

We understand that there's no substitute for talking to a real person, so our team are always available to take your call. You can contact our dedicated Broker Support Team on 1800 752 575, Monday - Friday, 8am - 6pm AEST or via lendingservices@gatewaybank.com.au

Treatment of Subsequent Utilization Funds

Dear Clive,

We wrote to you in July 2019 to let you know that additional upfront commission will be paid on the twelve month anniversary of the loan for subsequent utilisation of funds from a linked offset facility (Everyday Offset (EDO), MISA or Redraw).

We are now approaching the twelve month anniversary of the first eligible loans and will commence additional upfront commission payments from the next commission cycle.

Treatment of Subsequent Utilisation of Funds

Additional upfront commission will be paid on the twelve month anniversary of the loan for subsequent utilisation of funds from a linked offset facility (Everyday Offset (EDO), MISA or Redraw).

Minimum threshold

We will pay commission on subsequent utilisation of funds of $20,000 or more.

Timing / frequency

We will review additional upfront commission, once a year, on the twelve month anniversary of the loan.

Exclusions

Viridian Line Of Credit (VLOC) and Construction Loan.

Frequently Asked Questions

Read the FAQ's

Warm Regards,

Adam Croucher
General Manager | Third Party Banking
Commonwealth Bank

Attention Investors! Rates from 3.38%

RESI Flexi options is one of the most flexible loans you can provide your clients! Offering Offset on fixed rates, construction, bridging, and everything in between, the Flexi Options has it all.

RESI Flexi Options Promotion key points:

$300 in valuation fees covered
Investment P & I from 3.38%
Investment Fixed 2 & 3 year rates up to 90% LVR 3.59% P & I
I/0 up to 90% LVR available

And Let's not forget, that sitting behind this great product, is a powerful in-house processing team who have one goal: to get you to settlement, as quickly as possible. Our aim is to make life easier for you which is why we have invested significantly to simplify the process and provide you with an outstanding service.

We have a full range of supporting documents available on the Vownet. These include process maps, fact sheets for all our products and post settlement guides to what the clients after settlement experience is like through to document check lists.
If you need any assistance with placing a deal or have a scenario to work though please contact your Resi BDM.

Liberty Commercial New BDM and Latest Offerings

We have a new bdm for liberty commercial, Gabriele Famularo.

You can reach him on 0434 338 525 to discuss any scenarios or to say hello! Below are some of the offerings available at liberty:

Overview of Commercial and SMSF at Liberty:

1. Full Doc (2 years tax returns) - Max 80% LVR
2. Low Doc (Income statement with accountant signoff attached - no need for BAS/trading account statements) - Max LVR 70%
3. Lease stream (rent from third party tenant covers assessed interest - no tax returns/group servicing) - Max LVR 80%
4. Boost (No-Doc) (asset lend) - Max LVR 70%
5. SMSF (Resi and Commercial securities) - Max LVR 80%
6. Includes Off the Plan Purchases - Max LVR 70%

For Commercial - Commission of 0.35% trail and 0.75% upfront commission (No Clawbacks)

NB: Lend sizes from $100,000 - $4,000,000

Loan purposes

Including purchase, refinance, debt consolidation, working capital, cash out, tax debts, credit impairment payments etc

Security types

Office, factory, medical suite, warehouse, retail, vacant land, serviced apartments, childcare, adult entertainment, motel, petrol station, boarding house etc.

Niches on Commercial

- Flexible assessment process and generous servicing criteria at 1.25x ICR
- Serviceability - Liberty rate plus 2% on Liberty Loan and actual repayments on outside debts regardless of I/O or P&I
- Unlimited cash out and debt consolidation policy
- No penalty for minor credit impairment (i.e. ATO debt, mortgage arrears)
- Set & forget facilities. No annual reviews, revaluations and no GSA's
- Will consider specialised securities (i.e. motels, service stations, childcare , adult entertainment, etc)
- Will consider regional and rural locations
- All credit profiles considered
- 30-year terms available for Owner Occupied commercial securities.