Author: Xavier Quenon

We are very proud to announce that Go Mortgage is the 2018 WINNER for the BEST REGIONAL OFFICE at the ‘The Adviser Better Business Awards’

The Better Business Awards is the mortgage and finance industry’s leading program for state-based performance. It acknowledges the brokers who are leading the charge & providing service excellence.

This tremendous recognition confirms and support our dedication to helping all Australians achieve the financial future they deserve.

Thanks to all our clients who have trusted us as the Best Mortgage Broker for

– their First Home

– their Mortgage

– their Property Investments

We are stoked to see Go Mortgage continuously winning Awards in the finance industry & making happy clients.

Let’s Build your Future.. Let’s Go!

#5StarService #Excellence #MortgageBroker
#AwardWinner #MortgageBrokerGoldCoast #Regional
#Stoked #StayAhead

Does a swimming pool give a home a competitive edge in Australia’s housing market?

An online survey asked more than 1,000 Aussies if they would pay more for a house with a pool.

The most popular response?

Surprisingly 40% said No. However the second most popular reply was to pay $10,000 more for a house with a pool (15.7%), followed by $20,000 (10.8%)… Especially amongst those living in states and territories with a warmer climate who valued homes with a pool more.

Nearly one in seven said they’d pay $50,000 or more – which would approximately reimburse the cost of the pool and its installation.

Overall, men placed more value on a swimming pool than women.

Not surprisingly, younger respondents were more likely to pay extra for a house with a pool.

VERDICT = In some circumstances, [installing a pool] could add value to the right buyer but it’s highly recommended to research the local market and do your sums properly.

So if adding a pool to your home is on the cards for you we’d be happy to help you figure out the best way to fund it – do you need to refinance? a renovation loan? a top up? or just use cash.

Contact us & we’ll help you determine the best & cheapest way to see you bathing in style in your own backyard

Self-managed super funds – SMSF – have become a popular way for Australians to build their retirement savings.

In fact they’re now the fastest growing segment of the superannuation market, with over one million of us now counted as members of an SMSF.

Those members collectively hold more than 1/2 billion dollars in superannuation assets, approximately 16% of which is invested in direct commercial and residential property.

Property, along with Australian shares (32%) and cash and term deposits (28%), make up the bulk of Australian SMSF assets.

Your SMSF can have two kinds of propertyinvestments. These are commercial property, like a factory, a warehouse or even your business premises, and residential property such as investment units and houses.

As with all things superannuation, there are rules around investing in property in your SMSF – For example, the property must meet the ‘sole purpose test’. SMSFs are also prohibited from investing in the family home or holiday home for the personal use of a member.

SMSFs can also borrow or gear their super into property, but it must be done under very strict conditions called a ‘limited recourse borrowing arrangement’ – or most commonly known as a SMSF loan.

Of course, you should assess whether the investment is consistent with the investment strategy and risk profile of your SMSF before committing to a geared property investment; and don’t forget to consult with your Accountant or Financial Advisor

If you are ready to buy, we are ready to help. We are equipped with the knowledge and expertise to help you get the most out of your SMSF Loan. We can show you how to best set up and obtain your SMSF loan to reflect your financial needs and get the most out fo your super borrowings.

Contact us or call our office today on 1300 855 244.

Property renovation shows and social media success stories have made house flipping look like a fast path to profit. Buy a property, renovate it, live in it briefly, then sell at a higher price. Sounds great, right? Not quite.

In Australia, property flipping tax rules are far stricter than many people realise. The Australian Taxation Office (ATO) has made it clear that profits from flipping a property are often taxable, even if you live in the home while renovating it.

If you’re thinking about buying, renovating, and selling property for profit, understanding the ATO property flipping rules is essential. Here’s how the tax system treats property flipping, what the ATO looks for, and how to avoid an unexpected tax bill.

Key Takeaways:

• Property flipping profits are usually taxable under Australian tax law.
• The main residence exemption property flipping rules do not apply if the property was bought with the intention of making a profit.
• The ATO examines patterns of behaviour and evidence of intent when assessing flipping activities.
• Profits from flipping may be treated as ordinary income rather than capital gains, which changes how tax is calculated.
• Getting professional advice before renovating and selling can help avoid costly mistakes.

What is Property Flipping?

Property flipping generally refers to buying a property, renovating it, and selling it quickly for a profit. The strategy typically involves:

• Buying a property below market value
• Renovating or improving the property
• Selling the property shortly afterwards
• Pocketing the difference as profit

The approach can be profitable, especially in rising property markets. But it also raises an important question: how does the tax office treat the profits?

Under property flipping tax Australia regulations, the ATO may treat flipping profits as income from a profit-making activity, rather than a standard property investment gain.

This distinction is critical because it determines how much tax you pay and whether certain exemptions apply.

Why the ATO is Paying Close Attention to Property Flipping

The ATO has increased its scrutiny of property transactions in recent years. With access to property sales data, loan records, and financial reporting, it can identify patterns that suggest flipping activity.

The main reason the ATO focuses on property flipping is simple: many people assume the profit is tax-free, when it often isn’t.

The most common misunderstanding involves the main residence exemption property flipping rules.

Many Australians believe that if they live in a property while renovating it, any profit from selling it will be exempt from tax. However, the exemption only applies when the property is genuinely used as a long-term home.

If the primary intention is to renovate and sell for profit, the exemption usually does not apply.

The Main Residence Exemption and Property Flipping

The main residence exemption normally protects your family home from capital gains tax (CGT) when you sell it. However, the exemption only applies when:

• The property is genuinely your primary residence
• It was not purchased primarily for profit
• There is evidence supporting long-term ownership

If you buy a property specifically to renovate and sell quickly, the ATO may argue that the property was purchased as part of a profit-making scheme.

In that case, the main residence exemption property flipping rule will not apply, even if you lived in the property during renovations.

This is where many investors get caught out. If you’re planning renovations with the goal of increasing resale value, it’s worth understanding the tax traps for property owners and investors before you begin.

ATO Property Flipping Rules: How They Determine Your Intention

The ATO property flipping rules aren’t a single law that bans flipping property. Instead, the ATO assesses why you bought the property and how you behave as an investor to determine how the profit should be taxed.

Some examples that may attract attention include:

1. A Pattern of Renovating and Selling

If you repeatedly buy properties, renovate them, and sell them within short timeframes, the ATO may consider this a business activity rather than an investment strategy.

Frequent transactions suggest that profit generation was the primary intention.

2. Your Source of Income

If a significant portion of your income comes from renovating and selling properties, the ATO may treat this as a property development or trading business.

In this scenario, profits may be taxed as ordinary income rather than capital gains.

3. Mortgage or Loan Documentation

Your loan application can also reveal your intentions.

For example, if documentation indicates that the property will be renovated and sold quickly, the ATO may use that as evidence that the purchase was intended for flipping.

This is why it’s important to structure financing correctly when borrowing money for renovations.

4. Public Statements or Marketing

Believe it or not, public statements can also count as evidence.

For example, people appearing on renovation television shows or documenting their flipping strategy online may unintentionally provide proof that the property was purchased with the intention of resale profit.

How Property Flipping Is Taxed in Australia

When the ATO determines that a property has been flipped for profit, the tax treatment typically changes.

Instead of being treated as a capital gain, the profit may be classified as ordinary income. This has two key consequences:

1. No main residence exemption
2. No 50% CGT discount for assets held longer than 12 months

This means the entire profit may be taxed at your marginal income tax rate.

This is why understanding house flipping capital gains tax rules is essential before undertaking a renovation strategy.

If you’re planning to renovate and hold the property as an investment instead, reading a beginner’s guide to property investing can help clarify how different tax rules apply.

The Tax Implications of Renovating and Selling

The renovate and sell tax implications depend largely on your intention and the scale of the activity.

There are generally three possible tax treatments:

Capital Gains Tax (CGT)

If the property was bought as a genuine investment or long-term home and later sold, the profit is usually treated as a capital gain. You may qualify for:

• The 50% CGT discount if held longer than 12 months
• The main residence exemption if it was your home

Profit-Making Scheme

If the property was purchased with the intention of resale profit, the ATO may treat the gain as ordinary income. This is common with property flipping.

Property Development Business

If you regularly renovate and sell properties, the activity may be treated as a business, with profits taxed accordingly.

Financing Renovations and Property Flips

Another important factor when flipping property is how the project is financed.

Renovations can be funded through several options, including:

• Property investment loans
• Equity release for renovations
• Personal savings or construction loans

The financing structure can influence both your borrowing capacity and your long-term investment strategy.

Working with a mortgage broker can help ensure the loan structure aligns with your property goals.

Should You Avoid Property Flipping?

Property flipping isn’t illegal, and many Australians successfully profit from renovating and selling property.

However, the key is understanding the tax implications before you begin. If your goal is long-term wealth creation rather than quick profit, holding property as an investment may offer more stable tax outcomes and potential capital growth.

This is why many investors start with a strategic plan and appropriate financing rather than jumping into renovations without guidance.

Speak to an Expert Before You Renovate and Sell

If you’re planning to buy, renovate, and sell property, it’s important to understand the ATO property flipping rules before committing to the project.

Tax treatment can vary depending on your intention, ownership period, and the way the property is financed.

At Go Mortgage, we help clients structure loans for property purchases, renovations, and investment strategies. Whether you’re exploring property investment loans, accessing equity release for renovations, or planning your next property move, our team can help you understand your options.

Speak to the Go Mortgage team today for guidance on structuring your next property purchase the right way.

Whether you’re hoping to buy a home this year or are tired of wondering where your pay packet goes, budget planning can help you out.

With these handy steps you’ll be able to work out where your money is going and save some extra dollars for a rainy day.

1. Keep track
The best way to work out where you’re spending your money is to keep a record of where it’s going. Collect all your receipts for at least a week and keep track of them using an app like the MoneySmart TrackMySPEND. You’ll be more conscious of what you’re buying and you’ll see exactly where your money goes.

2. Categorise your payments
Once you have a record of everything you buy, put the different types of purchases into categories so you can see where you spend the most. For example, household expenses like electricity and gas will go in one column, while groceries will be in another. A budget planner calculator is a great tool to help you categorise your expenses – You can use Go Mortgage’s calculator or even MoneySmart’s as well.

3. Set a goal
With all your expenses in different categories, add your income so you can see where you spend your money and how much is left over at the end of each pay period. Now set yourself a goal, such as saving for a holiday, a deposit for your first home, or paying off some of your existing home loan. Work out how much money you’d like to save for your goal in a year and then divide by 12 to determine what you need to save each month. If your current savings covers it then you’re on track. If not, you’ll need to look at your categories and work out where you can spend less. Perhaps you can pack lunch each day rather than buying it – how much would that save? Now adjust your budget for this change and see what a difference it makes.

4. Automate your budget
Once you’ve set your budget, put in place ways to help you manage it. For example, if you always forget to pay your credit card bill and end up paying interest, consider whether to set up a direct debit to make your credit card payments on time. You may also consider setting up automatic regular withdrawals to a separate savings account.

5. Track your progress
Your budget should be a living document, so make sure you check it each month to see if you’re on track. If you’re having trouble sticking to the plan then take another look at where each cent goes and see where you can shave off some expenses.

By following these tips, you can really take control of your money and get closer to achieving your goals.

Before you know it, you could be investing almost $10,000 a year, and setting yourself up for an easier life in the future.

But how are you going to come up with a spare $800?

Well, it may be easier than you think. Here are five ways to save $200 bucks a week.

Some may also have the added bonus of staying healthy & helping you lose weight. Now, what’s not to love about that?

1. Ring your utility provider

Not what you would normally put your hand up to do, I know, but there is money to be found here. If you are not locked into a contract for electricity or gas, ring and ask them what the best options they have available are. I did this recently and got more than $800 back from my electricity provider, simply by signing up to direct debit my bills, rather than BPAY. This kind of saving can be an easy win in reaching your goal of saving $200 a week.

* For more articles like this, head to body+soul

2. Become a fan of a foodie

There are so many celebrity chefs out there, find one you fancy and start following them on social media like Instagram and Facebook and sign up for their newsletters. If you follow someone you like, you will most likely become inspired to start trying some of their delicious recipes. And cooking yourself means eating at home — which means saving big bucks.

Eating out is one of the biggest expenses for many Australians. When we are time poor and wanting an instant reward, eating out becomes an easy option. But by becoming a fan, and being inspired by home cooking, you can start to see savings, both on your money, and your waistline.

Unless you’re into deep fry, you will usually find most home cooking to be much friendlier to your waistline than the calories in eating out. I’m following Nigella on Instagram at the moment, and I have to say the pics of her home made cooking are inspiring me!

3. Fill you your car with fuel on Wednesday, not a weekend

You might not have noticed, but the difference between weekend and midweek fuel is often well over 20 cents. So it can cost between $12 and $15 more to fill up. Add this up once a week, and you will find the savings per month to of almost $50 or more — a nice little addition to your savings challenge.

4. Buy a Nespresso

No, I am not working for them! But I have found that having nice coffee in my own home has meant I buy less coffee out. No matter the brand, buying good quality coffee that feels cafe will save you money in the long term. Telling me I can’t have my coffee to save money is like telling me to stick a pin in my eye for fun. Not going to happen. But give me a good quality coffee as I am walking out the door, in a neat little take away cup to make it feel the part, and I am a happy camper. Doing this could tip another $30 to $50 bucks a week into your savings plan.

5. If you do eat out, share

Whether it be an entree or dessert, sharing with a friend is a great way of shaving down the bill. Here’s a tip though — when I share with my husband, I always make sure I cut it down the middle before each of us start — he eats faster than me so this savings strategy could put me at a disadvantage if I didn’t!

By being organised with BYO alcohol wherever possible, and sharing plates that are often too big anyway, you can save money every week and lose weight — portion sizes are a huge part of why we put on weight, no matter whether it’s mains or desserts.

You can even refill plastic water bottles and refrigerate them. It saves on buying waters which can be really expensive, depending on where you are buying & It’s great ofr the environment too.

If you get into the spirit of this challenge, and start thinking of other ways you can save money, you can see it’s actually kind of fun.

Saving money in order to achieve your goals just takes thought and planning.

And the end result is your future financial security. And that has to be definitely worth it, right?

The Queensland First Home Owners’ Grant was due to end December 31, 2017 but has been extended, Acting Premier Jackie Trad said.

First Home Buyers get $20,000 towards buying or building a new house, unit or townhouse valued under $750,000.

“Not only are we helping people get into their first home sooner, we also want to give an incentive to people to build new properties because that means more jobs,” Ms Trad said.

So if you’re a First Home Buyer and would like expert assistance to get into your New Home, contact us and we’ll show you how it’s done – Turn your dream into a reality