Negative gearing is a popular investment strategy in Australia, but it’s also a term that often comes up in the media, particularly when there’s an election looming, like right now. Let’s take a look at what it means, what capital gains tax (CGT) is and why you need to know about these terms if you plan to invest in property.

It’s Federal Budget time, so let’s cut to the chase. What’s in it for aspiring homeowners looking to purchase a property in 2025?  Here are some of the key takeaways that could affect you.

The Reserve Bank of Australia (RBA) has cut the cash rate and interest rates have come down.

At its February board meeting, the Reserve Bank of Australia (RBA) reduced the cash rate by 25 basis points to 4.10%, marking the first cut in more than four years. For 14 months, the RBA held the cash rate steady at 4.35%, maintaining that they needed clear evidence of inflation sustainably moving toward their 2–3% target before making any adjustments. The latest data from the December 2024 quarter showed that the RBA’s preferred inflation measure dropped to 3.2%, down from 3.5% in the previous quarter, signalling enough progress to justify easing monetary policy. How will the rate cut affect my repayments and how much will I save? All major lenders and banks have officially agreed to pass on the rate cut, meaning that mortgage holders who are currently on a variable interest rate should have received a 0.25 reduction to their interest rate. This will mean that you will save some cash on your monthly interest repayments. The amount saved will depend on your current interest rate and loan size. As an example, on a loan of $1,000,000 over a 30 year loan term at a variable interest rate of 6.00%, you will save approximately $160 per month with the 0.25 rate cut.* How will the rate cut help boost my borrowing power? Rate cuts mean more borrowing power because when interest rates decrease, the monthly loan repayments become smaller, allowing individuals to qualify for a larger loan amount as a larger portion of their income can be allocated towards debt servicing, effectively increasing their borrowing capacity. A new Canstar analysis shows that a single person earning the Australian average full-time wage of $100,292 currently has a borrowing capacity of $534,200. But that same person could potentially borrow an additional $12,000 more from the bank with the cash rate cut to 4.10%.** Will home values rise? Lower interest rates make buying more attractive by increasing affordability and borrowing power, which leads to overall better buyer sentiment. This historically results in more buyers in the market and can drive housing values higher. For those looking to purchase property, particularly for first home buyers we recommend focusing on getting your pre-approval sorted from now and securing a place before the prices start to climb. Will there be more rate cuts from here? Despite the cut, the RBA board emphasised that sustainably returning inflation to the 2-3% target remains its priority, and suggested further interest rate cuts are not guaranteed. It said it would continue to make its decisions based on incoming economic data, as well as global and financial market developments. What home loan benefits can accounting professionals’ access? Despite changes in the market, the benefits available for accountants remains unchanged. With evidence of professional body membership you could access certain market advantages, such as home loans with just a 10% deposit and waived Lender's Mortgage Insurance. These benefits can make entering the property market more attainable and realistic for the cohort. It’s best to speak to a specialist broker for accountants such as Accounting Home Loans to gauge what’s best for you. Get in touch: (02) 9127 5557 enquiries@accountinghomeloans.com.au www.accountinghomeloans.com.au *Calculation assumes payments are made monthly, pay off the principal and interest, and there are no changes to bank fees. **Source: Canstar.com.au . Based on an owner-occupier paying principal and interest taking out a 30-year loan at the current average new customer rate of 6.24% or 5.99% after an RBA rate cut. Based on CBA's serviceability calculator and assumes borrowers have no debts, minimal expenses and no dependents earning the current average full time ordinary time earning wage as recorded by the ABS. This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Credit Representative (557666) is authorised under Australian Credit Licence 389328.

Are you finding it difficult to save money or stick to a budget? You’re certainly not alone. Working out a realistic budget is an effective way to take control of your finances and smash your saving goals.  If you’re looking for tips to get you started with budgeting, be sure to keep reading on!

So, you’ve decided to buy a property. How exciting! Understanding the world of home loans may be confusing like what the difference is between a fixed and variable interest rate home loan. Both home loans setups offer unique advantages and what is better will depend on your situation + objectives. Here are some of the key factors to consider when working out which type of home loan is right for you.

In recent months, we’ve seen a definite shift in the property market. It’s left one question on many aspiring property owners’ lips: Has the property market peaked? If you’re looking to make the most of falling interest rates and buy a home or an investment property in 2025, it’s important to be up to speed with what’s happening before you dive in. Let’s run through what we know so far.

As the new year begins and the daily grind resumes, many Australians are dreaming of swapping city life for the charm of the coast. What was once primarily about lifestyle is now a practical choice for many. But before packing your bags for the coast, here are key factors to consider: 

Thinking about buying a home in 2025? The property market is evolving, bringing both opportunities and challenges for buyers. Whether you’re saving for your first home, upgrading, or investing, staying informed about the latest trends can help you make confident and informed decisions. Here are five key trends to keep an eye on in 2025: 

Can you believe we’ve stepped into 2025 already?

In a fast-moving property market, timing is everything. You may find your dream home before selling your current one, but without the right financial solution, you could miss out. That’s where a bridging loan can help.