Accounting and Finance Blogs

The benefits and drawbacks of negative gearing for property investors

July 24, 2024

Negative gearing, a strategy where investors buy properties that generate losses rather than income, is a significant concept in real estate investment. This approach involves covering expenses from maintenance, repairs, loan repayments, and interest that exceed the rental income generated by the property. Despite the immediate financial losses, some investors are drawn to negatively geared properties for the two main reasons:

Is negative gearing a good investment strategy in 2024?

July 19, 2024

Property investment is a powerful way to build wealth, yet many investors feel overwhelmed by the perceived complexities of managing a property portfolio. One common source of confusion is the "negative gearing" strategy, which involves owning an investment property where the costs exceed the rental income, resulting in a financial loss.

3 easy steps to calculate negative gearing on your investment property

July 15, 2024

Calculating the financial impact of an investment property can be overwhelming, especially when determining if it will be negatively or positively geared. Many investors find themselves confused by complex calculations and unclear outcomes. Negative gearing is a widely used strategy among Australian property investors, but understanding how to calculate it can be challenging.

How do you calculate taxes on crypto assets?

July 08, 2024

Cryptocurrency has recently emerged as a popular investment option, with millions investing in digital assets such as Bitcoin, Ethereum, and Litecoin. While these crypto assets offer the potential for high returns, they also come with their own challenges, especially regarding taxation.

How can the First Home Super Saver Scheme help you secure your dream home?

June 24, 2024

One of the most significant hurdles for potential home owners is saving up for a sufficient deposit to secure a home loan. To address this challenge and to alleviate the burden of housing affordability, the Australian Government introduced the First Home Super Saver (FHSS) scheme in the 2017–18 federal budget.

Which is better: fixed v/s variable home loan rates?

June 04, 2024

Choosing a home loan is a crucial step in buying a home, but it often comes with a big question: should you go for a fixed or variable interest rate? This choice can significantly impact your financial future, especially when you're putting so much into your new home. With interest rates constantly changing, making the right decision might seem daunting. Our goal is to simplify this decision for you through this blog.

What are offset and redraw facilities, and how do they differ?

May 21, 2024

Whether you buy a new home or refinance an existing mortgage, you will come across the terms offset and redraw facilities. These two features are commonly found with variable-rate home loans and offer different ways to save on interest and pay off your loan faster. Though both can help you save money, they work differently and serve various purposes.

How do you keep your credit file clean and clear?

Apr 26, 2024

Just as you would clear out old emails to keep your inbox manageable, periodically reviewing your credit report for accuracy and clarity is crucial. The information in your credit report can determine your credit score, affecting your ability to secure loans, credit cards, and other financial products.

What is a bridging loan, and why might it be your right choice?

Apr 12, 2024

Buying a new property can be an exciting yet challenging journey. It often requires significant financial investment, from down payments to closing costs. In some cases, you may need immediate funds to purchase your new property while waiting to sell your current one. This is where a bridging loan can come in handy. In this blog, we will discuss what a bridging loan is, how it works, and why it may be the right choice for you.

The medicare levy surcharge: What is it, and how does it work?

Mar 14, 2024

The Medicare Levy Surcharge (MLS) is a crucial aspect of Australia's healthcare financing, aimed at encouraging high-income earners to obtain private hospital insurance. This initiative helps reduce the demand on the public Medicare system but also aids in balancing the healthcare funding mechanism. Understanding the MLS is essential for taxpayers who want to make informed decisions about their healthcare coverage and tax obligations.

What is a split home loan, and why should you consider it?

Mar 02, 2024

As the RBA raised interest rates by 425 basis points since May 2022, the expense of borrowing money to purchase a house has escalated significantly. Consequently, first-time homebuyers are finding it increasingly challenging to enter the market, while existing homeowners are compelled to reassess their mortgage choices.

What is private health insurance, and how does it impact your taxes?

Feb 07, 2024

When it comes to managing our finances and staying on top of our tax situation, there are plenty of factors to consider. One crucial element that often gets overlooked is the role that private health insurance plays in this equation.

How to manage tax debt: A comprehensive guide from ZedPlus

Nov 24, 2023

Tax debt is a significant financial challenge many individuals and businesses grapple with, often leading to uncertainty and stress. It's essential to find effective ways to manage and resolve this issue.

How to increase your chance of home loan approval?

Nov 22, 2023

Securing a home loan is a crucial step in buying a property, and it requires more than just a casual approach. With fluctuating interest rates and strict lending criteria, you must be well-prepared to increase your chances of loan approval.

6 tips to avoid paying LMI charges on home loan

Nov 11, 2023

Entering the property market, especially as a first-time homebuyer, comes with its set of challenges. One significant challenge is the added cost of lender's mortgage insurance (LMI).

What steps should you follow when refinancing your home loan?

Nov 02, 2023

Refinancing a home loan can offer many benefits, from lowering monthly mortgage repayments to adjusting to a more favorable interest rate.

Tax planning for property investors: Strategies to optimise your returns and stay compliant

Oct 20, 2023

Owning property can be a great way to earn money. But, like all investments, there are taxes involved. If you don't plan well, you might pay more taxes than you need to. On the other hand, if you try to avoid taxes without knowing the rules, you could get into trouble. That's why it's so important for property investors to understand tax planning.

Is using a home equity calculator the first step to unlocking your home's value?

Oct 16, 2023

Homeownership is not just about having a roof over our heads; it's also about understanding the financial potential of our property. The home equity calculator has emerged as a prominent tool for homeowners eager to gauge their property's value.

How can mortgage brokers help with your home-buying journey?

Oct 15, 2023

Finding the perfect home is a dream many of us cherish. But once that dream home is within sight, the journey of securing it often becomes complex with a web of loan options, unfamiliar terms, and extensive paperwork.

Top 10 tax planning strategies to reduce tax and build wealth for high-income employees

Oct 14, 2023

Tax is a significant concern for many, especially those with high incomes. While business owners often benefit from various tax management tools, high-salaried individuals might feel their options are limited.

What should you know before tapping into your home equity loan for various needs?

Oct 11, 2023

Homeownership is often seen as a significant milestone in one's financial journey. Over time, as you pay down your mortgage and your home's value appreciates, you build equity.

What is an interest-only loan, and how do you strategically plan for its end?

Sep 09, 2023

Interest-only loans can be a double-edged sword, offering immediate financial relief but posing long-term challenges. This specialised mortgage allows you to pay just the interest for a period, often the first 5 to 10 years, before transitioning to a traditional loan structure.

Why negative gearing is important for Australia's tax landscape?

Aug 21, 2023

Negative gearing has long been a contentious topic in the realm of Australian taxation. As a popular investment strategy, negative gearing allows individuals to deduct expenses incurred from owning an income-producing asset, such as residential property, from their taxable income.

How negative gearings calculations can help you make smarter investment decisions?

Aug 18, 2023

In the world of investments, there are many strategies and terms that can seem daunting at first. One such term that often comes up is 'negative gearing.' But what does it really mean?

Navigating the changing landscape of business loan interest rates

Aug 05, 2023

In the dynamic financial environment of Australia, business loan interest rates remain a central concern for entrepreneurs and small-to-medium businesses alike.

The pros and cons of hiring a tax agent for your income tax return in Australia

Aug 03, 2023

The arena of income tax returns in Australia is often a complex web that requires time, patience, and a good grasp of the ever-evolving tax laws. This complexity often prompts individuals to seek the aid of a tax agent.

Simplify your tax return with online income tax return calculator

Aug 03, 2023

Understanding and filing income tax returns can feel like an uphill battle for many, fraught with complexities, nuances, and an inherent fear of making costly mistakes. This can deter individuals from maximising their benefits and availing themselves of the numerous tax-saving opportunities.

Rise of buy now pay later (BNPL) services: Implications for borrowers and lenders

Jul 22, 2023

In recent years, the financial landscape has undergone a significant shift, with Buy Now Pay Later (BNPL) services emerging as a popular alternative payment method to traditional credit options. These services have revolutionised the way Australians shop, enabling them to purchase items immediately and pay for them over time in manageable interest-free instalments.

The importance of financial literacy for managing debt and building wealth

Jun 27, 2023

Financial literacy is the ability to understand and use various financial skills, including personal financial management, budgeting, and investing. It is about making informed decisions about your finances, knowing how to keep a close eye on your debt, and how to effectively build wealth for the future.

What is the impact of mortgage interest rate changes on loan repayments and how to prepare for them?

May 29, 2023

Ever wondered how changes in mortgage interest rates can affect your home loan repayments? Well, fluctuations in interest rates can have a profound impact on your monthly mortgage repayments, influencing your budget, financial goals, and overall financial stability.

Understanding the impact of inflation: Managing your finances in an inflationary environment

May 21, 2023

Inflation is a key economic concept that silently erodes the value of your money, impacting your personal finances in significant ways. At ZedPlus, a renowned firm of online mortgage brokers and tax agents in Australia, we understand the importance of grasping inflation's effects and taking control of your financial well-being.

Maximising investment returns with optimal negative gearing strategies

May 12, 2023

Are you looking to invest in property? If so, you probably may have heard of negative gearing. While it may sound like a complicated financial strategy, it is a simple and effective way for property investors to reduce their tax bills and maximise their investment returns.

Unlocking your credit potential: Innovative strategies to improve credit score

May 04, 2023

In today’s society, where we rely highly on credit payments and loans, you must have come across the term credit scores many times.

Understanding child support payments & personal finances in Australia

Apr 22, 2023

As a residential mortgage payer, it's essential to stay informed about how child support payments can impact an individual's personal finances. In this comprehensive blog post, we'll discuss how child support payments affect an individual's personal finances, and provide you with valuable insights that can help you better serve your clients.

Important update: Accountants must alert clients to LMITO changes

Apr 17, 2023

Dear valued clients and residential taxpayers, we have recently come across an important update regarding the Low and Middle Income Tax Offset (LMITO) that we believe you should be aware of. This blog post aims to provide you with crucial information on the LMITO, recent developments, and what you can do to prepare for these changes.

How green home loans in Australia can benefit your wallet and the environment

Mar 30, 2023

If you are looking to make your home more eco-friendly and energy-efficient, a green home loan may be just what you need. These loans are designed to reward borrowers who are buying, building, or renovating a property with sustainable and eligible clean energy products.

Trust and types of Trust

Apr 20, 2022

Trusts can be useful for a variety of purposes, including managing assets, protecting property from creditors, and reducing tax liability. By placing assets in a trust, you can protect them from creditors and lawsuits.

Mortgage broker vs Banks

Apr 20, 2022

Home buyers usually have two choices when it comes to getting a mortgage loan: go through a bank or a mortgage broker. Making this choice can be overwhelming and frustrating at the same time.

Repaying home loans in 2021

Jan 6, 2021

Recent times have been very uncertain and thrown us off guard with our financial forecasting. However, we can prepare better this year with right perspective and better financial planning.

Artificial intelligence impact on bookkeeping

Oct 9, 2020

With the growth in machines and technology, all professions including accounting is under a revolution. It is forecasted by the world's largest leading management consultancy that about 85% of bookkeeping is under automation.

Tips for getting faster approval on refinancing home loans

Oct 9, 2020

It is vital to think about refinancing a home loan when you are not occupied in your personal life. The reason being, the time frame for approval on a refinance deal highly depends on the lenders.

Top 3 Financial Tips for Home Refinancing

Oct 9, 2020

You may be considering refinancing your home loan in either two conditions. First, either there is a change in your financial condition or there is a drop in home loan rates in the market.