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  • Buying vs Renting

    Posted on March 22, 2016 by Andrew Krauksts

    If you’ve been debating whether to buy your own home or rent & buy an investment property instead… I think you will find this video very useful.

    It is produced by Blue Wealth Property (a property research house), they have helped many of my clients invest in great properties and they crunch numbers on buying vs renting, I encourage you to take a few minutes to watch it.

    Click Here if you would like to discover if you are investor ready and/or would like to learn more about your options!

    If you have an existing mortgage… did you know that most home owners overpay by $100, $250, $500+ per month! Take advantage of our Free Loan Comparison Service by Clicking Here  

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  • Are You Buying At Auction? Learn How…

    Posted on December 2, 2014 by admin

    Here is an interview I conducted with a leading real estate agent specialising in property auctions.

    You will learn the auction process, how to conduct your due diligence, tips & tricks and how to buy safely.

    – The auction process

    – How to buy safely at an auction

    – The buying process during an auction campaign

    – What are the steps I need to take to safeguard myself

    – Agents tips on how to Win at an auction

    – How to conduct due diligence to ensure you pay the right price

    Any questions feel free to email me at



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  • Are You Investor Ready?

    Posted on December 2, 2014 by admin

    Check out my video on Are you Investor Ready? & Have You Got A Strategy?

    In this video you will learn what you need to Invest in property and we’ll talk strategy.

    Any questions leave me a comment below or email me direct at



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  • What’s A Better Strategy To Access Equity: Take Out A Line Of Credit Or Just Top Up A Loan?

    Posted on December 2, 2014 by admin

    Lines of credit can be very useful; however, you need to be careful regarding an evergreen set-up in which no repayments are needed and the interest is added on to the loan. Years ago that was a sound strategy for increasing your tax deductible debt. This has been a very contentious subject with the ATO (and many court rulings), and my advice would be to stay away from such a strategy or ensure you seek expert advice from a tax expert that may require a private ruling to ensure you stay on the right side if you are seeking to capitalise the interest.

    If you are looking to access equity from your home, it is never a good idea to top up the loan for investment purposes. The reason is that you are mixing together investment debt with personal debt. As an example, if you had an $ 80,000 home loan and you took out a $ 20,000 investment loan, your total single loan amount would be $ 100,000. This would equate to a ratio of 80% personal debt to 20% investment debt.

    The challenge is that if you wanted to make accelerated repayments onto your home loan you would simultaneously be wiping out your investment debt. This would mean that every time you made a $ 1,000 principal repayment (not taking into account the interest portion charged) you would be – staying with the example of 80/20 – reducing your home loan by $ 800 but also wiping out $ 200 of the investment debt.

    Why is this bad? Well, if you had a home loan for 0,000 and an investment loan of $ 100,000, it would make sense to discard the home loan first since it is not tax deductible. A great set-up would be to have both loans as interest only. Attach a 100% offset account against the home loan and drive all of your extra income into the offset account to eliminate interest repayments on your home loan. This also gives you the choice (should you ever move out of your home) to take all of the money out of the offset account and buy a new home, and instantly the entire interest is charged again against your old home, making it now tax deductible. It is never a clever idea to top up your home loan for investment purposes.

    A better strategy

    So how do you get around this without using your home as security against a new investment purchase? It’s simple: you apply for a separate loan against your home. Using the previous example, you would leave your $ 80,000 home loan in place and apply for a separate loan of $ 20,000 for investment purposes. This also makes accounting very simple because now you know which loan is for investment purposes and what to provide to your accountant at tax time.

    If you are accessing equity from a property that you are already renting out, meaning that the existing loan is already tax deductible, it is still a good idea to use a split loan. From an accounting perspective it makes it easier to know which expenses belong to which property. This serves a number of purposes. From a business point of view, you can review your properties and work out what their holding costs are and their overall performance. Also, if you decide to sell any of your properties, you know which loans belong to which property and you can make a choice to either wipe out those loans or, from the sale, reduce one of the smaller loans to zero without paying it out, providing you with redraw capability should you wish to buy again (effectively turning that loan into a line of credit type function).

    Using line of credit

    Line of credit loans, in my view, are a good tool for two reasons. Firstly, they are great to have as a buffer. In cases of emergency repairs, etc., there is instant access to funds to assist you. Secondly, they provide instant access to cash, should there be a property-buying opportunity and you require funds quickly for a 10% deposit.

    The negative aspect of a line of credit is that it can be more expensive than a normal investment loan. There can also be a negative impact on your borrowing power if you have a large line of credit. This is because a line of credit is like a gigantic credit card with a limit.

    Let’s say you have a $ 200,000 line of credit with zero owing. Lenders, at the time of an application for new finance, will consider repayments as if the entire line of credit is drawn, therefore drastically diminishing your capacity to borrow. This could mean the difference between being approved or declined for finance.

    A balanced approach is needed: a line of credit limit that takes into account your income and expenses position, leaving sufficient surplus funds from your monthly income (assuming your line of credit is fully drawn) to ensure a fresh loan application would be successful. A competent banker or broker can assist in calculating various scenarios to ensure your strategy works for you.

    One way to get around a line of credit is to simply take out a normal interest-only investment loan. For example, instead of taking out an $ 80,000 line of credit, apply for a cheap, no-frills investment loan.

    Once the money is available to you, simply transfer the $ 80,000 onto the loan, reducing the balance to zero. No interest is charged, and, if you require funds, simply use redraw for access. This way you have a low-cost loan with a line of credit functionality.

    All these matters require forward thinking and planning. Take into account your overall goal and strategy. Devise a plan and then research the finance market, or seek expert advice to ensure that not only can you execute your plan today but you don’t get stuck at your next intended property purchase due to poor research, planning and execution.

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  • The Power Of Words

    Posted on December 2, 2014 by admin

    This is a lovely and very powerful video that shows you that by changing your words, you can change your world!

    Length of video: 1.48 minutes



    What words can you change today to get the outcome you are seeking?

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  • How One Of Our Business Partners Earned $ 962.28 In 30 Seconds

    Posted on December 2, 2014 by admin

    Too often we get caught up in our daily business grind… but… how many opportunities are you missing?

    And when I say opportunities… I mean simple ones that don’t take much effort, but will add value to your clients, your business and add an extra income stream…

    Of course I am talking about client referrals.

    One of the biggest challenges I have found is that a lot of people simply don’t know how to refer, nor have a system to consistently do so… not to mention the negative belief system some people hold that their client would be offended if offered another service, or the fact you may get a referral commission… (which I can tell you in 10 + years in the finance business not one single person has ever complained that I am paying my referral partners).

    An interesting quote I heard some time ago is that the thing that stops us from doing something productive, like referring clients, is the negative story we tell ourselves.

    So how do you successfully refer and earn an extra income?

    Firstly understand that you are helping people. If you come from a genuine place of wanting what’s best for them… referring them to another professional to solve a problem is a nice thing to do.

    Secondly, you must have a system for referring consistently. Everyone, e.g. real estate sales people, accountants, financial planners etc must have a process in place with their clients to refer on a consistent basis. The trick is to identify where there is a good place in your process to include a time to help your clients with getting their finance checked. This can either be done verbally or inserting a one page info document that tells the client about the importance of a finance check up and that their signature is required to either request a complimentary check up or that they are happy with the finance advice they are currently receiving from a credit adviser.

    Often this type of referral method removes the angst of having to bring it up or ask since the referral form is included in your process e.g. the client is signing paperwork with you to engage your service, or they are signing insurance forms, tax return, buyer information or a questionnaire you use…

    Including a referral form has the potential to add a significant and consistent revenue stream for you.

    Most of my business partners have a robust process in place with assisting their clients… including a simple 30 second task of asking the question of their client if they would like a second opinion on their finance to save money or to include a referral form within their process can significantly boost your bottom line.

    To your success,

    Andrew Krauksts

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  • How to find the right investment property

    Posted on December 2, 2014 by admin

    Many of our clients share an interest in creating wealth through property investing but … simply don’t know where to start.

    The Home Loan Advisory is in partnership with a leading Property Investment Research Firm. We thought you might like to have a look at a short video.

    Many clients have found this video quick to watch & useful:

    So what did you think?

    It’s interesting, or scary, that 3 out of 4 investment properties fail in terms of performance etc… And let’s face it.. if you buy an investment property you want to make money out of it… yet so many of us simply gamble and buy in an area we think will go up in value .. usually a lot of people buy an investment property in an area they live, because that’s comfortable .. or their accountant, solicitor, friend, bus driver, taxi driver etc etc has told them about the next best area to buy in .. but really.. how do you or any of these people really know where the next best area is…

    Research, research, research … I know.. sounds boring … it’s not sexy.. but hey … you’d have to admit … it does make sense that if you want to stack the odds in your favour it’s best to buy in an area that’s backed up with sound economic drivers to increases your chances of a fast growing investment property … Is it a guarantee of success … of course not … and if anyone tells you that … RUN… but… I’d rather buy in an area where the research supports it giving myself a better chance of a positive outcome than throwing a dart at an Australian map and buying there with

    Any question, feel free to leave a comment or email me at



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  • Is Now A Perfect Time To Fix Your Home Loan?

    Posted on December 2, 2014 by admin

    I thought you might be interested in, and possibly benefit from, this latest news. Over the past few weeks almost 50 lenders have slashed their fixed rates – bringing the average fixed rate down to the lowest it’s been in over 3 years!

    If you’ve ever considered fixing all or part of your loans, now could be the time to discuss the fixed rate options available to you. No-one has a crystal ball when it comes to interest rates, but if the idea of having your loan repayments set in stone for the next few years is comforting, we should talk.

    Having a fixed rate can also help you budget and plan your cash-flow, because you’re not exposed to interest rate rises. Of course you don’t benefit from interest rate cuts, but some people do prefer certainty over savings.

    If you’d like me to investigate your fixed rate options, with no obligation of course, simply contact us now via the Initial Consultation button or give me a call on 02 9965 7292.

    I hope you are well and I look forward to talking with you soon.


    Andrew Krauksts

    P.S. If you have a friend or family member who might benefit from this latest news, please forward this blog to them and I’d be happy to help them too.

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  • For Sale: $ 1 Million Dumps In Sydney

    Posted on December 2, 2014 by admin

    This is an amazing story, taken from

    THEY have million-dollar-plus price tags and some even boast water views – but the bricks, mortar or fibro are practically worthless.

    Developers are paying way over the odds for dilapidated houses, which are pitched as “renovate or detonate” properties, just to get their hands on prime blocks of land in some of Sydney’s most exclusive suburbs.

    Forget high ceilings or floorboards throughout, canny buyers are focusing on square metres and potential ocean glimpses.

    With demolition costs ranging between $ 20,000 and $ 100,000, depending on access and building size, agents are ignoring houses all together, instead marketing properties as “land only” sales and in some cases not even using photos of houses in ads.

    Monique Dower, of Belle Property Balmain, sold a dilapidated fibro house in Birchgrove for $ 1.05 million this month three weeks before its scheduled auction.

    Ms Dower advertised the three-bedroom house on 254sq m as a “virtual blank canvas”.

    “It’s so rare to have a 16m frontage where there’s the potential to build up and get water views from a second level,” she said.

    Despite the house being almost 100 years old there was no heritage restriction attached, meaning it will most likely be cleared to make way for one big family home.

    “It could possibly have been worth more with no house at all on the block but when it is developed, a modern home in that street could fetch more than $ 2 million, even up to about $ 2.5 million,” Ms Dower said.

    Richard Movsessian, of Century 21 Coastline Properties, has a small two-bedroom art deco house for sale in Undine St, Maroubra on his books for $ 2.2 million – but the house is not the drawcard.

    “To be honest, it’s probably worth more without the house on the block,” he said.

    Mr Movsessian said the cost of demolishing the old brick house on the 420sq m block would be about $ 20,000.

    “The house that’s there now just isn’t capitalising on the potential views. Someone can come in and build a dream house with views straight down to Bondi,” he said.

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  • Winner Announced – Hamilton Island

    Posted on December 2, 2014 by admin


    We are extremely happy to announce that S Williams of Lane Cove NSW has just won our competition with an escape to qualia resort for 3 nights worth $ 7,825.

    We would like to take this opportunity to thank everyone who has entered this competition and for the generous referrals you have sent our business.

    We look forward to announcing our new competition in the next few weeks that is opening on 24 August.

    We will be taking registrations of interest in this competition soon.

    Enjoy your day.

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