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Traded in cryptocurrency? Watch out for the ATO!

Posted on 20/05/2019 by daniel-admin

Each year the ATO matches million of transactions against multiple sources in order to ensure that taxpayers are correctly disclosing their tax obligations. You might even be familiar with some of these such as bank interest, payment summaries from your employer, the sale of real property and the sale of shares. Now the ATO says it will begin collecting records from Australian cryptocurrency designated service providers (DSPs) to ensure people trading in cryptocurrency are paying the right amount of tax.

What is cryptocurrency?

The term cryptocurrency is generally used to describe a digital asset in which encryption techniques are used to regulate the generation of additional units and verify transactions on a blockchain. Cryptocurrencies can be bought or sold on an exchange platform using conventional money. The ATO says the innovative and complex nature of cryptocurrencies can lead to a genuine lack of awareness of the tax obligations associated with these activities.

How will the ATO collect and match data relating to cryptocurrency transactions?

The data collected from third-parties will include purchase and sale information to better identify taxpayers who have failed to disclose their income details correctly. Information collected will include a range of sale and contracted-related details, as well as transaction dates and times and amounts of transfers for individual account holders. The ATO will be making contact with a ranges of service providers to obtain this information including brokerage services, payment facilitators, exchange services and even bitcoin ATM providers. At this stage the data matching will focus on transactions that occurred from 1 July 2014 and will continue up until 30 June 2020. The ATO said it was estimated there are between 500,000 to 1 million Australians who have invested in cryptocurrency.

What are my obligations?

Cryptocurrency is considered a CGT asset for tax purposes and as such any profits made from trading it could be liable for capital gains tax. However, an Australia resident taxpayer who has held the currency for greater than 12 months may be entitled to the 50% CGT discount. The ATO have said they are looking at whether a taxpayer has omitted capital gains on the sale of cryptocurrencies when preparing their income tax returns.

The ATO have said that following the data matching process, taxpayers may be contacted by the ATO and will be given at least 28 days to clarify any information that has been obtained from the data provider. As usual the ATO has said penalties may be significantly reduced in circumstances where they were voluntarily contacted prior to audit activity commencing.

Next Steps

If you have transacted in cryptocurrency and have not considered the tax implications then please contact one of our accountants to discuss. We have seen an increase in the number of clients of coming to us with these queries and increasingly the ATO are releasing more guidance as to the tax consequences.

Top tips for productivity and achieving your goals

Posted on 13/05/2019 by daniel-admin

Are the cries of “I’m too busy” and “I don’t have time for that” holding you back from achieving your goals? Check out these top tips for cutting through the noise and becoming more productive.

We’re all guilty of it; of saying “I don’t have time for that” or “I’m too busy”. But isn’t it amazing that when there is something we really want to do we will always make time for it? If only there was a way we could make more time for all the other things we should be doing even if we don’t necessarily want to straight away.

Thankfully, there are ways you can fit more into your life without completely breaking down – all it takes is a little time management and organisation. So without further ado – here are my top tips for a more productive life!

1. Know yourself

Spend some time getting to know yourself and your emotional reactions/responses to tasks, situations, and outcomes. Personally, I’m motivated by the feeling of achievement – that feeling of satisfaction and accomplishment I get when I have successfully ticked something off the to do list and stepping closer to achieving my goals.

When I have a big project ahead of me I like to tick off a small task or two before I get started on it. This fuels my sense of accomplishment and gives me the drive to get stuck in to the big job ahead of me.

I also find that I am my most productive in the afternoon, so I work with that quirk and tackle small tasks in the morning like checking my emails and move to the more complex tasks later in the day when I’m feeling more motivated.

2. Focus on one thing at a time

I’m not saying you can never multi-task – it’s just important to know the balance and be flexible. Multitasking sounds great in theory, but it’s rarely efficient or productive in practice. We are more likely to make mistakes when our attention is divided. Instead, try focusing on one thing at a time and see it through to completion – it saves time by avoiding potentially doubling up on work or the need to refamiliarise yourself with a task because you’ve forgotten where you’re up to.

3. Be open and receptive

It’s important to be open and receptive to feedback from colleagues, friends and family. Remember that most people want to help you succeed, so when they provide constructive feedback try to take it on board and see how you can apply it to your situation. Your colleagues may have tips on how to complete a request in a more time effective manner – why not try out their suggestions and see if they can work to your benefit?

4. Keep a tidy environment

A tidy space makes for a tidy mind. The cleanliness of my home, my desk and my computer desktop all play roles in how clear my head is and how organised and productive I feel. Check out Tidying Up with Marie Kondo for some great tips on how to declutter your life.

5. Use a schedule

Mapping out your time on a calendar or planner is a great way to see what you’ve got on and what you need to work around – but remember to keep things flexible. Plans can often change and if you aren’t prepared for this, it can really catch you off guard.

When planning out my day I tend to opt for a simple to do list, itemising the specific things I need to complete for the day but also including something that I would like to have completed if time allows. I also like to loosely plan out my week, making sure I’ve included the things I must do and would like to do, with some time allocated to specific projects I am working on.

6. Make use of technology

Find a task tracking system or app that works for you. There are so many out there with different pros and cons – all it takes is simple a search online to find a solution that suits your needs.

7. Keep yourself accountable

Finally, it is important that you hold yourself accountable to your goals. At work, it’s often easier to keep yourself accountable for what you need to do because others may rely on you to be able to fulfil their requirements or meet their KPIs. However it’s also important to keep yourself to the same standards outside of work – you’re the only thing standing in the way of achieving your own goals, so why would you hold yourself back?

How can you use work your behaviours and motivations to your own advantage? From finally sorting out your budget to remembering to lodge your taxes on time – there are a lot of things that can be made easier with a little advice and a helping hand to take some things off your plate. Why not speak to The Hopkins Group to learn more about how we can help? Tick off your financial to dos and put yourself on the path to achieving your goals with The Hopkins Group today.

The benefits of becoming a Property Developer

Posted on 12/03/2019 by daniel-admin

It’s certainly no secret that with the right strategy investing in property is a very sensible investment decision when building wealth for the long term.

However 40 years ago with the absence of the internet you could be excused for feeling ill-informed and scared about the prospect of purchasing property.

Fast forward to today and we are exposed to copious amounts of courses, blogs and video content to breed knowledgeable and confident property purchasers.

So now it looks like we have a new kid on the block which is generating more questions than answers, but with the right strategy will in fact generate even bigger returns. This kid is called Property Development.

Let’s be honest, you don’t need to drive very far in Melbourne’s inner suburbs until you pass a new block of townhouses or a demolished site paving the way for a new apartment high-rise.

However we are still meeting clients with the ability to add Property Development to their investment strategy but haven’t felt like they had the support or the knowledge to explore this avenue in the past.

So first off let’s dive right in and discuss the factors behind why it’s a great time to start benefiting from Property Development.

1

Becoming a Property Developer can open the door to numerous additional incentives your average property investor won’t get.

The first benefit is the 15-20% investment savings developers acquire compared to the actual market cost.

This is because you are tapping into the wholesale end of the market – potentially avoiding costs associated with developers margin, real estate agent commission, GST, marketing and other costs associated with buying property.

2

With the right strategy and the correct timing, excellent profits can be made when selling developments and this can all be achieved with short and long term strategies.

Developers who build a business model can take these profits to start their next development and scale their portfolio.

3

As a result of the profit margin you will benefit from as a developer, you won’t need to borrow as much money as you would if you were to buy two (or more) properties of the same type, as completed products. The flow on effect of this is lower interest costs, meaning you are in a more cashflow positive position at completion.

4

Owning new properties currently gives you access to years of depreciation allowances (as of 21/02/2019) which is going to significantly improve your after tax returns. You can read more about recent changes to depreciation deductions.

5

If you decide to hold on to some of your properties, you can expect a higher rental yield in the first few years as a result of the profit margin and lower interest costs we mentioned earlier.

Now let’s take a breath and revise some of the key benefits to becoming a property developer.

1. Significant investment savings, 15-20% below what the retail market are exposed to (i.e. your everyday property investor).

2. With the right strategy, substantial profits for both short and long term outlooks.

3. Developer profit margins means lower interest

4. Access to the maximum tax benefits

5. Greater rental yields in the first few years

Does any of this excite you?

If it does we want to hear from you.

With the correct strategy, the right location and various other factors we know Property Development can be the perfect investment for long term security.

We encourage you to pick up the phone and contact Michael Williams or Michael Sheppard at The Hopkins Group on 1300 726 082.

They will be happy to lock in a time to discuss your circumstances and determine if the Property Development path is right for you.

Our advisers have built an end to end solution to guide you through the development process – from financial feasibility and site acquisition, right through to townhouse build and end sale or ongoing property management.

With our experience in financial services and property investment, we can guide you through the development process to ensure a profitable financial outcome.

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Disclaimer: The information contained herein is general in nature and does not take into account individual situations, needs or goals. It should not be relied upon and persons should satisfy themselves through independent means that any decisions based on this material are appropriate. We recommend that you consult with your adviser who will be able to make a recommendation based on your specific circumstances.

How to budget for a wedding

Posted on 03/02/201925/10/2023 by daniel-admin

So you’ve caught the love bug and you’ve gotten engaged – congratulations! Now comes the exciting part; choosing the venue, guest lists, deciding on the dress… the list goes on. Getting into the finer details of wedding planning can be lots of fun, but there’s one part no-one looks forward to – working out how much it all costs. However as daunting as it is think about, making sure you have enough money to afford your dream day is one of the first steps to successful wedding planning. Here are my top three tips to get you started!

1. Prioritise what is most important to you

Real talk – unless you’re blessed with a bottomless bank account, chances are that you won’t be able to afford to have everything on your special day exactly how you’d want it. That’s not to say all your plans go out the window – it just means you need to set expectations and decide what really matters.

Think about it carefully. What are the things that you definitely don’t want to sacrifice and what are some of the things that you don’t care about as much?

In my case, my husband is a car fanatic so there would have been no chance of talking him out of having the bridal party arrive in vintage Rolls-Royce’s on the day. On the other hand, he really couldn’t care less about the suits he and the groomsmen wore, as long as they fit and looked good – this allowed us to save some serious dollars. For me, it was all about securing a beautiful venue along with great photographers and videographers to capture the big day, so we knew exactly where to focus the majority of our budget.

Working out these priorities meant we knew what mattered most. In the end we decided that the wedding event was our focus, and decided to not throw an engagement party, opting for one big celebration at our wedding instead. Alternatively, some people choose to have a giant engagement party and then end up eloping! It’s all about give and take – what are you willing to pay for and what are you willing to give up?

2. Figure out your budget and stick to it!

Once you work out your must haves, you need to work out your spending cap.

A survey of 515 brides conducted by Wedded Wonderland, found that the average cost of an Australian wedding in 2018 was $51,245. Ouch! Here’s their breakdown:

Source: Wedded Wonderland

However, an average isn’t necessarily an indication of what you should be spending. While our wedding is often one of the most important days in our lives, is it really worth going into debt over and spending the next five years paying it off? It’s really important to sit down and discuss not only what you’re willing to spend, but also how much you can afford. If you want to budget about $50,000 for a wedding in two years’ time, you would need to be able to put aside about $480 a week between the both of you, on top of your living costs. That’s a substantial hit to your bank balance – money that you might be putting aside for a home deposit, or existing credit card bills!

3. Enlist your helpers

If you’re looking for a way to cut costs, there are many ways you can save money on your wedding and still have that beautiful day you always dreamed of. It’s time to cash in some favours!

You probably have friends and family around you who would be more than happy to help you on your big day. Do you have a makeup artist cousin who would be happy to do your makeup for a discount or even as a wedding gift? How about that friend who is great at photography? Or an aunty that loves arts and crafts who could help with the invitations and place cards? You’d be surprised at how much you’ll be able to cut down on costs simply by asking your loved ones for some help. For my own wedding, my wonderful bridesmaids helped me put together all the invitations which would have taken me hours to do on my own.

Bonus tip: Enjoy yourself

Weddings can be expensive, but at the end of the day only you can decide how you’d like that money to be spent. Above all else, make sure that whatever you spend your hard earned cash on will be enjoyed – don’t forget take the time to take a step back and cherish the special moments you spent so long planning. The day is over in the blink of an eye, but the memories will hopefully last a lifetime. Make it count.

A wedding is only one part of your life story. What about the bigger picture? To discuss your short, medium and long term goals and get a sense of how you can live the life you choose both now and in the exciting future you and your partner have planned, speak to a financial adviser today!

Labor’s proposed property changes: why investors shouldn’t wait to buy

Posted on 24/01/201925/10/2023 by daniel-admin

Over the last few months it’s been difficult to ignore articles discussing Labor’s controversial plans to scale back negative gearing for investors who buy existing property and halving the capital gains tax (CGT) discount.

What’s happening?

In short, if elected Labor plan to cut back the CGT discount from 50% to 25% for newly-purchased property assets held for more than one year, meaning for those assets three quarters of each gain will be taxed instead of one half.

Changes to negative gearing would also restrict tax deductions for mortgage payments to newly built properties.

Only existing houses, flats and commercial premises would be excluded from the scheme.

When will it happen?

Even if the polls are half right, Bill Shorten will be Australia’s 31st prime minister.

With the federal election likely to be done and dusted come the end of May, it is looking very unlikely the Morrison government will recover from their horror 2018 paving the way for Shorten’s Labor to take charge.

Once elected, the ALP will likely try to fast track their changes through parliament. If successful, they could be in effect as soon as July 2019.

How will the changes impact you?

Let’s look at how these changes might impact the average investor pre vs post implementation.

Now is the time to act

The reality is these investor benefits will soon be a thing of the past as the ALP are keen to level the playing field for first home buyers.

However, as the proposal includes a grandfathering provision, those who act quickly can still get ahead of those who wait around.

Savvy investors know to run toward the storm when the headlines spell doom and gloom. A correction in the market is to be expected and should not discourage those looking to get started.

Pockets of Melbourne and Brisbane (even Sydney) are currently experiencing some fantastic results.

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Pets in your rental property – how the rules are changing

Posted on 17/01/2019 by daniel-admin

In September 2018 The Residential Tenancies Amendment Bill 2018 was passed through the Victorian Parliament, with the aim to “increase protections for renters, while ensuring rental housing providers can still effectively manage their properties.” While these changes don’t come into effect all at once, they will be implemented by July 1 2020.

Of the more than 130 reforms to be introduced, one particular change has had many people talking; the new rules applying to a tenant’s right to a pet. In fact it’s made many landlords worried that they will get no say into whether a pet can be housed at their investment property; however this fear may be unfounded.

If you read the new legislation carefully it actually stipulates that potential tenants will need to apply for properties with their pets listed on their application – or should they wish to get one at any time throughout their tenancy, they will need to submit a formal request to their landlord. A landlord then cannot unreasonably refuse the request for a pet unless a valid reason is given (such as the dog is a large breed for a small one bedroom apartment or the property owner has an allergy).

If a pet is approved, tenants will still be required to sign a pet clause. If the request is denied, your tenant will have the right to submit a request to VCAT allowing a member to review your refusal. Failure by the landlord to supply a response to a pet request within 14 days will result in automatic approval to the tenant – however the landlord can still make an application to VCAT to have an order put in place to refuse the request or have a pet removed should there be damages or issues in your tenants home caused by their pets.

While this change does explicitly provide tenants with the right to a pet, it also makes landlords rights clear; something which was previously missing in the Residential Tenancies Act. Previously there was nothing in the legislation regarding pets, a fact which often negatively impacted landlords rather than a tenant. From personal experience most cases that ever made it to VCAT regarding the removal or denial of a pet in a property were always skewed in favour of the tenant’s interests, with the argument made that as there is nothing in legislation that says a tenant can’t have a pet, then a landlord can’t discriminate against them.

With this change coming into effect within the next 12-18 months, landlords will now have the right to legitimately refuse a pet in their rental property and have their voice heard in VCAT if necessary. There is also the provision to allow for a pet to be removed from a property if it’s causing damages or a nuisance, as opposed to the usually three breach method which is often ineffective and does not usually result in a pet’s removal.

I’ll admit – when I first heard that these pet laws were changing, I was nervous. However after taking the time to analyse the change and learn what the legislation really says, my concerns have been relieved. I believe that including wording around pets in the Residential Tenancies Act goes a long way to providing our landlord clients with clear rights to support them moving forward.

Have questions about the upcoming changes to the Residential Tenancies Act and what they might mean for you? Get in touch with a Property Portfolio Manager at The Hopkins Group today!

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Gift giving budgeting tips

Posted on 10/12/2018 by daniel-admin

How do you go with gift shopping? Are you good at anticipating all of the social occasions that will need a gift purchase throughout the year or do you find yourself in a mad rush just before the big event? Are you smart with your spending or do you always end up with blowing your budget on gifts?

With the season of giving well underway, it’s a great time to draw up some guidelines for setting a gift budget for the New Year (and for the holidays if you haven’t started shopping already).

Step 1: Plan out your year

There are three things you should consider when gift giving; your budget, the occasion, and your relationship with the recipient.

A good starting point is planning out the year ahead with your calendar. Go through each month at the beginning of the year and write down all occasions, weddings, showers, birthdays, anniversaries, Christmas and other special occasions you can think of. This will act as the base for you to plan your budget.

Step 2: Set your budget

Once you complete your list of events, it’s time to allocate your budget for each event type. This process will enable you to determine how much you will spend on gifts throughout the year. Then add a buffer to cover the unexpected gifts that may come up throughout the year.

There are no real set rules around how much you should allocate to each event, but whatever you decide should probably take into consideration how much you can afford relative to your overall day-to-day budget, the occasion and your relationship to whomever you’re giving the gift to.

For example, you’ll probably spend more on a wedding gift for a couple than for a retirement gift. Further, you’re probably going to spend more at your sibling’s wedding than the wedding of a work colleague. As a guide, here are some common events I have come up against and the amount I allocate for each in my own gift budget:

Birthdays: $50 each
Baby Showers: $80 each
Weddings: $200 each
Mother’s/Father’s Day: $50 each
Our Anniversary: $200 each
Our Kids’ Birthdays: $100 each
Our Birthdays: $100 each
Our Parents’ Birthday: $100 each
Christmas: $1000 total

It fair to say that your own gift budget will vary depending on your own circumstances, based on your income, the size of your extended family, the number of occasions you anticipate to attend, and the person you are giving presents to. You may feel more comfortable with choosing a higher-priced item for your significant other, family members and close friends. Doing the math will help you get firm limits on how much to spend on different people across your gift list. Once you have the budgeted allocations, try to keep under the cap or as close to it as possible.

Step 3: Be savvy with your purchases

Being generous with your gift giving doesn’t necessarily mean you have to spend big. In fact, there are a few ways you can keep costs down and stretch your budget further including:

going in on a more expensive gift with one or more other people,
shopping big sales like the EOFY sales, or purchasing gifts in the off season,
making DIY presents for a more personal touch, and
bulk buying the same present for multiple people.

Determining your gift budget for the year is just one simple way to get smarter with spending and manage your cashflow effectively. If you’re looking other ways to get your personal budget under control, why not check out our Money Master program or speak with an adviser at The Hopkins Group today?

Share house survival guide

Posted on 27/11/2018 by daniel-admin

When you’re young, studying or at the start of a career, living on your own is usually not an option. Often you’ll be living on a shoe string, especially when pays aren’t rising as quickly as rents. So where does that leave you? Well, if living with family just a little longer isn’t an option, then share housing is usually your next best bet.

Sure, share housing has its reputation – it can be fun, crazy and frustrating – but despite all the housemate horror stories you hear, it’s really not all bad! To help you make the transition as easy as possible, here are the top three tips I’ve picked up along the way.

1. Splitting expenses is easier with apps

Budgeting for household expenses like cleaning supplies, communal food, bills etc. can be tedious – but thankfully, there are apps out there that make things easier! To easily keep track of things, my housemates and I use an app called Splitwise. When expenses come up we just enter it into the app and divvy it up accordingly. For example if I go out to buy cleaning supplies, I take a photo of the receipt and put the total in the house group. People can then pay when they have the chance, and we know exactly who owes what and to whom. It’s great for keeping those ‘forgetful’ housemates accountable.

2. Don’t forget to budget for bills and rent

It sounds simple – but if you don’t budget, it’s really easy to find yourself short when the bills are due. If you get paid on a weekly or fortnightly basis, it may seem like you have more spare cash than you actually have. One rookie mistake I made early on was not setting aside money for my bills or rent. It only took one week of eating beans and rice to realise maybe I should put some more thought into were my money goes.

A simple way to make sure bills and rent don’t creep up on you is to create a budget and stick to it. In an ideal world, you should know where you money goes and know when not buy so much beer. To help manage my slightly irresponsible spending habits I keep a second bank account open for all my bills. Each pay, I put a set amount into my billing account before I do anything else. At the end of the month I then have more than enough to pay my rent and when a bill comes up I don’t even have to think about it, everything I need is in my billing account. This leaves me free to do whatever I want with the rest of my money; good or bad.

While this system works well for me at the moment, it’s also great to know that when I’m ready to get a little more serious about understanding my spending habits, things like The Hopkins Group Money Master program exist. Money Master gives you the power of the Xero Cashbook platform, linking with your bank accounts and budgets to shine a spotlight on what you’re spending and where you might need to cut back. You can learn more about Money Master here.

3. Communication is key

Having open lines of communication with your housemates is the make or break of any good share house. How this is achieved varies from place to place; some have house meetings, others have notice boards, but my place has a group chat set up on our phones.

We all live busy lives, so when we need to sort things out the group chat helps immensely. From finding out who will be home for Border Security night, to discussing the need for a new vacuum cleaner and uncovering why the electricity bill so high this month, the group chat keeps us all on the same page and helps negotiate the larger house expenses.

If you’ve never lived in a share house before, it can be an equally exciting and scary idea to get your head around – and while I can’t help you figure out who keeps eating your food, I do hope these tips will help you start your first foray into the life of renting on the right foot! And who knows – once you’ve mastered budgeting in a share house, you might soon be ready to move out into a new place of your own! When that time comes, The Hopkins Group is here to help with a number of great properties available for lease across Melbourne. Check out our current availability today!

Property investment – expectation vs reality

Posted on 21/11/2018 by daniel-admin

Property is often regarded as one of the safest long term investments and also one of Australia’s favourite ways to invest.

Novice property investors can often enter the market with pre-conceived expectations of what it’s like to invest in property; however these expectations don’t always line up with reality. Understanding this is one of the first steps to becoming a successful property investor.

So what exactly are these expectations we need to overcome?

Expectation: For the right price, any property purchase is a good investment

Many people go into property investment with this idea that as long as you can secure a good price, any property will do. However, this is rarely the case.

Reality: Not all property is created equal – what, where and when you buy matters

There are so many factors that will affect your return on investment, so it’s important to do your due diligence before choosing a property.

Before you buy, make sure you research the area, check recent sales prices so you’re familiar with what you can expect to pay, check the vacancy rates and any proposed changes in the area, like new development or zoning permits that may affect future property values. Consider your timing in terms of market trends – are you buying at the peak or trough of a cycle? What’s going to provide the most value in the long term?

It’s also really important to go into a property purchase with an investment mindset. Many people fall for the trap of ruling ‘heart over head’, meaning they allow their emotions to cloud their judgement and are more likely to over capitalise their purchase.

Expectation: Property investment provides instant returns

Many first time property investors go in thinking they can become millionaires overnight, believing that investing in real estate can provide a quick fix to their financial shortfalls. They are drawn in by the promise of capital growth, a steady rental income stream and those sweet tax deductions.

Reality: Property investment is a long game, that requires time and planning

To be a successful property investor, you should outline your investment strategy and then develop a plan to achieve your goals. Not only do you need to focus on the short term, but long term also needs to be taken into consideration, and ensure your investment decisions align with your overall strategy. As the saying goes – “if you fail to plan, then you plan to fail”.

While it’s true that investing in bricks and mortar can be a great way to create wealth, it’s also a long term investment. The longer you hold it, the better off you’re likely to be. It’s about patience and persistence; property moves in cycles, with fluctuating highs, lows and periods of no movement at all.

You need to consider your cash flow and budget carefully – on top of loan repayments you need to be able to afford ongoing costs like rates, insurance, owners corporation fees, repairs and maintenance, and property management fees. While your rental income is likely to cover most of these costs, you need to be prepared for those instances where it doesn’t – such as prolonged vacancy periods or missed payments from tenants.

Additionally, those attracted to the tax advantages of negatively geared and brand new property should be wary of relying solely on these incentives.

The goal is to ensure you can continue to afford your property without entering financial stress that would cause you to sell at the wrong time. Understanding all the costs involved in holding property can be difficult, so it’s recommended you seek advice from a professional adviser to ensure you know what you’re getting into financially and avoid any nasty surprises.

Expectation: I can save money doing it all myself

First time investors will often try to do most of the legwork themselves. They believe they can save a pretty packet by taking on tasks such as researching different loan options, sourcing their own property and managing their own leasing.

Reality: You can save both time and money with the right advice

There’s only so much you can learn online, so seeking advice is a great way to get ahead. At The Hopkins Group, our team of advisers have the experience and technical expertise behind them to guide you through all stages of the property investment process. The Hopkins Group can help you:

understand your cash flow situation and how property fits in the broader context of your financial strategy
gain access to high quality property that may not be available to the general public
secure the best loan product for your needs
manage the ongoing leasing and tenancy of your property
undertake pre-settlement inspections to ensure your off-the-plan property is appropriately finished

Our teams are experts in their field and are across all the ins and outs of their industry – from legislative requirements to market trends, they know their stuff.

And while there are fees associated with property management (and the implementation of broader financial plans beyond property), these costs are small compared to the time you’re saving by not doing it all yourself.

What’s more, speaking to a Property and/or a Mortgages and Finance Adviser at The Hopkins Group is free – so you’ve really got nothing to lose!

Get started on your property investment journey and speak to our team today!

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What happens when my tenant breaks their lease?

Posted on 06/11/2018 by daniel-admin

Congratulations! You’ve successfully secured a tenant for a 12 month lease. You’ve got nothing to worry about, and peace of mind for 12 months, right? Well, there’s the good news and the bad news.

Let’s start with the bad news….

While a fixed term lease means an owner is required to make the property available to the tenant until the end of the lease period (unless of course the tenant defaults), your tenant is also entitled to break their lease and vacate the property, should they wish. So what happens if they decide to break their agreement and leave early?

Here comes the good news…

While your tenant is entitled to break their lease they have also signed a legally binding agreement to lease the property for a set period, so they can’t just walk away without consequence.

Upon signing a lease, your tenant becomes responsible for paying the agreed amount of rent, for the entire period of the set agreement. If they decide to leave early, they are responsible for the rent on the property until a new tenant takes possession or until the lease expires – whichever occurs first.

Your responsibility as a landlord

Although your tenant is responsible for maintaining their lease terms, as a landlord you must also make every attempt to re-let the property within a timely manner. This responsibility is to minimise any undue hardship on the tenant, who quite likely will be paying two lots of rent once they have vacated.

It’s also important to note that rent increases can be very difficult to implement (unless there has been a clear market shift) as this may be viewed as detrimental to the speedy re-leasing of the property.

Who is responsible for advertising and letting fees?

While you may not be losing out on rent, you may be thinking that it’s not free to advertise and re-lease a property; why should it cost you money when you haven’t done anything wrong?

Fortunately, professional leases like those used by The Hopkins Group often include clauses relating to costs incurred by an owner, should a tenant break their lease – as far as is allowable under the Residential Tenancies Act. In this instance, our lease stipulates that a tenant is to reimburse the owner the full cost of advertising incurred, and to reimburse the owner part of the re-letting fee on a pro-rata basis, based on the unfulfilled portion of their lease agreement.

You’re in safe hands

While a fixed term lease doesn’t necessarily offer the peace of mind you once imagined – thankfully having your property managed by a professional agency like The Hopkins Group can.

As a client of The Hopkins Group, you will be contacted by your property manager as soon as a tenant indicates they will be breaking their lease to confirm you would like the property re-let. The advertising of the property will then commence immediately to try and secure a new tenant as soon as possible.

Want to learn more? Contact The Hopkins Group on 1300 726 082 to speak with a property manager today – or send us a message via our contact form and we’ll be in touch as soon as we can.