First Home Super Saver Scheme for Teachers and Why It’s Not the Same as an SMSF
Key Takeaways The FHSS scheme releases your own voluntary super contributions as cash for a home you live in, while an SMSF holds property as a retirement investment that members cannot live in. Super guarantee, award-mandated and defined benefit contributions do not count, and voluntary contributions are capped at $15,000 a year and $50,000 in […]
Buying a House With a Sibling in Australia: Teacher Guide
Key Takeaways A tenants in common title can record any ownership split, but on a joint and several loan each borrower owes the full debt, not just their share. Two non-partner first home buyers, such as siblings or friends, can apply together for the 5% Deposit Scheme. A parent who has owned property in the […]
Home Loans for TAFE Teachers: How Semester Income Is Assessed
Key Takeaways Lenders usually turn semester pay into an annual figure using annualised year-to-date pay, last financial year’s income or the lower of the two, and the method can shift the result by thousands of dollars. Applying in March can understate income because the window includes the unpaid summer, while late first semester often reads […]
Buying Off-the-Plan as a Teacher: Sunset Clauses, Finance Timing & the Settlement Valuation Gap
Key Takeaways An off-the-plan loan is assessed again close to settlement, using the completed apartment’s valuation and the lending rules in force at that time. Lenders generally lend against the lower of the contract price or the valuation, so a low valuation can leave a cash gap the buyer has to cover. Parental leave, reduced […]
Does a Novated Lease Hurt Your Home Loan? A Teacher’s Guide to Car Salary Sacrifice & Borrowing Power
Key Takeaways A novated lease may reduce assessed income, appear as a liability or both, and the lender’s method can move borrowing power by more than $100,000 on the same salary. An eligible electric vehicle lease is paid entirely from pre-tax salary, so taxable income falls further than with a petrol lease even when take-home […]
Investment Loan Pre-Approval Checklist for Teachers
TL;DR Investment pre-approval is stricter than owner-occupier. Lenders assess at the actual rate plus 3%, shade rental income 20% to 25%, and apply tighter property type and location policies. Core documents include two forms of ID, recent payslips, PAYG summary, 3 to 6 months of bank statements, statements for every debt, and deposit source evidence. […]
Positive vs Negative Cash Flow Investment Properties for Teachers
TL;DR Cash flow is driven primarily by the yield-to-rate gap. Metro properties yielding 3% to 4.5% default to negative at current rates around 6.35%, while regional properties yielding 5% to 7% can run positive after costs. Positive cash flow suits teachers with variable income, tight weekly surplus, shorter time horizons, or those approaching retirement. It […]
Negative Gearing for Teachers: How It Works with Your PAYG Income
TL;DR Negative gearing reduces the cost of a property loss but doesn’t eliminate it. A teacher at 37% marginal rate recovers only 37 cents of every dollar lost; the rest comes from salary or savings. Only loan interest, management fees, rates, insurance, eligible repairs, and depreciation are deductible. Principal repayments and property improvements are not, […]
Interest-Only vs Principal and Interest Investment Loans for Teachers
TL;DR Interest-only only wins when the cash flow saving is deployed productively. Without an offset, redirected debt reduction, or reinvestment plan, you’re paying a rate premium to preserve tax deductions that debt reduction would have eliminated anyway. The strongest case for IO is teachers with a PPOR mortgage and offset account, where freed cash flow […]
Rentvesting as a Teacher: Buy Where You Can Afford, Live Where You Want
TL;DR Rentvesting means applying for an investment loan, not a home loan. Expect rates 0.2% to 0.4% higher, rental income shaded 20% to 25% for serviceability, and tighter policy than owner-occupied lending. Buying an investment property first typically disqualifies you from the 5% Deposit Scheme, state grants, and stamp duty concessions, potentially forfeiting $30,000 to […]