Investment Property

Items which should be entered under Property

  • You should enter as an investment property any property (house, unit, etc) that is not your principal place of residence (i.e not your family home).  It is important to distinguish an investment property from the family home as it has a different tax status.
  • Investment Properties can be owned by:
    • An individual or individuals - In the Ownership field, you can enter a property as jointly owned and nominate what percentage is owned by each individual.
    • An SMSF or Trust - however, if you have an SMSF, you must use the Optimo Financial SDS
  • (error) Do not enter under Property:

    • Your Family home - This should be entered as a Family home

How to add an Investment Property

To add an existing property:

  • If it is directly owned (i.e. not owned by an SMSF or Trust), go to the Current situation > Assets & Loans step (on the top menu), click the Add assets button (side menu) and choose Investment property
  • If it is owned by an SMSF, go to the Current situation > Super & Trusts step, add the SMSF, then click the Add investment to SMSF button and select Property
  • If it is owned by a Trust, go to the Current situation > Super & Trusts step, add the Trust, then click the Add investment to Trust  button and select Property

To add a new property:

  • If it will be directly owned, go to the Cash flows & Goals step (on the top menu), then the Review Assets & Loans sub-step. Then click the Add new Assets & Loans button (at the end of the page), and choose Buy a new investment property
  • If it it will be owned by an SMSF, go to the Cash flows & Goals > Review super funds step
  • If it will be owned by a Trust, go to the Cash flows & Goals > Review trusts step.

Websolve options

These websolve options apply to directly owned Investment Properties only (not properties owned by SMSFs or Trusts which are only part of the Optimo Financial SDS).

Sell an existing Investment property
  1. Enter the property details under the Current situation > Assets & Loans section
  2. Set the sale details at the Cashflows & Goals > Review Assets & Loans step (top menu)
Buy a new Investment property
  1. Go to the Cashflows & Goals step (top menu) and choose the Review Assets & Loans sub-step
  2. Click the Add new Assets & Loans button (at the end of the page) and choose the Buy a new investment property option.

Set options for mortgage repayments

(e.g. pay off the mortgage early)

See instructions on the the Secured loan help page.
Using the equity in this property to purchase another property or homeSee How to enter a loan that is secured by one asset and financing another asset (e.g. home equity loan)
Purchasing this property using equity in another home or investment propertySee How to enter a loan that is secured by one asset and financing another asset (e.g. home equity loan)

Investment property results

See Investment Property results.

Strategy Development Service (SDS) options

If the case includes complex analysis, it cannot be done with the websolve and the case needs to be submitted to the SDS.  Complexities include, but are not limited to:

  • Converting your current property into your family home or vice versa (i.e. you currently rent out the property and would like to move in).  Alternatively, see How to convert a family home to an investment property (or vice versa) - a workaround
  • Property owned by an SMSF, as anything relating to SMSFs must be done with the SDS
  • Borrowing against the property to purchase shares - You can try this by following the instructions on  How to enter a loan that is secured by one asset and financing another asset (e.g. home equity loan), how there may not be enough options to control the borrowing as much as you like, so use with caution.
  • Borrowing against the property for an expense (e.g. home renovation) - This is controlled with the Used equity as line of credit field on Secured loans, you can try using this field before submitting the case to the SDS, but the websolve may not allow you to control the borrowing as much as you require.
  • Purchasing or selling an investment property on a date other than 1st January of the selected financial year, because, by default, property transactions occur mid-financial year (that is, 1st January).  This means that when a property is bought, savings made in the first half of the financial year may contribute to the deposit and loan repayments to be made in the second half of the financial year.  And when a property is sold, loan repayments are assumed to be made in the first half of the financial year, with the proceeds of the sale available in the second half of the financial year.

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