Property Investment Tips

Tips For Property Investors

Property investment is a popular type of investment strategy for people in Perth who are looking to create a more secure financial future. Particularly in the current climate, property investments do not always guarantee positive returns.

Here are some things to consider when it comes to property investment in Perth.

Real estate investment is primarily about capital growth; thus, investors ought to buy a property in the right place so that it has the best chance to increase in value. It can be challenging to determine the true value of a property in the real estate sector, unlike the share market where the company’s value can be more transparent. You should aim to acquire a property at a price that is lower than the real market value, to do this you need to research the property thoroughly to assess the real value or worth of the property.

Find a good property manager to manage

Property managers are licensed to offer professional advice on property investments and ensure everything runs smoothly for tenants and property owners alike. Property managers can assist you in managing tenants and getting the best value for your property. Also, a good property manager will advise you on the right time to review rents and when you shouldn’t.

Understand market dynamics before you buy

You should think about the properties in your neighbourhood and talk to real estate agents and locals in the area to understand the market dynamics. Maybe one side of the street is superior to the other, or it attracts more tenants than the other. You need to do your research and consult with a real estate agent you can trust who can give you insights and secrets about properties in the locality.

Negative gearing

Negative gearing is essential in providing property investors with specific tax benefits when the investment costs are more than the income it brings to the table. The law in Australia allows investors to deduct their maintenance and borrowing costs from their total income. However, the law only allows you to enjoy tax benefits if you earn other taxable income. The advantage is that even if your property is running at a loss, you can get a reduction of the tax amounts on your other earnings. However, you should not buy a property just because you want to get tax reductions.

Choose the right mortgage

There is an array of options to choose from regarding financing your investment. You need to make informed decisions when it comes to financing options because it can make a significant difference to your finances. You should consult a trusted financial advisor to help you structure your loan correctly. Contact Precept Financial Services today for a free consultation and see how we can help you.

Check the condition and age of the property

Unless your intent is to renovate a property, you don’t want to buy a property in ill repair because the excessive repair and maintenance cost will affect your profits and damage cash flow. Therefore, property investors should work with building inspectors before they buy a property to inspect the building for any potential problems.

Tips For Property Investors

Make the property attractive

You should try to keep all the rooms in excellent condition and maintain neutral tones throughout. This will help attract and maintain tenants which is essential to the success of your investment. If you want to attract tenants, try to invest in a property that you could see yourself living in.

Keep in mind this article is providing only some generic information on property investment. If you’d like to get some individual advice according to your specific situation, contact us today for a free consultation and see how we can help you.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Tips For Living Within Your Means

tips for living within your means

Tips For Living Within Your Means

It’s easier said than done to live within your means; in other words only spend as much as you have coming in each month. Many of us spend more than we should with credit cards, and dipping into emergency funds and savings accounts. If that sounds like you, these tips for living within your means can help.

Your first step is to determine how much money you have coming in, how much you spend each week or each month and where that money goes – this is called a budget. Your challenge is then to find areas in which you can save so you aren’t spending more than you have coming in and these steps can help.

1) Determine Your Needs and Wants

Look at your overall financial situation and lifestyle, and try to determine whether you are spending money on needs or wants. Once you have a list of items, you should ask yourself whether your life would be different if you had this item, whether the item matches your values, and how things would be different if you didn’t have the item.

2) Establish Guidelines

Your revised budget should be set based on how much you spend on different things, how much you have to spend on necessities such as rent and utilities, and whether these things are really needs or wants.

3) Track, Trim and Target

It’s easy to see where you may be able to trim expenses once you start tracking where your money is going each month. You may find that you are spending more than you realize on eating out, for example. Once you have a better idea of where your money goes, it is easier to start cutting back rather than eliminate things completely.

tips for living within your means

It can help you to use the SMART goal:

  • Your goal of saving should be SPECIFIC; not just save money, but save it for that trip to Paris next summer.
  • Your savings plan should be something you can MEASURE so you know how close to your goal you are.
  • Be realistic when it comes to devising a savings plan. Only save what you can actually afford to save; in other words your goal should be ATTAINABLE.
  • RELEVANT. Have a savings plan and goal that actually make sense.
  • TIME RELATED. Set yourself a realistic time by which you will have the money saved up.

If you are like most people, money is probably tight. However, with some perseverance it really is possible to establish a budget, come up with a realistic savings plan and save for that dream vacation, new furniture or new car.

Many people in West Australia have benefited from the advice and expertise of Precept Financial Services, and we can help you too. You too can have the confidence, freedom and power that comes from understanding your own financial situation, creating a budget that works for you and saving money towards a specific goal.

To see how we can help you, contact us today. It’s never too late to start working towards a more secure future.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

What Does Trauma Insurance Cover

Trauma Insurance

What is Trauma Insurance?

Trauma Insurance provides a lump sum payment to help you financially while you are recovering if you are diagnosed with a specific injury or illness.

What does trauma insurance cover?

It typically covers ailments like stroke, coronary bypass, heart attack and cancer, although it can cover other health conditions too.

Trauma Insurance is packaged and priced differently by insurance companies and banks. The quality of the policy determines the coverage you get for surgical procedures and medical conditions. Trauma insurance covers conditions such as:

  • Cancer of all types
  • Stroke
  • Heart attack
  • Severe osteoporosis
  • Kidney and other organ failures
  • Rheumatoid arthritis
  • Severe burns
  • Vision or hearing loss
  • Head traumas

Why do I need Trauma Insurance?

backbone blur check
Image Credit: Pexels

Here are some facts:

  • 1 in 2 men and 1 in 3 women will be diagnosed with cancer before the age of 85
  • Almost 3,300 men die each year of prostate cancer and around 20,000 new cases are diagnosed every year
  • On average, 7 women die from breast cancer every day in Australia
  • At least 2 in 3 Australians will be diagnosed with skin cancer by the age of 70
  • Cardiovascular disease kills 1 Australian every 12 minutes

Trauma insurance provides you with a lump sum payment to help you and your family financially while you recover. It covers medical conditions, events, and surgical procedures relating to stroke, heart attack, and many types of cancer. The trauma benefit is paid upon confirmation of a diagnosis and not when you die due to the condition.

Trauma Insurance was initially introduced in Australia in 1986 when it was recognized that critical illnesses could financially damage an individual or a family. Individuals with heavy debts or limited savings face financial hardship when paying medical bills for a long lasting illness. Not having trauma insurance potentially limits your treatment options which could reduce the chance of an early recovery and going back to work.

The payment of a lump sum trauma benefit provides a monetary cushion to cover out of pocket costs for medical treatment and medicines that health cover does not address. It can also assist in supplementing income while you are unable to work or be used to pay down your debts.

Is Trauma insurance only for old people?

happy couple

Age is no factor for trauma insurance. Those over 40 have a greater risk of suffering from heart attack and cancer. Younger people receive coverage for accident related trauma conditions like loss of sight and limbs, coma, severe burns, and head injuries due to car accidents. Trauma insurance also covers individuals suffering from neurological conditions.

What is the difference between trauma insurance and TPD insurance/income protection?

Trauma insurance only covers conditions specified in the policy. It does not cover all illnesses that may prevent you from working, like back pain, repetitive strain injury and stress. Income protection and TPD insurance typically cover injuries or sickness that hampers your ability to work.

However, as income protection insurance does not cover 100% of income and TPD insurance requires permanent disability, it is essential that trauma insurance be included in any income package. Life and trauma insurance are the only insurance options available for those performing home duties, involved in high risk occupations, or those who are not working.

Want to know more, contact us today.

Precept Financial Services has helped West Australians gain financial security and freedom.


Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Steps for Successful Budgeting


To be comfortable with managing a budget, the first step is to learn to live within your means. By doing so, you put the odds in your favour from the outset to succeed in taming the management of your finances. In addition, it is recommended that you put some money in a savings account every month. The amount you save will depend on your individual circumstances. A common range of saving is 10%-30% of your monthly income.

Budgeting Isn’t Easy

It is common to feel discouraged when it comes to budgeting. It’s tough to stay on top of your finances and spending. If you stick with it over time you will develop good habits and enjoy many benefits such as:

  • A sense of achievement when you reach your targets
  • A feeling of empowerment as you take control of your finances
  • Less stress when it comes to finances
  • You are more prepared for unexpected events

Repay your loans

In most cases, a focus of your budget is to pay off your loans. Banks often spread the loan repayment over several years by establishing small monthly payments. If you know that you are able to give more, do not hesitate to do it. This will save you from wasting your money by paying interest.

Organise Your Expenses

It is easy to underestimate the amount allocated to personal activities and shopping. A simple organisation of your expenses and considered planning allows for better control of these expenses. Over spending can lead to unnecessary stress on you and your family.

Here are some tips for avoiding over spending:

  1. Anticipate and allocate funds for unexpected events that may come up such as a car breaking down.
  2. Be aware of easy access to credit.
  3. Allow for some enjoyable activities within your budget. This will keep you in control and help you avoid splurging.

The basics of a good budget

Finally here are some quick tips for budget making:

  1. Set realistic financial goals. It is hard to be motivated if the goals you set are unattainable
  2. Calculate your expenses using your bills so you do not forget anything.
  3. Check and review your budget periodically to see where it is working and possible gaps between planned expenditure and actual expenditure.

Financial Tips for Your Teenager


It is not easy to learn how to manage your finances, especially since the topic is not often taught at school. You learn the basics of financial management on the job, as they say. A better approach is to prepare your teenager for some of the common financial pitfalls that can occur with young people.

To support you in your approach, here are some financial tips for teenagers.

Learn to control your money

With easy access to credit, you can buy what you want and when you want it. Always consider your means. Obviously, it is always better to wait until you have the exact amount before making large purchases to avoid interest charges. Credit or borrowing money should remain your last resort.

Create a realistic budget

Knowing where your money is going and how you spend it is, without a doubt, the responsible way to keep track of your finances. Take the time to establish your budget before wasting your money after receiving your pay check. Plan your savings and big expenses and make sure your expenses do not exceed your income.

Have a relief fund

Keep a certain amount aside for unexpected events, accidents or unexpected bills. Before you open a savings account, make sure you have money left over for emergencies.

Contribute to a retirement as soon as possible

Although you are young, know that it is never too early to start contributing for your retirement. The sooner you start investing, the greater the nest egg will be when the time of retirement comes. A good option is to start young. Initially, invest a small amount, which will not affect your lifestyle. Go from this principle and you will quickly see that interest will boost your investment. It will be your reward to continue on this path.

Learn to protect yourself

Always be one step ahead when it comes to your expenses. This means that you have to plan for the unexpected and have the necessary funds in your bank account to deal with them. It is well known now, bad surprises do not happen to others. You must protect yourself by foreseeing the blow of the bad luck. For example, if you rent an apartment, insure your home against theft and fire. The idea is to protect what you have and always have a “plan B” to get you out of unforeseen situations.

Save for important events

Once you have established your emergency plan, and contribute to your pension plan, you can consider starting to save for other major events. For example, to buy your first new car, to pay for a vacation, to organise your wedding and maybe also to buy a house to raise your family. These events of your life will require large sums. It is therefore important to plan for them now and save accordingly.

Tips for Property Investment

home sold

Rental investment has long been one of the favorite investments for many people. In spite of complex regulation (framing of rents, increase of the taxes), still so many people turn towards this type of investment. It remains an excellent way to build a heritage provided that you follow certain good practices.

Define your objectives

To succeed in your investment, you must first determine your main objectives. What is the purpose of your investment: is it for your children, a second home or a way to reduce taxes

You must also define the type of rental you want to set up

seasonal rental or student rental or furnished rental. For this reason, choose a property that corresponds to your expectations. The layout of the property and its condition are elements to bear in mind at the time of acquisition, because once purchased, this property should be maintained regularly. Most of the work is the responsibility of the owners.

Choose carefully the location of your rental investment

To achieve a strategic rental investment, one of the most important points is the location. It is necessary to turn to an attractive city gathering factors such as work, many schools and a good reputation. For a small-scale rental investment, which mainly concerns students and young workers, the proximity of universities or public transport, are convincing criteria. We also invite you to study the future potential of the site in question, and try to look into 10 or 20 years to analyze the variation in demand.

Calculate the optimal rent

The price of rent must be calculated carefully because it will have a strong influence on the performance of your property as well as demand. To calculate the rental price several solutions are possible. Call a professional who will determine the most suitable price on the market. Study the benchmark rent index.

Consider the potential for improving the profitability of housing

Studying the potential rent and the future rent is a crucial step in the investment. The potential rent is the rent that can be obtained after some work. The future rent corresponds to the supposed progression of the property. After careful consideration of profitability, if it exceeds 3-4%, you can consider the investment as profitable.

There’s A Lot More

These are just some of the factors to consider when purchasing an investment property. For more help on investment, talk to Precept Financial Services today.

WA Practice of the Year


We are pleased to announce that Precept Financial Services has been awarded the Charter Financial Planning WA Practice of the Year. We see this as great recognition for our team who go above and beyond to provide a great service. We want to thank our amazing team for the job you do and looking forward to more success in the future.

David Shaw acceptance speech
Precept Financial Services principal and strategic manager David Shaw making his award acceptance speech on behalf of Precept Financial Services.