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managing income debt during coronavirus

How To Manage Money And Debt During COVID-19

How To Manage Money And Debt During COVID-19

There’s no doubt about it … we’re living in unprecedented times.

Regardless of race, gender, socioeconomic status and the myriad of other factors that determine who we are, coronavirus affects us all.

It’s a world-wide problem and it’s going to take a worldwide approach to conquer this enemy.

Whilst the battle is raging, our lives will undoubtedly be affected.

To help you navigate these unchartered waters have a look at ways to manage money and debt…

Stay focused when managing your money

Watch Your Focus

Some people will experience anxiousness and fear as they read the headlines and listen to the media sound bites that dominate the horizons.

Others will feel the financial impacts this dreaded virus has brought about. This is especially so when businesses close and incomes are reduced.

Whilst these emotions are natural, they can lead us to be reactive and making flawed decisions.

To ensure you don’t fall prey to financial sub-optimal short-circuit decision making, try to defocus on all the bad news that’s being aired.

Acknowledge how you feel and then reach out to an expert who can help you deal with your financial affairs. We are definitely equipped to talk ‘finances’ over with you.

manage your income and expenses

Review Your Income And Expenses

Now is the time to look at what you earn and where your coin goes. Some people’s incomes will be affected.

Their incomes may even stop. Unfortunately, this doesn’t mean bills cease.

If you’re in this boat or if you think there’s a possibility your income could drop in the coming weeks, be proactive.

Make adjustments to your spending where you can and ensure you don’t worry about this on your own.

Talk to us as we’ve got the knowledge to help you manage in these trying times.

get rid of bad credit card debt

Get Rid of The Credit Card And Consumer Debts

Now more than ever, you need to be smart with money and that means being smart with debt.

An option may be to consolidate all your debts into your home loan. Why?

Because the interest you pay on a home loan debt is much lower than what you pay on consumer and credit card debt which means you’ll be improving your cash flow position if you take up this suggestion.

Let me give you a quick example of how we’ve helped clients achieve this:

Let’s assume that you have a 30-year term $300,000 principal and Interest home loan where you’re charged 3.20% per annum.

Your monthly repayments are around $1,300.

You also have a $5,000 credit card debt where you’re paying interest at 11.99% which see your monthly minimum payment around the $150 mark.

Now if you were to consolidate your credit card debt of $5,000 into your home loan your monthly home loan repayments would increase by just $20 per month.

That means you’d be cutting your monthly expenses by $130.

Whilst this suggestion means you’ll get an immediate cash flow benefit, you do need to be aware of the drawback attached to this method – you could end up paying a whole lot more interest if you don’t focus your efforts in eliminating the extra debt entirely by making payments in the future.

Still … the method helps you get through right now and gives you time to address the full repayment of the debt in the future.

Refinance to manage your money


Review And Refinance Home Loan

Even if you don’t need to consolidate all your debts into your existing home loan, you should be asking yourself if your current loan arrangements serve you well.

Recently, interest rates have significantly dropped and now could be an excellent time to look at refinancing.

We already know that if you have a home loan plus transactional account where you pay goes into – we have a solution that could save you thousands! And that’s just the beginning.

It costs you nothing to talk to us and explore these suggestions and if it results in more coin in your pocket, that’s a real bonus to you.


The best antidote to fear is action, but it has to be informed action that benefits you.

So, after reading this article, don’t fall prey to being an ostrich and burying your head in the sand if you have difficulties or being a rabbit and running from your situation.

Get in touch with us.

We’re here to help you through.

Remember, energy flows where focus goes so focus on improving your financial position now.

You’ll thank us in the long run – promise!


Salara Molenaar

Key To Australia Finance Manager

+61 7 5574 1331

  • March 30, 2020
  • News
6 reasons to invest in property

6 Good Reasons to Invest in Property

6 Good Reasons to Invest in Property

Do you sometimes wonder how seasoned property investors got started and why they invest in property?

Is property investing really that good of an investment and if so, why doesn’t everyone invest in property?

Let’s go through the top 6 good reasons to invest in property.

To invest in property takes more than just an income and a deposit, you have to have the determination and the right mindset to achieve success.

However, anyone can realise their dream of achieving their financial goals by investing in property.

For centuries investors have invested in property as a way to increase their wealth.  But what most people don’t realise is that the increase in value is not only the building but the actual land itself.

Land value increases over time whether there is a property on it or not, and the more valuable the land is the more you pay per sqm. For example, a 400sqm site in Sydney is worth more than a 400sqm site in Cairns.  But if you were to build the ‘Exact’ same property on both pieces of land it would cost pretty much the same, the only difference would be labour costs excluding any service connections.

Investing in property is not for everyone, as not everyone likes the idea of having that much debt, it can seem rather scary. But like anything you do for the first time, it’s always a learning curve, a little bit scary because of the unknown, but don’t let yourself focus on the negative aspects, focus on the positives.  If unsure ask for help from a professional.

Let’s go through the 6 good reasons to invest in property and hopefully that will help you decide to invest in property.

1. Financial Independence

Now, more than ever, it’s important to make sure you have the right steps in place if you want to live comfortably in your retirement.

The retirement age is increasing, and people are no longer able to rely on the aged pension as a sole source of income.

Depending on your age 20s, 30s, 40s or 50+ we have created articles to help you manage your money.

Dollar coin

But if you start now (no matter your age) you can build a property investment portfolio that will provide you with financial independence so you can enjoy retirement.

For some people, it means purchasing one investment property that provides a rental return.

For others, it means building a veritable monopoly of investment properties in an apparent bid to conquer the universe.

So don’t get bogged down in thinking you need 10 or 20 investment properties to retire well, just start out with your first then work your way up.

At Key to Australia we like our clients to aim towards owning (debt-free) 4 investment properties which will give you around $2,000 passive income per week ($500 weekly rent), that’s $8,000 per month.  If you want more passive income than that then just purchase more or one of our Dual Key properties (high cash flow), but most Australians are happy with 4 properties.

Talk to us about earning $2,000 passive income.

2. Create Passive Income

Invest in property for cash flow, which is called passive income, don’t be a speculator and try and time the market to achieve capital growth.

Capital growth comes over time and that’s why it’s important to start now no matter what the market is doing.

So your main goal is to invest in property to create a passive income (rental income), this will grow over time as rents increase and your debt (mortgage) decreases.

how to grow passive income through investment property

The idea is to have zero debt on your property at the time of your retirement so that passive income is paying you to live.

Think of passive income like your Super.  You put money in to pay down the mortgage and your employer is your tenant who pays you also to cover the cost of the mortgage and other expenses.  But this is where property investing gets really exciting, once you have no debt and rents continue to rise you still get paid, plus the increase in capital growth has happened over 10+ years so you can either sell the property and live off the capital or pay down debt on another property.

At Key to Australia we help ordinary hard-working Australians purchase an investment property.

We help you find the property in the right area so you can achieve passive income and capital growth.

We make property investing easy and simple by helping you invest in property and live the life you deserve in retirement. Apply for a free consultation today.

3. Take control of your own property investments

The great thing about investing in property is that you’re completely in control of what you purchase whether that’s old or new, and you can take steps to ensure that you give yourself the best chance of achieving excellent capital growth or rental return (cash flow) figures.

take control of your investment property

Property investing is also great because you can touch, smell, see and renovate your investment, try renovating your share portfolio, well I suppose you could print out your shares on embroidered paper!

When investing in property you have the choice of the tenant you choose, how your property looks and which bank you get a loan through.

You have control of your assets which makes property investing very exciting. But for those who don’t want to be too hands-on, you can find help via a property manager, builder, accountant, lawyer and or mortgage broker.

If you would like our help contact us for a free chat.

4. Grow your portfolio as your equity increases

Once you start investing in property, it’s sometimes difficult to stop.

You start to get the bug and realise that it’s not actually that hard once you get the support and professionals around you to help.

One investment starts to grow which allows you to purchase another, and before you know it you have a nice little collection of properties making money for you.

grow your property portfolio


This is one of the major reasons you are able to purchase more than one rental property by using equity.

Equity enables you to borrow a percentage of the properties value (equity) to use as a deposit to purchase another rental property.

How cool is that!

You don’t have to save another deposit you just use growth from one property and put it into the next, the more properties you have the easier it is to purchase more.

But newbie property investors beware, invest too fast and it can all come undone if the market drops or your cash flow dries up, always be smart and invest wisely.

5. Capital Growth

If you choose wisely, you should be able to achieve strong capital growth on your investment properties.

The key is to choose the right type of property in the right area, don’t just expect to buy a property anywhere and achieve capital growth.

This might not be an area where you would choose to live – it just needs to be an area with lots of potential for growth.

moscow city with capital growth

When you’re looking to purchase an investment property don’t buy on your emotions, the numbers need to stack up, just because it’s a cheap house in the middle of nowhere doesn’t mean it’s a good investment.

To achieve capital growth you need to make sure you buy in the right area, it is not a guessing game.

Find an area that has a population of over 100,000 (that’s growing not declining) or most major cities, where jobs are being created, current infrastructure and is growing, public transport, as well as local, state and federal government spending in the area. Avoid towns or cities that rely on one industry, for example mining towns, they boom in mining times but worth nothing when the mine closes.

All of these factors contribute to capital growth.

6. Tax Deductions

We all want to pay less tax, legally of course, so when you invest in property there are a number of tax incentives you are able to take advantage of.

In this article, I’m not going to go through them all as it’s best to seek help from an accountant for your personal situation.

tax to pay investment property

If you have a job (employed by someone) you are paid a wage or salary, you receive that wage but tax is taken from your wage before you are even paid.

However, if you have an investment property, you receive your rental income which could be $500 per week over the year that’s $26,000 in income. You then take off your expenses which include, interest payments, property management fees, maintenance, accounting costs, council rates, insurance to name a few.

This could mean you have expenses of around $20,000, you would then take your income of $26,000 less $20,000 (expenses) to give you a taxable income of $5,000, this amount would then be taxed on your income tax rate.

This is one of the reasons which enables you to invest in property.

Please note tax deductions or negative gearing are not the reasons to invest in property, they are simply reasons to help you invest in property and build wealth over time.


Invest in Property the Right Way

Investing in property is an exciting way to build wealth and have fun doing it.

But don’t underestimate the research and due-diligence needed to purchase the right property in the right area.

If you do the leg work at the beginning it will pay off in retirement.

If you hope to achieve a good rental income from your investment properties, you should purchase carefully, and keep your ideal tenant in mind.

Don’t let fear stop you from investing in property, either way, always seek the help of professionals.

At Key to Australia, we know the market, we know the areas and we have the processes already in place to get you into your first investment property.

Good luck, let us know if you would like our help.

  • February 17, 2020
  • News
American money

Do You Know Where Your Money is Going to Come From When You Retire


No matter what age you are we all dream about what life could look like and if we had lots of money, like winning the lottery, right!

But realistically we aren’t all going to win the lottery, here are the odds for winning the lottery in Australia and New Zealand. Hint, the odds are not in your favour.

So let’s get realistic for a minute or two.

I invite you to start dreaming about your perfect life.

What does it look like?

Feel like?

What about your perfect day?

  • How does it start?
  • What do you do?
  • How do you spend your evenings?

How much do you earn?

  • What will you do with the money?
  • How does it help you and your family?
  • What fun will you have with it?
  • How will you ensure it never runs out?
  • How can you make your money work for you?

You see the first thing I would love you to dream about is your perfect life, in other words…


What is Your Vision For Your Future?


For yourself, your family, your career or business?

Without a plan, a vision, a dream of what you would like to have in your day, your life… there is no destination.

Now I know the popular “bumper sticker” that says something like “Life is about the journey – not the destination”.

But honestly, without a destination, how will you know if where you’re heading is to your best life?

It’s like giving you the keys to a car and not knowing where to go. Eventually, you either run out of fuel and/or motivation to keep going.

So, start thinking today about your best life.

Go back to before your earlier days… what did you dream of?

So often we get caught up in our days just spinning our wheels, so deeply involved that we forget why we started in the first place.

I invite you to go back to the beginning… to dream… write down what you want, what you will do to get what you want, how much you would like to earn, to save, to invest.

Come up with some tangible numbers that have a meaning for you.

Essentially… come up with the ‘WHY’.

Why do you do what you do? Why does it bring you joy?



Then Come up With The What


The ‘WHAT’ is your income metrics, the hours you work, what you will do in your day that ensures your best future life, what you will stop doing – those habits that bog you down and stop your best life from gaining traction.

Then there is one more step you need to consider – and that is the HOW?

The ‘HOW’ cannot consist of working until you retire, then you retire and what? Live on the pension? That destination is not your best life!

The ‘HOW’ consists of a wonderful thing called PASSIVE INCOME!

It’s all well and good to be focussed on ‘the now’.

However, without at least part of your vision focussing on the future, your present will soon become your past and your dreams will remain just that – dreams!

Passive Income


With Passive Income, your dreams become your reality, your best life is now easier to reach, and your destination has blue skies, open highways, and without a care in the world.

You’ve probably heard of Robert Kiyosaki, and his well-known book “Rich Dad, Poor Dad”. He also penned other well-informed, intuitive and practical guides to securing your financial freedom through the use of Passive Income Strategies.

His book, “The Cashflow Quadrant” explains this further. In this particular book, he draws our attention to this concept, where a table is divided into four areas.

E and S quadrants are on the left-hand side and B and I quadrants on the right-hand side.


Cash flow quadrant money

The above diagram illustrates this concept of Robert Kiyosaki – Cash Flow Quadrant

The goal is to progress through the quadrants and become more on the right-hand side of the table where you use leverage.

So, what do the quadrants represent?

  • Employee – when you are employed by someone
  • Self-employed – when you work for yourself
  • Business Owner – when you work for yourself and have employees. Businesses that sell products and services
  • Investor – you have real estate interests, shares and/or stocks and bonds

Active Income is defined as trading your time for money.

So, to make money you must perform a task or many. Every day you start from Zero.

Passive income is defined as not having to be present to generate income. Think real estate, stocks, bonds and other sources of passive income. You are literally making money while you sleep – 24/7.

Back to the Quadrants


Most people only live in this area.

You work for a company and trade your time for their money. If you want to earn more money, you need to trade more time.

Another option is to work for another company that pays you more for your time.

There is no passive income in this quadrant. If you don’t work, you don’t make any money.


This is one step better than an employee, but you are still trading your time for money.

You may own your own business, but really, the business owns you.

The upside is you have more personal and financial freedom than an employee.

Business Owner

A business indicates you have systems in place. You have others working for you as employees.

You’re not selling your time for money, but rather selling a product or service.

Put simply, you may not have to be working in the business to generate income.


This is where you really have a passive income.

Investments like real estate, shares, stocks and bonds generate an annual cashflow.

These are investments that will allow you to retire.

So, to know where you’re going, you need a strategy, a plan to move you through from the left-hand side quadrants over to the right-hand side.

Your goal needs to be to get to the investor quadrant as much as possible, as soon as possible.


We specialise in Passive Income strategies.

Your vision of your future just got brighter. And all it takes is reaching out to one of our team, to start your own road to success!

Enjoy one of our free property investing consultations to help you get on track or to continue to grow your wealth and passive income.

  • February 3, 2020
  • News