Sydney property lawyer has recently given his five year old son an early 21st birthday present! A Potts Point apartment to the value of $710,000 according to the Sydney Morning Herald on October 29 2013. Is this good forward planning or denying the child the gift of self-sufficiency? - according to Richard Glover in the SMH the day after. The father, lawyer Dion Vertzayas states he has moved to secure his son's future by buying a "bolt-hole" in the inner city... but Richard declares in his article he is denying the boy the right of passage for his adult life. Let us know if you think this is going to help or hinder this young man...
0 Comments
The Treasurer Joe Hockey was forced to defend the Australian housing market during a visit to the US in October, in an attempt to rectify foreign investor perceptions that a property bubble looms... (according to Mortgage Professional Australia pp 6 December 2013) Hockey was asked in an interview with US-based reporter Amanda Drury, if he was worried about a bubble bursting and causing a housing crash like the one the US experienced during the GFC. "Not at all. A lot of commentators, particularly over here, don't understand the Australian housing market," he replied. "Australia is a long way from a housing bubble. Rising house prices in Australia help to make some of the more marginal new housing developments affordable, realistic and deliverable". At Wilson Financial we are often exposed to a market segment that is wealth driven, focused on good debt, and not bad debt. Call it those with ‘financial health’. However, MOST of us have had a nasty credit card bill, typically in our early twenties, which then haunted us for some time until we got rid of it. Do you remember your first run in with debt? Or are you still in the wars? You clearly are not alone... Australian’s have become addicted to the equivalent of ‘financial fast food’ and now we are beginning to experience the associated ‘financial health’ risks. We need to start doing things differently or we risk being owned outright by the executives of large corporations who will stop at nothing to drive shareholder value higher. Australia, like most other first world economies, has a love affair with credit. We have a type of addiction to credit cards and the debt associated with them. A little over ten years ago the average amount owing per account holder was $965. In 2006 this amount had already grown to $1,428. According to RBA data the actual amount had blown out to a whopping $2,808 by as early as 2007. The conclusion we can reach is that Australian’s, on average, owe more than three times as much on their credit cards as they did ten years ago. It’s not just credit cards that are the problem though. The days of old fashioned lay-buys – where you would put a deposit on a purchase and then pay if off before taking possession of the item – have virtually come to an end. Instead, attend any homemaker centre on a weekend and you will see people queuing up to buy goods on 24 months ‘interest free’ terms. People no longer want to wait until they can pay for goods before they take them home. Today’s consumer wants everything now – right now! Whatever happened to the psychology of earning something before you buy it? This is the core of where people are being trapped. It’s psychology and it’s having the character to shift your attitudes, and desires to a perspective of financial freedom, and away from material possession. Finance companies have ‘clicked’ to the opportunity, they operate on the assumption that the majority of people will only pay the bare minimum (which can be as low as nil) along the way and then be unable to afford the ‘lump sum’ owing at the end. This is when the interest at an incredible 27% plus can come into effect. If I had told you as little as ten years ago that the people would be happy to pay $5,000 for a television, how would you have responded? It seems that our buying behaviour has changed dramatically, and with it the way we think about debt. Once upon a time the idea of carrying debt on a credit card was seen as foolish, it’s now normal to maintain a balance of over $1,000. This assumption is backed up by actual figures. The average credit card limit back in May 1996 was $2,951. By 2010 the average limit had reached over $12,000. Instead of debt being seen as temporary – something you get into and out of as quickly as possible – most now see owing money as a natural part of life. Over the past decade or so we have been conned into believing that consumer debt is normal and okay. Rather than think about the stress associated with paying what is owed, consumers happily whip out the plastic and receive the positive association of earning rewards for spending. It’s total consumer madness! The marketing gurus are all ‘high-fiving’ each other while a new generation of slaves is being created – those who are convinced that it’s a great idea to spend thousands of dollars to earn enough loyalty points to redeem a ‘free’ trinket worth a few hundred dollars (at most). Sadly, as they redeem their reward they forget that the balance owing is attracting interest at over 16% per annum, compounded. In 2006 it was reported that the average Australian household had about $155 dollars in debt for every $100 it earned after tax. Today that number has more than doubled but incomes have only grown by less than 25%. This disastrous financial outcome didn’t just happen overnight, it’s a consequence of an extended period of financial abuse. Today the average household will have to work a little over two years just to repay existing debt – and this figure is getting worse each year. What are your personal experiences with debt? Do you know someone who has got themselves into trouble over their extreme spending habits? Let us know your experiences and if you have any questions about debt feel free to contact us to discuss the issues. The top 10 turn on has shifted! 1. A good neighbourhood 2. Garage 3. Modern kitchen 4. Large Bedrooms 5. Air conditioning 6. Storage 7. Modern Kitchen 8. Ensuite 9. Outdoor Entertaining 10. Light and Airy According to the MPA (Mortgage Professionals Australia) and agreed to by at least two of my STAFF who are undertaking the building of a home. We all love a good home after all so think about how yours meets these criteria, particularly if you plan to sell one day. Should buying a property be like building a time capsule? Acquired and then squirrel away the titles away in a deep dark place for long periods of time. If the right buyer comes along, and offered you the ‘right’ price, would you sell? Many experts would advise that selling property is taboo when building wealth or developing a portfolio. However, with agents fees at 2-3% per sale, and stamp duty at over 3% every time you buy, is buying and selling too much eroding your profits? Where is the perfect balance in today’s market, where the words ‘plateau’ and ‘housing bubble’ seem commonplace in public sentiment. Do you hold for 20, 30, 40 years? What are some examples of when selling can be tempting I
Should you make STRESS YOUR FRIEND!
According to the MPA (Mortgage Professional Australia magazine) Stress could be your friend! So - we all know that stress is bad for your health, and can even increase your risk of an early death - but ONLY if you believe it can, new research shows! In a recent study of 30,000 adults, researchers found that people who experienced a high level of stress in the past year were 43% more likely to die in the next eight years. This was only true, however, if the participants held the belief that stress was bad for their health! Participants that had a high level of stress, but didn't view stress as a harmful experience, had a lower risk of death even than those who had experienced relatively little stress in the past year. It's estimated that over the eight years the study took place more than 180,000 people died prematurely in the US - not from stress, but from the belief that stress is bad for you, making this the 15th biggest killer in the US, above skin cancer, HIV and homicide! Public speaker and health psychologist Kelly McGonigal says simply changing the way you think about stress can make you live longer and work better. "For years I've been telling people stress makes you sick, it increases the risk of everything from the common cold to cardiovascular disease. Basically, I've turned stress into the enemy, but I've changed my mind about stress," said McGonigal in a recent TED Talk. "I no longer want to get rid of stress; I want to make you better at stress." In another study conducted by Havard University, participants were put through an experiment designed to increase their stress levels. First, however, some of the participants were taught to view stress as a positive, natural reaction to help them prepare for their next challenge. Those that went through this process didn't experience the constriction of blood vessels that usually occurs during stress and which links stressful experiences to heart disease. "Over a lifetime of stressful experiences, this one biological change could be the difference between a stress-induced heart attack at age 50 and living well into your 90s," said McGonigal. NOT ONLY can the act of embracing stress neutralise its negative effects, it can actually help to counteract any health problems from past stressful experiences! NAB Relief Package for customers affected by NSWBushfires
Over the past few days, many have been affected by the bushfires which have devastated parts of New South Wales. NAB Broker offers its deepest sympathy to the impacted communities. To provide assistance, we are offering a Relief Package to NAB and Homeside customers whose homes were damaged, or whose businesses were affected adversely, by the bushfires. NAB NSW Bushfire Relief Package This relief package can provide qualifying customers with a:
Qualification for the Relief Package will be assessed on a case by case basis. NAB and Homeside customers affected by the bushfires are encouraged to contact NAB Care to find out if the NAB NSW Bushfire Relief Package can assist them during this difficult time. Hardship Also, borrowers may be able to make hardship applications to NAB by contacting NAB Care. Contact NAB Care NAB Care can be contacted on 1800 701 599 from 8am-8pm Mon-Fri, or 9am-1pm on Saturdays (AEST/AEDT). Alternatively, if you have any questions, talk to your NAB Broker BDM today. There is not much I haven't heard or seen in the mortgage world these days, and investment 'schemes' are certainly one of those that keeps popping up every few months in conversations. So, I'll blog about it, and if you come to me with this scheme all the relevant links to the ATO's 'no can do' policy on this will be readily available to you. The result of which I do hope, seeks you to stop talking to whoever it is selling you this scheme. Be it a 'financially literate' (HAHAHA) friend, or one of those investment property or financial planning firms that have glossy compendiums and free 'seminars'. Forget about that, sounds like this is a smelly scheme which will see you end up in trouble with the ATO. So what's the scheme I'm referrring to? Specifically it's the one where you get an investment loan, then you borrow, with equity in your home a line of credit, which will fund the investment home interest payments. Thus interest is essentially borrowed, and you can claim the interest on that too. As such, you can literally BORROW YOUR WAY TO WEALTH. Please note extremely dry sarcasm is intended here, the best wealth creation strategy I have seen is one where you pay debts off. Not that I can offer you any financial advice, it's just, would you tell your own children to follow this strategy? Anyway, it's the ATO, they have this thing called "Anti-Avoidance" when it comes to avoiding taxes, and they don't want to allow you to claim a tax benefit on the line of credit paying the interest. I.e. That nice little thing we call negative gearing? That's fine, but you're pushing your luck if you try to ALSO claim the interest on the loan paying the interest because BAM you have just been caught up in a scheme. Claiming interest on interest? That appears to be an anti-avoidance scheme! You can read all about Tax Determination TD2012/1 and Part IVA of the Income Tax Assessment Act 1936 here This resource cites many legislative and case references, Why would anybody try to sell these schemes to me? Because they are either going to profit from the property they sell you, the financial services fees they charge you, the mortgage commissions they earn from you, or all of the above. My advice - report them to ASIC. I cannot offer accountancy or financial advice, so this article is not intended to do so, please seek your own accountants, financial planning or legal advice in relation to investments. Me? I'll structure the mortgages correctly and negotiate you a damned competitive rate. The NSW Fires burning up our country and Australian homes are nothing short of distressing. My family witnessed the first great plumes of smoke in Bargo all the way from the east coast and heard the first ominous news that homes were lost in the Blue Mountains. I was a branch manager back in Canberra when those fires hit and know all too well how quickly things can get out of hand. So people, insure your homes now and ensure you're covered. While you're there, considering insuring your lives or income too so that you're not just protecting your home, contents, but your capacity to earn money if something happens to you. For those of you in FNQ the cyclone season will be hitting soon too. It is too late to insure when your home is under threat. For those of you seeking more information on fire safety, whether it be leaving early, or defending/protecting your home, visit this resourceful webpage from the RFS http://www.rfs.nsw.gov.au/dsp_content.cfm?cat_id=1150 When natural disasters hit, clients can generally take advantage of bank emergency packages to help them alleviate the short term pressures that may be upon them financially or personally. Please visit or phone your bank or lender for more information. Do not hesitate to contact us for contact details or assistance. I have pasted in below the Commonwealth Banks emergency package to give you an indication of what is available. In some positive news, read here about the Commonwealth Banks $100,000 donation to help rebuild affected communities CommBank acitivates emergency package to help customers affected by the NSW bushfires The Bank has activated its special emergency assistance package for customers and businesses affected by the bushfires and we will accept donations at our branches for the Commonwealth Bank Red Cross Emergency Appeal. How can they help you? Emergency accommodation assistance for customers who have their home insured through CommInsure and their home has been damaged by the fire CommInsure will fast-track claims for customers seeking help through their home and contents insurance. Our priority is helping customers affected by bushfires and we are expecting high call volumes because of this crisis. Requests for additional loans (including emergency credit limit increases) where based on enquiries, the customer could meet the additional repayments without financial difficulty will be considered. The Customer Assist team are best placed to help your customers whose long-term ability to meet their obligations to the Commonwealth Bank in relation to Home Loans, Personal Loans and Credit Cards are affected by the bushfires. Please call 1300 720 814 Donations In times of crisis, Australians are renowned for their spirit, generosity and support. The Bank is accepting donations to support those affected by the NSW bushfires. Donations can be made to the following account: Account name: Commonwealth Bank Red Cross Emergency Account BSB: 06 3000 Account number: 12344737 Branch: 367 Collins Street Melbourne Vic 3000 Credit card donations can be made online at www.redcross.org.au What a heart warming story this is - go to this amazing link of Alice's story small business all made as a result of small loans through KIVA. This makes us all at Wilson Financial feel very humble and proud to have made a difference to lives with small loans. We would definitely reinvest and highly recommend it to you! Yes, it's finally here, the 100% transactional offset feature for your home loan - Everyday Offset.
I'm really excited about this new product offering, least of all because I personally have a home loan with the CBA, but because of the unrestricted nature of the amount of accounts you can link to the Everday Offset feature! More on that below though, first some fast facts... What is it? The Everyday Offset is a feature of the Complete Access account, and offers 100% interest offset on your Standard Variable Rate home or investment loans only. It cannot be linked to a No Fee, Rate Saver, or Fixed Rate home loan. The balance held in the Everyday Offset will reduce the amount of interest customers pay on the loan. Unlike your good old MISA (CLUNK CLUNK!) you will be able to use ATM/EFTPOS, NetBank, Kaching, Telephone Banking, BPAY, Direct Entry Debits and AFT's with your Everyday Offset. You can also link to Debit MasterCard, Keycard or Credit Card. The cost EDO has a once off Fee of $95 applies when linking the first Everyday Offset to an eligible Home Loan. Please note, if you are existing or new clients, with NEW borrowings of $150,000 or more you can currently have this fee waived. This offer is valid until further notice. Monthly offset fee - There are no ongling monthly fees if you are MAV Package customer (anybody NOT on No Fee or Ratesaver reading this is probably a MAV client! If you're not, speak to me you may be missing out). So for those not on MAV you will be charged $10 per month on the 1st of each month for the MOF - Monthly Offset Fee. This fee only applies on the first Everyday Offset linked to your loan. Why I'm excited You can link more then one Complete Access account to the Everyday Offset feature. I think this is a fantastic budgeting tool. If you are partitioning funds into separate savings accounts for say, holidays, kids education funds, or just savings/rainy day funds, you can link all of these to the EDO and have it all working against your home loan feature. This is excellent. Many couples have private accounts still, and a joint account, why not link all three! It's no extra in fees. So get cracking people, get your EDO activated now and offset some interest!! If you want the video version just click here http://vimeo.com/75937752 One of the wonderful things about living in the Southern Highlands is that friends from Sydney and Canberra often get together and take a road trip down the freeway to visit for the weekend (rather than us having to head out of the area). They often rent out a spacious residence for an extended weekend that fits numerous boisterous families where we can all get together for a feast and general catch up. The Issue is - Should I www.stayz.com.au or Should I go, Now!! Many people use booking websites such as www.stayz.com.auor other such sites for short term rentals. However, the owners of such houses and investors in these properties must now ensure that they check the relevant zoning restrictions to ensure they are not breaking the law by offering the property for short stays. A recent decision in the Land and Environment Court found that short term letting in a residential zone was illegal. Of particular note, the Judge found that “a tenancy granted to persons who are residing in a group situation for periods of a week or less for the purpose of bucks and hens nights, parties or for the use of escorts or strippers…is not consistent with the use of the property as that of a dwelling-house”. Bulletin Bites: Whilst each case must be reviewed in light of the specific facts and the relevant planning legislation and planning instruments *If you are an investor looking to purchase a property for short term rental accommodation, it is imperative that you obtain planning advice to ensure that the zoning allows for such use; *If you are an agent marketing a property, ensure that you have obtained confirmation from the vendor’s solicitor if you intend to make representations in relation to the ability of purchasers to use the property for short term rental accommodation; *Check the local environmental plans very carefully if you intend to rent your home for short term rental accommodation; and DO Seek professional legal advice if the enjoyment of your property is impinged by potentially illegal short term rentals in neighbouring properties. John Kettle from STACKS / THE LAW FIRM can be contact at Springetts Arcade - 302 Bong Bong Street, Bowral or by phone 2 4861 6600 or fax 02 4861 4919 You can probably guess from the heading that I loved the classic Emilio Estivez movie “Young Guns” which had a great scene relating to the size of “that chicken”. Anyway, about a year or so ago, I picked up 4 one day old chickens for my young children to watch grow and provide us with eggs. The two hens that my daughter named Steve just so happen to be the best egg producers (thankfully not roosters) but also the noisiest. Whilst my neighbours are extremely understanding and are easily placated with a dozen fresh eggs, given the popularity of backyard poultry I thought I would take a look at the relevant requirements for keeping chickens. So.... If you live in the Wingecarribee Shire Council (and other Councils) each council publishes guidelines for the keeping of poultry! Firstly, the Hen House must meet the requirements of the Exempt and Complying Development Codes otherwise you will need to seek approval from Council For those who are interested, see specifically Subdivision 2.41 of the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 Secondly, consider the number of hens that you would like to keep.... Generally, the maximum number that you can keep in a residential zone without consent is 10.. Thirdly, in a residential zone, the Hen House should not be more than 3m above the existing ground level, must not have a floor area more than 15m2 and must be located in the rear yard. And VERY IMPORTANTLY..... Don't have a rooster in a residential area (should this be needed to state! They are frequent source of neighbourly disputes for obvious reasons! DO MAKE SURE the Hen House is located away from the property boundary and ensure your certificate of titles states that there is NO COVENANT in the prohibiting of keeping of poultry! A dozen fresh eggs go a long way towards friendly neighbouhood relations (as well as a good supply of "Chook-Sitters" if you have to go away for any period of time! Article supplied by our friend John Kettle - Principal Lawyer at Stacks / THE LAW FIRM Tel 02 4861 6600 Recent upgrades to the Commonwealth Bank’s “My Wealth” platform have made an already powerful personal finance manager even more versatile. My Wealth enables you to build a diverse portfolio of investments including cash, property, shares and super in one place, with all the resources, guidance and up to date news you will need to succeed. My Wealth was originally launched in February 2013 and provides every necessary resource to create and manage your wealth. Developed following nine months of customer centred design research the platform has been designed to assist navigating the world of investment. Here are just some of the advantages and features of this free service available to CBA customers: Portfolio – Single log-in point to access and manage your wealth in one location. Invest – A wide range of investment opportunities including cash, superannuation, shares and property. News – The app keeps you totally informed with news insights and guidance. Communities – Where you can share ideas with like-minded investors. Watchlist – Allows you to create a dummy portfolio to keep an eye on the performance of companies, suburbs or properties without having to invest a cent. My Wealth Guide – An informative guide acts as a resource to help you navigate the world of investments. Health Check – A compilation of tools to help you check the health of your portfolio in real time. Through the platform you can choose to invest in over 200 ASX listed companies, exchange traded-funds or invest in ready-made investment packs. You can also select from a range of cash investment options including goal saver and term deposits. If your investment preference is property you can access powerful suburb and property profiles, seek out properties that meet your specific goals or research information from the expert insights and news provided. With the Essential Super option you can choose from straightforward life-stage portfolios or invest in a mix of cash and Australian shares. The My Wealth platform provides Australians with a simple, informed process for creating and managing their own financial future. Featuring an easy-to-use investment platform, property valuations and search functionality, stock market watch lists, hosted social communities, alongside financial news and educational features from a dedicated team of in-house journalists. Learn more at the My Wealth Website. Here at Wilson Financial we have already told you about our FREE property profile reports available from the ANZ by following the instructions here. However Australia’s number one property website, realestate.com.au is now offering free suburb reports and assisting you to connect with local property professionals for a price estimate. This might come in handy where the ANZ reports cannot find statistically reliable evidence to support a profile. I am still to determine whether they are even using the same system, but it is always good to know about more resources so we wanted to put it out there regardless. If you are thinking of selling your home or interested in current values, the reports can help you understand approximate value of your property. It’s as simple as providing a few essential details such as the type of property, size of your property, the number of bedrooms and bathrooms, property condition and basic property features. You will instantly receive a free report containing the sold prices of properties similar to yours, plus local median property prices and a snapshot of the area’s property supply and demand. The service will also put you in touch with a real estate agent who can provide a more detailed price estimate of your property’s value. If a property professional isn’t available in your area, they will provide a list of local agencies that can provide assistance. Your free report will also provide a link to the sites “Selling Guide” that can assist with information such as where to advertise and how to make a good impression with tips for effectively presenting your home. Additional resources include explanations of the selling process, when is the right time to sell and how much you should spend on selling your property. Understanding the current value of your property can be useful if you are considering investing, renovating your current home or expanding your property profile. Knowledge of the available equity in your property will likely assist you to make better borrowing and investment decisions. Contact us today for further information or assistance with your financial requirements. You can obtain your free property report here. The Australian Bureau of Statistics has released the latest version (v1.2) of it’s informative “ABS Stats” Mobile App, now available from the App Store for iPhone, iPad and iPod Touch devices. This versatile data App was recently a finalist in the “2013 Excellence in Government Awards” for Service & Delivery. The App is extremely useful for assessing demographics in relation to property buying for owner-occupiers and investors alike. It essentially provides a snap shot of an area and compares it to other areas you may be more familiar with, allowing the user to assess how the demographics compare and how that changes the infrastructure and services available. The ABS Mobile App offers four categories of data & information: Key Indicators: With access to 33 key economic indicators including CPI, GDP and unemployment updated constantly as new data becomes available, this category will assist with making better purchasing decisions. Census Data: Providing the most up-to-date data about people, families and dwellings in postal zones and Commonwealth electoral divisions helping to detail specific information about any area you may be considering purchasing in. Population: This option allows you to view population growth in a specific area with real time updates and calculates projections in forward time. The ABS Stats mobile app is available for download from the iTunes store for free. Many experts are predicting the conclusion of our upcoming federal election will see a rekindling of consumer confidence and potentially kick-start our sluggish economy. Read this interesting housing data from the RP data research blog The future of the Australian housing market in particular is looking up with signs of a recovery in the residential sector already underway, Especially in Sydney. Opinions are positive, most notably in respect to the east coast residential market with Brisbane, the Sunshine and Gold coasts, Sydney and Melbourne all predicted to experience residential upturns. Several factors have been identified that support this growing opinion. An undersupply of new housing stock has been referenced, especially in Queensland and NSW. Each of these states shares respectively 21% and 25% of the overall Australian market. Declining interest rates have played a marked role in the perceived recovery. Once the election period is over, investors are tipped to seek opportunities alternate to money in the bank and the associated declining interest returns. As housing prices recover and continue to increase more Australians are expected to be attracted to the tax advantages of property ownership. Figures indicate that the current price of Australian property is some 20% cheaper than it was as little as six months ago. A recent influx of overseas buyers has also been associated with signs of a recovery. A recent NAB survey showed that foreign buyers of new Australian properties have doubled in the past two years. Population growth supports the notion of recovery as demand increases. Last year alone around 400,000 people were added to the Australian population. Our rate of population growth has increased 25% in the past two years. A number of other key factors support the belief of a residential market recovery including; lower volumes of stock listed for sale; less private treaty discounting; reduced listing times for property on the market and increased sales volumes. Consumer confidence above all else has been essential, and an ingredient for recovery that has been missing for some time. Several successive rate cuts, along with easing of loan restrictions and improved affordability have raised consumer confidence and directed sentiment towards purchasing residential property. According to the Australian Broker Issue 10.07... An Australian man is currently awaiting trial in the US for a rather bizarre bank robbery. The 39-year-old Melbourne native stole US$140,000 from a bank in Jackson Hole, Wyoming, after presenting the teller with a note that threatened to blow the building up with "four military-grade explosives". When the man was apprehended, he had already given $124,000 of the haul to homeless people and charities across the American West. Perhaps appropriately, the man is a former self-help author! Cristian is 19 years of age, is unmarried and does not have children. He lives with his aunt and uncle in the city of Guaranda in the province of Bolívar. He is a member of the solidarity group "Los Pinos" which is comprised of 14 members from the same community. They work in agriculture planting all types of grains. He sells grains and raises cattle and pigs. He is requesting a loan to buy fertilizers, herbicides, urea, and seeds. With the help of the loan he will be able to buy the agricultural supplies he needs. He does his buying and selling in the city of Guaranda. He also sells outside of the province of Bolívar. His dream is to improve the business, to improve himself and to have a stable life. The challenges that he faces include the economy and competition. In his free time he likes to enjoy carnival celebrations. Wilson Financial has assisted Cristian with microfinance and you can too, follow his funding here... Many documents require a person to witness the signature of one or more parties. In most cases, there are no special qualifications required to act as a witness other than to be 18 years of age or olderm or a party to the loan. Queensland and the Northern Territory: Brokers cannot witness. The witness must be one of a special class of authorised witnesses. New South Wales: The witness must have known the mortgagor for 12 months or have taken reasonable steps to identify the mortgagor. Usually mortgagees will send out a witness certificate of identification. South Australia....... The witness must know the mortgagor personally or have satisfied himself/herself as to the identity of the mortgagor. Taken from Mortgage & Finance Brief April/May 2013 Salary Sacrifice can be a tax effective way to save for retirement. If you earn over $35,000 your marginal tax rate is higher than 15%, therefore you can benefit from salary sacrificing your salary into superannuation. All Australians under age 50 can contribute up to $25,000 and receive a full tax deduction to their business if self employed. If you are 55 and still working there are some positive tax advantages that may be available to you today. Recent changes to superannuation legislation allow you to boost your retirement savings or increase your income right now. You are eligible to receive a “Transition to Retirement” pension, up to 10% of you Super balance. This income receives a tax credit of 15% and will be taxed at your marginal tax rate, minimising your current tax liability. This will free up income to really bump up your salary sacrificing strategy. If you are an Australian, over 60 and still working your “Transition to Retirement” pension is tax-free. Well technically, it is taxed at 15%, however you still get the tax credit of 15%, making your “Transition to Retirement” pension totally tax free after the age of 60, and you can keep working and contributing to super, right up to age 75, if you choose to stay at work. Now is the perfect time to review your superannuation and put some thought into developing and implementing a retirement plan. The first step is to review your current position. Check your statements to ensure your employer is making all required contributions and that they are being deposited into the correct fund. It’s never too early to plan for your future. Please confirm all of your plans with your accountant, our articles are no substitute for property financial advice and should not be relied upon as tax laws can change rapidly. Pay Down Debt
Your tax refund is a great opportunity to get ahead. Allocate what you can now to pay down your debt, and you’ll save each month with lower payments. The average credit card charges are greater than15% interest. Investing $500 now to pay down your debt can save you over $1,000 over 5 years. Saving Towards A Goal Use your refund to catch up or get ahead on your savings plan. If you don’t have a long-term savings goal, start one today! Don’t be surprised the next time a large bill arrives, set some goals to save and cover these large but predictable expenses. Take Your Business To The Next Level Have you been looking for seed money to take your business to the next level? Do you have a venture that you want to start? You can use your refund to get you moving in the right direction. It’s a great opportunity to turn your refund into income for years to come, and get a few more small business tax deductions next year too. Refinance Your Mortgage Mortgage rates are at the lowest levels they have ever been. Refinancing your mortgage will involve some costs. Use your refund to cover these additional fees and you could save thousands of dollars each year on mortgage interest. Make Home Improvements If you’re satisfied with your current mortgage, take a look around your home. Do you need a new roof? Is your kitchen outdated? Could new energy-efficient appliances save you money on utility bills? Home improvement projects can immediately increase the value of your property and make your home more comfortable at the same time. Didn't get a tax refund? Put some monthly savings measures in place for this financial year so that you're not stung at the end of the year! The MFAA is the peak nationl body providing service and representation to 9,500 professionl credit advisers. This year, the MFAA terminated the memberships of 1,100 broker members this year according to the Australian Broker Issue 10.07 All loan writing members must have successfully completed the Diploma in Financial Services or equivalent to continue their memberships with MFAA. MFAA continues to raise the bar for industry standards for mortgage brokers, which is why using an MFAA accredited mortgage broker is so important. Wilson Financial are accredited members of the MFAA and have been for over a decade now. Member number 8848. The MFAA said all members were reminded of the requirements 'many times' over the last 12 months, following the national board's decision to actively demonstrate that members have high standards of professionalism and qualifications with consumers and regulators.MFAA CEO, Phil Naylor, said the organisation is both pleased and 'not surprised' that more than 88% of its members are now qualified, with expectations that many of those whose membership has been terminated will seek to have it reinstated within the next two months by providing evidence of the required education qualifications. The lesson here is to ensure you are using a MFAA accredited broker. Wilson Financial recognizes the other governing body the FBAA as an alternative to MFAA. I thought this was interesting. The days on the market indicator is a very good one for real estate. A low number close to one month is very good. Under 90 is not bad. I'm surprised these figures aren't triple digits. Turns out the state of affairs is not too bad. Queensland always seems to be suffering the most unfortunately. - Liz Wilson, Mortgage Broker Beach Bums in arrears Borrowers living in coastal regions are more likely to default on their home loans, according to Fitch Ratings. The company’s report showed the Sunshine Coast and Gold Coast are among the areas with the highest number of home loans more than 90 days in arrears. Fitch said coastal regions that rely on tourism are less affected by monetary policy and more by the high Australian dollar. Thankfully, the number of people failing to meet their repayments dropped by 1.2% nationally. (taken from Fitch Ratings) |
AuthorLiz Wilson has been working in finance for nineteen years now. She regularly blogs on industry topics and here you will find over a hundred personally written blog topics and case studies... Archives
June 2023
Categories
All
|