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Contingency-fund

When times are GOOD, it’s hard to imagine having to deal with an out-of-nowhere medical emergency or a job layoff. But things happen, and it pays to be prepared for that wedding in the family or even your friend's house warming party.

“When I was younger, I used to think that if I didn’t have a specific goal to save for, I didn’t have to save [at all]. Now, in my line of work helping people prepare for retirement, part of the challenge I see is that most people have debt but they have little or no savings in the bank. Most people don’t /can't save enough—they might use a credit card for a flat tire. They don’t save for the loss of a job or a disability.” Having that rainy day fund can keep you from racking up debt.

The threat of debt is a great tool to start INVESTING.

How CAN YOU  Do It: If you’ve never funneled savings into a dedicated emergency fund, you’ll want to start by stashing away at least one month’s take-home pay before accelerating any other financial goals. Once you’ve reached that benchmark, continue to save up to THREE, SIX, NINE AND THEN IDEALLY ONE YEARS WORTH OF PAY depending on your situation.

education-costEducation costs particularly in the case of elite private schools, can consume a very large proportion of household disposable income.

High school fees at private schools will set families back upwards of $30,000 a year, and that is before the costs of school uniforms, equipment, building fund levies and extra curricular activities are taken into account.

There are a number of ways to save for education costs, and different options will suit different investors including Mortgage Offset accounts .

To find the right balance between your daily costs, mortgage payments and your children's higher education email us at loans@financeandmortgage.com.au.

Which is the way to go?

see-saw

You have decided its time for a new house. Should you build or purchase an existing home? There are advantages and disadvantages to either option.

Advantages of Building a New Home

1. You will know the quality of the materials and the workmanship since you will be involved in the process of choosing and designing these things and monitoring the building progress.

2. A new house often comes with a warranty. This can provide peace of mind in the first few years.

3. You can design the landscaping exactly how you want it.

Disadvantages of Building New Home

1. Houses in housing developments are often very similar and therefore lack the character and the personalised touched.

2. You will not be able to have a home inspection because the home will not be finished yet.

3. New housing developments often include ongoing construction in the area which can make it difficult to resell and can be disturbing.

Advantages of Buying an Established Home

1. You can often get more house for less dollars than you can when buying a new home.

2. Established neighborhoods often have mature trees.

3. The entire process is much shorter and you can be in your new house that much sooner.

4. You can have a home inspection and you know what you are getting. There are usually no surprises.

Disadvantages of Buying an Established Home

1. Older homes often have problems that require repairs and maintainance.

2. If you want to make renovations you will have to pay for these with cash or other methods of financing.

When you have decide on a new home, it is important to consider your options carefully. Consider the pros and cons of either building your new home or buying an established home and make the choice based on your priorities. What works for your friend might not be right for you.

Contact us at loans@financeandmortgage.com.au to discuss your options and to decide what is best for you.

 

queensland

The post code with the highest number of households in mortgage stress in December 2016 is Harristown – 4350 – in Queensland. It is located about 109 kms from Brisbane. This area covers Toowoomba, Harristown, Glenvale and Rockville etc and a population of close to 60,000. Many of the households here are younger. Incomes are lower than the QLD average. More than 4,500 households there are in difficulty and more than 170 households in the district risk mortgage default.
We need to be diligent while taking on a mortgage and keep into account the chances of interest rates rising.

We are an award winning mortgage team with over a decade of experience. Contact us at loans@financeandmortgage.com.au.

finance and mortgage solutionsOn of the latest 2016 Home Ownership report has found that close to 9 in 10 Australian home owners and intending first home buyers still believe that having a house to call their own is the Australian dream.

The survey revealed home ownership means stability (65%), financial s

ecurity (64%) and a sense of achievement (56%) to Australians.

86% of Aussie home owners agree that owning property is a pathway to wealth but the same percentage also believed not many people break into the property market on a single income without family help.

Do you own a home? What does it mean to you? Contact us at loans@financeandmortgage.com.au.

wa-perth

The WA Government has announced that the First Home Owners Grant (FHOG) has be increased from $10,000 to $15,000 for 12 months starting January 1, 2017.

First home owners buying or building a new home and contracts signed between January 1 2017 and December 31 2017 may be eligible. The $5,000 increase to WA's first home owners grant for buyers purchasing new properties has been met with ambivalence by potential buyers and concern from the property sector and sustainability experts.

"We estimate [the increase] will allow perhaps another 650 people to enter into the first home owners market, obviously good for the industry and good for jobs," WA Premier Colin Barnett said.

If clients enter into a contract to build a home, construction must start within 26 weeks from signing the building contract, and the home must be completed within 18 months after construction commences. If they purchase a new home ‘off-the-plan’, including apartments, construction must be completed by June 30, 2019.

The FHOG limits in other states is as follows:
ACT - FHOG reduced to $7000
NSW - Stays at $10000
NT - Stays at $26000
VIC - Stays at $10000
QLD- Stays at $20000
SA- Stays at $15000
Contact us today at loans@financeandmortgage.com.au to discuss your eligibility.

savings

Start the new year with these saving tips!

If getting started has been a challenge, read on for some pain-free strategies that could help you free up some cash for your new car new home or that big annual holiday —because every bit you can save and invest for your future is money well spent.

*Skip One $20 Purchase a Week
Think about how quickly a twenty can exit your wallet: Your daily cups of coffee, that after-work happy hour every week can all easily add up to $20 or more—and fast. Eliminating these types of small expenses probably won’t require a major change to your lifestyle—but
that $80 a month you’re putting into your savings account could have a big impact.

*Slash a Big Monthly Spending Category by 10%
If you want to go a step further, ferret out a budget category that you feel could use a trim and try to shave just 10% from it. Maybe that means cutting a few work lunches a month from your food budget, or skipping a few movies to trim your entertainment costs.

*Try a Financial ‘Fast’ Once a Quarter
If you’re the type who likes to challenge yourself, consider taking a week once every three months or so to live as frugally as possible; then transfer what you saved over a typical week into your retirement account.

*Make Cash King for a Week
Try not using your plastic for a period of time—even if just a week—and see if you end up spending less than you would if you used credit. If you do, consider making this a weekly ritual. Skeptical? You’ll actually spend less as you watch the cash flow away.

*Redirect Old Debt Payments
If you’ve recently finished paying off a car, a credit card, a student loan or a personal loan, congratulations! That’s a big accomplishment. But before you start doing your happy “I now have more spending money!” dance, think about diverting that old payment amount into your savings account.

“Framing is a concept that captures how we behave differently based on how a situation is presented to us. In this case, a saver is framing their income as lower than it truly is by matching a reduction in expenses with an increase in savings." This strategy only works due to mindlessness. We often associate mindlessness with negative financial behaviors, but in this case, we’re using it to our advantage. If we were truly mindful about every paycheck we receive, this self-deception wouldn’t work.
So in a nutshell, spend mindfully but save mindlessly—it just might help you get a jump start on that nest egg. Contact us at loans@financeandmortgage.com.au to get started with the right advice.

new-year-people-matter

Focus on people and your own wellness this NEW YEAR!!

Make human connections, be good to yourself and fall in love. Relationships and good mental health, not income, have the biggest impact on our happiness.#NewYear #2017

Life satisfaction rises most when people have a partner and enjoy a life free of anxiety. A boost in income, on the other hand, has minimal effect.

If you have kids, be aware that you play a big role in their happiness down the road: The best predictor of an adult’s life satisfaction is their emotional health as a child.

Just plan to enjoy your life, and ensure that finances do not add to any stress, contact us to have a chat. Message me today or email my team at loans@financeandmortgage.com.au. Begin this New Year as you mean to follow through, with the right team by your side.

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