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Customise your home

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Off the plan or volume builders are not only cheaper but can also save headaches when it comes to managing a new build, including securing land and building permits and overseeing construction.

Here are 5 ways to customize your own standard off the plan homes. If there are cosmetic or structural changes – they must be made before the plans are drawn up and sent to council for approval.

  1. Light fixtures

Most standard floor plans by volume builders will provide downlights throughout, but adding your own light fixtures is one of the simplest ways to personalise the home. This can include pendant lights over the kitchen bench, ball lights in the bathroom or even chandeliers in the dining room.

  1. Kitchen

Home owners prefer to add a stone-top island kitchen bench to maximize the space available.

Walk-in-pantries are extremely popular and you can have a clean and minimalist kitchen by storing your things in the pantry. Including a walk-in-pantry could cost around $2000 depending on the builder you use.

Glass splashbacks (the wall behind the gas) are popular right now and can add an element of luxury into an otherwise basic kitchen. You can also opt for a colourful tile mosaic.

  1. Altered floor plan & extra living space by enclosing open areas

Extra space in a living room or bedroom can make a world of difference. Look through the plans and make sure it fits your lifestyle. Having master bedrooms at different ends of your home is great for your privacy but not practical if you have young kids.

Sliding doors can be a great option because you can leave them open to get the open-plan feel most of the time and then only close them when you really need.

  1. Higher ceilings

The standard ceilings in most fixed price new homes will be around 2.44 metres but you can opt to have those extended to give the illusion of more space.

  1. Custom facade

To distinguish your home from a neighbourhood of similar buildings, you need an expressive entryway. The entry to your home should reflect your personality. Many volume builders will do a front render, bagging, stained timber or painted timber on the facade.

These are just a few of the multitutde of options available. You can make the best of both worlds by customising a standard plan to fit your need!! Read more such tips at our website.

What is in a name? Big banks... Big rates...

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Despite a surge in smaller lenders offering mortgage rates under 4.00%, many borrowers are wasting $17 million a day by sticking with big bank lenders instead of switching to a cheaper home loan. #mortgage #homeloan #interestrates

“The most expensive mistake the average borrower could make is sticking with the same loan over a 25 to 30 year period." Check out the latest rates at

“You’re paying a lazy tax and missing out on thousands of dollars in switching savings.”

“Refinancing to a new home loan only takes a few hours and the savings that can be made are significant - it could be the easiest couple of thousand dollars you make this year.” Talk to us today to get the best rate for you-http://www.financeandmortgage.com.au/contact-us/

Rethinking the 4 Percent Rule

A happy senior couple sitting on the front of a sail boat on a calm blue sea

A happy senior couple enjoying their retirement

The biggest fear for people facing retirement, is the possibility of outliving their savings and having to depend on their children.

According to the  “4 percent rule” a person must withdraw no more than 4 percent from their retirement savings each year, and they’ll have enough money to last the rest of your life. This idea was calculated back in the 1990s and was based on a model portfolio that contained a certain mix of stocks and bonds—60 percent large-cap stocks and 40 percent intermediate-term government bonds.

But times have changed. With historically low bond yields and a volatile stock market, the “4 percent rule” may no longer be as safe.

To make sure retirees don’t outlive their savings get a handle on their cash flow managing income and expenses in retirement is more important than relying on any rule. The bottom line—knowing what you’ll be spending is the best way to determine what you’ll be able to withdraw.

Considering inflation and taxes, an investor who wants to be able to draw 4 percent has to be able to make at least a 7 percent return on average to be able to get that 4 percent in their pocket. That can be challenging at times.

The most important factor in being able to follow the “4 percent rule”—and not outlive your nest egg—is to try to save more. Increasing your retirement contributions to reach the maximum annual limit for Super Contribution but that may still not be enough, but there is no limit on investments, you may have to add more money to taxable accounts earmarked for retirement as well.

In the end, how much money you put in will ultimately determine how much you can take out. The soon you start saving the more time it has to grow. So, save more and save early. Make sure you add a buffer for a vacation, a wedding or a medical emergency.

Call Madhu on +61425341086 to talk about where you are and how to get where you want to be.

You don’t need millions to achieve financial freedom.

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I have met people claiming to be millionaires, who in reality are up to their eyeballs in debt with their property portfolios not protected. They could be asset rich, but cash flow poor. Whereas other people I have met who earn $50,000 a year, are without debt and have a decent amount of assets and are financially free.
The way to achieve financial freedom is about your relationship to money and the level of personal responsibility and fiscal discipline you’re prepared to exercise throughout life.
Here is the path to financial freedom:
1. Spend less than you earn and invest the rest
Follow this one golden rule- If you seek to invest at least 10 percent of your earnings, the rest will take care if itself.
2. Your opportunities won’t last forever so use them wisely
Do your research, analyse an opportunity and make a decision. Do not over think or wait for someone else's opinion.
3. Start saving and investing early in life
A good example is to start early. I know a young couple who were determined to purchase their first property by the age of 21 and were working three jobs to save the deposit. Nine years and five properties they are way ahead of the game.
4. Sometimes opportunities come when you are not ready but you need to grab them as they help create openings to shape your future.
Make hay while the sun shines. Even if you have to forgo a coffee or a pair of stilettos having a home is worth it. Just remember to save today and enjoy tomorrow.
Contact us to begin your journey towards financial freedom.

Understanding the intricacies of the property market now.

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Property valuation.

"A valuer assesses the value of land, buildings, improvements and other factors that influence the current or past value of your property, a process that usually involves an external and internal inspection of the property. Valuers are independent with no vested interest in the properties they value."

There are  risk ratings that a valuer must assess and classify from low to high risk (rating 1-5).

The risk ratings are based on the following 8 factors:

  1. location
  2. land
  3. environmental issues
  4. improvements
  5. expected reduced value in the next 2-3 years
  6. market for the area
  7. market segment conditions
  8. volatility of the property

 What goes into a valuation report

The valuer will visit the property, measure it and note details on the building structure and its condition.

The following features are noted

  1. any structural faults, rooms and layout
  2. room presentation and fitouts, fixtures and fittings
  3. additional improvements to stucture like a deck
  4. property’s vehicle access, garages, carports or out buildings

The purpose of a valuation report

A valuation report is a professional and legal assessment of the value of your property prepared for many different purposes:

  1. Mortgage/refinancing
  2. Before-You-Sell: price/reserve setting
  3. Before-You-Buy: to ensure you buy good value
  4. Insurance replacement cost
  5. Divorce or business dissolution
  6. Capital gains tax calculations
  7. Stamp duty calculations when transferring property ownership
  8. Estate/probate proceedings
  9. Rental determination
  10. Portfolio reviews

Read more such articles on our blog. Check out the latest updated on Facebook.

More and more women are taking over the household finances

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40% of the population is women. One survey shows that women at the top of the earnings ladder are not only making strides in the workplace, but they’re also taking charge of their households’ finances at higher rates. This is true for millennial women more than any other demo.

The national (American) survey of 640 adults found that among high-net- worth individuals—defined as those with at least $3 million in investable assets—30% of Gen Y women are breadwinners in their households, and another 21% contribute the same amount of income to the household as their partners. Compare that to the 11% of Gen X women and 15% of Baby Boomer women who earned more than their husbands.

The likely result is that young women will have a greater influence over their family’s money decisions than ever before. Among today’s high-earning female millennials, 31% are the primary decision-makers when it comes to their household’s wealth and investment planning. That’s considerably more than the 11% of Gen Xers and 9% of Boomer women who can say the same.

Of course, these role changes don’t just affect women. As moms continue to earn more, about one in four millennial fathers are more likely to be the primary caretakers of their children—a striking difference from the 7% of Gen X and 3% of Boomer dads who’ve undertaken the same responsibility. Good on you dads!

I say this is a definite step forward for all women and for their families too. What is your opinion on this? Let us know at on Facebook. You can also read more such articles on our blog.

Be your own Buffett!

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Known as the "Oracle of Omaha," Warren Edward Buffett is the investment guru and one of the richest and most respected businessmen in the world. He has spearheaded a conglomerate with holdings in the media, insurance, energy and food and beverage industries and is a noted philanthropist.

Here are a few tips to follow in his footsteps:

Buffett has noted continually, it’s terribly dangerous to attempt to time the market:

“With a wonderful business, you can figure out what will happen; you can’t figure out when it will happen. You don’t want to focus on when, you want to focus on what. If you’re right about what, you don’t have to worry about when.”

Forget about when to buy shares, focus on what shares to buy. And when you find the right company, buy it immediately. The right time to buy a great company is always today.

Investing is not like placing a bet on number 32 on the roulette wheel. Instead it’s buying a tangible piece of a business.

It is absolutely important to understand the relative price you are paying for that business, but what isn’t important is attempting to understand whether you’re buying in at the “right time,” as that is so often just an arbitrary imagination.

In Buffett’s own words, “if you’re right about the business, you’ll make a lot of money,” so don’t bother about attempting to buy stocks based on how their stock charts have looked over the past 200 days. Instead always remember that “it’s far better to buy a wonderful company at a fair price.”

These are just a few tips, you can tell us your ideas and also read more at http://www.financeandmortgage.com.au/blogs/

Rate Cut expected in August 2016

Rate cuts expected

Rate cuts expected

The June quarter consumer price index figures, released by the Australian Bureau of Statistics (ABS), revealed a 0.4% increase on the March quarter figures and a 1% change year-on-year.

While the CPI figures are only slightly below market and the RBA's expectations, they are still well below the RBA's target band for inflation of 2-3 per cent.

There is an increasing risk that we may not be able to achieve the inflation target given pressure from mainly two sources:

  1. Lack of wage growth
  2. Oversupply of rental properties

The low inflation print confirms ongoing strong competitive forces in the Australian economy, as evidenced by recent results from the retail sector.

"We believe the RBA will cut the cash rate in August, because a sustainable resurgence in price pressures won’t eventuate for some time. Looking ahead, we also believe the trough of the current RBA rate cutting cycle is some time away”, Tim Stewart.

This rate cut is what we predicted in July, 2016. 

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