All About You Finance https://www.allaboutyoufinance.com.au Making Loans Easy Wed, 04 Dec 2019 23:52:01 +0000 en-US hourly 1 https://wordpress.org/?v=5.2.4 https://www.allaboutyoufinance.com.au/wp-content/uploads/2019/09/cropped-favicon-32x32.png All About You Finance https://www.allaboutyoufinance.com.au 32 32 Swipe right to buy your first home https://www.allaboutyoufinance.com.au/swipe-right-to-buy-your-first-home/ Wed, 04 Dec 2019 21:22:19 +0000 https://finance-matters.info/?post_type=prso_synd_toolkit&p=3490 A new web platform described as a ‘dating app but for home-ownership’ says it can help users enter the property market in half the time it usually takes.

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A new web platform described as a ‘dating app but for home-ownership’ says it can help users enter the property market in half the time it usually takes.

Mortgage Mates – the brainchild of Perth-based mates Daisy Ashworth and Jess Vesely – uses algorithms to match you with like-minded individuals who share similar housing preferences but also don’t yet have a big enough deposit to crack the property market.

Ways you can search for ‘mates’ include Australia-wide location options, housing choices (apartment, unit, house or land packages), price, age and gender.

Once connected and keen to buy, the duo say they can link you with legal services to help you safely and securely enter the property market.

The co-founders say that by matching up with another user who shares your housing aspirations you can have the security of home-ownership over renting or living in a share house.

The other major benefit of pooling your money with like-minded individuals is increasing your property options, the co-founders say.

Another way to crack the property market sooner

Another way to get into the property market in 2020 is through the federal government’s First Home Loan Deposit Scheme, with applications for the scheme opening on 1 January 2020.

Run by the National Housing Finance and Investment Corporation (NHFIC), the scheme this week launched an interactive online eligibility tool to assist first home buyers determine their potential eligibility (with property price caps further down the page).

Under the scheme, some first home buyers will be able to borrow up to 95% of the value of their property without forking out for Lenders Mortgage Insurance (LMI).

Last week it was announced that NAB is the first lender on the panel. The remainder of the panel will be announced in the coming weeks.

Get in touch

There’s one big catch when it comes to the First Home Loan Deposit Scheme – and it’s a bit of a doozy.

The scheme is limited to just 10,000 first home buyers loans each year on a ‘first come, first served’ basis.

When you consider that the number of Australians who bought their first home in 2018 totalled 110,000, if you are planning on using it in 2020, it’s best to get the ball rolling on it now.

So if you’re considering purchasing a property but don’t have a 20% deposit saved up yet – get in touch.

We’d love to run you through the scheme in more detail and help you plan ahead for the new year.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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Banks ‘too cautious’ on SME loans: financial regulators https://www.allaboutyoufinance.com.au/banks-too-cautious-on-sme-loans-financial-regulators/ Wed, 04 Dec 2019 21:14:24 +0000 https://finance-matters.info/?post_type=prso_synd_toolkit&p=3486 The country's top financial regulators are concerned banks are ‘too cautious’ when it comes to loans for small business borrowers.

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The country’s top financial regulators are concerned banks are ‘too cautious’ when it comes to loans for small business borrowers.

The Council of Financial Regulators (CFR) – which is chaired by RBA governor Philip Lowe and includes APRA, ASIC and federal Treasury – met to discuss the tight credit conditions for small businesses and the associated reduced risk appetite from many lenders.

As a result, ASIC will soon officially confirm that the responsible lending laws don’t apply to small businesses.

In their post-meeting quarterly statement, the CFR stressed that the flow of credit is fundamentally important to the functioning of the Australian economy.

“(We) discussed the concern that lenders’ risk appetite for some types of lending may have swung too far towards caution,” the CFR said.

The CFR’s statement is in response to repeated complaints from bankers this year that tighter small business lending has been an unintended consequence of the Hayne royal commission.

Great, so what are they actually doing about it?

During the meeting, CFR members discussed that in the coming weeks ASIC will release updated guidance on responsible lending provisions.

“It will confirm that responsible lending requirements do not apply to loans made predominantly for business purposes, regardless of the type of security offered for the loan,” said the CFR statement (and yes, they even bolded the ‘do not’ bit!).

The guidance will also assist lenders to better understand their obligations and reduce the risk of non-compliance.

Great, but what can I do about it?

That’s the easy bit – get in touch with us.

The lending appetite in the SME space is something we’re well across and are more than happy to bring you up to speed on.

So drop us a line and we’ll be happy to run you through some of your business’s financing options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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The ‘Airbnb of pools’ splashes into Australia https://www.allaboutyoufinance.com.au/the-airbnb-of-pools-splashes-into-australia/ Wed, 27 Nov 2019 21:31:28 +0000 https://finance-matters.info/?post_type=prso_synd_toolkit&p=3465 Got a pool you’re constantly scooping leaves out of but never use? Or perhaps you’re looking to cool off this summer in the privacy of someone else’s backyard. Well, a new pool-sharing app has just launched in Australia.

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Got a pool you’re constantly scooping leaves out of but never use? Or perhaps you’re looking to cool off this summer in the privacy of someone else’s backyard. Well, a new pool-sharing app has just launched in Australia.

We Aussies love to swim. In fact, we’ve won the second most swimming gold medals at the Olympic Games – only behind the US.

And it’s no wonder why: research shows that nearly 2.7 million Aussies live in a house with a pool – the highest per capita in the world. That means either you or one of your nearby neighbours likely owns a pool.

To help us make the most of this tapped resource, an online marketplace for pool sharing called Swimply has launched.

How does it work?

Described as the ‘Airbnb of pools’, the service allows pool owners to rent their pool out by the hour.

The website and app features a platform where owners are able to list their pool and include customised information on availability, rules and prices.

Glancing at the website, listings range between $25 and $75 an hour – not too bad for an asset that would sit there collecting leaves otherwise.

Swimply makes its money by taking 15% of the hire fee paid to hosts and charging users a 10% service fee.

Interested in diving in?

If you own a pool and are interested in listing it, it’s worth noting that Swimply has entered into a partnership with pool maintenance supplier Poolwerx.

As part of the partnership, Poolwerx will undertake compliance checks of all pools to make sure they meet Swimply’s hygiene and safety standards.

Other money-spinning ideas

The sharing economy is taking off in Australia. In fact, according to the Sharing Hub, one in 10 Aussies make on average $1100 month from the sharing economy – that’s $13,200 a year that could help you pay off your mortgage.

Here are some other ways you can make an extra buck courtesy of your unused assets or time:

Car Next Door – got a spare car that’s sitting unused in the garage? Someone would likely rent it off you for $35 a day.

Airbnb – rent out a spare room, or even an unoccupied investment property, for anywhere between $60 and $250 a night.

Camplify – owners of caravans, campervans, motorhomes and camper trailers can earn $280-$2100 per week hiring to holidaymakers.

Spacer – Australia’s premier peer-to-peer marketplace for self-storage. Rent your garage or car park for a few hundred dollars a month.

The Volte – this website is changing the way Australians consume fashion. It’s a designer fashion rental marketplace connecting borrowers and lenders.

Mad Paws – who doesn’t like pets? Even better, get paid to look after someone else’s for $30-$50 a day.

Drop us a call

If you want some more tips to help you pay off your mortgage, then get in touch. We’ve got a range of tips and techniques that can help you out.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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SMEs in financial trouble urged to seek a helping hand early https://www.allaboutyoufinance.com.au/smes-in-financial-trouble-urged-to-seek-a-helping-hand-early/ Wed, 20 Nov 2019 21:33:08 +0000 https://finance-matters.info/?post_type=prso_synd_toolkit&p=3432 Small business owners experiencing financial difficulties are often leaving it too late to seek help from a trusted adviser before going bust.

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Small business owners experiencing financial difficulties are often leaving it too late to seek help from a trusted adviser before going bust.

That’s one of the key factors contributing to small business insolvencies being explored by the Australian Small Business and Family Enterprise Ombudsman’s Insolvency Practices Inquiry.

Ombudsman Kate Carnell says it’s vital for small businesses to recognise the signs of financial distress and seek help as quickly as possible.

“We know this is an issue that is important to the small and family business community because there has been an overwhelming public response to our inquiry,” says Ms Carnell.

Lean on trusted advisers

Ms Carnell says it’s vital that small and family businesses lean on their trusted advisers when financial concerns arise.

“They don’t have to go it alone,” Ms Carnell says.

“The sooner small and family businesses get help, the more likely it is they can achieve a more favourable outcome.”

Have your say

Ms Carnell says the inquiry is keen to hear from anyone who has been through a restructure or insolvency to help inform their interim report, which will be released in December ahead of the final report in February.

She says the inquiry has already received 230 survey responses and 20 submissions, and expects that number to grow.

Stories can be shared by completing the inquiry’s online survey or by providing a submission via inquiries@asbfeo.gov.au.

In the meantime, if your business is going through a rocky financial patch and you’d like to explore your options, get in touch. We’re always happy to help out.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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Greater protections for borrowers under new debt collection guidelines https://www.allaboutyoufinance.com.au/greater-protections-for-borrowers-under-new-debt-collection-guidelines/ Wed, 20 Nov 2019 21:27:43 +0000 https://finance-matters.info/?post_type=prso_synd_toolkit&p=3429 Borrowers struggling to stay afloat will be offered greater protection from debt collection agencies under new guidelines being applied by Australian banks.

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Borrowers struggling to stay afloat will be offered greater protection from debt collection agencies under new guidelines being applied by Australian banks.

As recently reported by the ABC, debt collectors can legally sue to recover debts as little as $5,000, with one debt collection agency suing hundreds of people for bankruptcy to recover debts.

“Consumer advocates were alarmed the tactic meant people were being dragged through the courts and risked losing their homes over small debts,” the ABC report states.

New guidelines

The good news for borrowers is that the Australian Banking Association’s (ABA) new guidelines not only outline a new, more stringent process that banks must follow before they sell a debt to a collection agency, but it also includes provisions for once a debt is sold.

The guidelines outline that adhering banks must:

– proactively contact a customer to find other solutions before a debt is sold (this can include restructuring, consolidation and hardship support)

– not sell any debt that is in the process of being disputed by a customer

– only contract debt collectors that follow all regulatory codes and a bank’s own policies for supporting customers in hardship

– regularly audit all contracted debt collectors to ensure they meet the high standard set by the new guidelines

– require a debt collector to consult with a bank before bankruptcy is initiated, giving the bank an opportunity to repurchase the debt if a vulnerability is identified

– as an interim before a government review, each bank will assess the bankruptcy threshold and determine an appropriate level (for competition reasons the industry as a whole cannot set its own level)

– if a customer has an ongoing vulnerability and there is no reasonable prospect of the debt being repaid a bank will not sell this debt.

Moving forward

As part of the new guidelines the ABA, along with consumer groups Financial Counselling Australia, the Consumer Action Law Centre, and the Financial Rights Legal Centre, have written to the federal government to request a review of the $5,000 threshold for forced bankruptcy.

“This new guide includes some really important protections, including that even if a bank sells a debt, the debt purchaser cannot move to forced bankruptcy without the permission of the bank,” says Fiona Guthrie, CEO of Financial Counselling Australia.

Gerard Brody, CEO of the Consumer Action Law Centre, says the new guidelines will help ensure forced bankruptcy is the last resort possible.

“It is so important that debt buyers understand customer circumstances and explain why bankruptcy is appropriate before taking this sort of harsh debt collection action,” says Brody.

“No one should risk losing their home because they’ve found themselves in a vulnerable financial position.”

Final word

As outlined above, if you’re going through financial hardship and are struggling to repay your debts, there are often a number of other steps you can take before resorting to bankruptcy.

If you’d like to explore those options, get in touch – we’d be happy to go through them with you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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Predatory payday lenders debt-trapping vulnerable Aussies: report https://www.allaboutyoufinance.com.au/predatory-payday-lenders-debt-trapping-vulnerable-aussies-report/ Wed, 13 Nov 2019 21:16:17 +0000 https://finance-matters.info/?post_type=prso_synd_toolkit&p=3407 Predatory payday lenders are profiting from vulnerable Australians and trapping them in spiralling debt, according to a collaborative report by 20 consumer advocacy bodies.

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Predatory payday lenders are profiting from vulnerable Australians and trapping them in spiralling debt, according to a collaborative report by 20 consumer advocacy bodies.

The report, The Debt Trap: How payday lending is costing Australians, projects that by the end of the year there will be $1.7 billion worth of payday loans lent out in Australia.

It also found that over 4.7 million individual payday loans were taken on by 1.77 million Aussie households between April 2016 and July 2019.

“Predatory payday lenders are profiting from vulnerable Australians to the tune of an estimated $550 million in net profit over the past three years alone,” explains Consumer Action CEO and Stop the Debt Trap Alliance spokesperson, Gerard Brody.

“The harm caused by payday loans is very real, and this newest data shows that more Australian households risk falling into a debt spiral.”

Hang on, what exactly is a payday loan?

Payday loans (also known as small amount credit contracts or SACCs) are high-cost fast loans of up to $2,000 paid back over a period of 16 days to 12 months.

These loans are high cost because you can be charged a number of significant fees on top of the original loan – including a fee of up to 20% of the amount borrowed when you take out the loan (establishment fee) plus 4% per month.

According to the report, equivalent annual interest rates for these loans can vary anywhere between 112.1% up to as high as 407.6%.

And because these loans are for short periods with unaffordably high repayments, many Australians take out additional payday loans to try and keep up and suddenly find themselves stuck in a debt spiral.

In fact, the Alliance estimates 15% of payday borrowers fall into a debt spiral – which equates to 324,000 Aussie households.

“The debt trap happens because of a combination of factors: the high cost of these loans, their relatively short repayment terms, the vulnerability of the borrowers accessing them who are generally on low to moderate incomes and using them to meet day to day living costs,” explains the report.

What’s fuelling the boom?

Digital platforms are adding fuel to the fire, with payday loans that originate online expected to hit 85.8% of all payday loans by the end of 2019.

“Academic research has found that digital platforms are making payday loans very accessible but often borrowers do not fully understand the costs, risks and consequences of these loans,” explains the report.

The growing demand for payday loans is driven, in part, by aggressive marketing techniques.

“This advertising is also blending the ‘sell’ with advice on good budgeting, giving consumers a misleading message that payday loans are somehow linked to good financial management,” the report adds.

We’re here if you need us

Don’t fall for the slick marketing and digital ease: payday loans hurt many Aussie families.

Not only that, but they will have an impact on your credit score as they are listed on your credit report, which in turn, can affect your application for finance.

So if you, or someone you know, has taken out a payday loan and wants to find out more, feel free to get in touch. We’d be happy to discuss your options with you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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Govt moves to free-up lending for SMEs https://www.allaboutyoufinance.com.au/govt-moves-to-free-up-lending-for-smes/ Wed, 13 Nov 2019 21:05:35 +0000 https://finance-matters.info/?post_type=prso_synd_toolkit&p=3402 SMEs are set to have better access to finance, with the Australian government making two key moves this month to free-up lending to small business operators.

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SMEs are set to have better access to finance, with the Australian government making two key moves this month to free-up lending to small business operators.

Firstly, Treasurer Josh Frydenberg says he will instruct the corporate watchdog ASIC to tell banks to waive responsible lending standards for small businesses.

Mr Frydenberg says while small businesses are exempt from responsible lending standards, many have been inadvertently caught in the tightening of those standards in the wake of the Hayne Royal Commission.

“There’s a real grey area as to what is a small business loan and a personal loan,” Mr Frydenberg told Fairfax.

“Small businesses are exempt from responsible lending standards; however, they are being inadvertently caught in the tightening of those standards post the Hayne royal commission as many use the family home to secure finance.”

Australian Business Growth Fund

Mr Frydenberg also recently released exposure draft legislation to allow the government to invest in an Australian Business Growth Fund (BGF).

The government is committing $100 million to establish the BGF and partnering with financial institutions to provide equity funding to SMEs.

The aim is for the fund to mature to $1 billion to help SMEs get access to the finance they need.

Why the need for the BGF?

Australia currently lacks a patient capital market for small and medium enterprises, the exposure draft’s explanatory materials states. Patient capital can provide entrepreneurs with the finance needed to expand without relinquishing control of their business.

“The government will help small businesses grow by co-investing with other financial institutions to establish a BGF that will provide equity finance to small businesses across a range of industries and locations,” the explanatory materials state.

Mr Frydenberg adds that many SMEs find it difficult to obtain finance other than on a secured basis – typically, against the family home.

They also find it difficult to access additional funding once they have pledged all of their real estate as collateral.

“With better access to more competitive finance, SME’s will be able to grow, fulfil their potential and continue to underpin Australian economic growth and employment,” Mr Frydenberg’s statement said.

Legislation to establish the BGF will be introduced to parliament before the end of 2019.

Does your business struggle to access finance?

If you’re a small business owner wanting access to finance, you don’t have to sit and wait for the government’s initiatives to take effect.

Instead, get in touch with us. We’re happy to talk through your current situation and help you explore your options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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6 tips to prepare your property for valuation https://www.allaboutyoufinance.com.au/6-tips-to-prepare-your-property-for-valuation/ Wed, 06 Nov 2019 21:13:03 +0000 https://finance-matters.info/?post_type=prso_synd_toolkit&p=3389 Looking to refinance your home loan? A valuation is a vital part of the process. So today we’ll look at some ways you can help get your home in tip-top shape.

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Looking to refinance your home loan? A valuation is a vital part of the process. So today we’ll look at some ways you can help get your home in tip-top shape.

When you refinance to try and get a better deal on your home loan, the lender you’re applying with will arrange a valuation to estimate what your property is worth.

However, a survey by an online lender recently found that one in seven homeowners were unsuccessful in refinancing their mortgage because the value of their property had fallen.

With that in mind, it’s important to tick off as many of the below tips as possible to not only make the whole process smoother, but to give yourself the best chance at a favourable valuation.

1. Spring clean!

Roll up those sleeves, get out the spray and wipe, and get ready to apply some elbow grease.

Ensuring you present a well-maintained property can make a big difference when your property is being valued.

Inside, you’ll want to make sure your kitchen and bathrooms are spotless, your floors are mopped/vacuumed, your windows have been cleaned, and the rooms aren’t cluttered.

Outside, mow the yard, weed the gardens, rake the leaves, clean the deck, and don’t leave any toys or sports equipment scattered around the yard.

2. Get your documentation in order

If you have a copy of your building plans, give them to the valuer – preferably in advance of the valuation to help speed up the process.

Valuers sometimes also request council rates notices and/or land tax valuations, so it doesn’t hurt to have all relevant paperwork compiled in a dossier in case the valuer requests it.

3. Be present

Your valuer will need to be able to easily access every room in the house – not to mention your house itself.

By being present, you can speed up the process and be on hand to both showcase your home and answer any questions, which leads us to our next tip…

4. Compile a list of your property’s features

Sure, you’re not ‘selling’ your house to the valuer. But it doesn’t hurt to highlight its features.

Therefore compile a list of everything your house has to offer – especially if it’s not immediately apparent.

Not only will this ensure the valuer doesn’t overlook anything, but you can also give them the list to keep afterwards.

Your list could include things such as a newly-installed reverse-cycle air conditioner, insulation, solar panels, new carpet, top-of-the-range pool filter, or details of any recent renovations and how much they cost.

5. What’s going on in your neighbourhood?

Your home’s features aren’t the only factors that can impact its value.

If there are any community plans slated for nearby – such as a new bike path or bus stop – have the information ready so you can let your valuer know.

Likewise, it doesn’t hurt to have the details of any recent sales figures for nearby properties on hand.

Do try and read the room though. Some valuers don’t like to be bothered too much, so if you start to get the feeling they want some space then definitely give it to them.

6. Secure your pets

Sure, we love our furry friends. And they may even be considered a member of the family in many households. But not everybody feels that way about them.

Therefore it’s best to err on the side of caution and either secure your dog and/or cat, or ask a friend to look after them for a few hours.

In doing so they won’t get in the way of the valuer while they’re doing their job, and the valuer won’t have to worry about accidentally letting them out of the house.

A few final notes

A valuation can take anywhere between 30 minutes and 2 hours – it depends on the size of your property and how thorough the valuer is.

After the inspection, it typically it takes 24 to 48 hours for the valuation report to be returned to the lender.

So with all that said, if you’re looking to refinance and want to find out a little more about what the process involves, then definitely get in touch. We’d love to help guide you through it.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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Caps for new first home buyer scheme revealed https://www.allaboutyoufinance.com.au/caps-for-new-first-home-buyer-scheme-revealed/ Wed, 30 Oct 2019 20:26:19 +0000 https://finance-matters.info/?post_type=prso_synd_toolkit&p=3374 The property price caps in each state have been revealed for the federal government’s new first home buyer scheme. Read on to find out the maximum value of a property you can purchase under the scheme.

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The property price caps in each state have been revealed for the federal government’s new first home buyer scheme. Read on to find out the maximum value of a property you can purchase under the scheme.

Imagine buying your first home with a 5% deposit and not having to pay lenders mortgage insurance (LMI).

Sounds good, right?

Well, the federal government has finally revealed more details in a draft mandate for the scheme, including the property price caps in each state.

The property price caps

Below are the property price caps for each city and regional centre with a population over 250,000, followed by the price caps for the rest of the state.

– NSW: $700,000 (Sydney, Newcastle/Lake Macquarie, Illawarra) and $450,000 (rest of state)

– VIC: $600,000 (Melbourne and Geelong) and $375,000 (rest of state)

– QLD: $475,000 (Brisbane, Gold Coast, Sunshine Coast) and $400,000 (rest of state)

– WA: $400,000 (Perth) and $300,000 (rest of state)

– SA: $400,000 (Adelaide) and $250,000 (rest of state)

– TAS: $400,000 (Hobart) and $300,000 (rest of state)

– ACT: $500,000

– NT: $375,000

Great, but what’s this scheme again?

Ok, so currently people with a deposit of less than 20% usually have to pay LMI.

But under the government scheme, eligible first home buyers with only a 5% deposit could be eligible to purchase a property without forking out for LMI.

Now, it’s important to note that this is not a handout – it’s simply a government guarantee.

But this guarantee could be very helpful, as it could save you as much as $10,000 in insurance.

Any more details?

The scheme is due to commence on 1 January 2020.

In order to be eligible first home buyers can’t have earned more than $125,000 in the previous financial year, or $200,000 for couples (and both need to be first home buyers).

But here’s the catch: the offer is limited to just 10,000 first home buyer loans each year. That’s less than 10% of the 110,000 Australians who bought their first home in 2018.

So who gets first dibs?

That’s the million-dollar question! (or, depending on where you live, the $400,000 question).

It looks as though applications will be granted on a “first come, first served” basis.

So if you’re considering purchasing a property but don’t have a 20% deposit saved up yet – get in touch.

We’d love to run you through the scheme in more detail and help you plan ahead for the new year.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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Are you a spender or a saver? https://www.allaboutyoufinance.com.au/are-you-a-spender-or-a-saver/ Wed, 23 Oct 2019 20:52:34 +0000 https://finance-matters.info/?post_type=prso_synd_toolkit&p=3362 Are you paid weekly, fortnightly or monthly? New research indicates that how often you’re paid has a pretty big bearing on whether you’re a saver or a spender.

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Are you paid weekly, fortnightly or monthly? New research indicates that how often you’re paid has a pretty big bearing on whether you’re a saver or a spender.

The research, conducted by small business platform Xero, shows that Aussies who receive their salaries weekly are more likely to splash their hard-earned cash than those who are paid monthly due to a term they’ve dubbed ‘payphoria’.

This, in turn, can play a big part when it comes to your ability to save for a home loan deposit.

What the research found

The research analysed the payday habits of 1,000 Australians and found that a whopping 63% of workers claim to have financial difficulties before payday and rely on short-term fixes for support.

In fact, one in three workers have less than $100 in the lead up to payday, resulting in them foregoing luxuries such as coffee and eating out, or even delaying household bills.

“It’s not surprising that when payday does come around, Aussies are experiencing rushes of ‘payphoria’ and are wanting to reward their hard work by spending up,” explains Xero small business advocate Angus Capel.

Hence, the research suggests that the more paydays we experience, the more of these ‘payphoria’ spending sprees we reward ourselves with.

Below is Xero’s breakdown of Aussie savers versus spenders.

Characteristics of savers:

– 70% of Australians identified as savers (despite much of the research suggesting otherwise!)

– they’re more likely to be paid monthly

– they’re more likely to budget and keep track of expenses and spending habits (87%)

– they feel worried if they don’t have enough savings (95%)

– they’re more likely to be married with no children and live in metro areas

– their key financial goals are on financial management such as retirement, having an emergency fund and paying off mortgages.

Characteristics of spenders:

– 30% of Australians identified as spenders

– they’re more likely to be paid weekly

– they don’t want to give up luxuries that come with saving (77%)

– they believe lifestyle is more important than saving for the future (56%)

– they’re more likely to use their income to pay off debts like credit card bills

– they’re more likely to have children under the age of 18 and live in regional areas.

Get in touch

If you think you’re leaning more towards spender than you are saver, then get in touch.

We can provide you with some effective saving techniques that can help put you on the right path to saving for a home loan deposit.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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