Who really uses negative gearing? Nurses, teachers, clerical staff

The Property Council of Australia refutes claims made today that average Australian workers are not the main beneficiaries of negative gearing.   The latest available data from the Australian Taxation Office is indisputable and it shows that some of Australia’s most valued, but lower paid workers are the primary beneficiaries of negative gearing.   This includes the 42,000 nurses, midwives and aged care workers, 62,000 teachers and child carers, 12,300 emergency service wor...
More

A Complicated Past May Still Secure You a Home Loan – Non Conforming Loans

It is possible to get a Home Loan even if you don’t meet a Bank’s credit criteria. With the memory of the recent financial crisis still fresh and the resulting credit tightening still in effect at most financial institutions many would-be homeowners are still standing on the sidelines assuming that credit is out of reach for them. Industry experts recently revealed that one in five people in Australia still can’t get credit from a traditional lender. That’s where Specialist Lenders come in...
More

A Super Simple method to your Budget under Control and get back in the black

This is so simple it's just wonderful, no laptops, no spreadsheets, no headaches, just a simple no fuss way to get control over your finances. Watch and see how simple this is: https://www.youtube.com/watch?v=FsxPcgj5MDA For many people the simple way is the best way to start, if you don't know where your money is going every month, that's a big problem. It can be a real headache to sit down at a computer after a long days work and type in amounts from dockets, or worse, from memory, espe...
More

Interest Only Home Loans – for Investors or Everyone?

There's been a lot of talk about this type of loan structure lately, with industry heavyweights such as John Symonds (Aussie Home Loans) and Mark Bouris (Yellow Brick Road) weighing in on the topic. Symonds went as far as calling for a ban this type of loan, whereas many, such as Bouris consider it effective when used correctly, in tandem with professional financial advice. With a normal loan, each monthly payment would consist of an amount that's paid off the debt (principle) and the interes...
More

Tax Tips: Switching Your Home into a Rental Property

There are many reasons why homeowners may choose to change their current principal place of residence (PPOR) into an investment property. Perhaps they are looking to upgrade to a larger – or perhaps downsize to a smaller – model, and wish to retain the original property as an investment, or maybe they have been geographically relocated due to work obligations. Regardless of the reason, there are numerous factors that homeowners, and subsequent investors, should be aware of when making the switch...
More

10 Things First Time Home Buyers Need To Know About Mortgages

This guest blog is written by Andrianes Pinantoan. Whether to buy a home or not, it will be one of the biggest decisions you have to make in your life. It is certainly the biggest buying decision you have to make in life. Despite this, however, many first time home buyers don’t know enough about mortgages to make a sound decision. If you’re a first home buyer who wants to avoid the fate of receiving unpleasant surprises from your financial institution, then these 10 tips are crucial. L...
More

Australian Home Borrowers Vulnerable to Defaults

Interest rate hikes are increasingly likely to send Australian homeowners into default, Fitch Ratings has claimed. In an exposure draft review of the Australian RMBS sector, the ratings agency has claimed homeowners are now more vulnerable to interest rate hikes than during the recession of the 1990s, when interest rates were around 17%. Director of Fitch's Australian structured finance team David Carroll said this could be attributed to rising levels of indebtedness and higher house prices. He...
More

Tax Time: Possible Deductions available to Property Investors

Tax time may be a few months off, but it pays to be organised – and by getting your ducks in a row now, you can save yourself a giant headache come tax time. Also, if you know exactly what you can claim, you can actually start enjoying the savings in your pay packet each week, rather than waiting til End of Financial Year. For instance, if you know that your property-related tax deductions amount to $6,000, that equates to a tax refund of $1,890, if you pay tax on a standard 31.5% tax brac...
More

Sometimes Cutting Costs can end up Costing More

The Reserve Bank of Australia’s Statement on Monetary Policy released in February revealed that the household savings ratio was at its highest point in more than 20 years. According to the central bank, Aussies are tucking away 10% of their disposable income – that’s a massive swing from the mid-noughties when we were spending about 2% more than we earned. But there’s a huge difference between tightening your belt and cinching off the blood flow to your lower extremities. We’re all about s...
More

Increase your income and save money to obtain debt relief

In order to obtain debt relief you need to do two things at the same time. You will have to increase your income and save money at the same time. Now the economy has become such that only frugal living won’t help you save money. In order to manage the living costs, you will also have to improve the sources of your income. In addition to this, you will also have to try and lower your expenditures as much as possible. This too will help you in saving some amount of money. Improving your income...
More

Home Loans that you Can Consider

Todays post is a guest submission from Chris Hamilton over at Mortgage Brokers Online. Home loans offer different terms and conditions. To finance your purchase of a new home or the renovation of your existing residence, you must find a suitable home loan for it. Here are the different home loans that you can consider. As the name suggests, the fixed home loan has a stable payment mode though the market interest rate changes. This gives a borrower repayment stability for the duration of th...
More

Moving mortgages, bank staff perks and mortgages at Christmas

After last week's news about banning horrendous exit fees on mortgages taken out from July 1 next year, I've been wondering about whether I need to look into my current mortgage arrangements - even though I won't be eligible for the no-exit-fee deal, the talk is that even for existing mortgages it could well be worth changing. The Herald Sun had a useful article this week on moving your mortgage and its step by step approach is pretty logical - do the research (online), then get information from...
More

Mortgage stress in Brisbane and Melbourne

Last week you might recall that I was sympathising with Sydney-siders who have the worst mortgage stress in Australia. Apparently a lot can happen in a week because the new figures are now showing that Sydney people are no longer the worst off - this dubious honour now goes to mortgage holders living in Brisbane, with those paying off home loans in Melbourne being very close behind. Of course, many Sydney mortgage holders are still struggling but they're no longer top of the table! According ...
More

Australians love mortgages much more than 20 years ago

Having a mortgage is cool. Or it must be, because the trends show that we Australians are much more in love with mortgages than we were two decades ago. Reserve Bank statistics on mortgage debts, which they only began to record in 1990, show that our thirst for mortgages has been increasing at a rapid pace. Who would've thought that this thing we complain about so often is actually something we can't get enough of? The mortgage statistics are kept both for those of us who have a home loan for...
More

Line of credit versus regular mortgage: My experience

There are many different variations on mortgages and home loans out there for you to choose from, but two kinds which have some distinct differences are a regular mortgage and a line of credit (also known as a home equity loan). Just before I bought my first home a few years ago, I got a tip that a line of credit might be the right kind of loan for me. If you want to know if it's right for you too, then read on. What exactly is a line of credit? Sometimes it's hard to understand exactly wh...
More