How Important is Your Credit Score?
A recent survey of nearly 1,600 people revealed almost all respondents believed knowing their credit score was critical to improving their finances. To simply define, a credit score is a number that depicts a consumer’s creditworthiness. The higher the score, the better a borrower looks to potential lenders. According to the recent survey conducted by Digital lender SocietyOne, it concluded 97.7% of respondents thought it was important for Australians to know their credit score; 93.3% said they found it useful to have finally learned their score through SocietyOne, and those who wished to improve their credit score and overall finances embodies 73.5%. However, only 32.8% of respondents knew their credit score before being encouraged to check it and 60.9% were surprised by the result once they received their score. MoneyMe Chief Operations Officer, Jonathan Chan stated that “a credit score is an excellent indicator of financial health and many Australians appear to understand its importance. However, half of all Australians still have not applied for their score to know where they stand when applying for credit for a loan and finding out your score is only the first step”. In addition, Experian General Manager of Credit Services, Tristian Taylor reminded them not to “forget that a credit score is simply a view of your financial health and the way you work with credit. Keeping on top of your repayments and choosing the right financial products for your situation are important factors in maintaining a strong credit score.” Key factors that could influence the status of your credit score include: The type of lender you have applied to How well you’ve kept up with your repayments The credit limit of each of your credit products The type of product you have applied for The number of credit applications you make Any negative events, such as defaults, judgments, or bankruptcies. Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.
Tax Trick to Get a $1 Million Property for $8000 a Year
Buying a $1 million investment property can seem daunting but there’s a perfectly legal way to pay just $8000 a year for it. In Australia, the property isn’t only the best performing investment class over the last couple of decades – it’s also something that can deliver you serious tax deductions and help you cut your tax bill while you build wealth. Owning an investment property isn’t nearly as expensive as most people think, especially after you factor in the available tax benefits, with statistics showing the average cost of a $1 million investment property is $8114 per year with an annual growth of $63,000, meaning that the net benefit to you (benefit fewer costs) works out to be $54,886 each and every single year. While owning an investment property does generally come with a cost, on the flip side, you benefit from owning an asset that grows in value over time. We wanted to unpack what drives these numbers so you can see how this might work for you. Initial Costs of Buying a Property When purchasing a property in Australia, there are several initial costs involved. These may include stamp duty, which varies depending on the state and can be higher in certain regions. Additionally, expenses such as building and pest inspections, as well as legal fees for managing the registration process, should be considered. However, with an incredible opportunity like acquiring a $1 million property for just $8000 a year, the investment potential becomes even more enticing. Ongoing Costs of Buying a Property In addition to the mentioned factors, buying a property may also entail ongoing costs such as apartments and townhouses having associated expenses, houses requiring payment of council rates, water rates, insurance costs, property management fees, repairs, and maintenance. Making principal repayments gradually reduces your debt over time, with mortgage interest costs involved. Financial Benefits of an Investment Property When you own an investment property the benefits are two-fold. In addition to the rent paid by your tenants, you are also likely to benefit from the growth in value of your property over time. Upon the recent calculation, Westpac data shows the averaged 6.3% growth return annually on Australian property since 1870. Given the continuous rise of property prices, we presume that the numbers would likely be significantly higher considering that this data is from 2019. Property Costs are Tax Deductible If the expenses on your investment property are more than the income you receive, you can claim this amount as a tax deduction at your marginal tax rate to reduce the after-tax cost of running your property. Based on Australian marginal tax rates, if your annual taxable income is above $45,000, your marginal tax rate + Medicare levy is 34.5%. This only means you’ll receive a tax refund of $0.345 for every dollar your investment property costs you. Meanwhile, if your income and tax rate are higher, you’ll receive even more back at tax time. This then will give you back at least a third of whatever you pay. Buying an investment property is something that can seriously accelerate how quickly you get ahead. But it does come with risks that are important to manage. It can fast-track your money success and go a long way to set up the future you want. Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.
Crypto Crash: What Investors Need to Know
To firstly define, cryptocurrency is a digital or virtual currency secured by cryptography that makes it nearly impossible to counterfeit or double-spend. These are decentralized networks that are generally not issued by any central authority; hence are free from government interference or manipulation. The stock market which generally means the collection of exchanges and other venues is where the buying, selling, and issuance of shares of publicly held companies take place. Stablecoins, on the other hand, are cryptocurrencies the value of which is pegged, or tied, to that of another currency, commodity, or financial instrument. However, at the peak of November 2021, Bitcoin’s value reportedly slumped below $30,000 for the first time causing a massive collapse in the entire cryptocurrency market. Situations became out of control, for instance, investors are withdrawing their money, causing Tether (USDT) to lose its peg to the dollar. This unexpected crash caused great disbelief in investors as Bitcoin is often seen as a good hedge and/or will not be affected against inflation. But when the month of May 2022 came, the market, as well as crypto investors witnessed and experienced its greatest fall down due to the soaring high inflation rates and tighter monetary policy losing $600 billion in a week. Meanwhile, stablecoins which are backed by fiat currencies like the US dollar, gold, and even other cryptocurrencies are supposed to maintain their value. However, Terra (LUNA) and TerraUSD (UST), two native tokens of the Terra network, were likewise and the most badly affected by the collapse of Bitcoin and are currently trading at under $1 per token, specifically $0.000000999967 for Terra (LUNA) and $0.13 for TerraUSD (UST) as reported by coingecko.com. In sum, that week not only put an awareness that top altcoins like Terra can suffer overnight losses and struggle to survive, but at the same time has given investors and other crypto enthusiasts a wake-up call to invest carefully.
Opportunities To Save Tax With Super Contributions
Did you know that there are also some excellent tax benefits you can take advantage of right now – just by making your own voluntary superannuation contributions? When you retire, your superannuation is likely to become an important source of your income. That’s why it’s a good idea to top it up while you are working. Generally, money invested in super is taxed at a lower rate than your personal income tax rate and we want you to be aware of opportunities to save tax with super contributions. 1. Catch up on Super Payments Contributions From 1 July 2018, if you are a kind of person who has a total superannuation balance of less than $500,000, you now can make “carry-forward” concessional super contributions. With this, you can now access your unused concessional contributions caps on a rolling basis for five years while those amounts that have not been used after five years will expire. 2. How Low-income Earners are Taxed If you’re a low-income earner earning up to $37,000 per year, the low-income superannuation tax offset will ensure that you don’t pay a higher tax rate on your super contributions than your income tax rate. The said offset will be paid directly to your super account and the payment will be equal to 15% of your concessional contributions for the year, capped at a maximum of $500. Meanwhile, those high-income earners who have accumulated between $41,112 and $56,112 earnings during the 2022 financial year may also be eligible for super co-contributions from the government of 50 cents for each dollar, up to a maximum of $1,000 in non-concessional (after-tax) contributions. 3. How High-income Earners are Taxed If you earn more than $250,000 a year (including super contributions), your concessional contributions are taxed at an additional 15%, known as Division 293 tax, bringing the total tax on these contributions to 30%. Only the concessional contributions which make your total income exceed $250,000 are subject to the additional tax. Suppose your concessional contributions exceed the concessional contributions cap of $27,500 per year. In that case, the excess is included in your tax return and taxed at your marginal tax rate (less an allowance for the 15% already withheld by your super fund). You can choose to withdraw some of the excess contributions to pay the additional tax.
Buying is Cheaper than Renting for First Time Buyers
Buying Cheaper than Renting for 40pc of First Home Buyers According to a poll conducted by Great Southern Bank, owning a home is cheaper than many hopeful home buyers anticipated, with more than 2 out of every 5 recent homeowners paying less on their mortgage than they did on rent. Here, 42% of existing homeowners reported spending less on their mortgage than renters, while another 26% pay approximately the same from the poll of 1,500 homebuyers. Megan Keleher, chief customer officer of Great Southern Bank, said that “many would-be homeowners overestimate the costs of holding a home loan.” “Our study reveals that many first-time house purchasers pay more on rent than they do on a mortgage – and this trend is only expected to continue in the current rental market,” she said. In fact, almost twice as many recent homeowners living in regional areas reported a decrease of 44% in their housing costs rather than an increment of 26%. Meanwhile, for those first home buyers who are renting and still looking to buy one, 61% are expecting to pay less on their mortgage each month compared to their existing rent. Ray White’s Chief Economist, Nerida Conisbee, supported this perspective emphasizing that “with many incentives available, buying was looking a lot better than renting”. Despite an interest rate rise, Conisbee presumes that “numbers of first home buyers who would potentially pay less on their mortgages than their rent is likely to increase this year”. Whereas, Megan Keleher additionally said, “interest rates have been at record low levels for some time now, making home loans even more affordable”. Please contact us for clarification, or further advice, regarding any of the topics covered.
Six Ways to Increase My Credit Score
Are you overwhelmed by the feeling like your credit history is a mess? There are ways that you can get back into lenders’ good books. Wanna know how to increase your credit score? Here are 6 ways to improve your credit score. 1. Check-Out your Credit File to See Where you Stand If you want to increase your credit score, it is important to check out your credit file to see where you stand. Out of all the many credit reporting bodies available that you can approach to get your credit file in Australia. CheckYourCredit, Equifax, Illion, and Experian are only some of the major ones you can check, and where you can request a free copy of your credit report more frequently and/or every 12 months in Australia. This is an important step as this will tell you which areas need to be addressed. 2. Make Sure There Aren’t Any Errors After having the copy of the credit report, it is a must to thoroughly review it to make sure there are no major errors or listings on the report. This checking practice then will give you the assurance that your money is free from eros, and secured, and will help to prevent you from identity fraud, such as a fraudster taking out several credit cards under your name. 3. Pay your Bills On-time Regardless, it is a good attitude and a must to pay bills on time. Regularly practicing this behavior will not only help you stay at peace with pending bills but also make the lenders aware and be impressed that you are responsible with your funds even if you have made missteps previously. 4. Have a Credit Card To ensure you are even more creditworthy, it is a good idea to make measured credit card use as this will benefit you to make your payments regularly and on time. Doing so will serve as evidence that you are more than capable of managing debt. Also, to properly utilize your credit card in good use, it is a must to only buy things that are a ‘need’ rather than a ‘want’ and ones that you know you can repay immediately. 5. Pay Off Any Outstanding Debts Having pending bills could damage your credit score, that’s why paying any unpaid bills or debts as fast as possible should be the top priority. 6. Minimize New Credit Applications To increase your credit score, it is advisable to refrain from making multiple credit applications. Applying for multiple credit applications can accumulate hard inquiries, where lenders request to review your credit history before lending you money. Such applications occurring over a short period of time can put your credit score at risk.
Refinance Opportunities
Srbinovski says Australia’s property investors are consistently top-of-mind when ubank makes decisions around product and policy enhancements. “We know the investor market is important in the Australian property landscape,” he says. “It’s up to us to really cater to them and give them the tools they need to thrive, whether it’s educating them about the landscape or providing competitive rates.” Fedder says Suncorp Bank has seen its investment loan portfolio grow by close to 5% over the last 12 months. “We’ve created new opportunities to fund these loans by delivering a simplified credit policy and reducing the volume of documentation that customers and brokers need to provide,” he says. “We’ve also been dedicated to providing consistent service and turnaround times, which we know are key in the current property investment market.” You may read the whole article here: http://bitly.ws/sor4 Call us now for 45 minutes one on one free financial consultation session. 1300 074 675 or message us on WhatsApp +61 488 859 637
Bitcoin: Why is the largest cryptocurrency crashing?
Bitcoin is trading at $21, 974 (£18,000). It’s fallen 25% in the past five days alone, to its lowest value in 18 months. Its peak of almost $70,000, in November. Experts say this is because of the wider global climate. It’s not just in the crypto world things are not looking good. Recession looms, inflation is soaring, interest rates are rising and living costs are biting. Stock markets are wobbling too, with the US S&P 500 now in a bear market (down 20% from its recent high). As a result, even the big investors are less free with their money. And many ordinary investors – not rich hedge-fund owners or corporations but people like you and me – have less to invest in anything, full stop. In order to stabilise it, people who still have Bitcoin would need to hold on to it and others would need to start buying it again. This has happened before. Crypto fans will tell you now is a great time to buy, because it’s cheap – and you then have to sit tight and watch it turn the corner. This is how it’s always worked. Call us now for 45 minutes one on one free financial consultation session. 1300 074 675 or message us on WhatsApp +61 488 859 637
How to Build a Multi-Million Dollar Property Portfolio?
If you are looking for a company that can show you: How to invest from as little as $50 per week without using any of your own time How to legally slash your tax bill and never pay the same amount of tax ever again How to pay off your family home in as little as 7-10 years How to protect yourself from rising interest rates and losing your job How to have your rent paid in full and on time, all the time How to create an extra $30,000-$40,000 per year (tax-free) whilst not changing anything you do right now then please read on where we show you our step-by-step system of creating wealth safely and securely, never having to worry about money again. What are your Goals and Dreams? The most important thing about creating wealth or financial security is to first clearly understand WHY you want to? Is it because you want more money, more time, more life, more choices? This is the first step on a journey that will change your life for the better, therefore, it’s important that both you and Simply Wealth Group have all this information clear and upfront so that we can hit the target we are aiming for. It’s all about YOU One of the main reasons to invest is to give YOU more life. It should make life easier, give you more choices, make you feel good about yourself, and help you to sleep easily at night. The idea is to not have an impact on your current lifestyle. This is where we show you how you’ll be able to afford to have a property investment plan working for you without affecting your weekly budget. Accredited Property Investment Selection & Acquisition At Simply Wealth Group, we only offer and recommend the best available property investment opportunities that exactly meet your needs and situation. We monitor the Australian property market daily. With a variety of quality investments available all over Australia, they must first meet our stringent selection criteria of long-term capital growth, strong rental demand, location and amenities, and of course be of high quality. Tailored Property Investment financial structures and strategies We will ensure you receive the best investment funding available. Our Specialist Investment arm will structure and tailor an investment funding package that will best meet your needs. We’ll identify and recommend which loan is the right one for you, working on your behalf to finalize all the details, saving you time and money. We will explain interest rates, application fees, exit fees, refinancing, short-term and long-term flexibility, and how to cleverly leverage equity and cash flow to your advantage (85% of seasoned investors are not aware of this) Expert Property Investment Legal Advice & Services We take the headache out of owning an investment property or adding to an existing portfolio with the right legal advice. Property investing is a specialized legal area, getting it wrong could seriously jeopardize your outcome. We have the best of the best legal experts when it comes to property investing. We show you how to protect your assets and wealth from day one so that your wealth always stays with you and your loved ones. How to legally reduce your Tax and never pay the same tax again We’ll help you through all the complexities and ever-changing taxation laws that are associated with property investing. This is why most investors do not maximize the tax returns available to them. Not all accountants are the same. Our property investment taxation specialists are experts in their field. They’ll provide the appropriate property investment tax advice and ongoing services with regard to your current and future tax position. Coordinating the settlement of your property Unfortunately, this is the one area that people pay very little attention to. It’s this one area that can actually make or break the experience you have when it comes to investing in property. Many take this process for granted and you as the client are always the one that pays the price of having to get involved and having their precious time wasted. We ensure that all parties are coordinated appropriately with minimal fuss and with very little involvement from you. The headache-free Construction Program At Simply Wealth Group, we’ve been proudly helping investors achieve their financial goals and dreams for over 10 years. The knowledge and commitment to quality we have gained over this time have enabled us to streamline the building process, resulting in a hassle-free and enjoyable building experience for you. Whether building one of our innovative home designs or choosing a boutique architecturally designed apartment, our dedicated and professional team has proven time and time again that by using only the best products and materials on the market and constructing homes on time and on budget, we are the market leaders in both quality and service. Keeping you in the know every step of the way We manage the entire project on your behalf so that it is built on time without any delays and therefore put money in your pocket (rent) as fast as possible. When you have constructed and project-managed thousands of properties as we have, you know how to deliver an experience to customers second to none. We update you fortnightly with a progress report. It’s like being on-site, from the comfort of your own lounge room. We work for you, NOT the builder When you buy a car, you want to ensure you are getting what you have paid for. When you go to collect the car, you want to check that the steering wheel comes with the car right? But what about the things you can’t see or don’t know about? At Simply Wealth Group, we ensure you are getting everything you signed up for – without ever compromising on quality. We know every little detail and step that goes into building a quality investment property. Tenant allocation without you lifting a finger We claim to have the
Melbourne property market update 2021
Most of the Australian cities’ real estate market has excelled after COVID-19. Among them, the Melbourne property market has given a huge shift. We came to see a great increase in the property prices in Melbourne the entire year but October was the peak month. Will the buyer party suffer in this market trend? To answer all these questions we have summarized the facts and figures presented by https://www.smartpropertyinvestment.com.au/research/23311-property-market-update-melbourne-october-2021 The main reason behind this increase in the property prices of Melbourne is the return of vendors. As the COVID-19 situation was not good in the March and business was opening and closing. But after August 2021, the circumstances changed and people felt safe in continuing their work. This return proves a weapon for this sudden increment. The demand of the market is high and so more buyers are waiting to start new businesses. But this rising prices level has created the worst condition for buyers. The buyer party in the Victorian capital (Melbourne) is facing extreme affordability crises. In this situation, a research director CoreLogic states that the capital cities of Australia have now reached disagreeable prices rates. It has become hard for first-time buyers to invest in a property. He gives the statement: “Property prices are increased at a ratio of 12:1 as compared to the wages. It is the main reason behind the decrease in first-time home-buyers ratio and they are giving small part in housing demand”. Learn more about the Melbourne performance in October 2021. Property Values In October, CoreLogic’s most recent information uncovered the property estimations in Melbourne rose by 1% month-on-month. While the new increment is a slight improvement from the 0.8 percent rise recorded in September, it is essentially lower than the 2.4 percent month- to-month gain recorded in Walk 2021. The city’s middle dwelling esteems remained at $780,303 toward the finish of October. Over the course of the year, Melbourne’s home estimations have ascended by 16.37 percent, the most vulnerable among its capital city peers as far as yearly development. Unit markets rose by 1% consistently, up from the 0.2 percent gain recorded in September. At present, the normal cost of units in the Victorian capital currently remains at $621,898. In the meantime, the real estate market likewise recorded a 1 percent month-to-month increment, getting the normal house estimation of the city to $972,659. While the city’s unit and house market esteem increased at a similar rate in October, house costs have risen right twice quicker than unit costs over the course of the year. Melbourne house estimations rose 19.5 percent throughout the year contrasted and a 9.2 percent gain in unit esteems. As indicated by Mr. Untamed, we might consider an expanded interest for units to be house costs keep on rising. “With financial backers turning into a bigger part of new lodging finance, we might see more interest streaming into medium to high-thickness properties,” he noted. Market Interest As Melbournians rose up of the most recent lockdown in October, the city’s spring selling season began decisively, and merchants heaped properties onto the city’s market. SQM’s information showed all-out private postings in Melbourne rose by a faltering 25.1 percent to 41,265 in October from 32,990 in September. While the quantity of promoted properties rose consistently, postings in the city are as yet down 6.3 percent contrasted with a similar period last year. SQM Exploration overseeing chief Louis Christopher said October was customarily a solid month for postings, yet he likewise recognized that the expansion in stocks is mostly a result of urban communities emerging from lockdown. Notwithstanding, he additionally contended that one more stimulus for the stockpile flood is that sellers might be searching for the leave entryway before the market dials back any further. “This could be a marker that merchants are hoping to escape the market before additional large-scale prudential fixing kicks in and before we get a loan cost rise,” he said. He remarked that while Aussies’ craving to claim a property keeps on being solid, there are signs that the FOMO opinion is beginning to chill. “I think purchaser request is still somewhat solid, however maybe it’s beginning to fall off a bit, so if we somehow managed to see November recording a comparative degree of postings, then, at that point, I would be somewhat concerned.” He further noticed that the ingestion paces of the market may be tried assuming a comparable solid posting movement is additionally seen in November, which might show a top in the real estate market. While postings rose, complete stock remaining parts essentially less than ideal, as per CoreLogic. The continuing awkwardness among the organic market implies that FOMO will probably stay an element of the market, as per Mr. Rebellious. He further clarified that the tenaciously low degrees of lodging stock has prompted a lengthy time of solid selling conditions, as confirmed by high closeout freedom rates and negligible days on market. Nonetheless, as new postings pattern strongly higher all through spring, CoreLogic said the market may start to be more good towards purchasers. “More postings mean more decisions for purchasers and less earnestness in their buying choices,” he said. He inferred that while measurements are showing that it is as yet an economically tight market, conditions might start to be more for purchasers late in 2021 or mid-2022. “There is a decent possibility that promoted supply will rise further through spring and late-spring which, because of deteriorating lodging reasonableness and an unpretentious fixing in credit accessibility, may not be met by an equivalent lift popular,” Mr. Untamed expressed. Beam White boss business analyst Nerida Conisbee emphasized this perception. She uncovered that the extent of homes their representatives were approved to sell however have not yet hit the market has likewise risen, demonstrating that the market could see a further increase in the volume of properties available to be purchased soon. Sell off Rates Melbourne barkers were occupied all through October as the week-after-week closeout volumes rose as vendors tried to
