Archives for May 2017

What can you do about it? You can't be in a strong position financially without solid foundations in place.  It all starts with your home loan. Following the budget announcement early in May, the Big Bank Tax has received significant attention in the media. And rightly so, because it could see the biggest banks raise up to $6 billion over the next four years, if the forecasts are accurate (something which has been hotly debated). Whilst the major lenders hit back early in strong … [Read more...]

If you’ve been searching for a new set of wheels lately, you’ve probably come across the promise of greener pastures, a brighter future or something otherwise described as, the most amazing deal ever - "0% Vehicle Finance." Let's have a closer look to see just how amazing the deal is... So you’re out shopping for a new car. The price tag says $42,000. And right along side it, there's a big sticker plastered across the front window that reads - “0% Finance Available – Just Ask!” That … [Read more...]

Whilst it has long been a popular strategy for investors, there used to be a strong argument for borrowers to select Interest Only repayments on their owner occupied loans as well. Making Interest Only repayments on your owner occupier loan provides additional flexibility. It allows you to preserve your debt for future deductibility purposes - which is helpful if you want to rent your home as an investment later on. And, you can still reduce your net debt by building up funds in a linked … [Read more...]

If you own property - or want to own property - here are the key May budget announcements that may have an impact on you: The First Home Super Saver Scheme From 1 July 2017, individuals can make voluntary contributions of up to $15,000 per year and $30,000 in total, to their superannuation account to purchase a first home. These contributions, which are taxed at 15 per cent, along with deemed earnings, can be withdrawn for a deposit. Withdrawals will be taxed at marginal tax rates less a … [Read more...]

At the RBA Meeting held today 2 May 2017, the Board decided to leave the cash rate unchanged at 1.50 per cent.  Here's the statement issued by Phillip Lowe, Governor: Monetary Policy Decision.  The Bank’s forecasts for the Australian economy are little changed. Growth is expected to increase gradually over the next couple of years to a little above 3 per cent. The economy is continuing its transition following the end of the mining investment boom, with the drag from the decline in mining … [Read more...]