Welcome to intouch Finance Mornington
How to pay off your credit card more quickly
The ease of which we can obtain credit these days means that many consumers have multiple credit cards.
I am not here to judge whether it is necessary to have more than one credit card but ...
What is Lenders Mortgage Insurance
The money you need to buy a property
How lenders calculate how much you can borrow
Q: Hi, would like to ask if anyone would be happy to recommend a Real Estate Agent in Mornington?
A: 2 -
Janice Dunn Real Estate - she works very hard to obtain the best price. 0402 285 698
Paul Williams - a very hard working agent. 0488 777 742
Q: I am 62 and looking at retiring in the next few years. I'm finding it really hard to get simple questions answered about my superannuation, tax, etc. My needs are simple - no assets (except Super), no debt and I'm not interested in investing outside super - I need financial advice but hate being 'schmoozed' - slick powerpoint presentations, glossy folders, expensive service, etc. I want simple straightforward financial advice. Where can I get it in Melbourne?
A: Shane Casey, Eclipse Financial Management Mornington. I worked (co-rented) an office with him for 4 years. top bloke, top business, completely customer focused. 0431 164 691. I still refer all of my customers to him, even though we don't share an office anymore.
Q: Hi, I’ve been reading a lot Bitcoin trying to get an understanding of how it works but it’s still a mystery. Can I ask how others understand it, why is there so much talk about it, is it a fad or is it real and the future? Thanks
A: First question, what is Bitcoin? Here is great book by the brother of one of my mates that explains Bitcoin in basic terms. https://www.independentreserve.com/Education/Book I really suggest you read this first - before doing anything.
The book describes that Bitcoin is like what today's currency is, to what emails were like when they wee first introduced to replacing handwritten/typed letter. In is a really simple and good analogy. The technology behind Bitcoin (Blockchain) is the major attraction to many industries. Bitcoin investing is like any other investment, it has risk. The recent returns have been fantastic but like any investing - there is no crystal ball.
Investing in Bitcoin itself is fairly basic, you need to open an account with someone like Independent Reserve, which does require a formalised indentification process and then you transfer $AUD into the account and buy as much or as little Bitcoin (BTC) that you like. I believe their minimum may be $100. You don't have to buy a Single BTC, you can just invest money amounts. I believe there are limits on the amount you can transfer into your account on a daily basis of $5,000, but this may have changed.
Like investing, there are other options, including other Cyrpto Currencies to invest in and many tools to use, with buy and sell margins. Another option may be to investigate something like USI Tech which is involved in other aspects of the cryptocurrency market.
I hope this assists with answering your questions and if I can assist with any other questions or information, please ask.
Q: Im 30 and work in a secure full time permanent role as a HR Manager.
I have $60,000 deposit and have found a place that ticks all my boxes for $520,000
My monthly salary is $5377
Repayments would be $514 a week approx
I have no other depts or loans.
Should I take the plunge and buy or keep saving.
The place is two bedroom, close to a train station 300 metres from the beach in Aspendale Vic.
Are those repayments sustainable for a person on a single income?
A: Whether or not the repayment is sustainable is something you need to decide. Compare it to your current rental payment (if you are paying rent) If it is lower than the rent you are paying and the current rental payment is affordable, then the answer is probably yes. If the proposed loan repayment is higher than what you are paying in rent and the difference between what you are paying in rent and what the proposed loan repayment will be, is not a figure that you can afford to make, then the answer is no.
I'm a small business owner / sole director about to purchase a $50k vehicle for business purposes. I will be driving approx. 10,000 business kilometers per year across the 5 year finance contract.
I have two questions relating to tax implications:
1. Should I go Chattel Mortgage or Lease?
2. Should I purchase vehicle through my company or my own name (both business finance)
A: Great question for your Accountant to answer, depending on your individual circumstances. But once you have the answer I can assist with a large number of lenders who can offer competitive finance, no matter which option the Accountant advises.
Q: Have you recently bought your own business premises and stopped renting? Looking for a case study to feature in the Australian Financial Review. Must be willing to pose for a photo and talk about the how and why of their investment.
Contact me at email@example.com
A: Hi Larry, happy to answer this question for you. I have been self employed in the finance business for 15 years, renting a shop front for 9 years and then renting office space within a Financial Planning business for 4 years. About 16 months ago, the company I was sharing the office with wanted to expand and needed the extra office space back. They were lovely people and went about it in a nice way, but the end result was disruption to my own business and having to locate a suitable office space in a reasonable time frame at an affordable price is never easy.
Fortunately we decided to think outside the square and purchased an almost brand new factory in the same suburb. After recently diversifying our finance business to include commercial and equipment finance, it actually seemed like a smart thing to do - move our business into the area where we were hoping to expand into. A few small changes to the office area of the factory were all that were needed to make it a nice new office. We then located some tenants who were happy to share the entry point, but had access to the warehouse area and their own office area upstairs. We found ourselves as Masters of our own Destiny again without the stress of having landlords who controlled what we did or having to sign a long term lease.
Our net out of pocket expense for the factory is less than what we would have paid in rent and we now also have an appreciating asset to help with our retirement strategy in the future.
From a lending point of view, Commercial Lenders have a credit appetite for owner occupied Commercial Properties and with interest rates not far from standard variable home loan rates, it is a option many self employed business owners should start to consider.
Q: Why is it that I could get about a 0.50% lower rate on my home loan with my bank if I was a new customer? Shouldn't existing customers be getting a lower rate for loyalty? Is this just happening at my bank or with other banks as well? Seems unfair!
A: Mostly it has to do with the cost of funds that the lender used, when the original loan was written. If lenders can obtain new funds at a lower rate they may pass on the lower rate to new customers and offer the new customers a lower rate on the home loan. Other lenders will just use the cheaper cost of funds to make a bigger profit. Because the margins are already in place for existing customers, there is a point at which they can be lowered to, then they become a loss.
It will also depend on many lenders appetite. Lenders may find that their volumes have dropped below expectations, so they offer cheaper rates to acquire more customers, quite often this is almost a loss leader, but the lenders hope to make up the profit by cross selling insurance and other products. This option is reserved for lenders who keep a larger profit margin in their loans.
The recent rise in investment rates may assist owner occupiers obtain cheaper rates, while one goes up, the potential for the other is to go down marginally.
I hope this helps.
Q: Are there any circumstances where I could get access to some of my super before retirement?
A: In some circumstances in can be accessed to prevent the immediate repossession of your house by a bank. If this is your position then you need to speak to either your super fund or a Financial Planner. If you need access for some other reason then there could be a lending option. Regards Peter Ritchie at intouch finance Mornington.
Q: Who has the most competitive home loan rate in Australia currently??
A: As a Mortgage Msnager we can offer a home loan at 3.62% (comparison rate 3.67%) with a 100% Offset Account - BUT more importantly there is NO annual or monthly fees. And you get your own contact person to help you through the application process and onwards after settlement. Please contact me if you would like to know more. Kind regards Peter Ritchie.
Q: We want to use our Super to purchase Land and we don't have enough in Super, can we use what we have for a deposit?
A: You can borrow in a Super Find to make up the difference but it will depend on the use of the land whether you can actually purchase the land in a SMSF. Ifi it is a large acreage or rural property there may be restrictions on the loan to value ratio. Please call if you require further information or for a referral to a Financial Planner.
Q: I wish to finance a number of commercial solar installations at client premises. I will own them and make revenue from a service agreement with the clients over a 10 year period. What are my best options for financing?
A: I am presently working with a couple of Solar Power providers and we have access to a specific Energy Equipment Finance option over a 5 year term with or without a balloon payment. Cash flow modeling has proved positive in each scenario we have tested. Please call me on 0417 590 553 to discuss further. Kind regards Peter Ritchie.