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About Me

Michael Budge

Current Rating: 4.77 / 5
Mortgage Broker
Bayside Finance Group
www.baysidefinance.com.au
Brighton North, Victoria
0418547337
I am a mortgage & finance broker. I specialise in lending for both residential & investment purposes. I also specialise in lending for small to medium size businesses including leasing, equipment finance, working capital finance and commercial & industrial property finance.

My Activity

answered
Q: Hi! I am considering starting a small business from home relating to a craft hobby that is starting to pick up pace. I'm still in the market research stage but I've come up against an issue that could be an instant deal breaker.

I live in a rental property. I reviewed our lease, which doesn't have any clauses preventing a home based business, but I reached out to our landlord and agent as a courtesy to make sure it wasn't going to cause any issues.

Landlord says she's happy for me to do it, thinks it's a great idea as long as I don't register an ABN – which is a bit contradictory. She is under the impression that if I register an ABN then our residential lease will automatically convert to commercial lease and she will have to pay GST on the rent she collects.
That just doesn't sound right to me. To be clear, if I proceed:
- this will not be my primary source of income
- there will be no customers coming to the home
- there is no dedicated space for the business, I have a desk and cabinet set up in the corner of my dining room
- there will be no business signage or advertising on the property

Is she right?
Thanks in advance for any advice.
A: I would have to agree with Graham. I'm no lawyer either but I can't see any requirement for your lease to change to a commercial lease. What you do in your property is your business and is nothing to do with your landlord. Providing of course you're not breaking any laws! And you keep paying your rent.

I live in an apartment building and there are a number of home-based businesses in the building. I'm not a tenant but believe that there are no grounds for your landlord having to pay GST on your rent whether you have an ABN or not.

But as Graham says, check with the ATO and your Accountant before you proceed. Better to get the right advice first than to have a nasty surprise down the track. And good luck!

Cheers,

Michael Budge
Director, Bayside Finance Group
M 0418 547337
answered
Q: A family member is a qualified chef and has moved to Australia from France and wants to start a restaurant. He has a working visa but is there any legal issues from starting his own business. Could he borrow money?
A: Hi Phillip,

Yes your relative can start up a business here in Australia. He would have to register a business name and get an ABN and possibly register for GST, all of which can be done on-line.

However, as far as borrowing is concerned, this is a different story. It could depend on the Visa Class that he has and yes it is possible to borrow money to start up but as he has no trading history in Australia, it may be difficult. And expensive. And he will need some "hurt money" ie some of his own funds to contribute.

If you can find out what Visa class he has, whether he has run a business previously, how much he wants and what it is for, I may be able to assist. Please respond to my email address with the information.

Cheers,

Michael Budge
Director
Bayside Finance group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: Hi

Submitted to 'Real Estate' page but also a 'Legal' question:

6 months ago I purchased a house off the plan. I negotiated a 5% deposit but will have to pay the remainder next month.

I recently enquired in the same development for a relative and realised that they are now selling the same property as mine for a significantly lower price, a large financial rebate, many added features thrown in for free and even a $12k gift card. Whilst it is not ideal, I'm considering the opportunity this may present. My question is - what are my legal rights in terms of selling before settlement or forfeiting the contract and then repurchasing in the same development with the new terms? If it is simply a matter of forfeiting my deposit, then I would still be significantly better off. Are there other ramifications which would stop people doing this? I take it they won't simply amend my contract.

Any advice would be much appreciated!
Dan
A: Hi Dan,

I would be consulting a lawyer regardless because I think you may have a problem when it comes to settlement. A Valuer nominated by your Lender will be aware of these incentives and will most likely value your property similar to the others in the development, ie at much lower than your original contract price. So I would be looking to re-negotiate your Contract of Sale with the developer of you will have to come up with more funds in order to settle the deal. Good luck!

Cheers,

Michael Budge
Director
Bayside Finsnce Group
M 0418 547:37
E michael@baysidefinsnce.com.au
answered
Q: Is it possible to use a deposit bond as the deposit to buy a property off the plan. Property will be completed late 2019?
A: Hi Marnie,

The short answer is yes, but the further the settlment is away, the more it costs.

If you could tell me the follwing info, I could give you an accurate cost of the bond -

- Purchase price
- Deposit Bond required
- Bond Term required
- Purchasing as an individual or through a company of a trust?
- Has your finance been approved?

If you would prefer to reply by email, please feel free to do so.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: I was just reading an article from a broker about rates dropping and thought:
What's the lowest Low Doc rate these days?
A: Graham,

We are both members of the F&C Facebook App and we have often been told by Admins of this site that these type of questions are lazy questions and are not allowed. We have all been told to enter the client's details into our CRMs and the answers will be forthcomng!

However as you are not a broker and are a sigificant contributor to that site on other matters, I presume you are talking about loans for O/O purposes. There are also Lo Doc and Alt Doc loans as some lenders call them but they are basically the same. And I certainly have not heard of them going down!

CBA have their Special Economiser Intro Rate Loan statrting at 4.29% for 3 years. 2 other 2nd tier lenders start their Lo Doc offerings at 4.54% and things go up from there to the very high 6s with some lenders. But as for going down, I doubt it. Hope this helps,

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: I have a horrible credit rating and currently unemployed but I need finance for my next venture. I have more than enough equity in my home for what I need but who or how do I go about getting a loan, who should I be looking to speak with?
A: Hi James,

A bad credit rating won't stop you getting a loan although you will be paying a higher interest rate than if you had a good credit rating. I would need to know what caused your bad credit rating becasue there are some things that can be done to improve it which will increase the chances of an application being approved.

Having equity in your property is good but you need to be able to pay the loan back. Having no income certainly will stop you getting a loan. You need to be fully employed and have passed any probationery period before a lender will consider you for a loan.

Also lenders don't look too kindly on new business ventures. Mosyt lenders require you to have had an ABN resistered for at least 2 years and be registered for GST to be considered. Some will allow one year but the application has to be very strong.

Let me know when you are employed again and we can plan out the next step. if you have any other questions, feel free to give me a call.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: Hi, we are selling our home and would like to ask what is considered a reasonable fee for a conveyancer?
A: Hi Michelle,

I think you should allow around $1500 for this service. Thereare a number of extras included in that but that's about an average. I can give you details of how it is made up if you wish.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: My husband is 36 and been in the same role for 6 years earning $97,000. I’m 34 and have had same role for 3 years and income is $82,000. We don’t have kids, credit cards or any loans and have received an inheritance of $190,000. We currently pay $800 a week rent. We would like to ask how much we could borrow and what rate could we get, thanks?
A: Hi Sharyn,

While you have given us a lot of your details, we are obliged to have a detailed discussion about your fianncial needs in order to determine your borrowing ability.

And these is not one answer to this question. Every lender has different lending criteria and calculates differently how miuch you can borrow.

If you would like to have a chat about your situation, please give me a call or email me. My contact details are below and we'll organise a time to get together to discuss things.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: With the Federal Parliament, today securing personal income tax cuts is it now time for Parliament to do the same for company and business tax cuts. Let's rally Business Australia and share your thoughts?
A: I'm not so sure. The jury is still out in my opinion. While it may stimulate some sectors of the economy including the big banks and create more jobs, it may decrease overall tax revenue. If it does, where will the savings be made to accomodate this? Or will the deficit just increase? US commentators are undecided.

https://themarketmogul.com/trumps-tax-cuts-working/
http://cepr.net/publications/op-eds-columns/are-the-trump-tax-cuts-working-and-does-anyone-care
https://www.washingtonpost.com/news/politics/wp/2018/04/20/the-tax-cuts-are-working-for-banks/?utm_term=.764108cc3743
http://www.abc.net.au/news/2018-05-08/donald-trump-corporate-tax-cuts-australia-malcolm-turnbull/9733854
answered
Q: Hi

Going to my first auction tomorrow. Whats people’s thoughts on the best strategy to take. Should we wait until it hits the reserve price before bidding?
A: Hi Rick,

There's no "best strategy" as such in my opinion. You can start when you like really. The important thing is to be the last bidder at the end. You also need to let the auctioneer know you want to buy so be confident in your bidding. If you're confident, you might frighten off other bidders! And good luck!

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: If we do some minor renovations on an investment property - about $40,000, how much of it tax deductible?
A: Hi Melissa,

As both Scott and Brendan have said, it really depends on what you do. If you are installing new applicances and doing major renovations, the capital cost of these can be depreciated over a period of time. If you are doing minor repairs, most likely the whole cost of these items can fully claimed as a tax deduction in the financial year that you complete the work.

But it's best to speak to your Accountant BEFORE you commence the work and show him what you intend to do. He will then advise you what items are claimable in the current year and what items have to be depreciated over a period of time and the net effect this will have on your income for that year.

I'm assuming that you have a mortgage on the property. If you wanted to have a free "Health Check" on your mortgage to ensure that you are not paying too much in interest, please feel free to give me a call and we'll organise a time to get together to discuss your situation.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: Our rate went from interest only to principal and interest 6 months ago and the rate is 4.19%. It seems high, what's the best rate we could get?
A: Hi Katherine,

Yes 4.19% deos seem a bit high. However, I can't answer your question without knowing your individual circumstances. One size does not fit all in this case!

I'm close to Oakleigh so if you wanted to get together and have a chat, I'm happy to assist you and once I understand your situation fully, I could offer you a choice of loan products from a number of lenders that would be well suited to your needs and at a better rate than you are currently on.

Please give me a call to set up a time.

Cheers,

Michael Budge
Director
Bayside Finance Groujp
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: Hello, I earn $120k a year and looking to buy an investment property to get into the property market.

My parents have offered to help but I have some questions as I don’t want to expose them.

If they give me 10% deposit can I borrow 90% or do they have to be on the loan?

Do they have to be on title and do they have to mortgage one of their properties?
A: Hi Sally,

It is quite ok for your parents to donate you the 10% deposit to buy an investment property and they do not have to be on the title. It may be best to have this acknowledged by a Deed of Gift or some other document if there are any other siblings. And assuming that they have the cash available, they will not have to mortgage one of their properties.

There are other criteria that you have to meet including your ability to repay the loan without undue difficulty . It may also be prudent to have a chat to your Accountant to ensure that this is a good tax effective financial strategy for you.

It is important that you have a clear understanding of how it all works so I would be happy to meet with you to explain all this to you at a mutually convenient time and place. Let me know what suits you.

Cheers,

Michael Budge
Director (and former East Malvern resident!)
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: We are looking for a short-term loan while the bank sets up our business overdraft - it's going to take another 4 weeks but we have a couple of commitments we need the funds for. Any help or advice?
A: Hi John,

How much money are we talking about? Any short term facility will cost you to set up. Are you able to borrow it from friends or family. Could be the easiest way? Or do you have any under-utilised limit on a credit card?

And what Graham said is correct. A credit inquiry for an overdraft and/or a short term funding facility will bring down your credit score. Also your OD credit provider may do another credit check just before the OD is funded. They will see the entry for the short term funding and may either have to re-assess the approval or they could pull the funding altogether which you would not want.

Let me know if I can assist further.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: Hello, I am new here. I have difficult time deciding if I should add an extension to my home. We definitely need spare room and we have found amazing architects in Melbourne (http://www.superdraft.com.au/melbourne-architectural-services) but I still don't know if this is going to pay off in the future. Any advice, experiences? Thanks
A: Hi Catherine,

Generally if you decide to add an extension it will certainly add value to your house. However, the thing you have to be wary of is that you don't over-capitalise your property and make it very expensive compared to other similar properties in your area. And therefore harder to sell in the future.

Just putting on a spare room should not do this but it is always wise to check before you proceed. Ask an Estate Agent to give you a suggested selling price for the property as it is now and show him/her your plans and ask for a suggested selling price on the finished product. And ask him to compare your property with similar homes in the area. I doubt you will be over capitalising at all.

Good Luck with the renovation.

Cheers,

Michael Budge
Direcor
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: My wife and I are quite risk adverse when it comes to investing. We are about to receive a sizeable inheritance of about $700,000 and want to ask if we should buy an investment property or put the money into super as we’re in our early 50’s and both still working?
A: Hi Rick,

You will need to speak to both an Accountant and a Financial Planner to ensure that you are able to optimise your inheritance to get the best return for your money and to also ensure that your investments are as risk averse and tax advantageous as they can be.

I know an excellent Financial Planner in Sandringham that I could recommend who will look after you. The recommendation is based on a "Trusted Adviser" basis. I have recommended him before and I do not receive any commission or payment for the recommendation. Let me know if want his details.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: We just started to get things in place to sell our unit but we have found a house we would like to make an offer. We don’t have access to funds to exchange on the property straight away so if we apply to increase our home loan from $300,000 to $800,000 could they let us use the funds to exchange?
A: Hi Mary,

Yes what you want to do is theoretically possible. However it could depend on an number of factors including the value of your current property and your ability to service the new loan.

I am located in the next suburb and would be happy to discuss the matter with you when convenient and show you your options to enable this to happen.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: We are about to start looking for a real estate agent to sell our home…. does anyone know a good agent around Elsternwick?
A: Hi Mary,

Having just been through this myself, but not in your area, I found it a difficult exercise to split agents as they were all very professional. And they can't play games with the price like they used to be able to.

There are a couple of sites which I found helpful, www.ratemyagent.com.au and www.openagent.com.au were useful. Also www.realestate.com.au has a "Find Agents" tab which could also help.

Once you've found an Agent, if you need to know how much money you can spend on your new property, I could assist there.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: Hi, we have 90k in the bank and found a house we want to buy for $710,000. The bank will lend us $639,000 but we would like to spend about $15-20,000 as soon as we move in. Is it possible to get a loan with only 5% deposit and cover the stamp duty. My income is $82,000 and my wife is $75,000, thanks?
A: Hi Eddie,

As other respondents have indicated, is is most likely possible to do what you want to do and keep some money aside for renovations etc when you move into your new property. However, as you will now be borrowing more, the cost of your Lender's Mortgage Insurance (LMI) will rise.

The most important think to do is for me to meet with you and to obtain a more complete understanding of your financial situation. I would then be in a position to make recommendations as to which lenders would be most suited to you and be able to discuss with you how this could work. One thing that any broker can offer you is a choice of lenders whereas your existing bank can only offer you one product - theirs!

Let me know if you want to take this further and we'll set up a time to get together.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 54 7337
E michael@baysidefinance.com.au
answered
Q: My partner and I have been discussing buying a new home. We currently live in my home which is worth about $750,000 and the home loan is $310,000. If I didn’t sell my place can we use the equity as a deposit in a new home and does that mean my loan would become an investment loan if we rented it out? The home we are looking is around $1.1M, would there be enough equity in my place to pay a deposit?
A: Hi Mason,

You certainly have plenty of equity in your property to enable you to purchase another property. The figures as shown in a previous answer above are approximately correct in that you would end up with a mortgage on the new property of around $873,000. We would need to determine whether you can afford this new loan and I would need to meet with you to obtain a complete picture of your financial situation before recommending any suitable lenders for this purpose. You would also be able use the rental income from your existing property to help with the mortgage payments.

You would also need to have a discussion with your Accountant to ensure that your arrangements are structured correctly in order to minimise any future liabilities such as Capital Gains Tax etc.

Whenever you are ready, I would be happy to meet with you to explore your options.

Cheers,

Michael Budge
Director
Bayside Finance Group
M: 0418 547337
E: michael@baysidefinance.com.au
answered
Q: Hi, my wife has just had a baby and will be off work for 12 months and we would like to get some advice on lowering our home loan payments. The loan is $420,000 and we currently pay $520 a week… the rate is 4.07%. I work full time as a contractor and earn between $1700 and $2,000 a week. Could we refinance or are there other options?
A: Hi Paul,

It's hard to advise exactly what to do without knowing a little more about your situation. However in general you could -

1) Ask you lender for a repayment holiday. The actual holiday period would vary from lender to lender and depend on your exact circumstances.
2) Switch from Principal & Interest repayments to Interest Only repayments, although lenders frown on Interest Only repayments for Owner Occupied loans these days but they would look favourably on a request from you given your circumstances. The actual Interest Rate you pay for this type of loan (as opposed to the actual repayment) may be higher than what you are currently paying on the loan now.
3) If you have any funds in an Offset account or in a Re-draw if you are ahead on your loan payments, you could use these funds to make your mortgage payments in the short term.

I would discuss it with your existing lender and I'm sure they will have some solutions to offer you. If you wanted to have a chat first before you do this, please don't hesitate to give me a call.

Cheers,

Michael Budge
Director
Bayside Finance group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: Hi - I am a permanent resident in Australia and I live and work in Melbourne. I pay around $2,000 every months towards a land purchase mortgage. Please advise if that is a tax deductible expense?
A: Hi Sahar,

It depends on what the purpose of the land purchase is. If is is for you to build a house and and live in it as your own property, which I suspect it is, then no, payments are not tax deductible.

If you intend to use it for investment purposes, I'm not an Accountant so I'm not qualified to give this advice but I doubt that you could claim it as a deduction until there was a house built on the property. You should speak to your Accountant to confirm this.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: Hi - I am a permanent resident in Australia and I live and work in Melbourne. I pay around $2,000 every months towards a land purchase mortgage. Please advise if that is a tax deductible expense?
A: Hi Sahar,

It depends on what the purpose of the land purchase is. If is is for you to build a house and and live in it as your own property, which I suspect it is, then no, payments are not tax deductible.

If you intend to use it for investment purposes, I'm not an Accountant so I'm not qualified to give this advice but I doubt that you could claim it as a deduction until there was a house built on the property. You should speak to your Accountant to confirm this.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: Hi, my wife and I have committed to paying an additional $300.00 a week off our home loan this year. Are we better to pay $300 every Monday or set up a direct debit for the 1st of each month for $1200?
A: Hi Craig,

As interest is calculated daily but charged monthly, you are definitely better off making regular payments, ie on a weekly basis.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: Hello every one,
I have a 15 Acre hobby farm in Diggers Rest Vic. My tenant has offered to buy the property but needs a 12 month settlement, I know the standard is 3 months, but was wondering if it's legal to accept a 10% Deposit and balance in 12 months? Any advice is appreciated. Thank you.
A: Hi Hass,

That's wise advice from Scott Howell. It's definitely legal to have a 12 month settlement but I would be wanting to understand why the purchaser wants such a long settlement. You could ask him to get a Pre-Approval from his bank first. Pre-Approvals do lapse after 3 months but provided the client's circumstances do not change, ie getting a new job or taking on more credit facilities such as buying a car on finance or getting a new credit card or having another child, they can be renewed relatively easily. You definitely need a properly drawn up Contract of Sale done by a Solicitor. You need to be protected if it all goes "pear shaped' at any time during the 12 months.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: First home buyers with 2 kids, 4 and 2. No debts, no credit cards and have been paying $620pw in rent. We have just inherited some money and want to see if we can borrow around $700,000. My income is $132k plus super and my wife is looking to go back to work mid-2018. Could we do this?
A: Hi Mitch,

Thanks for the question. According to the information you have provided, borrowing $700k is certainly possible based on your disclosed salary. However, I am required to ascertain some further information about your situation in order to obtain a more accurate assessment of your borrowing capability. This could include how much you have inherited, how long you have had the funds in your own bank account, what your living expenses are, what your wife's income will be when she returns to work and whether you foresee any changes to your financial circumstances in the future.

I have a wide range of lenders to choose from (over 30!) and would be happy to have an initial chat with you to ascertain this information and I could then present to you some loan products from lenders who could assist you.

Please call me on 0418 547337 or search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I look forward to being able to assist you.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: Re mortgage/lending criteria - specifically job stability.

Hubby & I have almost reached our deposit goal, but in the mean time a job opportunity has come up for me. I've worked for my current employer for 18 months - will moving on so soon count against me when we apply for a mortgage?

My previous work history is stable (6yrs for last employer, 7yrs for the one before that) & potential new job will bring only a small salary increase.

Thanks!
A: Hi there,

Most lenders will look at your previous employment and if your new job is a similar role to your previous one, and in a similar industry, you shouldn't have too much trouble.

However it can depend on what your new Offer of Employment says. If there is a 3 month (sometimes this can be 6 months) Probation clause in the letter, some Lenders may make you wait. However, you could use this time to save a bit more towards your deposit. And the more you have saved, the less you have to borrow!

I'm not sure if you have approached any lenders yet. If you haven't, please contact me on 0418.547337 or email me on michael@baysidefinance.com.au. Alternatively search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to discuss your situation with you and give you a number of lender options to consider rather than just going to your bank.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: We would like to extend the interest-only period on our home loan but our lender is now saying due to recent changes to the way they calculate how much we can borrow they won’t approve the extension.
The loan is $650,000 and the property would be valued at $800,000. Do all lenders use the same calculation process and will that stop us from refinancing?
A: Hi Katherine,

Different lenders have different lending criteria and what one is willing to consider, another may not. It's important to understand your reasons for wanting to have an interest Only loan and I'd be happy to have a discussion about this with you and give you some options. APRA (Aust Prudential Regulatory Authority) has tightened the rules for Interest Only lending recently and all lenders are affected by this. Interest Only lending for owner Occupied purposes is frowned upon now.

If you want to discuss what options are available, please give me a call on 0418.547337 or search for me through the "Industry Experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to provide you with some quotes after haveing a chat with you.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: I have 3 investment properties, about $1.2m in value and loan of $700k. The rate on the loan is 4.35% and was up as principal and interest. Is the rate too high and should we look to change the loan to interest only?
A: Hi Melissa,

As my colleagues have said, Interest Only Rates are nearly as high as Principal & Interest Rates these days and any change, even with the same lender wold almost certainly require a full assessment just like applying for a new loan.

If you wanted to explore your options, I'm local to you and can be contacted on 0418,547337 or my full contact details are in the "Industry experts" tab. Just click on my business name under "Name of Business" and all my contact details are there. I would be happy to provide you with some options to consider.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: How difficult is it selling a commercial property in another state, NSW when I live in VIC?
A: Hi Leonora.

It doesn't matter where the property is. The important thing is to get a good commercial property agent who will market the property well and get the best priced for you.

I had a NZ resident who owned a commercial property in Melbourne who asked me recently to recommend him an agent to sell his property. I gave him a choice of 3 and he interviewed them all, chose one and the property was sold for a record price for the area at the time.

So do your homework and find a good agent. And Good Luck!

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
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: Hi Josie,

On the surface, it sounds like it would be fine but as a broker, I'm required to spend time with you and obtain a complete understanding of your situation including what you earn and what you spend to determine if the loan is affordable and then offer you a choice of appropriate lenders and products.

I'm not too far form you so if you would like to go through this process with me and satisfy yourself that you can afford it, I'm happy to do come to you and work through it with you. I haven’t put my contact details in the email because they will be redacted. Please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to spend some time with you.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: Had a few credit issues… is there a minimum credit score you can have and still qualify for a home loan?
A: Hi Leigh,

I feel quite confident that you could get a home loan for yourself. There are some lenders who do not credit score and there are also others that will look at people with defaults etc.

There are also specialists the can "clean up" your credit file and remove any problem entries depending on the circumstances.

I specialise in lending in difficult situations so if you wanted to have a chat at some stage, I would be happy to do so.

I haven’t put my contact details in the email because the will be redacted so please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to assist you. And I'm not too far away from you!

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: I am expecting to receive $500,000 from TPD due to illness
I also have $300,000 in Super
I am only 54yrs and my preservation age is 58yrs
My question is how to minimise the tax on the 500k
Do I transfer to super (concerned with the contributions Cap or only make a partial withdrawal
Could you please explain the options ?thanks
A: Hi Mike,

I'm not a Financial Planner, I'm a Mortgage Broker but if you would like to ask George Hlawaty from Vista Financial Group on 03 9598 8002 I'm certain he could answer these questions for you.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: My partner and I are separating and I'd like to know if it is possible to freeze our redraw account until our house is sold?
A: Hi Anita,

This can be done but you would have to speak to your Bank. However, assuming that both of you are signatories, you would both have to agree to this and both would have to sign the authority.

If you are both unable to agree with this and you are worried that some un-agreed to withdrawals may occur, as one who has been through this before, I would be speaking to your solicitor and I think you will find that these can be taken into account at the final settlement and debited against the other party's share of the mortgage and not yours.

Hope this helps.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: Hi - question about a home loan – how do you know if a mortgage broker if offering us the best loan… why just mention ANZ and Westpac, how long should we have to wait for approval?
A: Hi Tony,

All mortgage brokers have software which should select the best loan for you based on your situation which you would have outlined to the broker. If you are not certain that you have the best loan, it may be best to get a 2nd opinion.

And as far as getting an approval, it depends on whether it is a Pre-Approval so you can go house-hunting or whether it's a Full Approval when you have found a property. If it's a Pre-Approval, it should only be 3-5 days depending on the Lender workload. if it's a Full Approval, you can add another 2-3 days to that at least because a Valuation of the property will need to be completed.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: I am about to setup a Pty Ltd company (July 2017) and would like to know if my company can pay my residential rent. I can't seem to find anything online / ATO re this ?
A: Hi Brad,

As far as I'm aware, the responses you have received so far are all "on the money" but there one other thing you should also consider.

I'm no Accountant either, but if you're going in to business, you should have a good Accountant or at least a Bookkeeper to ensure that your company is set up correctly, etc. and you are complying with all the rules and regulations you need to. Best you ask around to find someone local that others have recommended and who can confirm the answers to this question that you have already received.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: Can we split our home loan into 2 accounts... one as principal and interest and the other interest only. Can the interest rate be the same for both as the advice we have received is a little confusing... some say we can and other say the rates will be different?
A: Hi Stuart,

All lenders these days have increased their Interest Only Rates at the urging of the regulator APRA to try to put the brakes on Investment lending. APRA guidelines now suggest that Lenders should keep the Interest Only loans to no more than 30% of their total lending so different lenders will tweak their offerings differently depending on the situation with the total loan book.

I'm not sure how long you have had your current loan but it should have been explained to you at the start the reasons why you couldn't have the same rate. Some lenders have smaller differentials that others. The best you will get is around 0.15% between the 2 rates.

I haven’t put my contact details in the email because the will be redacted. If you want to explore your options, please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to provide you with some quotes.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: I am going back and forth about whether to register a business (sole trader or partnership) vs registering a company. We are startup creative production house (up to now we've been making student films and personal independent projects) and given the nature of industry (creative arts - music/film/tv), I am sure we are going to run at a loss. Having said that I want to protect myself and team within the business. What is your suggestion or recommendations?
A: Hi Charah,

It depends on what you mean by "protection". If you are looking fore the best structure to protect your personal assets, you are best to speak to your Accountant about that. He/she is best qualified to advise you.

If you are talking about insurance protection, there are many types of protection you can have, ie income protection, loss of profits, building insurance, key man insurance etc. I'm not an expert in any of these fields but can certainly recommend people who could help you with the information you seek, depending on your objectives.

I haven’t put my contact details in the email because the will be redacted. If you wanted some further assistance, please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: Thinking of refinancing my loan from cba to loans.com.au. Big interest rate savings- worked out that I would recoup refinancing costs in 7 months. What are your opinions of loans.com.au? Any negative press I should be aware of?
A: Hi Michael,

Great name that!

I haven't heard of loans.com.au but from my research, they are a Queensland based organisation that uses smart technology to attract clients.

While I'm sure that they have examined your current situation and make proper recommendations, I have done some calculations and while there are some mandatory charges that apply to changing a mortgage, ie State Revenue Office registration charges, Discharge fees, etc, I would assume that there is a Lender Application fee in there too and there are many lenders that do not charge this fee and I'm not sure if you have looked at any of those. And the important thing is to make sure that the loan features you want are included in the new loan and that the interest rate is better than you have now and that you are able to pay the loan off quickly.

If you would like a 2nd (local) opinion I wold be happy to meet with you and make some other recommendations. I haven’t put my contact details in the email because the will be redacted. Please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there.

Cheers,

Michael Budge
Director
Bayside Finance group
answered
Q: We are looking at buying a home and living in it for now. We will basically have no mortgage on the property. In afew years time we will look at renting that property and moving to another. Is there a way to set this up so that we transfer the money from one property to the other to maximize negative gearing?
A: Hi Sarah,

As the others have said, the purpose for which you initially borrow the funds is the important thing and you can't suddenly switch horses mid race.

However if you do have an offset account with your original loan and can draw money out of that when you want to purchase your investment property, that may be a suitable structure.

Your accountant is the most qualified to advise you on this and you should discuss the best structure with him or her before you purchase so that your transition to an investment property is a smooth one.

If you wanted to discuss this further, please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to assist you.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: I have a fairly new car that I purchased 18 months ago and currently have a payout figure on my secured personal loan of $27k.
This is about $10 500 more than the car is currently worth if I sell it privately.

I would like to buy a cheaper car (around $10-12k) and sell my car. This means that I'll need a loan of roughly $22 000.

Should I apply for another person loan to cover this and sell my car? Any advice appreciated.
Kate
A: Hi Kate,

Any loan is secured by the asset it is financing and in your proposed case, you want a loan for $22,000 and the asset (the new car) is only worth $10-12,000 so there is a lot of negative equity in the deal. A lender will always have in the back of their mind "what happens if something goes wrong" and you can't afford to make the repayments. Then you owe $22k and the car is only worth $10k so the lender is out of pocket! Sometimes small amounts of negative equity can be financed but you are asking the lender to finance almost double the value of the car so you can see why a lender would be wary.

All applications are treated on their merits and a decision is made on a case by case basis. As I don't know a lot about your situation, I can't really say whether an application would succeed or not. If you would like to discuss this further, I can't put my contact details in the email because it will be redacted but If you wanted to talk further, please search for me through the "Industry experts" tab and search for my business name under "Name of Business" and all my contact details are there. I would be happy to talk to you.

Cheers,

Michael Budge
Bayside Finance Group
answered
Q: I have a fairly new car that I purchased 18 months ago and currently have a payout figure on my secured personal loan of $27k.
This is about $10 500 more than the car is currently worth if I sell it privately.

I would like to buy a cheaper car (around $10-12k) and sell my car. This means that I'll need a loan of roughly $22 000.

Should I apply for another person loan to cover this and sell my car? Any advice appreciated.
Kate
A: Hi Kate,

It's probably not worth doing. You have a shortfall on your current loan of $10,500 and you will end up in more or less the same position with the new car, and you will have a car worth less than the current car and probably an older car which may not be as mechanically reliable as the first one. And a new lender may not be keen on financing around $10,000 of negative equity in the new car!

If you wanted to talk more about this, please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to discuss it further.

Cheers,

Michael Budge
Bayside Finance Group
answered
Q: We have had the DA and loan approved to complete our renovations but I just been offered a redundancy package at work. If I do accept the package will it have an impact on the loan approval?
A: Hi Gary,

If you have not already signed the mortgage documents, a lender may do another employment check and in which case, you could be in trouble. However, if the loan has been approved, it is unlikely that they would do another check. But perhaps you should speak first with the Broker who initially organised your loan and he/she could advise you what to do.

While you are about to receive a redundancy package and may be able to make payments in the short term, you would need to be reasonably certain that you can find employment quickly so that you can meet your obligations under the loan without significant financial hardship.

You should also talk to a Financial Planner as you will be in receipt of a large amount of money and you would need to be fully informed about any tax implications and choices about what to do with the money.

If you wanted some further advice, please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to assist.

Cheers,

Michael Budge
Bayside Finance Group
answered
Q: We’re first home buyers and would like to ask if the benefits announced in the budget apply to buying an investment property as our first property or do we have to live in it?
A: Hi Sally,

All the info released in the State Budget and the Federal Govt Budget apply to First Home Buyers only. You would have to live in the property for 12 months. Here's a brief summary of the pertinent State Govt info.

1) Land transfer duty (commonly known as stamp duty) to be abolished for first-home buyers purchasing a property up to $600,000, and a duty concession for first-home purchases valued between $601,000 and $750,000
Applies to contracts entered into from 1 July 2017
2) $20,000 FHOG to be available for homes built in regional Victoria up to $750,000
Applies to contracts entered into from 1 July 2017 to 30 June 2020

If you wanted some further information, please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to have a chat with you.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: What are the major benefits of an offset bank account (if any) for first home buyers? Is this more beneficial for those with older loans.
A: Hi Teya,

Any loan should have an offset account . It's like having a savings account linked to your mortgage. Instead of receiving interest on the savings account, and paying tax on the interest, the interest payment due on the loan is calculated only on the net balance of the loan less what is in the savings account. So it can reduce the amount of interest you need to pay on your mortgage. For example, if your mortgage was $100,000 and you had $10,000 in your Offset account, you would be paying interest only on $90,000.

If you wanted some more information, please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to answer any further questions.

Cheers,

Michael Budge
Director
Bayside Finance Group
answered
Q: Hello,
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)
Thanks
A: Hi Steven,

I would say that your Accountant is the correct person to ask these questions of. I'm not licensed to give financial advice and he/she is.

However, in general, a lease is a little cheaper than a Chattel Mortgage in terms of the set up costs but the rates are generally the same. Also, I would have thought that you are better to purchase the vehicle in your business name because you can write the costs off against your business income. But again, I would definitely be speaking to your Accountant first. there is no substitute for getting the correct advice first.

Once you have determined what is the best structure for your circumstances, if you wanted some quotes from different lenders, please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to provide you with some quotes.

Thanks,

Michael Budge
Director
Bayside Finance Group
answered
Q: I have a rental property. The tenant has passed away. My real estate took it upon themselves to clear out the rubbish the tenant had left and cleaning the back yard without my knowledge. After 8 weeks I find out I owe tradies $2300. Why was I not shown or told of the mess by the AGENT and allowed to inspect for myself? Are the Agents trying to hide something. What are my rights as a landlord?
A: Hi Suzanne,

I'm not an agent but have owned a few properties in my time which have been rented. There would be a clause in the agreement with your agent that allows them to spend up to a certain specified amount on emergency repairs without consulting you. This amount might be say $500 and would be for things like plumbing or electrical emergencies, etc. However, for the agent to spend $2,300 without consulting you is wrong. If the tenant has left this mess, then it's the tenant's responsibility to pay to have it cleaned up. This is what the tenant pays a Bond for. I hope the agent hasn't given the tenant the Bond back because the majority of the cost should come out of this money. Regardless of this, I believe your agent has exceeded their authority in this case and should have consulted you first. If there is any additional cost, I think it's the agent's responsibility. In my opinion, even though you own the property, you can't be liable for the cost if you haven't given your prior approval. Needless to say, you won't be using that agent to rent the property out again!

Cheers,

Michael Budge
Bayside Finance Group
M 0418 54 7337
E michael@baysidefinance.com.au
answered
Q: i run my own business. I like cars and they are my golf membership! I buy 2-3 year old models and follow trade prices. i sell well & typically get close to what i paid (if not more) 12-18 months. have high deposits, 4-5 years & 40% residual. Extinguish within 18 mths. Use chattel mortgage. seeking a 2007-9 car, what options might exist for a little older car?
A: Hi Rohan,

Generally cars being financed can be no older than 9 years at the end of term, ie you could lease a 2010 car over 2 years which means it would be 9 years old at the end of the lease. Some lenders will look at older cars too however the payments are loaded because of the age of the car.

Let me know if I can assist you further.

Michael Budge
E michael@baysidefinance.com.au
M 0418 547337
answered
Q: Hi, I have a credit card debt of over $3000, and I'm studying a course where I have three more payments to make of around $500 each month. I've just relocated and my income has dropped significantly and I've almoat run out of cash totally and need to buy food. I'm a bit freaked out as i need to use my card for that too now
I don't want to ask family to lend me money. Any suggestions welcome?
A: Are you receiving Centrelink benefits? You can ask them for a loan but I'm not sure if it will be enough for you. But you won't know unless you ask.

See also http://simplelivingaustralia.com.au/loans-people-centrelink-newstart/ and http://goodshepherdmicrofinance.org.au/?gclid=Cj0KEQjwhpnGBRDKpY-My9rdutABEiQAWNcslI_RcmXdKB-5uuciQbx4RYhdbRhIP4845hdNiGtQsHAaAtyH8P8HAQ

And I would not be ashamed of asking your family for money. You may be finished your course soon, can get a job and pay them back. The $1500 is an investment in your future. Good Luck!

Michael
answered
Q: I am using a how much can I borrow calculator and want to know if I can include commissions and superannuation as income?
A: Hi Seb,

Super - No
Commissions - generally you have to show 2 years of commission earning before they can be counted but some lenders will allow s shorter time. Best to have a chat to a broker who can tell you whic lenders best suit your circumstances.

Cheers,

Michael Budge
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au
answered
Q: I am thinking of fixing my home loan. I understand there can be breakage fees if you refinance during the period. What if I want to sell and buy another home do the breakage fees apply or is the loan transferable to the next property?
A: Generally speaking yes, your loan would be transferable to another security property but it depends on whether the particular lender offers what is calked "portability" which is the ability to transfer the loan from one security property to another. And the settlement dates need to coincide, i.e. Both on the .same day. Otherwise it can't be done & you have to pay the break fees associated with the original loan. Best ask your lender.

Cheers,

Michael Budge
Bayside Finance Group
M *** ****
E **@****
answered
Q: I'd like to start my own business building furniture.

While I have the majority of the tooling required, to do it properly, i'd need to upgrade some of it, issue is i don't have the capital to do so.

Is a business loan the best option here? or would a personal loan be better given the total required would be under 10k?
A: Hi Matt,

You're best to get a Personal Loan in this case. You would be most unlikely to get a business loan, even for a small amount as you probably don't have an ABN at this stage. You can keep it separate for tax purposes as it is for the business.

Let me know if I can assist further.

Cheers,

Michael Budge
Bayside Finance Group
M 0418 547337 T 1300 547337
E michael@baysidefinance.com.au
answered
Q: I am a fit, female 61yrs living alone, paying $1500 rent a month and fully employed.
Am I able to buy a place of my own?
All my money is in VicSuper
A: Hi Toni,

As my fellow broker Dien has pointed out, the answer is certainly yes but there are a number of factors to be considered including how much you want to borrow, how much is in your Super, and your ability and desire to continue working past what is considered the current retirement age, etc.

You may also like to have a chat with a Financial Planner to determine how to make the best use of your financial resources and how purchasing a property would fit in with the overall financial situation. If you don't have one, I can certainly recommend one in your area.

If you want to have a chat about how you could own a property and pay it off before retirement, my contact details are below and I'd be happy to have a no-obligation chat at any time.

Cheers,

Michael Budge
Bayside Finance Group
M 0418 54 7337 T 1300 54 7337
E michael@baysidefinance.com.au
answered
Q: Is there an easy way for businesses to obtain quick short term finance (1 to 2 months) to cover working capital shortfalls?
A: Hi Michael,

There are a number of lenders that will assist you with this type of finance but which is bet for you will depend on your circumstances and your particular needs.

I'm happy to assist if you wish to take this further but we'll need to have a chat first about your situation. Please feel free to call or email me using my details below.

Cheers,

Michael Budge
Bayside Finance Group
M 0418 54 7337 T 1300 54 7337
E michael@baysidefinance.com.au
answered
Q: Our home loan was fixed for 3 years and we have 12 months to go. I called our bank to check in on their current fixed rate options and they offered a lower fixed rate for another 3 years but they want to charge us a penalty for breaking our fixed rate loan. Is this normal process?
A: Hi Alex,

Yes it is unfortunately. The bank ties up the funds for the nominated period and expects a certain return on those funds for that time. The way they work it out is complicated and I can't explain it but the "Break Fee" as it may be called is basically the interest that the Bank is missing out on for the remaining part of the original term, ie if you initially wanted a 3 year fixed term and have had the loan for 2 years, you are paying the remaining 1 year's interest that the Bank would normally receive, plus other costs. Hope that explains it. It's one of the disadvantages of a fixed loan. So unless there is a compelling reason for getting out of the loan, ie you have to sell the house, you are stuck with the loan for another 12 months. Once that has expired, it will generally revert to the Standard Variable Rate unless you can negotiate a better deal with your existing bank, or with another lender.

Cheers,

Michael Budge
Bayside Finance Group
E michael@baysidefinance.com.au
M 0418 54 7337 T 1300 54 7337
answered
Q: What is the best way to track down some lost superannuation?
A: Hi Michelle,

A simple Google search will give you a number of alternatives but this is probably the best.
https://www.ato.gov.au/forms/searching-for-lost-super/

Cheers,

Michael
answered
Q: The new super rules are confusing. I have around 500K in super now, am 54 years old. What should I do next?
A: The only thing to do is talk to a Financial Planner. If you don't have one, I can recommend a very good one who is local to you.
answered
Q: Are there any circumstances where I could get access to some of my super before retirement?
A: Hi Robyn, this link may help with the answer to your question.
http://www.moneyhelp.org.au/your-debt-options/early-access-to-superannuation/
Michael Budge
Bayside Finance Group
M 0418547337
E michael@baysidefinance.com.au
answered
Q: I am a small business owner. I need a cash injection of about 20k to expand my business? What is the best way of doing this, redraw on my home loan? Take out a new business loan? What are the various costs and implications? Thxs
A: Hi Stephanie, I can organise a loan that will allow you to borrow against the written down value of any assets in your business. Financials are not required and it can all be done in a few days. Give me a call if you need to know more. Repayments on $20K over 3 years would be approx $700 per month. Cheers Michael