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Refinancing Is The Best Way To Get Out Of A Debt Trap

The popularity of credit cards in Australia has become very high. Every other individual is running a huge balance in his credit card and paying only the interest part to the credit card company to escape from being penalized. Of you are a victim of your reckless spending without keeping in mind your repaying abilities, you have no one else but yourself to blame. Credit card companies are baying for your blood and you do not know what to do to somehow get over the debt trap that you find yourself in.

Look for a respectable private lender to get over your financial woes

As you have not been making timely payments for the money that you used from credit card companies, you have a bad credit history and thus there is n question of asking for help from a bank. You will only find yourself being rejected and humiliated by the loaning officers of government and private banks. But there is still hope for you in the form of short term finance from a private lending company. There are many private lenders in Australia who are providing the facility of refinance to bail out people like you. They are unlike payday loan lenders who are ready with a small loan for a very short time only interested in high rate of interest. These are respectable finance companies that are providing similar finance options like banks. These companies not only provide funds to borrowers but also invest money of some of their clients in securities to provide attractive returns on their money.

Pay a smaller amount every month and also fix your credit score

These private lenders take over your different loans and consolidate into a single loan. You now owe the outstanding money to this lender and pay a smaller amount of money in the form of interest than you paid to all the credit card companies. This comes as a big relief to you as you need not run away from the threatening telephone calls made by various lenders. You also get a chance to fix your credit score by making repayments in a timely manner to the new lender. With a very low rate of interest on your new loan, refinancing facility allows you to love in peace and also save on your hard earned money.

You also have the option to go for asset funding to realize cash against your assets. But this is possible only if you have accounts receivable in your business. You can also get money against your inventory in your business. Private lending companies are your best bet when you find yourself under a debt trap.


Things To Be Considered For First Time Property Buyers

With our real estate industry, is it still possible for homeowners to switch from renter to owner at the nick of time? Well, nothing is really impossible if they work hard for it, they could even have a property investment advice in Canberra if they want to. But before they could dream big, they should first start from small with just owning a property. To do so, they should talk to a very trusted financial advisor before making any decision about investing because they are things they should consider in investing a property.
 They should consider shopping around Because they need to have an idea on the prices of the homes in their area where they want to buy a property, because every owner asking price can give them a shed of idea if their budget can include the mortgage of the property, they could also ask some real estate agents if the market in the area is falling or rising. These can help them decide whether they need a little more time before they purchase the property. 
 They should consider the type of house they wantBecause some homeowner envisions themselves living in a traditional home with huge yard while their husband prefers the idea of living in town, a condominium which is near shops and other restaurants. There might be an instance where in they cannot afford everything on their wish list, so it is a must that their family could settle on what type of house they want.
 They should have a strict budget breakdownBecause even in renting, they would have to face their monthly stress of paying their mortgage, but with a home they can call their own, they could ensure their family’s financial security. But if they are still spending too much on their mortgage, they can be called “house poor”.
 They should consider way beyond the mortgageBecause most first time buyers are not aware of the additional costs such as the insurance and taxes, which is part of the property ownership. When they forget these factors they could experience expenses to their budget and other unpleasant surprises. These upfront expenses include the property title, settlement fees, prepaid taxes or the owners insurance. Owning a property means they are responsible for fixing everything regarding the property they have purchased.
 They should consider the paper worksBuying a property is not like buying on grocery stores or even a car. Buying a property can be a really complicated process which involves paper works and it can really be a stressful task to go through.
 They should consider the down payment Because this is the first payment they are going to hand to the property owner, this can vary from 0 to 20 percent or more that totally depends on the loan type and credit rating. They are instances in which the family is having a hard time saving money for their down payment. Except if their relative will hand them the down payment as a gift, which is impossible.
See, property investment is not that easy, there are a lot of processes to go through. But if they are eager to go through it all, eventually they can purchase their very own property. It only takes guts and more guts to do so.


What Is SMSF?

If you are unaware about SMSFs, then you should know that it stands for Self-Managed Super Funds, and this very retirement program is also referred as DIY (Do It Yourself) super funds. This very retirement program or Fund is available in Australia. This very option is similar to various other superannuation funds.
In case of SMSFs, the investment is made by the members or trustee and only these members who have made an investment in the retirement program can get the benefits of this retirement program after their retirement. In case any of the members dies then the beneficiaries become eligible to gain the benefits from the smsf.
If you are still confused about other types of superannuation and self managed superannuation funds, then you should know the difference between them. The main difference between these two retirement programs is that in the later one the members also act as the Trustees. This means that they are eligible to implement and modify their investment strategy for their fund, manage the benefits and accept contributions.
Requirements of SMSF
There are certain requirements of SMSF, which has to be fulfilled, in order to gain the required benefits or the associated benefits of this retirement program. Some of the requirements have been enlisted below:

The very first one is that SMSF should be only maintained for the sole purpose of offering retirement benefits to the members of the SMSF. The investment should be made with the view of achieving a commercial rate of return in exchange of investment made and not for fulfilling private or lifestyle purposes.
The group of trustees should be of less than five members.
All the members of the SMSF should act as trustees.
A SMSF will not lend money or cannot provide any financial assistance to the members of SMSF.

There are a number of other requirements or rules which one has to follow for acquiring the numerous benefits associated with this very retirement program. A number of people are going for this option and the main reason because of which this option is getting more and more popular is that this option has a number of benefits associated with it. The numerous benefits associated with this option makes it more luring and convincing.

Like any other retirement program, this very program has its benefits and drawbacks. The risk of tax penalties because of noncompliance of the rules can harm your financial status therefore it is important that all the members of SMSF should follow the rules and should identify their responsibilities. Know this fact that SMSF is demanding as well as time-consuming therefore it will be wise to give it a good taught whether you will be able to handle this program or not before choosing this option.