The Investment Landscape Has Changed

The Investment Landscape Has Changed

Investments
Have you heard the disturbing news around investment lending and the changes that are happening every week? Lenders are punishing investors with an investment loan due to APRA intervention requiring certain lenders to rein in their investment lending portfolios. Many lenders have increased their interest rates for investment lending, and /or reduced the maximum lend to 80%, with one lender actually exiting the investment lending arena. If you thought getting an investment loan was tough before, it is about to get tougher and can be more expensive than home owner lending. However the rates you are currently paying even with the increases is still far lower than in recent years. Now we don’t have a magic wand, but we can still investigate options for you to find a product and…
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International Delivery?

International Delivery?

Uncategorized
We have been very positive, in fact, pushing for our clients to have overweight positions in the International Equities sector for the past 3 years. We have operated on 2 key reasons for this: A decline in the $A Exposure to businesses that offer more growth when compared to our market Over the last year international equities outperformed our own market by 5 times! That is your international exposure should have returned approximately 25% versus 5% on your local portfolio. This is the biggest differential I can ever recall and the scary thing is, it could continue. When we consider our 2 key reasons for outperformance their drivers still appear strong. The $A is surely going to continue to fall. Firstly driven by declining commodity prices (and possibly demand) there…
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Don’t Want Your SMSF Paying Tax At 45%

Don’t Want Your SMSF Paying Tax At 45%

Investments, Superannuation
Do you know your role and responsibilities as a Trustee of a Self-Managed Superannuation Fund (SMSF)? Ultimately YOU, the Trustee, are responsible for the judicious management of your SMSF. Previously the incentive to maintain your complying SMSF status was to ensure the fund maintain its favourable concessional tax treatment, however now, added to that are penalties that flow through under the ATO’s penalty regime.  The penalty regime became law from 1 July 2014. For example, if you fail to keep adequate records the minor penalty is $1,700? Are you aware that as a Trustee you may have to pay $10,200 to the ATO if you borrow money from or your Self-Managed Superannuation Fund (SMSF) lends money to a relative? Consequences of non-compliance 1. A change in taxation rates of the fund…
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It’s Time To Take Stock Of Your Business’ Financial Health!

It’s Time To Take Stock Of Your Business’ Financial Health!

Business
As the old cliché goes, you can't know where you are going until you know where you have been. As you start a new financial year and are planning where you want to take your business in the next 12 months, now is a good time to take stock and reflect upon the year just gone. Taking time to review the financial shape of your business should form a crucial part of your forward planning. By doing this activity it ensures you have a full grasp on the current financial health of your business, giving you a clear start point to the activities required to achieve business success this financial year. To assist you with this task we have found 6 great tips to ensure you are achieving good financial…
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The “Bubble” Debate: What’s Happening In The Australian Housing And Mortgage Markets?

The “Bubble” Debate: What’s Happening In The Australian Housing And Mortgage Markets?

Investments
It's the question that Australian homeowners and buyers have been asking and industry experts & commentators across the country have been debating: is Australia in a housing "bubble"? With many opinions and insights circulating, here's the latest from the markets. A cause for concern Whilst it's no surprise that Sydney property markets continue to be closely watched as house prices remain on an upwards trajectory, Melbourne markets are also under scrutiny. The Australian Securities and Investments Commission's (ASIC) chairman Greg Medcraft told ABC's The World Today programme: "I think that the Sydney and the Melbourne markets are very hot. If you look at the average price to income ratio, it is very high." In May, following the RBA's second rate cut for 2015, Mr. Medcraft was the first of the…
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Challengers’ Challenge

Challengers’ Challenge

Uncategorized
Challenger Financial services has two main products. The first is the selling of income streams (annuities) to retirees. The second is funds management. Over the last 3-4 years these divisions have experienced strong growth and the share price had performed accordingly. Late last year the government moved to change the rules on the treatment of some annuities when assessing eligibility for the age pension. The reaction to Challengers share price was savage and swift as investors felt the political regulatory risk on the company had increased significantly. After a few days of thought and I dare say, lobbying, the Government reversed its decision - Challengers share price didn't reverse as quickly and has somewhat stagnated since. The question we wonder is, can the growth continue? There are two components to…
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Metcash, The Real Loser In Supermarket Wars

Metcash, The Real Loser In Supermarket Wars

Investments, Shares
Metcash, grocery wholesaler and owner of the IGA brand, released a trading update earlier this week. The grim reality is that this reiterated the 19% - 26% decline in earnings versus the same period last year. So, while the market and the media have been focussed on Woolworths as the great loser of the supermarket wars, its the forgotten 'independents' who are truly feeling the wrath of the low-margin, low-choice option provided by Aldi. Most analysts have spoken how Woolworth's claims of growth in sales & market share must be misleading yet in their commentary they rarely consider the small guys. The local convenience supermarket is built on high-margin sales when you need it now but the proliferation of supermarkets has slowly squeezed the convenience concept. For many suburban families Coles,…
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Investment Lending In The Current Environment. Do You Need To Review Your Lender?

Investment Lending In The Current Environment. Do You Need To Review Your Lender?

Investments
When it comes to working out what investment product is right for you, we do the research to give you the information to make an informed decision. What lending ratio will a lender go to? What is the current variable rate compared to the fixed rates? Is your bank charging you too much interest? Loan Market works with over 30 lenders you know and trust, and takes the leg work out of finding the finance deal that’s right for you. In December 2014 APRA (Australian Banking regulator) had written to the authorised deposit taking institutions (ADIs) outlining steps it plans to take to reinforce sound residential mortgage lending practices. APRA had flagged to ADIs that it will be paying particular attention to specific areas of prudential concern. These include: • higher…
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Brand Identity For Your Business

Brand Identity For Your Business

Events
Brand Identity is as important for small business as it is for big business. Recently I had the pleasure to meet with Kieran Toohey of Mi Media and Lee Haskings of Clear Pixel to discuss branding and marketing strategies. Branding is not a difficult thing to do if you know who you are and how you want the world to see you. Quite often we forget about our brand instead being more focussed on the products or services we sell that lead us to customers and revenue. That's fine if you're the only small business selling a particular product or service, but that's a rarity. This is why branding is imperative not just for big corporations, but also for small businesses. In fact, it may be even more important the…
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