Need Cash for Some Holiday Spending? Here’s Why Refinancing Might Be the Answer

According to ASIC (Australian Securities and Investments Commission), Aussies plan to spend $955 on average over the holiday season. The majority resort to their savings when it comes to paying for Christmas presents while others opt for credit cards, Christmas bonus, and loans.

We have discussed here before the reasons why you should refinance. Consumers are often advised to consider refinancing in order to obtain a better interest rate and payment term. Instead of throwing out the original mortgage and creating a new one, the current loan is initially paid off to give way to the second loan. However, in this context, you can opt to cash out the equity of your home loan. To know if you have enough equity, it’s advisable to consult with your local finance broker.

What is cash out?

To give you an idea, this is a term used by Australian lenders to describe when a borrower releases the equity from their home, commonly known as home equity loan. The loan amount is determined by the value of the property, and the value of the property is determined by an appraiser from the lending institution.

Okay, this might sound overwhelming for some but as your Finance broker, I could help you with the whole process. Here at Soul Finance Group, we could advise how much you can borrow and let you know the risks and the benefits as well.

Call me today on 0408 081 082 for a no-strings mortgage evaluation and see how much you could save by refinancing your home now– and get your loved ones’ Christmas present list checked off early this year to avoid hassle and stress.

Reference: https://www.moneysmart.gov.au/managing-your-money/budgeting/spending/australias-christmas-spending

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Need Cash for Some Holiday Spending? Here’s Why Refinancing Might Be the Answer appeared first on Soul Finance Group.

How to maximise falling mortgage rates

The Reserve Bank of Australia (RBA) had a back-to-back interest rate cut this year, setting the cash rate at a record low of 1.00%. Lenders had started applying the cut to their variable home loans. This is good news for Aussies with mortgages because this means borrowing large sums of money becomes cheaper.

If you are having hard time keeping up with the falling mortgage rates and thinking of the best step to make the most out of these cuts, here are some tips:

Refinance to a lower interest rate

It’s always worth checking and comparing the deals available in the market. Hundreds of products are being offered by many lenders out there. Shop around and see if your bank can match the deal you have found. As a mortgage broker, I can help you find the most suitable deal for your current situation and help you switch to it.

Make extra repayments

Lower rate means lower repayments. The money you can save from it can be spent on electricity bills or groceries. However, if you wish to get out of debt faster and save yourself from more interest in the long run, don’t change a thing. Just keep paying the same monthly repayment and this will now count as extra repayments.

Save for the future

While current rates keep getting low, there is no assurance that there won’t be any rise in the future. Keep the money and create a buffer savings when your repayments increased.

The takeaway

To fully take advantage of the falling mortgage rates, you need to know what your home loan interest rate is. You can always pick up the phone and ask your lender or mortgage broker about it. Take advantage of the hundreds of deals in the market that you can compare and see what will fit your current situation.

If you are a busy person and don’t have much time to do all of these, feel free to give me a call on 0408 081 082. I can conduct a complimentary home loan health check and advise you on the steps we can take to fully maximise the current interest rates that will work for your financial situation.

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post How to Maximise Falling Mortgage Rates appeared first on Soul Finance Group.

Has your bank passed the RBA interest rate cut on?

Experts widely predicted a rate cut would follow after the Federal Election and during May, many lenders started to cut rates on both variable and fixed rate home loan products in anticipation of the June 2019 decision.

Now that the RBA officially cuts the rate by 25 basis points, leaving it at a record low of 1.25%, has your bank follow suit? If you’re dissatisfied and want to explore other options to maximise your potential savings, you can always opt to switch, especially now that a raft of lenders are expected to follow with rate cuts of their own.

Let’s assume you have 25 years left on your mortgage, you still owe $400,000 and your current interest rate is 4.30% (which is the average variable owner-occupier rate on the RateCity.com.au database). Here’s how a drop to 4.05% might improve your financial position:

*Figures based on variable loan paying principal and interest. Does not include fees.

If your bank doesn’t pass on the full cut, you’re still in a strong position as there are a wide range of lenders out there. I can help you shop around for a more competitive deal.

Reference: Business Insider Australia, Now that the RBA has cut the official cash rate, here’s how you can benefit

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post RBA Cuts Rate: Has your bank passed the interest rate cut on? appeared first on Soul Finance Group.

Great news for small businesses: an increase in the instant asset write off threshold.

We’ve got some great news about claiming the cost of your business assets. Small businesses with a turnover under $10 million can take advantage of the instant asset write off. There have been some studies that show that a high percentage of small businesses are not taking advantage of this deduction because they are not familiar. For small businesses that haven’t used this concession previously, here’s what you’ll need to know to maximise this scheme:

What is the instant asset write-off?

A tax break that allows small businesses (including those with an aggregated turnover of $10 million or less—you can consult your tax advisor to confirm) to lower their taxable income from any purchased assets that cost less than $30,000 – in the same income year.

What does this mean for your business?

• The tax break means small business owners can reduce their taxable income – and tax payable – in the same financial year an asset was purchased and installed.
• Assets must be purchased and first used or installed ready for use from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020 to qualify.
• Small businesses can currently purchase an eligible asset up to $30,000 (excluding GST) and write it off as a tax deduction in the same financial year of purchase.
• You can claim multiple assets if each one is under $30,000. There is no cap on how many times a business can use this deduction. There is a cap of $30,000 per asset which means that you could potentially purchase any number of assets for your business before June 30th and instantly deduct them all.

What assets can you purchase to claim the cost?

Unsure of what is covered in the $30,000 tax break? You can use it for anything from computer equipment to a coffee machine for the office kitchen to solar panels for the office roof or even a car.

• Plant and equipment
• Vehicles
• New technology/facility or machinery
• tools and electronics such as:
  • machines for POS
  • mobile phones
  • computer monitors
  • laptops
  • printers

Second-hand goods also qualify for the tax break (Equipment, vehicles, tools, electronics). Exclusions from the write-off include horticultural plants, building construction and software allocated to a software development pool. You won’t get $30,000 as a tax refund – the write-off is a deduction of your taxable income.

How to take advantage of the instant write off?

If you are looking to purchase an equipment, electronics, or vehicle for your business, now is a great time to take advantage of this scheme.Your business will still need to fund the purchase for the period until you claim the instant asset write-off, which is only a portion of the purchase price.

The instant asset write-off is particularly useful for businesses intending to bring forward capital expenditure at the end of the financial year.

Thinking about purchasing assets to grow your business? Let’s put your plans into action sooner and get you the funds you need. Assets purchased before 30 June 2020 could be eligible for a $30,000 instant asset write-off. Schedule a call with me today to get access to highly competitive finance options available in the market.  Call 0408 081 082.

Disclaimer:

 Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post $30,000 Instant Asset Write-off for Small Businesses appeared first on Soul Finance Group.

Toni Coates, owner of The Coat Box

The idea of decluttering and reorganising comes with the New Year. Removing the clutter from your home and organising your life can leave you with an environment filled with things you love and you actually use. For some of us, it somehow gives us a clean slate to start with and the idea that something is truly working for you.

Whether you have been inspired by Feng Shui, minimalism or the recent trend, the “KonMari method,” learn a thing or two from a Perth Girl boss herself:

What is ‘The Coat Box” all about? (What’s your inspiration for your business name?)

The Coat Box is a Professional Organising Business. I help people declutter and organise their homes or areas in the home where clutter and disorganisation is causing my clients stress or anxiety, or physically impeding the use of space in the home. The Business name I must admit is a little quirky! It was inspired by my surname (Coates) and my partner and kids’ surname (Box). As a family owned and run business, it just made sense – and could also sound like a kind of storage item.

What pushed you to start this kind of business?

From the first time I ever lived on my own, I became quite fussy about tidiness and organisation. This only grew as I got older and especially after I had children. When we moved into our current home, I had to become creative in the way things are stored and also somewhat ruthless with decluttering as my home has little storage available.  I came to the realisation that I actually really enjoy decluttering and organising and was pretty good at it! Why not help others with their home? I know that a lot of people struggle with clutter and disorganisation so I could help others at the same time as doing something I enjoy. Also as a Mum of 3 young daughters, running my own business with hours I could make suit our lifestyle meant I could still be home on weekends and after school to spend time with my family and do all the mum stuff (like driving back and forth from dance lessons!).

How are you able to go the extra mile for your clients?

My service is a very personal one. I’m working in people’s homes with their personal belongings so a high level of respect, compassion, understanding and empathy is a must. Every one of my clients is different and every home is different. Sometimes I may need to work closely with a client who suffers from mental or physical illness or perhaps with a client who has lost a spouse or loved one. Or maybe it’s a time poor family who are overwhelmed and just need some help and support. I’m a naturally friendly person so I find that after the initial questions, I like to just chat with my clients, listen to them and try my best to relate to them and their situation. In any, job it’s necessary to maintain a level of professionalism but it’s also ok to share something of yourself!

What are the struggles you encountered in building your business along the way and how did you overcome these?

Well! Funny story – when I started working on putting my business together I got unexpectedly pregnant with my 3^rd child! This put the brakes on for a couple of years but I stayed focused and continued trying to learn as much as I could for when I could “officially” start work. I’ve now been in business for 2 years.

Also as a business run from home and on a budget I opted to build my own website – this was a big learning curve! I managed to get it sorted though and with some great advice from a wonderful client on SEO (Search Engine Optimisation) my site is now ranking high on Google search and this has improved my business exponentially!

Please share some valuable tips to our readers about decluttering and organising.

If you’re considering doing some decluttering and organising, depending on the time available and how motivated you are, start with the area that most frustrates you, or is most pressing – such as a cluttered kitchen that you have trouble working in, or a wardrobe where you have trouble finding what you’re looking for!

For those who are more hesitant or overwhelmed and don’t know where to start, maybe find something smaller, a drawer or just one of the kitchen cupboards. Then it doesn’t take as long and the visible results can boost your confidence and motivation.

Very importantly, go into any project with the aim to declutter first, then organise the items left back into the storage space. Try not to keep buying more and more storage as this can actually add to the clutter.

Don’t be afraid of empty space! People often see empty space and have the urge to fill it with something, don’t get pulled in by this feeling, instead, look at the space and try to appreciate it, one day you may need it.

Last but definitely not least, don’t be afraid to seek help, there are professional organisers all over Australia (and the world). Our professional Industry body IOPO (Institute of Professional Organisers International) has a database on their website you can search to find an organiser in your area.

The future ahead of you is dark. You are holding a ‘magic light bulb’, which has the power to illuminate any part in your future. (Means you can take a peek of your future) What part are you seeing?

Oh this is a hard one – there’s so much I’d love to see! My hope is that I could look forward to a time in the future when my business is still strong and successful, my family is happy and healthy and my daughters are growing up into smart, sensible and strong young women – one of the other big reasons for starting my business is to help support my family and be a good role model for my girls, so I’m really hoping this is in that illuminated future!

Organising and decluttering go far beyond improving the aesthetics of your home or work space. It’s essential to both your physical and mental wellbeing.  Find a way (and time) to start somewhere and just like what Toni said, if you’re not sure where to start, find something smaller. You got this!

The post The Illuminate Series: ‘The Coat Box’ appeared first on Soul Finance Group.

Soul Finance Group’s Top 10 Most Popular Blog Posts of 2018

We’re a matter of days away from 2019, but let’s not hop on to that just yet. December is a great time to look back at the previous months and take stock of what truly resonated with our readers. Many online publications have compiled their best-of lists for 2018, and we want to get in on the action. So we took a look at which articles on Soul Finance Group blog were most popular this year.

Here are the 10 blog posts that made the cut:

10. Different Ways to Observe/Celebrate Australia Day

Celebrating Australia Day has been a tradition amongst Aussie people and they sure constantly look for ways to commemorate it. In this post, we listed ways on how to maximise it including the good ol’ BBQ party.

9. Ways to Consolidate Your Debt and How It Works

Juggling debts can be tricky, and time and time again, we always advice our clients (especially if it works in their financial situation) to consolidate their debts. Doing so could make it easier to manage and potentially save them money on interest.

8. Confessions of a Working Mum

This is a pretty sentimental entry for me as it was very personal and I showed a vulnerable side of me. This blog aimed to become relatable to my audience (working mums specifically) who are struggling to keep it together. It was also written in honour of the Women’s Month so I figured why not create something that will resonate with them.

7. How does the cash rate affect your home loan?

Not everyone is well-versed in the finance industry. As a Finance broker, part of my job is educating my clients about what they need to know in regards to their finance. Every month, there’s always news about the RBA and how it can affect a homeowner’s loan. I thought of dedicating a post explaining it so they are well-informed and know what the next steps they can do.

6. Why You Need to Talk to Your Lender Now

In this blog post, I shared with my clients how they can talk to their lender and why they need to do so. A lot of homeowners might be intimidated by the idea of talking to their lender, but it doesn’t have to be. With the help of their trusted Finance broker, I highly encourage them to call their bank and see if they can haggle for a better deal.

5. The Illuminate Series: ‘The Gifting Pot’

I launched a series this year called “The Illuminate Series” where I feature one Perth-based small business monthly. My goal is to highlight these small businesses and encourage readers to take the plunge if they have dreams of starting on their own.

4. The Illuminate Series: ‘Fusion Biz Babes’

This is the 2^nd entry for the series I started last September. I tried to introduce to the audience each small business via questions I asked them. One of the constant question I always include is this: “The future ahead of you is dark. You are holding a ‘magic light bulb’ which has the power to illuminate any part in your future. (means you can take a peek of your future ) What part are you seeing?” The answers are interesting and inspiring!

3. 2018 Personal Finance Apps for Australians

This was a bit fun to write since I could also use the apps myself. A lot of us are looking for ways to make our lives a little easier so these finance apps are a huge help!

2. Beating the Holiday Rush: Gifts We Love from These Perth Businessowners

I won’t grow tired supporting my fellow girlbosses especially in my local community! Hence, I made this a part of my blog entries where I personally recommend small businesses in Perth where people can get their Holiday presents from. Turns out people loved the post!

1. First Time Home Buying: Your Questions Answered

The 2018 top most read blog post on Soul Finance Group! This post shared some simple and efficient ways in purchasing your very first own home. The process can be really overwhelming and complicated especially for first timers and my job is to help them with that.

Those are the top 10! Excited for what 2019 will bring! In the meantime, Soul Finance Group  will continue to offer you informative and educational content related to anything mortgage and finance. Happy New Year!

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Soul Finance Group’s 10 Most Popular Blog Posts of 2018 appeared first on Soul Finance Group.

You might be in the mood to declutter any unnecessary stuff in your home and while you’re at it, you might want to take a second look at your current home loan.

At the end of this video, answer these questions:

 Am I paying an unreasonably high interest rate?
 Am I paying outrageous fees?
 Am I frustrated by inadequate service?
 Does my loan give me the features I need?
 Am I paying for features I don’t use?
 Have my financial circumstances changed?

For a complementary assessment, call Kirsten on 0408 081 082.

(If you want a written version of this, check this article we published.)

The post How To Spring Clean your Home Loan (VIDEO) appeared first on Soul Finance Group.

According to RateCity’s Australian Bureau of Statistics data analysis, Australians have borrowed $46.6 billion in personal loans over the past year but experts claim many are clueless of how applications are assessed and how this might affect their credit scores.

Lenders assess the loan applicant before giving an approval and offering an interest rate. They utilise a model called “risk-based pricing” where their lowest rates are only available to customers with excellent credit scores. It’s a common mistake of the customer to apply immediately once they see a low rate and so they get surprised when they’re offered a higher rate or worse, get rejected.

It is important to note that every application can put a mark on your credit file and has the potential to reduce your score even further. Your credit score affects your interest rate so it is highly suggested for you to know what it is. You can go to the Equifax (formerly Veda) website to check your credit report and score.

Consequently, knowing what your score is can be beneficial in accessing for a better interest rate.

If you want to avoid risks any further, seek the help of a professional. As a finance broker, I can help you with the process of securing a personal loan at a no cost to you. Using your credit score and necessary documents, I can help you look for a personal loan deal that is apt for your financial situation and need.

Call 0408 081 082 today or message me on Facebook.

Disclaimer: 

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post What You Need to Know About Personal Loan appeared first on Soul Finance Group.

Why you need to support small businesses

I am a small business owner myself so I acknowledge the risk and challenges that comes with running and starting your own thing. Hence, I make it a point where I find ways to support small businesses, especially in my area.

Whether you grew up in a small town or in an urban area, there is a certain feeling that gravitates you towards shopping locally. It could be pride, a sign of respect, or a genuine support for a friend or a relative, knowing the dollar you spent went to, not just a community member, but a business owner who you know needs all the support she/he can get.

Like I said in one of my posts, I believe that most independent businesses are run by people – not by boards, not by shareholders, not by algorithms. You get a different kind of care and quality in their product because their work is a reflection of themselves. Instead of focusing on the next market they’re expanding into or the next round of funding they’re raising, they’re focusing on the details and being the best they can be.

And I think that’s the beauty of it.

When you buy local foods and produce, you are buying from local farmers. You gain access to fruits and vegetables that you know are chemical free and organic, thereby improving your family’s health. Furthermore, you are contributing to the growth of the local economy. When a consumer buys local, significantly more of that money stays in the community. Chain businesses, on the other hand, tend to get their supplies from corporate, as well as having store managers and employees that aren’t as personally invested in buying local.

There is also a unique kind of connection to the owner or staff of a small business when you purchase to them. The transaction is more intimate and the rapport is greatly established. You easily get to know them on a personal level. Consequently, this kind of relationship gives you access to better customer service. Asking for help from large companies tends to be a nightmare. When you shop local, the business owner is usually directly connected to every employee in the store. That leads to a personal approach that often means any problem you have is taken seriously.

Small businesses come and go. It could be because of large chain retailers or any other reason but if you come to think of it, we, as a community member, can actually help them. The next time you need to purchase a product or a service, look for local small businesses in your area. Think of them.

Let’s support local.

Disclaimer:

 Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Why Do You Need to Support Small Businesses appeared first on Soul Finance Group.

Why you need to talk to your home lender now

A lot of homeowners might be intimidated by the idea of talking to their lender, but it doesn’t have to be. With the help of your trusted Finance broker, it is highly encouraged to call your bank and see if you can haggle for a better deal.

Why?

According to a Mozo research, “two thirds of existing mortgage holders have not haggled with their lender in the past two years, indicating a large chunk of borrowers could be getting some serious savings simply by picking up the phone.”

There’s no complicated process there. All you have to do is pickup the phone and simply ask.

Before having “the talk,” you might want to work closely first with your finance broker to see how much you can potentially save. She can help you review your budget, expenses, and related accounts so that by the time you’ll call your lender, you’ll have some information to share with them that will help you figure out how to proceed. Lenders are bumping up rates for Aussie borrowers so if you don’t know your current interest rate and pass the opportunity to call your lender, you might experience a rate hike pain.

Keep the lines of communication open and don’t shy away from contacting your lender early and often. And if by any chance these efforts come out as negative, there are still options available for you such as refinancing your home loan.

There may be ways to modify your home loan and work on a deal that could ultimately help you reach your financial goal. If you are curious as to how, please don’t hesitate to give me a call on 0408  081 082.

Disclaimer:

 Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Why You Need to Talk to Your Lender Now appeared first on Soul Finance Group.