Is A Self Managed Super Fund Right For Me

A self-managed superannuation fund (SMSF) will give you more control over your super and retirement planning, but it’s important to understand the responsibilities that come with being a trustee.

Understanding SMSF's - The Pro's and Con's

Pro’s and Con’s of having a Self Managed Super Fund

Do you think you could do a better job of managing your superannuation than a lot of the big name superannuation funds?

If your answer is a resounding “yes”, you are far from alone.

Could a deposit bond be right for you?

Are you thinking about buying a bigger better property? Done the sums and you need to sell your existing property to get enough cash for the deposit.

When Is It A Good Time To Start A Self Managed Superannuation Fund?

When Is It A Good Time To Start A Self Managed Superannuation Fund (SMSF)?

This is one of the most common questions we get from clients on SMSF's. There isn’t any one particular factor, but a combination of circumstances that may help you to decide when to start an SMSF and these include:

Managing A Complex Transaction

 

For most people, selling one property is stressful enough. Imagine how tricky it is to manage the sale of two properties and refinance two additional properties, all while buying your dream home.

How Refinancing Helped Save A Business – Case Study

Does your business have liquidity or cash flow problems? This is the story of a business with exactly these issues whereby managing the whole process we were able to assist. Perhaps refinancing or restructuring your business loans could be the solution for you.

 Case Study

We first spoke with the client Tanya* after she was referred to us as a result of word of mouth from another client who we had recently helped with equipment and commercial finance.

When Tanya came to us she was under extreme stress with her BBQ Chicken retail shop, and in desperate need of help restructuring her business and the loans she was funding the business with. She had found herself in this position after completing considerable upgrades to the business and premises on the promise of financing by a local Bank. As a result, she paid for many of the upgrades and equipment on her own personal credit cards and when the Bank declined the business expansion loan she began to face a severe cash flow crisis. As a result, she approached us here at Awesome Lending Solutions.

After completing our due diligence, we discovered that the entire business debt was actually in the form of a line of credit facility against her and her husband’s home. As a result the family home was completely exposed in the event the business failed and also as the loan had not been split in any way there was a considerable tax liability that potentially existed due to the mixing of deductible and non-deductible debt.

After a lot of work understanding the client’s current business structure and requirements. We went about creating a structure that would be able to meet their requirements going forward.

The first step in the process was to have all of the kitchen ovens, dishwashers, refrigerators and dining area equipment valued, this cost just over $700 but was well worth it as it provided a valuable cost base for depreciation claims in their tax returns. In addition as much of this equipment was brand new we were able to use the opportunity to seek equipment funding.  This allowed us to reduce the immediate cash flow drain – the credit card debts.

Once we were able to improve the credit card debt the next step was to seek business funding to repay the original Line of Credit loan used to purchase the premises and business. While the interest rate was marginally higher by 0.5% (about $110 per month) the fact that the majority of the debt was now secured by the business came as a great relief to Tanya. We are also sure it made the accountant’s job of claiming all of the business interest costs significantly easier and probably resulted in a lower accounting bill for her.

Like us to review your business lending to see if we can improve your cash flow. Simply contact us by clicking here.

* names have been changed for privacy reasons 

What To Look For At An Open House

There’s an old saying that you should never judge a book by its cover, and this is true for houses – after all, who would buy one having never seen more than the front door? Open inspections are opportunities to flick through the pages, and here’s how to take full advantage.

Use Your Senses

Sniff, peer, listen and feel as much as you can. Your nose might pick up a mouldy or musty smell that may mean damp. You might spy small or hidden cracks that could mean structural issues. That clattering sound when water is running? That can be a sign of serious plumbing problems.

Don’t Be Distracted By The Beautiful Bling

Anyone can invest money in pretty cushions and lamps to set off the house. Or bake some cookies just as the open inspection starts, so the house smells cosy and homey. But when buying property, you’re buying the sausage, not the sizzle. So look past the perfectly presented and lit lounge room to the size, shape and placement in the floorplan of the actual room, and imagine how you will use it.

Look Up

That means checking the roof on the way in and looking at the ceilings in the rooms. Damp and leakage issues are costly and notoriously hard to fix. And once the rot sets in, it’s there to stay.

That Kitchen And Bathroom Advice

It’s true what they say. If these two rooms aren’t what you're looking for,  can you live with it. If not are you willing to spend the money required to transform them? According to research, kitchen renovations in Australia have a cost of $10,608 to $31,722, provided that the room is in good condition and doesn't need any significant structural renovation. Bathroom renovations cost upwards of $10,000, and can end up blowing budgets.

Look At Your Surroundings

What does the neighbourhoods around the property look like? Check out the location at different times of the week and day. It may sound excessive, but maybe the house is under a window-rattlingly low flight path only when the weather is bad. There’s a bar across the road that blasts out loud music in the early hours but is closed during the day when inspections are on. Or there’s a factory down the road that when the wind blows a certain way sends nasty smells wafting. If you have kids, what are the local school like? What is the local crime rate?

Ask Lots Of Questions

What are the utilities like gas, electricity and water costing the current residents? A home with large windows seems bright and sunny, but it can also make for more drafts in winter and warmer rooms in the summer – both problems that make for higher utility costs. It’s also important to ask about previous repairs and renovations; if something goes wrong down the track, it can be good to have a history.

Have A Pre-Purchase Building And Pest Inspection

This may seem obvious, but many houses are bought and sold without one. Home inspectors are trained to find flaws in a home that your untrained eye may never see as a problem, but may cost a lot to correct down the line. If it’s your dream home, you may choose to buy it even with structural or pest problems, but you’ll no doubt be able to negotiate on price.

Before you start looking at homes, talk to an Awesome Broker about how much money you can borrow and which type of loan suits y

You have fell in love at open house and want to know if you can afford it; just click the button below; then use one of our calculators.