Forum Replies Created
Hi All,[biggrin]
Posted by Richmond
If anyone’s worried about interest rates hitting 8 or 9% why wouldn’t you fix for the attractive 3 year rates that are being spoken about in other threads?
This very question had me puzzled, as it is in direct conflict with the economic views expressed in the prior posting. The ANZ Bank for example offer a 10 year fixed loan at 7.6%, and historically variable rates have outperformed fixed rates.
How then can they make a profit if the Reserve Bank raises rates above this level in order to reduce debt levels of the type posted by resiwealth and including Balance of trade, CAD levels etc?
Credit card debt in Aus is 27 billion dollars (the highest in the world per head of population).
100% home loans were taboo in the 1990’s only 4 years ago.
Over 40% of the average income goes to meeting the mortgage commitments.
86% of people who take out interest free (store accounts) finance, refinance and the end of the term and pay over 40% interest to catch up.
The answer is that both scenarios can be true under certain circumstances. What if the interest rate rises for a short period and this triggers a recession.
I.e. rates rise to above the fixed rate for 6-12 months and this is followed by a fall below the fixed rate for a longer period of time?
To illustrate this we can look at what happened to the 2nd largest economy in the world (after America).
In Japan from1995 to mid 2001 the official discount rate was 0.5%, it was then lowered to 0.1% and has remained at that level up to the present time.
The Housing Loan Corporation offers a 10 year fixed loan on a 35 year Mortgage at 2.55%
Values of residential land increased by 7,800% during the period 1955-1985, it peaked in 1988 and has since dropped by 62.8%.http://www.colliershalifax.com/eng/investment/japan_investment2003.pdf
An interesting point arises here that if the economy is controlled by a centralized banking system, then how you induce the Japanese to spend more in order to bring them out of a recession when interest rates cannot be lowered further.
So to summarize
I am not trained in economics
Economic forecasts can sometimes belong in the land of the Fairies
The opinion of a growing number of American Economists is that America is broke and may collapse.
BIS Shrapnel forecasts interest rates of around10%
Banks set fixed interest rates around 7.5%
The Japanese economy appears to be stuffed.
And this isn’t a confusing situation as John Howard has personally assured us that interest rates will not rise.Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi resiwealth,[biggrin]
How do you stop Australians spending instead of saving, in my experience the majority of people at the end of the day will tell you to jack off?You make some very true and pertinent comments in your reply. However I find a lot of people tell me to jack off as soon as they find out I’m a financial planner.
Hi Honky tonk,[biggrin]
That is in the wellness business as the biggest market in the world is the baby boomers.
It is important to look after your health so that you can enjoy being wealthy instead of dying.Robert Kiosaki actually recommends network marketing
I have nothing against NM and am a member of a couple of groups but it doesn’t appeal to everyone.Hi Cremin,[biggrin]
Send me the recipeHi Ozi,[biggrin]
My wife would stop me; she makes tut tut sounds halfway thru my second drink.Hi crashy,[biggrin]
I’m Glad your business ventures are working out well for you.HI sis,[biggrin]
analogy; I write my longer answers in a word document and use spell check.Hi Richmond,[biggrin]
I will try to reply to you in more detail tommorrow (The boss is away)Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi Greg F[biggrin]
As far as I know Victoria is the only state to publish information in this form.
A link is provided to the other states hereEach state operates independantly and differently as to the type of information provided. Victoria’s information is published every 2 years
Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi All,[biggrin]
The most important part of my job is to know product and asset class risk factors ,and I am obliged by law to match risk in line with client profiles. I am in life an optimist and sometimes play the part of devils advocate solely to provide information so that balanced decisions can be made by my clients.
So will we start of with the macro picture?For the last few years BIS Shrapnel have reported in their biannual publications that interest rates will rise to 10% in 2006, with the modification of their prediction to 9.5% in the last report. During the same period other economic reports issued from other sources such as banks, including the Reserve Bank have seemed in conflict with this view.
The information from BIS Shrapnel in regard to longer term forecasting seems to be either limited or written in a language only understandable by those with economic degrees who wish to write something without saying a great deal.
Because BIS Shrapnel have been so consistent with their forecast this conflicting situation raised my curiosity and has prompted me to search elsewhere for answers.
I am not an economist but know enough to realize that some people take advice from economists seriously whilst at the same time laugh at fortune tellers etc, and I present my views to you on my understanding that, economists are usually incorrect in regard to long term forecasting, as unforeseen variables such as 9/11, Sars virus etc cannot be predicted. Their predictions are generally more accurate in the short term i.e. 3 months and can be extended by factoring in additional events as they occur.My search led me to the writings of the well respected American economist Paul Krugman who singularly gained prominence (in relationship to this discussion) when he correctly predicted the collapses of the South American economy and also the Asian meltdown. He has taught senior economics at a number of respected American Universities and also writes for the economics section of the New York Times .Parts of his career highlights can be found at http://www.wws.princeton.edu/~pkrugman/incidents.html
A full study of this man and his prolific achievements would take a long time and should not be undertaken by the faint hearted, several websites are devoted to him and a search for his name will reveal them.What Krugman is saying about the US economy is that it will collapse at some point within the next 10 years. This type of prophesy would normally belong in the realms of Nostradamus; however his arguments are logical and make enough sense to be taken seriously.
The US economy is running a record external current account deficit. The budget deficit is $US2 Trillion and is expected to double within 10 years unless addressed. Half of this deficit is now financed by Asian Central Banks. The largest and fastest growing areas in public spending are mandatory entitlement programs such as Social Security, Medicare and the Military and domestic Security. The baby boomers will be retiring in ever more numbers in a mushroom effect over this period, further straining an already stretched system.
Clearly Bush is caught between a rock and a hard place.A more complete story from another economist is found at this link http://www.financialsense.com/series2/perspectives2.htm
The problem will have to be faced one day (whether the US goes bust or not) by the Central Bank Increasing interest rates and decreasing the supply of money.
Australia faces much the same scenario and does BIS Shrapnel believe that the Reserve Bank will increase rates in 2006?
The following post was found on another site and was unanswered so perhaps we can comment on it hereHave been talking to a friend today who is a finance analyst at St George, as well as property investor. She said all the charting their top economist have been doing lately indicates that interest rates will hit 8.5% by the end of the year and go as high as 11% by 2007 (which basically is similar to the BIS Shrapnel’s and Merryl Lynch’s predictions). She is the first to admit that “all economic forecasting is crap”, but nevertheless she is liquidating part of her portfolio to reduce debt. The general consensus among other people I’ve been talking to is that we are not going to see interest higher than 8% for quite a few years. But this conversation has made me nervous. What do our resident economists and other experienced folk think? I am still green where property investing is concerned, my position is not very robust and I get spooked easily
Hmm?Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi Steve 3556[biggrin]
The book “a guide to property values 2003” is available it may be ordered online and costs $59.95 as a cd or $39.95 as a book.The link is
http://services.land.vic.gov.au/landchannel/content/guide
Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi All,[biggrin]
To summarize so far.
It is important to realize the difference between a budget designed for wealth creation and one designed because of financial hardship.
Up to now I have concentrated my discussions on the idea of creating money for investing by the use of budgeting for increased cash flow, and using goal setting as the motivator
Impulse spending using a credit card is a major drawback to success in wealth creation and without a budget or goal setting there is little or no incentive or reason to curb it. Once this is realized we have the focus and self commitment to use products such as Line of Credit, Credit Card, Debit Card and others to their best advantage.
Also together as a group we touched on ways to minimize spending by smarter shopping in order to save money, without reducing our present standards of living.
I briefly discussed Network Marketing as a way to reduce CC debt and this evolved into a discussion on the pros and cons of NM as a source of additional income. Other ways of increasing income by taking on a second job, overtime etc are not discussed by me as each person’s circumstances differ and the discussion is more about the work smarter not harder philosophy.BankWest is supporting a website that is worth looking at http://www.getsaving.com.au this was after a lifestyle survey conducted by them found that Australians on average only spend an average 4.3 hours per month managing finances (compared to4.6 hours gardening). It also found 41% spend less than 2 hrs per month on finances, 30% of Australians save by stashing money under a mattress or sock drawer, and australians are saving about a fifth of what they need to secure an independent retirement.
On my next post I hope to go on to the subject to different investment strategies, including discussion on the background and economic reasoning behind their uses. This will briefly include investments which are not property related in order to paint a more holistic picture, prior to a concentration on positive geared techniques more in line with the spirit of this forum.
Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi ausprop, [biggrin]
You have raised an interesting topic which is complex to answer, and it may vary from company to company.
All commissions including hidden commissions must now be declared prior to advice being given to a potential client and this is part of the Financial Services Guide (FSG).
The complaints procedures are also covered within the FSG.Not all services provided by financial planners are commission based. Some products are commission only, some are fee only and others are a mixture of both.
There is a general movement across the industry to introduce fee for service, with the Financial Planning Association openly discussing this controversial issue.A high level of trust and interaction between the adviser and investor is required; therefore, financial advisers are now required to adopt a high standard of accountability to their clients.
Anyone who now gives financial advice in any form must be an authorized representative of an Australian Financial Services license holder (AFSL). These are granted by ASIC, they are also removable.Under the new act (FSRA) the Financial Services industry has undergone huge changes and this is a continuing process. The new laws are being vigorously enforced by ASIC.
Let us hope that in time the perception of this industry changes so that the questions you raised are unnecessary.Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi to all[biggrin]
I would like to address some issues raised by marc1.
How can anyone ask for advice from a financial adviser unless he wants to become a financial advisor himself is beyond me? Those that wish to discuss superannuation, estate planning setting up trust structures and syndicates, diversification of portfolio for risk reduction, advice with all asset classes such as shares, property, fixed interest and cash. This is just a sample of what they do.How credible is the opinion of a tenant who has never owned a property, talking about Real Estate Investment and how to make money with it? ???
Why should anyone opinion about Network Marketing be any more credible if their knowledge comes from a third cousin or a month in Amway or Omegatrend before dropping out disillusioned because the millions did not roll in just then? ???
Oh be careful, the evil Omega people may trick you, “seek professional adviceâ€. I am obliged by law to include statements such as this; otherwise ASIC may interpret this as giving specific financial advice without following procedures, which can result in prosecution.
I would like to know if you have even bothered checking for the details of this offer from Omegatrend. (Not my company, don’t ask). I am a member of Omegatrend and Australian Longevity but I have not discussed this with you or anyone else, or pushed my views regarding Network marketing on any one. Ha ha, I see that Amway haters have organized themselves. Do you want me to congratulate you? Not my thing I am not in Amway either. Nor will I tell others to join my (conceded very successful) venture. We may not want to or even care. This is not the appropriate site to do so. I agree, why do you keep bringing it up?
Your post is advertising plane and simple;advertising what?? Shake people’s confidence so someone may fall in your net. Sorry if this has shaken your confidence, I am only trying to make a contribution to the forum.
I say, want to be a RE investor? Ask the people who make REAL MONEY in Re investing; seek a millionaire for good advice .Why not seek out their advisors as well?
.
Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi to all[biggrin]
In the last post I said that it is not in the banks interest to inform their clients, indeed although they are governed by law regarding disclosure of fees .although at times we may feel them to be excessive, ridiculous or incomprehensible.
It is not what the banks tell you, but what they omit to tell you, and if you feel you are paying too much for fees, then don’t bash the banks, become educated in how to reduce your fees and then apply your knowledge. You may be able to reduce your fees substansually.
Banks are in business, and they are successful in making profits, that’s their responsibility to their shareholders. If my personal bank lost money, then would I want to place my money into their safekeeping?Now back to credit cards. Incidentally the most dangerous system to be in is with LOC which can be regarded as a giant credit card and the only defense against overspending is by strict budgeting.Banks adore LOC as scource of income for them. Only 15% of people reach the advertising blurb line “reduce your home loan from 25 years to 8â€.The banks omit to tell about this do because its not in their best interests. If you have a LOC and the balance hasn’t dropped by much over a period of time, allowing for the purchase of investments or extraordinary situation i.e. Wedding etc. Then you may be better off investigating a reverse mortgage type of facility or by budgeting to reduce your outgoings.
I received in the mail the other day, a flyer from Virgin offering a credit card deal, basically offering to only charge me 4.9% interest for 6 months and at 12.4% thereafter. What I don’t know is what percentage of people transferring their credit cards, personal loan etc, that end up with a zero balance at the end of 6 months, or whether I should even look for it in the fine print, to see if this important to me detail , has been omitted.
Some of these deals can finish up with very high interest rates after the honey moon period is over or on additional purchases after the initial amount is deposited. This could finish as a come in spinner type of scenario and must be carefully researched.
.
There is a quirky twist to this situation and involves a short discussion on Network Marketing .Citibank have a similar type of product. The Omegatrend network marketing company has a business agreement between themselves and Citibank, that if an Omegatrend member transfers their cards, or introduces others to apply for a card (being irrespective of them becoming members of Omegatrend themselves).then that low interest rate applies not for 9 months but to the life of the balance of the amount transferred (but not on additional purchases). Now this becomes more interesting.
Searching within the hallowed walls of this organization shows that people are divided evenly between those that don’t mind Omegatrend, and those that regard network marketing as a form of witchcraft or waste of time etc. So whilst not getting into that debate by simply accepting that people have a right to have their own opinion, lets examine it a bit more.
Ok so let’s suppose you theoretically find an Omegatrend member and are introduced for a special deal, examine the ramifications and consequences of you’re doing so, what it means to you in your circumstances. Are you better or worse off? Are you comfortable with your decision .This is what should determine your action on this suggestion, or any others made throughout the whole topic, together with seeking professional advice if it is felt to be needed or warranted .Talking about network marketing … well … I take then that you are succesfuly building a network marketing business, congratulations, which company are you with?
Hi Marc1.Thank you for your reply, as you see your comments were not in line with what I had intended to discuss and are a good illustration as to why financial planners are not allowed by law to give any specific advice before fully knowing and understanding their clients. It is very hard to give accurate replies based on assumption
I appreciate that you have a good understanding of network marketing based on the comments you make, although now I am the one making an assumption. [blink]Until next time
Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
HI all,[biggrin]
“selling yourself for cashâ€
Hi sis, perhaps I could become a stripper and get people to pay me to put my clothes back on.[confused2]you can build a residual income by going into network marketing.
Hi Marc1, I will be talking about network marketing but using a different slant on the subject. Also network marketing has been covered before in the forum and may be found by searching.Glad Financial Advisers now have to start disclosing fees and commisions,
Prior to any financial advice being given, clients must be given a financial services guide. This must be accompanied with details of the advisor (name, qualifications, and any types of products they are qualified to advise on and authorized representative registration no).
The FSG must include The Australian Financial Services License number, any details of remuneration, trailing commission, other benefits and third party relationships. It must also include details of internal and external complaints procedures and company details.We are not allowed to give any advice until a “Fact Finder†is completed. This has a minimum of 3 main parts to it. Your complete financial details, Goals and Risk profile.
As the process goes on there is more specific disclosure via a Statement of Advice and Product Disclosure Statement
The industry is subject to Statutory Laws as which includes Superannuation Laws, Insurance Laws, Company Law and Privacy Laws.
We also have fiduciary duties as reflected in the Corporations Law, the Financial Services Reform Law, ASIC policy statements and the Financial Planners Association Code of Ethics and Rules of Conduct.
All of the above may not be a complete list, as Compliance issues are complex but is offered as a simple explanation.Not saying all are like that, as a good financial adviser would be a bonus, however, how, apart from word of mouth do you find a good F.A?
This is difficult to answer due to the recent major changes that have been made within the industry so that even word of mouth is inaccurate. Also a lot of Financial Advisors do not deal with direct property as a product.The Financial Services Reform Act set out to clean up this industry and its focus is on consumer protection. ASIC feels that the first stage of compliance is complete i.e. licensing of the industry and is starting the second stage to “remove unlicensed people offering financial adviceâ€
A study in progress conducted at the firm I work for has found the following compliance issues. This study may not be accurate due to the small sample involved but will give some indication as to the progress of licensing.
Financial planning companies
Total interviewed 35
Licensed 20
Authorized Rep 13
Unlicensed 2Wealth Creation Companies
Total interviewed 19
Licensed 6
Authorized Rep 3
Unlicensed 10Property Investment Companies
Total interviewed 23
Licensed 1
Authorized rep 2
Unlicensed 20From the above it can be seen that the ASIC model of consumer protection is more limited to financial planners but that will be changing over their next phase to include anyone who gives financial advice.
Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi all,[biggrin]
Another reason for goal setting is that by putting our goals in writing or cutting out a picture and sticking it in a scrapbook we are giving our subconscious mind an instruction, and in going about our lives making daily conscious decisions our subconscious is involved in the process to guide us toward a particular goal. We may not be aware of this process, for example, I often hear about people who have used this process remarking how their present home looks like an old picture in their scrap book, even if they had forgotten all about it.
So now let’s start to discuss debt consolidation.
I have heard that whilst the most frequent new years resolution is to reduce/elimininate credit card debt, it is also the one that is most broken.
A credit card if used correctly together with a budget can be a useful tool to reduce costs by giving an interest free period during which time cash can be used to generate income in other ways, for example with a LOC set up with an auto swipe to clear the CC prior to interest being applied .
However a lot of people don’t live in an ideal world.True life examples;
1/ I know of a married couple who have a Mortgage and a credit card, every two years or so they get to a stage where the credit card is maxed out and they have difficulty in meeting repayments. Their solution is to refinance their home using its capitol gain, pay out the CC and start the same cycle again. I suppose this strategy will work until they max out on their borrowing capacity. Even though they are friends I am prevented from assisting them or making any comment until they decide to appoint me to assist them.2/ Whilst working briefly as a Mortgage Broker a couple presented to me with $80,000 of credit card debt. They had a very nice home in a middle class area, and were self employed on a good income. They were also having difficulty with payments. Upon examination of their situation even though they had enough equity in their home the max amount they would be able to borrow, due to repayment requirements was $40,000 leaving a shortfall of $40,000.Although I could have ferreted around to see if I could overcome this I also inspected the history of their 4 cards and found that one of them had a max limit of $20,000 and the bank had stopped its use. At this time the total CC debt was $60,000, their solution being to apply for another card from the same bank, which issued them with another $20,000 card, even though they had stopped credit. This card was used to make a $5,500 purchase within 7 days of issue and was used for further purchases to a total of $18,000 within 21 days. At this point I decided that they needed financial assistance and encouraged them to seek appropriate advice.
3/ Later whilst working as a Property Consultant I visited a couple who proudly showed me that they were on track with their LOC, you know the fancy curved green curved line that sales people at wealth creation seminars etc show you, but only 15% of people achieve. When I checked their credit cards it showed that the total limits had increased from $3,000 to $20,000 over the same period. They seemed to be surprised when I informed them of the advantage of transferring this debt to their line of credit and disappointed about the flash green line.
From the above it can be seen that debt consolidation without addressing underlying problems is not the answer and that it is in a banks best interest not to inform their clients
Again I have run short of time and will continue later
Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi derek[biggrin]
I preferred it prior to March when I didn’t have to use it and was a simple property advisor enjoying simpler discussions that wouldn’t land me in jail if I said the wrong thing I also miss discussions with the likes of crashy and billfromoz
Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi to all[biggrin]
Thanks to all of you for replying. I was beginning to think I was writing a monolog or worse still something that is boring.
Hi all..have a look at http://www.simplesavings.com.au for way’s to save $
Thanks redwing. I especially liked their calendar idea.But who in their right mind would use a financial planner
Would it surprise you that a lot of people do, including wealthy people of sound mind?most people would assume planners would act in their best interests, not their own. this is impossible when their commissions come from the products they sell
So I assume that you also don’t like or use Finance Brokers, Real Estate Agents, Property Managers, Insurance Agents, Stock Market Brokers , etc.I believe the indutstry is becoming more regulated
The industry became highly regulated with the introduction of the Financial Services Reform Act 2001, the deadline for compliance with PS146 occurring in March 2004, it is monitored and enforced by ASIC.Of course, if you wanted a bullish position on Nigerian money laundering though
Dishonesty And greed are not limited to the Financial Planning industry. Your comment shows the FSRA and ASIC are working effectively
Fuller details of this scam are found at this linkhttp://www.aic.gov.au/publications/tandi/tandi121.html
Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi toAll and geo[biggrin]
Last time I touched on generating money by more cost effective shopping. Since then I have found an interesting forum which covers this effectively. The link is http://groups.msn.com/MoneySavingIdeas/messageboard
Cutting expenditure in this way can lead to a rise in living standards and can be done quickly. An important point is that the savings are in after tax dollars.Income may also be increased by self education which, for instance, can be informal thru a hobby leading to formal qualifications. This is more likely to be over a longer time frame.
Another point is to dress in a manner reflecting where you wish to be in 5 years time. A very rich man, I forget who it was, it may have been Aristotle Onansis, was once asked what he would do if he lost all his money and became penniless. His answer was to work at any job until he could afford a good suit and then the rest would be easy.Whilst it would be great to “find out what people want and give it to them†the reality is that 2/3 of businesses fail within 3 years. I am not saying that one should not follow the dream of starting a business but rather this should be attempted in a manner that may lead to success, again a lot of this involves education and research.
Some sample links
http://www.business.gov.au/Business+Entry+Point/Running+your+business/http://smallbusiness.ninemsn.com.au/index.aspx?sectionid=2
http://www.thesource.gov.au/find/career/starting_a_business.asp
Work out your liquidity ratio to show how many months of debt can be funded if regular income ceases. Also important is debt service ratio to show the impact of increasing debt levels or the reduction of income.
.Businesses can fail due to cash flow problems so an alternate income stream may be needed at least temporarily .This can be covered with your investment strategy or by maintaining full or part time employment.
It is also important to consult with professionals and to seek their assistance .This may include Financial Planners, Lawyers and AccountantsNext time I will offer suggestions on reconsolidation of debt to reduce weekly outlay.
Regards
Bryce Inglis
Investment Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS175.An appropriate professional should be consulted for specific advice
Hi All[biggrin]
You don’t need goals to make money, you need goals to know how to maximise your money making abilities & to decide what to do with the money once you have it.
You need to goal set in order to be compliant with the FRSA prior to giving specific financial advice. Under the Act a financial planner must now know their clients goals, objectives and other requirements so that a constructed plan will reflect their wants and needs. Failure to do this could lead to financial and legal repercussions to the advisor, including loss of license, fines or jail terms. The advisor may also be sued for loss, by the client if negligence is proven.
Regards
Bryce Inglis
PS146 Compliant
Property and Investment consultant
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.
Hi to All and geo,[biggrin]
In order to generate money you should start with the basics, first you start with a goal list. This provides incentive and will be the basis for your plan of action.
Next, start or review a budget which will indicate your available cash flow and determine if you need to change anything in order to create money for investment.
Do you need to review spending habits such as the misuse of credit, including cards or impulse spending? Businesses that buy on impulse using credit are rare, plan spending in your personal life the same way and include self rewards for achievement of goals or in the steps taken towards them.Do you have money owing to you, even if you are unaware of any existing? Try looking for some, it’s a bit like buying a lottery ticket except it has better odds and is free.
Try contacting your state treasury department or the other links for unclaimed monies. Some sample links are here. http://www.asic.gov.au/fido/fido.nsf/byheadline/Looking+for+lost+money%3F?openDocumenthttp://www.unclaimedsuper.com.au/
http://www.sro.vic.gov.au/SRO/srowebsite.nsf/unclaimed%20moneys.htm
http://www.osr.nsw.gov.au/portal/page?_pageid=33,63342&_dad=portal&_schema=OSRPTLT
With regards to shopping could you consider changing to alternate supermarket chains in order to save money even though you may have to travel, wait longer and provide your own shopping bags? This can save up to 30 % per week.
Shopping discount coupons are available at http://www.kapowadvertising.com.au
These can be printed off the website as required
Booklets listing factory outlets are available at newsagents.All of the above are suggestions to create money without reducing your present standard of living, and it is important to reward yourself for taking the effort in implementing them. It is no way intended to be a complete list and may not suit every ones circumstances and is only offered as general advice.
Other questions I can offer suggestions on are listed below; however I have run out of time today.
Do you need to increase your income?
Do you need to reconsolidate existing debt to reduce weekly outlay?
Do you have an investment strategy?
Do you have a risk strategy?
Do you have a credit card that is always at its limit?I can offer general advice for discussion; however I am prohibited in giving specific advice by the financial services reform act 2001 without following set procedures.
Regards
Bryce Inglis
PS146 Compliant
Property and Investment consultant
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.
Hi alfred_dreeb[biggrin]]
As the subject suggest I’m interested in inquiring about entitlements/laws governing international purchases of property with an Australian based entity/trust?
Using an Australian based trust may cause a problem in obtaining a mortgage for an overseas property. Lenders generally like to have local control over the property for security. This may be further investigated for you by one of the many brokers on this site.
Also property, tax and real estate laws differ from country to country as do the timing cycles of the property market.I’ve recently established a family trust – because my accountant told me it was a good thing to do
As I’m recently discovering, through heaps of reading (ala Trust Magic), that a trust is a tax effective vehicle for attaining propertyThis is true in some cases; however you could consider hybrid trusts for tax implications. Hybrid trusts may be more suited to you dependant on your circumstances. You could also investigate a good managed or syndicated investment that uses trust structures.
Has anyone had any experience in attaining property overseas in Europe from an Australian based Entity. If so/not what were the dynamics/logistics/restrictions, etc of the entities/structures involved?
Most of listed Companies which deal in property, for example Westfield, use large overseas commercial developments, as do most superannuation entities. This is due to the large amounts of money at their disposal, where they need to be involved with large projects.
This limits the amount of information available on overseas markets with regard to residential property.
There may also be restrictions imposed on offshore purchasers, and this will vary from country to country. This is controlled in Australia by the Foreign Review Board and most countries will have an equivalent government department with an appropriate web site.Regards
Bryce Inglis
Property and Investment consultant
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.
Hi yack,[
]But if my employer pays my rates for a property its subject to FBT surely
It could be viewed as being not subject to FBT, if it’s an integral part of the investment. As happens in the share market with companies and their costs
The problem must then be in whose name is the property and how does it get financed. Companies have their own problems getting finance and would rather use borrowed money growing their business than investing for staff, unless I suppose its staff they CANNOT lose. And then in whose name is the property – the staff member or the company.
The property will finish up fully in the employees name but the processes to get it there are quite complex and the mechanisms are worked out.
also had a look at your web site. How are you guys paid for your time. Via an hourly rate or package rate for time spent with clients or via commissions on properties sold. I think you should add this question to your FAQ.
As a manager I am paid both with a retainer and commission, others are on commission only or they may be salaried. It is quite normal to use commission structures with common use by industries such as mortgage brokers real estate and other types of sales, however I feel that fee for advice structures are the best for financial planners .
The source of the commission is the real estate transaction fee, obtained if you chose buy property from a choice of builders or developers in an area as suggested by us.
Please note that IPAL does not own property and the builders and developers are independent, resulting in a guaranteed fair market priceSorry about it sounding like an add Moderators and sorry about the delay as I am nearly the worlds slowest typist
Regards
Bryce Inglis
http://www.ipal.com.au
[email protected]Hi Yak,[
]Thanks for the feedback, Their are no FBT- fringe benefits tax on investments. This is normal and is used in conjunction with shares as part of salery packages
Regards
Bryce Inglis
http://www.ipal.com.au
[email protected]Hi All[
]Just DavidC Posted – 25/02/2004 : 14:14:38
to clarify, a superfund should it wish to purchase property must buy it outright as the SIS laws do not allow a superfund to borrow money.Should a superfund borrow money, then it would be a non complying fund and the assets in your superfund would be taxed at 47%. Very steep penalties.
Hi David, The Super fund on the title fully owns 50% of the Property, and as such is not a borrower. The other 50% is borrowed by the holder of the policy, in his name [not the superfund].
[/ggreen]Pisces Posted – 26/02/2004 : 10:37:32
>>Also a MER {Management Expense Ratio} is charged annually and averages out at 1.94% with the range between 1.5%{colonial} & 2.21%{MLC}<<Bryce, 1.94% is quite a charge.
No, I am not saying that it isn’t earned. Just that it is a hefty slug considering what one can earn in a bank deposit or the rental return on a property.
Pisces
reen]
Hi Pisces, it becomes even more of a slug when its paid on a scheme which loses money
Regards
Bryce Inglis
http://www.ipal.com.au
[email protected]
As I’m recently discovering, through heaps of reading (ala Trust Magic), that a trust is a tax effective vehicle for attaining property
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