Hi there, I have a few thoughts about Premium Finance. For example, the $6500 rebate mentioned probably would have been a conservative estimate of the amount of income tax Australian property investors can claim back thanks to generous government tax incentives. After all, the government can't afford to support everyone in retirement. Having said that, it isn't a competition between the knowledge of their accountants and yours. The advantage is in the investment options that allow you to claim the extra tax back, options that your accountant may be well aware of, but which you just don't qualify for… yet. It was mentioned above that this company all about creating wealth at a faster rate through property, not just as a mortgage brokering service. So I can't quite conceive how paying $295 for flights, accommodation and a full days wages for at least one employee, all in the name of selling a property by which there's a very good chance of making the customer a lot of money, is taking advantage of someone. As for the telemarketing companies, you should try to look past the momentary interruption of your dinner and consider the idea that while your relaxing at home, someone is working to offer you a service at no cost that could show you how to make a lot of money. There is a reason companies don't squander precious resources on regular forms of advertising. Most notably the fact that telemarketing allows a marketing campaign to focus on particular socio-economic targets suited for their product, i.e. Mining towns with labour oriented persons (unaware of financial strategies) plus high capital growth (unused equity) and high incomes. By now you might have guessed that I've worked for companies like Premium Finance before. Being cautious is healthy and natural but you can use the ASIC website to find information regarding financial companies like this one before making any judgments. All things said and done, if you do your homework and end up with a property, it was probably worth the hurdles and the dollars. Try to keep an open mind about you. Jonathan

As for ANZ… what does that word 'May' mean to you? Besides, I am 75% certain that NAB and ANZ won't survive the brewing depression. Safe loans are going to be with Commonwealth or Westpac and, no, i don't work for either. Don't even like them, let alone have a vested interest. It's just that they have more local investments and, though exports are slowing with China's economy, they will pick up again in the next 5 years or so.

Good question. 10+ years is a long time, and true, at best what rates will be like then is only an educated guess. Fixed interest loans work a little bit differently, but even so, many lenders will not offer one for more than 5 years.
One rough guide used to be to compare the rates for 2,3 and 5 year fixed rate loans, which gave a bit of an idea what 'the experts' were thinking. Fixed rates from many lenders have snuck up a bit of late, and you can bet another rate rise or two , or in the casr of some lenders if they get a whiff of a rate rise, the fixed rates will go up again. …….and those rates you qouted will no longer apply of course, unless you signed up for one and had it settle first – which is not a bad idea (but not for 10 years!)

As a sidepoint, I wonder how many people would want a fixed loan for that term? If they sold their house, the lender will get a huge early penalty payment, that will more than make up for the fact that th money may have been able to be 'sold' for more meanwhile.

I guess if you look at the Interest rates in NZ, they are what Steve is talking of now, which is more than possible, and maybe quite likely – who knows? Cheers.
 

They will beat ya ta death with the great tomes of legislation … particularly the tax avoidance bit .. if ya do the wrong thing (and so they should )

But I have to say .. if you are up front with them … they can be a great ally .. and (as I said) great folk (and NO .. I don't work for em ) …

So? .. they was a 'screw up' … be up front with em.

If you didn't use an accountant to step through all with you .. tell em – your bad .. you'll use an accountant next time .. can they recommend one … etc etc ..

If you used an accountant .. tell em .. sack the accountant .. tell em the truth … and why ya need the variance etc etc ..

Get the advice on ya next year BEFOREHAND … take it to them .. explain it to them .. ask their view .. is there anything you or your NEW accountant missed .. whatever .. but YOU must make the first move … and be up front.

and … DO NOT yak at the counter .. tell em ya want the super .. or whatever .. get a meeting room and talk through it ..

You'd be suprised .. they really only want the genuine baddies .. lotsa folk screw up … from experience … 9 times outta 10 … they understand that (ya may get a whack) … but thats ok …

give it a go