Innholdsfortegnelse for July 2020 i Money Magazine

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Overall complaints to the telecommunications industry ombudsman (TIO) are slowing year on year and it’s a sign that telco providers and customers are working better together to sort any issues.  In aggregate this is a win for consumers because you can be more confident that telcos are delivering better services and are more willing to resolve problems before they are taken to the ombudsman. But the headline figure doesn’t always tell the full story. The numbers were collected before the bushfires and pandemic. What troubles the ombudsman is a rise in the proportion of small businesses making complaints – 14.7% in the 2019 financial year, up from 12.4% the previous year.  It should be noted that more than 19,000 complaints to the TIO from small businesses were made in the…

The OECD says a second wave of the coronavirus in Australia could see its GDP fall 6.3% in 2020. In the absence of a second wave, it predicts GDP could fall up to 5%. “Massive macroeconomic policy support, including a temporary wage subsidy, is limiting the economic shock. Most economic restrictions are planned to be unwound by July,” says the OECD. Fund manager Magellan has launched the Airlie Australian Share Fund (ASX: AASF), a new active ETF that combines features of an unlisted fund with that of an ETF. Brett Cairns, Magellan’s chief executive, says “this simplification eliminates the need to have two separate funds, one for investors who prefer using unlisted funds and another for those who prefer funds quoted on a stock exchange.” Industry superannuation funds continue to…

How landlord claims have been affected For millions of rental property owners, Covid-19 has caused financial stress, with rents taking a hit but many expenses staying the same. With tax time upon us, property investors now need to understand how this will affect their tax position. If your tenants have stopped paying rent or reduced their rent because their income has been hit, this should not impact the deductions you can claim. For example, if you are still paying your mortgage in full, you can continue to claim the interest. Similarly, if you reduce the rent on your property, either to assist current tenants or to attract new ones, that won’t impact your ability to deduct rental expenses either. Adjusting your rent downwards is either an act of goodwill on…

Louise Walsh is an expert at donating money. While legions of financial managers know how best to invest, the skills of successful philanthropy are equally as complex and sophisticated. Yet the two disciplines have plenty in common as experienced donors employ specialist managers to achieve the best outcomes. Charities also need to be watched so they don’t slack off, and those that do can be ditched when they don’t perform. Knowing which charities to back is critical when the going gets tough. “It’s easy to give it [money] away. But it’s not easy to give it away well,” says Walsh of her role as the head of two prominent social impact funds. She handles donations now totalling $11 million each year as the chief executive of two ASX-listed managed funds,…

• •You No companies must be aged or trusts 18 and can over apply and . an Australian citizen. • You meet one of the following two income caps: $125,000 a year for an individual applicant based on your 2018-19 tax return or later; or $200,000 a year for a couple based on both 2018-19 tax returns or later. • You enter into a building contract (at arm’s length) between June 4, 2020 and December 31, 2020 to either: build a new home as a principal place of residence, where the property value does not exceed $750,000; or substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000 and where the value of your existing property does not exceed $1.5…

Next to our family and friends, another relationship that has the power to shape our future is the one we have with our banks, lending institutions and insurers. From our savings accounts to our credit cards, business loans and home loans, our day-to-day lives are inextricably intertwined with the way we transact for work and personal matters. Even more so as we enter a global recession. Any benefits and concessions we can get from our bank – from fee savings to interest rate cuts – can bring back some of the extra money we lost from the pandemic. It can also help us stay afloat at a time when the economy is shaky. It is with this in mind that we bring you the 2020 Consumer Finance Awards, a shortlist…

Police Bank has knocked off last year’s winner, Newcastle Permanent, to take out Investment Lender of the Year. Property investors have been hit hard by Covid-19. While they’ve been able to take advantage of a fall in rates, this has been offset by a widespread slide in rents and the prospect of falling real estate values. “With the uncertainty around the economic outlook clouding the outlook for property prices right now, and with a real chance that they fall five or 10% before stabilising, investors are a little more wary than they were at the tail end of 2019 in the wake of the RBA cuts,” says Police Bank chief executive Greg McKenna. “But the reality is that as long as investors are discerning in terms of targeting an area…

Big banks are often called our fair-weather friends. They’re around during the good times but nowhere to be seen when you need them the most. But in the past two years, a new pattern has emerged. They are providing more products and services that help the vulnerable and the needy. We saw this early this year when they helped those affected by the bushfires. Then came a once-in-a-century test that stretched the banking system to the limit. Millions of Australians were caught out in an unprecedented wave of sudden business closures, job losses and stand-downs because of Covid-19. In what is called compassionate banking, the big four – ANZ, CBA, NAB and Westpac – threw away their usual rulebook on how to manage savings accounts, personal loans, home loans and…

My father had a double life. He ran a second family that he kept secret from my mother and his kids for many years. When he finally told my mother the marriage was over, he had obscured his true finances, so it was impossible for her to find out where he hid his money. Not surprisingly I’d found it hard to trust partners when it comes to money – until I met my husband. I’m not alone. I hear from plenty of women and men, some more financially savvy than my mum, who have been duped. Often the lies about the finances are uncovered accidentally. One woman I know found her husband of more than 30 years had been conned into sending thousands of dollars to his secret eastern European…

In January 2020, Australia experienced some of the worst bushfires in the nation’s history. La Trobe Financial wasted no time in stepping up to the plate with a $1 million donation split between the Salvation Army and the Australian Red Cross to help bushfire-affected communities rebuild. Borrowers received a direct helping hand. La Trobe Financial extended generous disaster relief to fire-impacted customers – this included paying loan interest and charges for 12 months for those who’d lost their homes. “We wanted to offer meaningful support to the community, and we were determined to look after our customers during a period that I’m sure all Australians will look back on as a deeply challenging time,” says CEO Greg O’Neill OAM.…

The Covid-19 pandemic has sparked a new wave of inquiries from people interested in moving from capital cities to regional areas, according to real estate agents. The pandemic has meant a lot of people experienced working from home virtually full time for the first time and many found it beneficial. More than 80% of people say the experience has had a positive impact on the way they think about work-life flexibility and how they manage it, according to a survey by the NBN. Additionally, and critically, 67% say they expect to work from home more after this is all over.  If working from home does become the new norm for many, it opens up the areas where people can live and still hold down a job. It means you might…

The three main risks with property investment are interest rate increases, a depressed rental market (no rental growth) and low capital growth. The interest rate risk can be addressed by fixing the interest rate on most of the debt. Selecting a top-quality property and engaging a professional property manager will minimise your vacancy and income capital-growth risks. However, the only way to account for potential risks, particularly for an absence of rental income, is to build a buffer into the loan, thereby allowing for a temporary cash flow deficit.…

1 UBS CBRE Global Real Assets Fund The fund is the first of its kind anywhere in the world for CBRE, bringing together all four pillars of the real assets universe in a “turnkey” solution for investors. The aim is simple: to better align long-duration asset performance with the long-term horizons of superannuants. With an experienced asset allocation committee rebalancing the actively managed underlying funds in global infrastructure and property, and listed and unlisted funds, the fund is a combination of liquidity and diversity. 2 AMP Capital Core Infrastructure Fund The fund offers investors the opportunity to invest in a globally diversified portfolio of listed and unlisted infrastructure assets, usually only available to institutional investors. The fund provides diversified exposure to multiple sectors, regions and asset types including…

Investing can be intimidating with its jargon, big numbers and fears of losing money – but it doesn’t have to be. The key is to have a plan. As one of the women we interviewed for our book, The Joy of Money, said: “I spend a lot of time earning money and very little time investing it.” Here are some of the key elements of creating your individual investment plan. Set your financial goals Setting your personal goals is one thing – these are what are most important to you to achieve in life. They give the motivation – the “why” – for deferring spending now so that you can grow assets for the future. But before you begin investing, you need to clarify the amount of money you need…

Numerous companies approach an equity crowdfunding platform to raise funds. The platform (which must be licensed with ASIC) assesses these companies and ensures they satisfy a range of obligations set under the regulations. These obligations are to limit the likelihood of fraud or misrepresentation and/ or ensure that investors understand the risks. Some platforms may also undertake additional diligence on the information published about an offer. If a company satisfies these requirements, it is eligible to be funded on the platform. Here investors can see the company’s offer and are provided with the information needed to make their decision. A successful raising entails “the crowd” or investors providing funds to collectively reach the company’s targeted amount, and as a result, receive part ownership. Investors in equity crowdfunded companies that then…

It’s been a long time between drinks, but in the drink the Australian economy is heading. Technically we’re not there yet but federal treasurer Josh Frydenberg did not opt for a stay of execution and acknowledged that Australia’s 29-year recession-free run is over. He also acknowledged that this is the treasury department’s view. Frydenberg’s statement came after the Australian Bureau of Statistics (ABS) released its March quarter 2020 national accounts report that showed the economy contracted by 0.3% in the first three months of the year. But unlike in the years 2000, 2008 and 2011, when Australia dodged a recession – defined as two consecutive quarters of negative growth – this time there’s no escape. “Clearly, with this once-in-a-century pandemic, the impact on the economy has been very severe, the…

Working from home is no silver bullet for parents During the pandemic, companies thought that working from home is somehow a silver bullet. It may have been for people who don’t have young children, but not for me. Both my wife and I are migrants (with no other family here except our seven-year-old daughter) and we are both essential workers. Although I can work from home, my daughter’s school and OSHC (outside school hours care) were closed. My wife needed to be at work on the front line, but how I was expected to maintain the same level of productivity or focus in online meetings as a full-time-worker at home (while also being a parent and teacher to our daughter) is beyond me. There were few provisions or concessions from…

ANNETTE SAMPSON Annette, who contributes our What If? column, says: “Lockdown showed me how easy it is to save by simply removing non-essential spending from your life. Without trying, my spending dropped substantially and I now think twice about whether I really need something. The other thing I learnt is that making your own sourdough is much more time consuming and expensive than buying it!” ALAN DEANS Alan, our Interview writer, says: “Buying bargains online often risks disappointment because it’s hard to ship them, especially if they’re offshore. If you have your heart set on something, contact the seller and ask them to check with their shipper about how they send it to Australia. Use a reputable site like Amazon in case you need to claim a refund when nothing…

Anew generation of investors is demanding the opportunity to support companies that fund new futures and solve problems. In the post Covid-19 world, capital will be different, better, stronger and more conscious. Investors alarmed at the impact of companies damaging the environment have begun to look at the impact of their own investments. In January, Australia Ethical Super saw its net inflow increase five times compared with the same month in 2019, citing increased awareness of climate change as the reason. As more people realised the power to choose is in their hands, the shift towards more ethical investments began. This will also lead to more investments in start-up companies – the innovators and disruptors building the next wave of businesses that will shape the world around us. As a…

20 LESSONS FROM 20 YEARS OF QUALITY AND VALUE INVESTING  By Anton Tagliaferro Independent Ink, $39.99 Some of the most important questions you’ll ask yourself as a sharemarket investor are answered in this book. Drawing on his 20 years at the helm of fund manager Investors Mutual, Anton Tagliaferro explains the difference between speculating and investing; why dividends are key; how to survive corrections; and why you should look beyond bank shares, among other topics. The seven chapters work through the investment basics to more distinct philosophies. It’s easy to follow and has plenty of useful anecdotes and references. Ten readers can win a copy. In 25 words or less tell us how you invest in a volatile market. Enter online at moneymag. com.au/win or send entries to Money, Level…

Louise Walsh Philanthropic expert and investment fund chief executive; age 54. Lives in Berry on the NSW South Coast. Career influenced by prominent corporate lawyer and board director David Gonski. Describes her father as a gifted salesman and fundraiser. First job at 16 was as a sales assistant at fashion store Sussan in Shellharbour, NSW, where she “spent at least half of what I earned back in the store”. She made sacrifices to save early in life and with her husband manages a personal share portfolio. Enjoys swimming, practising yoga and playing tennis.…

My husband and I are 30 years old and have had a busy few years. After a strenuous journey of IVF we welcomed our beautiful baby boy in February last year. We later purchased a townhouse in Brisbane, for which we were lucky to have the support of my parents as guarantors. We considered the townhouse ideal, as it was strongly indicated to us that we would not be able to have any more children. However, in November last year, we were quite shocked to learn I had fallen pregnant and am due to give birth to a baby girl in six weeks (late June). Although Covid-19 has been a testing time for our community and country, my husband and I have been secure (and very busy) in our jobs…

• Communicate with your lender, let them know what’s going on and maintain repayments as best you can, but if you’re struggling, contact its hardship teams as soon as possible. • Without blocking your spouse from accessing money, perhaps quarantine some funds separately (some for each of you) and turn joint accounts and redraw to “two to sign” to avoid assets being removed. • Keep civil communication whenever possible, it won’t help to inflame matters. • Avoid the temptation to give away assets or take on disproportionate share of debt “to get it over with”. • Draw up a list of assets and liabilities (right down to furniture, superannuation and credit cards) and try and divide these amicably and fairly – the more you can do together the more you…

BANK OF THE YEAR The winner had the highest overall score among banks that competed across six individual categories. Only full-service banks with a national presence were eligible for this award. The weightings were: • • Personal Home lender lender 30 20 % % • • Money Credit card minder issuer 10% 20% • • Business Investment bank lender 10% 10% WINNER: SUNCORP CUSTOMER-OWNED INSTITUTION OF THE YEAR The winner had the highest overall score among customer-owned institutions competing across six individual categories. To be eligible for this award institutions needed to be listed as a member of the Customer Owned Banking Association and have more than $5 billion in assets. The weightings were: • • Personal Home lender lender 30 20 % % • • Money Credit card minder…

Creating new habits is hard. Our human nature loves to maintain the status quo, and sees small change as energy sapping and frustrating. Plus, when we attempt to build good financial habits, such as cutting back on discretionary spending, we face a fight against the emotional pain of loss that these cutbacks bring. My emotional side says, “I like having my coffee each morning from the barista who remembers my name”, “I deserve that expensive meal out”, “I need credit to get new things that I can’t afford and pay off later”. In order to gain better habits you often need to lose the old feelgood ones. This internal struggle of loss versus gain feels like a battle between freedom and restraint. “You can take our lives, but you can…

For many small businesses, 2020 has unquestionably challenged the resolve of the most resilient, with research accounting software provider MYOB revealing that 58% of SMEs say the Covid-19 pandemic has negatively impacted their business. But don’t be discouraged. Another study by accounting software provider Reckon shows that business leaders with high resilience are far less likely (29%) to consider giving up on their business compared to those with low resilience (70%).  Besides, highly resilient small business leaders are more likely (47%) than average (38%) to use accounting software platforms such as Reckon, Xero and MYOB to help them reach their goals. Get online or fall behind Surprisingly in 2020, 41% of SMEs still don’t have an online accounting solution, and 24% have no accounting solution at all, according to the…

1. Do the painting yourself. It’s less expensive and you can change the room, not just the walls. Top brand names will cost between $60-$80 for a four-litre tin. For tile paint, and paint for cupboards and doors, expect to pay extra. 2. Use art. You can find large pieces at some retailers, or you can do your own abstract pieces that are on-trend and inexpensive. 3. Shop at budget retailers like Kmart – you can get so much for so little, and it’s simple to change decor and soft furnishings like cushions and homewares. 4. Go back to thrifting – with Facebook Marketplace and Gumtree you can pick up amazing things. I found a dining table for $30 and after I spent a bit of time sanding it, people…

Many people are at a loss when it comes to financing a property that, on paper, is negatively geared. They’re uncertain how they’ll make up the cash flow shortfall that often comes with well-located, high-capital-growth property, as opposed to a high-yielding, “pays for itself” rental investment. On the other hand, some people never even consider starting a property investment career because they believe they simply can’t afford it. They think, “How can I possibly pay off my own home while I’m saving a deposit for another one?” Equity equals opportunity Equity is often overlooked when it comes to property finance. Equity is the net realisable value of a property – or how much cash you’d walk away with after you deduct sale costs, outstanding debt and capital gains tax from…

When so much is up in the air, as it is now, people long for certainty. Investment markets are challenging and super earnings weak. That may prompt some people to consider setting up a self-managed super fund to take more control of their super. According to the Australian Taxation Office, SMSFs have grown massively over the past two decades and now number 600,000. They make up a third of Australia’s total retirement savings – $748 billion – and serve 1.125 million members. Adrian Raftery, who has researched SMSFs extensively and is the principal of Mr Taxman, says SMSFs can be advantageous: they provide greater investment choices, including direct property, as well as tax and estate planning benefits. “There are a lot of members who buy commercial property because they can…

This is an easy mental shortcut to help you estimate how long it might take to double your money. You simply take the number 72 and divide it by the annual rate of return. For example, an investment with a 7.2% compound annual rate of return will take 10 years to double in value. An investment with a 6% annual return will take 12 years; and if you were lucky enough to score an 8% annual rate of return, then you could double your money in nine years. This is pretty exciting stuff when you plug in all the potential numbers.…

For the Marcus Today team and the growth portfolio we manage for investors ($55 million), Covid-19 was not a disaster. The sharemarket volatility proved to be a fabulous opportunity instead. Our Growth Separately Managed Account (as at June 10) has outperformed the ASX 300 Accumulation Index by 26.87% since the coronavirus hit on February 20. And when the market falls over again we will see another fabulous opportunity beginning. But how did we do it? At the risk of letting out our secret herbs and spices, here are 18 ways to beat the herd. These lessons are not for everyone, and most fund managers are too big to do this, but it is something to pin on the fridge. • Have the ability and bravery to go to 100% cash.…

The Covid-19 pandemic, according to Tobi Lutke, chief executive of the $80 billion juggernaut Shopify, caused the online shopping platform to put its 2030 plans into place 10 years earlier, such was the change in the commercial and technology landscape. Kogan, the online retailer and marketplace, saw its sales double in April and May, compared with a year earlier. People previously unfamiliar with online shopping or video-conferencing flocked to them in droves. And contactless payments, though already popular, came into their own as retailers asked customers to avoid using cash where possible. Change, as is often said, is the only constant in life. And that change, driven by circumstance, has taken 2020 by the scruff of its neck. It’s not just technology that’s changing, of course, but it has, by…

Performance after fees: When calculating fees, Rainmaker assumes a member has $50,000 in their account. Strategy: Some MySuper products invest your superannuation based on age and are known as lifecycle funds (marked LC). The table includes the LC option for 40-year-old members. Nonlifecycle funds are known as single strategy (S). Rank: Funds are ranked against all MySuper investment options available in Australia. Indices and averages: To produce these indices, Rainmaker analyses the results of more than 3300 investment options.…

Performance after investment fees. Investment returns after investment fees annualised to describe each fund’s returns per annum. But if your managed fund achieves a high return and charges you an extra “performance fee”, Rainmaker has not taken this into account. Past performance is not an indicator of future performance. Rank. Funds are ranked against all managed funds in each segment, not just those included in each table. Indices and averages. Arithmetic average investment returns or average fees for all fund investment options within each category, that is, not fund size weighted.…

What was your first job? As a teenager I had odd jobs like mowing lawns and cutting bushes. Those sorts of jobs were good in terms of meeting other people and dealing with adults who weren’t your parents and who wanted you to work and complete a job to a standard. I enjoyed that. It was great training for my career as a writer with the newspaper – editors are like parents and doing it to a standard means it gets published. My first professional job was as a research officer at the Geelong Regional Commission, a planning and development authority that administered Geelong in the early 1980s. I was introduced to the Australian Bureau of Statistics bulletins on population and I was fascinated by these obscure, bizarre documents that…

Great advice at just the right time Synchronicity at its best! I have just read your magazine for the first time. Margaret Lomas’s answer to “How the Bank of Mum can help” (May, page 25) is a question we have been pondering. While my daughter is in employment, the clear, concise and considered advice is informative to the point my reading of Money will not be the last. The articles around the impact and effect of Covid-19 are most helpful in these unprecedented times. One hopes Paul’s words –“I suspect we will have less emphasis on money and more on the value of our own lives, those we love, and our community” (May, page 28) – ring true for the years ahead. Now back to my armchair travels … American…

As the ASX flirted with a new three month high and society slowly crept towards normality, many people may have been be hoping the “she’ll be right” investment strategy they’ve relied on for so many years is still the right one. And who would blame them? Until recently we hadn’t seen a recession in 29 years. Whatever your financial situation, one thing is certain: now is the time for Australians to break away from the “she’ll be right” strategy which dominates our savings and investment culture. Covid-19 has also presented us with the opportunity to do things differently. The most critical advice I can give is to use this unprecedented period to build up your financial knowledge and resilience. The more you know, the easier it will be to find…

FINANCIAL MINDFULNESS COST: FREE (IN-APP PURCHASES) OS: IOS 11.0 OR LATER; ANDROID 4.4 AND UP Here’s an app to help relieve your daily stresses about money. Answer a quick questionnaire about your feelings towards managing your money and let the app point you in the right direction. Once you’re progressing in the app you’re welcome to answer the questionnaire again and it will change the guidance. Financial Mindfulness combines goal setting, financial literacy and mindfulness to provide you with a series of free tools to help you manage credit cards, mortgages, bills, unexpected expenses and stress. Some of the inbuilt modules have been created specifically to help you through Covid-19 and you can pay a small fee for a wider variety of topics, such as job loss, divorce, under-earning and…

The Covid-19 pandemic has given new meaning to flexible working arrangements. According to researchers from the University of South Australia, arrangements will be an issue when employees are required to return to the workplace. “Covid-19 forced people to work from home under the worst possible conditions – it was done in a rush, it was done across the board and in some cases it was done without the right supports such as IT or ergonomics,” says Ruchi Sinha, a senior lecturer. “Now, as workplaces return to some semblance of normal, people are asking, ‘What will happen to workplace flexibility?’ And with such large-scale evidence that flexibility doesn’t diminish productivity, businesses cannot afford to turn a blind eye and just return to normal.” She says managers need to recognise that they…

Months of economic and social shutdown were tough to cop but necessary to beat the coronavirus pandemic. The subsequent economic recession won’t be an easy beat either, but experts are reassuring us that Australia is in a far better position to recover than other countries. Fears about our financial future are rational in these circumstances, but they will also go a long way in shaping how property and sharemarkets react. Kristian Kolding, lead partner for macroeconomic policy and forecasting at Deloitte Access Economics, says fear will be important to Australia’s outlook because “fear generates its own momentum” and “that makes it really hard to stop. Fighting an awful virus is really hard. Fighting both a virus and fear is doubly hard [for an economy],” says Kolding. In a survey of…

Belinda and Scott* purchased their first home together in 2016 and within months the relationship was feeling the strain of the new finances. What worked well on paper in budget terms wasn’t working so well in reality. In the divorce, Belinda decided to pay Scott out. She received the benefit of no transfer duty and as the property’s value hadn’t increased a lot she used a family pledge via her parents to assist her buying out Scott. Using her DIY skills and new-found free time, Belinda has renovated the kitchen and bathroom. She has also let out her spare room to a boarder to help pay the mortgage. With the improved value of the property and extra repayments, it won’t be long before she can stand on her own without…

The Organisation for Economic Co-operation and Development’s (OECD) most recent outlook, published in June, encourages Australia’s federal government to extend some of its income support measures (such as JobKeeper and JobSeeker) beyond September. It says the government is also considering more plans to improve individual skills training. “It could also further promote reskilling and upskilling through adult education and enhance job search programs,” says the report. “Expanded loan guarantees … could reduce scarring for entrepreneurs and facilitate a more dynamic recovery.”…

Simple rules. Setting up simple decision-making rules makes dealing with money less emotional and more systematic. This also means that when things don’t go well you can blame the rule (and refine it) rather than feeling as if you have to defend your own judgement. Less emotion, better behaviours – it’s a win-win! Nudge yourself. Put little nudges in your environment, such as calendar reminders or account-naming conventions, to help guide your attention to what matters most. Why do the thinking when you can set up your environment to help do it for you? Tell others. Make commitments to others you trust, and get them to hold you accountable. Social group dynamics and expectations are extremely influential, so get your tribe to help keep you on track and form better…

With a history spanning close to 70 years, a period covering good times and bad, the $11 billion La Trobe Financial is still following its mission to change the lives of everyday Australians through its products and dedicated program of community giving. First founded by Ray O’Neill in 1952, La Trobe Financial was built on the principle of “people first”, coupled with the firm belief that home ownership is the foundation of financial independence. Seven decades later, La Trobe Financial continues to offer a flexible range of competitively priced home loans, and a suite of award-winning wealth management products. One area where La Trobe Financial stands apart in the financial sector is the remarkable continuity of its leadership team. Almost 40 years ago, Ray O’Neill handed the reins of leadership…

1. Not measuring before you buy can leave you with an oversized or undersized sofa in your living room. 2. When choosing hard finishes for kitchens and bathrooms (tiles, benchtops), people often choose an on-trend colour and end up not liking it down the track. Decorate with colour but use neutrals for hard finishes that will give a longer life. 3. Beware of buying on-trend pieces just because you see them in a catalogue or online but then find they’re not a good fit for your house or style. It’s easy to get excited when an item goes viral, but think first how it will look in your house. 4. Think twice before mixing too many different styles. Zoe Gilpin…

Let’s say that a would-be investor, William, has a home currently valued at $600,000, with a $300,000 loan – therefore, $180,000 in borrowable equity. William wants to buy an investment property for $700,000, but doesn’t have a cash deposit because he’s been concentrating on repaying his home loan. In this instance, the bank will add the total loan amount that William requires and compare it to the total security he’ll have. So William’s total loan will be his $300,000 existing mortgage, plus $740,000 for the purchase of the investment property ($700,000 plus $40,000 for costs). Of course, we would split these loans out to avoid cross-securitisation, but for the sake of simplicity let’s ignore this for a moment. William’s borrowing more than the total cost of his new investment property…

In uncertain times the human nature is to grasp what is real, physical and enduring. There’s an importance in owning assets in our investment portfolios that are tangible, are a time-tested store of value and have utility in some form or another for humans. Yes, I am referring to real assets. Real assets range from hard commodities such as precious metals to equipment, land, natural resources and bricks and mortar formations. Real assets can be income producing such as tolled infrastructure (roads, ports, pipelines, crude and chemical storage terminals) and commercial property, or could just be a store of value such as gold and silver bars. Recurring cash flows These types of assets ought to be seriously considered for long-term investment portfolios as they can be a cushion against negative…

Some costs applicable to setting up, operating and winding up an SMSF are unavoidable; others are optional and depend on decisions the trustee makes. Unavoidable costs include: • The annual SMSF supervisory levy (collected by the tax office). • An annual financial statement and tax return. • • Costs Annual relating independent to the audit establish fees - . ment of the SMSF, including a trust deed. • The fee for annual actuarial certification (when required). • The optional costs cover a range of services related to the structuring and administration many SMSF trustees choose to pay. These include: • Establishment of a corporate trustee, including ASIC fees to establish a corporate entity and the annual corporate trustee fee. • Ongoing SMSF administration costs, including the cost of amending the…