What the 2019 federal budget means for your family’s finances

With a federal election due in May, the 2019 federal budget is more a series of election promises than it is a set-in-stone budget. That aside, here are some of the more interesting talking points and what they’ll mean for your family’s monthly budget.

The winners from the 2019 federal budget are middle-income workers, small and medium businesses, and older Australians wanting to ramp up their super contributions.

The losers? Well, there was no direct announcement aimed at homebuyers struggling with housing affordability.

However, there were a number of indirect ways the budget may assist your mortgage repayment or deposit saving capacity.

Let’s take a look at a few.

Middle-income tax relief

Middle-income workers earning between $48,001 and $90,000 could receive immediate tax savings of up to $1080 for a single or $2160 for a dual-income family as early as July 1.

Workers who earn $90,001 to $126,000 don’t miss out on the action, either. However the more you earn over $90,000 the less you’ll receive until tax savings taper off completely at $126,001.

Tax brackets flattened

High-income earners could also benefit under the Coalition’s plan to flatten the tax brackets, albeit by 2024-25.

Essentially, all taxpayers earning between $45,000 and $200,000 would have their tax rate reduced to 30%.

This would see a couple earning $200,000 per person receiving total household tax relief of $23,280.

However, as the changes are not scheduled to come into effect until 2024-25, and Labor does not support the plan, the Coalition would need to win the next two elections to implement it.

SME business benefits

Tax rates for small and medium businesses will drop from 27.5% to 26% next year, before falling to 25% in 2021.

The government is also increasing the instant asset write-off threshold from $25,000 to $30,000 per asset and will make it available to businesses with an annual turnover as high as $50 million (up from the current $10 million cut-off).

Meanwhile, apprentice incentive payments are being increased for businesses that employ carpenters, plumbers, hairdressers, bricklayers, plasterers, bakers, vehicle painters, tilers and arborists, to name a few.

Employers will have their apprentice incentive payments doubled to $8000 per placement, while apprentices will receive a $2000 incentive payment.

Superannuation changes

Australians aged 65 and 66 will be able to make voluntary superannuation contributions without having to work at least 40 hours over a 30 day period.

They’ll also be allowed to make up to three years worth of voluntary contributions ($300,000 in total) in just one year if they wish.

The government is also increasing the age limit for spouse contributions from 69 to 74 years.

Energy assistance payment

A one-off Energy Assistance Payment, worth $75 for singles and $125 for couples, will help age pensioners, people on the Disability Support Pension, veterans, carers, single parents and Newstart recipients cover the cost of rising power prices.

Want to know more?

Today we’ve covered the federal budget measures that may have a direct impact on your finances, but there were plenty more announcements that we haven’t touched upon, including infrastructure and transport projects, national security, pre-school education, healthcare, welfare, mental health initiatives, and regulator and compliance funding.

If you have any questions about any of the potential changes arising from this year’s federal budget and how it may affect your family budget, please get in touch. We’d be more than happy to discuss it with you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Top 5 tips for standing out on Airbnb

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The short term rental market is booming. Each year, tens of thousands of Australians list their properties on Airbnb to make a tidy buck on the side. Here are our top five tips on how to stand head and shoulders above your competition.

Most people who own an investment property prefer to rent it out long term. It’s more of a set and forget approach, if you like.

But for some, such as those who own one home and/or those who travel for long periods, renting out their property on platforms such as Airbnb and Stayz is becoming an increasingly appealing option.

In fact, in 2017 more than 30,000 people listed their homes on Airbnb across Sydney and Melbourne alone.

These numbers have made the Australian Taxation Office (ATO) sit up and take notice. So much so that the ATO recently declared they’ll be ramping up their enforcement activities and will undertake 4,500 audits of taxpayers they suspect may not be declaring Airbnb income.

Suffice to say, when the ATO starts paying attention to a marketplace, you know money is being made.

Here are our top 5 tips on how to make more money than the next person.

1. Professional photos

First impressions last, and these days the first impression is the webpage impression on your Airbnb listing.

You don’t see real estate agents walking around with outdated camera phones taking dank snaps of the living room. And neither should you!

A good photographer has the skills and equipment to highlight the beautiful little details that makes your property sing, and crop out the less than desirable qualities that may turn a potential guest away.

Obtaining high quality images from a professional real estate photographer costs between $150-$300 via websites such as Snappr or Airtasker.

If they get you just one extra two to three night booking they’ll have already paid themselves off.

2. The devil is in the details

There’s no point in having a photographer take wonderful photos of your property only for the guest to show up and feel like they’ve been conned by the old bait and switch!

You need to put in that extra bit of effort to make their stay memorable. After all, they’ve chosen your place ahead of a hotel, not to mention all the other Airbnb competition out there.

There’s a good chance your guest is visiting your local area to check it out. So try and include as much (classy) local artwork, local guidebooks, decorations and information as possible.

The bathroom should also always be spotless, make sure good quality tea and coffee is available for free, and ensure all the basic kitchenware is easy to find.

Other tips include providing menus for local takeaway, tips for local sightseeing, entertainment such as books and boardgames, all necessary electrical appliances such an iron and hairdryer, and some basic cleaning equipment and products in case something gets spilled.

3. Play host, but don’t smother your guest

It’s important that you’re available to your guest should they need to check anything.

That might range from “where is the frying pan?” all the way to “where’s the local hospital?”.

It’s critical that you never show irritation, no matter how trivial or inconsiderate a guest’s inquiry might appear.

That’s because one scathing review can undo a lot of the money, time and effort you’ve invested.

It’s equally important to give your guest the privacy they require. Be on hand to offer any simple tips or suggestions, but don’t pin them down for hours on end chatting to them about your own travels.

This is their holiday after all!

4. Consider using a property management service

If you’re going to be away from your property for a while it’s worth considering taking the hassle and stress out of trying to manage your property from afar by outsourcing to a professional service.

There are plenty of options out there to choose from, including (but not limited to) Hey Tom, Hometime, HomeHost and Airsorted.

Expect to pay about a 15% to 20% (+ GST) commission to them, however most boast that they can help increase your Airbnb income.

5. Thank guests for their reviews

Taking the time out to thank every single guest for their review shows you’re a super attentive host who’s always aiming to please.

The best thing is it also gives you the opportunity to further highlight the positive aspects of your property.

For example, if a guest writes in their review that they had great ocean reviews, reply: “Thanks for the review Craig! Stoked that you enjoyed the ocean views from your bedroom!”

The best thing about this trick is that it even works for negative reviews.

That’s because most negative reviews will also mention something positive about the property. So make sure you thank them for that, acknowledge their complaint and thank them for bringing it to your attention, and advise that you’ve taken steps to rectify the issue for future guests (and actually do so!).

This shows other guests that you’re a very reasonable person who takes all concerns seriously – and will be approachable if they need you during their stay.

Guess who else is approachable?

We are!

If you have any queries or questions about your property and think we might be able to help out, don’t hesitate to get in touch – we’d love to help out.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

12 reasons you should see a broker for car finance

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We’ve all heard the horror stories about a mechanically-challenged friend buying a car and it turning out to be an absolute lemon.

Well, the truth is that sourcing finance for the car isn’t all too dissimilar. But here are 12 reasons why you won’t end up with a lemon of a loan with us!

1. Using a finance broker doesn’t cost you a penny

Using a car finance broker is free. We won’t charge you for any of the work we do on your behalf. Also, all enquiries are free and there’s absolutely no obligation to go ahead with any of the options we present to you.

While it’s true we work on a commission basis from the lender, we work for you. Not the car dealership. Not the bank. You.

If we don’t find you a loan product that you’re completely happy with, then you’ll go elsewhere and we don’t get paid. And fair enough!

2. Access to possible discounts

We don’t want to brag, but negotiating with lenders is our thing. We deal with lenders on a daily basis and know just how hard to push when sourcing you a loan. This can result in discounted interest rates for you.

3. Time is money

Using a finance broker saves you time. And as we all know time = money.

By having us go out and negotiate on your behalf it can save you countless hours researching interest rates and repayments, and then getting in touch and negotiating with various banks and lenders.

4. We’ve got your best interests at heart

It’s our number one priority to make you happy by helping you source a loan that suits your needs.

It’s really important for our business and reputation that we nail our job. The big banks don’t have this same incentive to ensure you’re completely satisfied with the quality of their service. Neither do the car dealerships!

5. Pay less for the vehicle

There’s this little trick car dealerships like to use – the old ‘Drive away, 0% finance to pay’.

But all too often the dealerships sell these vehicles at inflated prices.

For example, a car that has a price tag of $24,990 with a 0% finance deal might sound great, but the automaker would most likely be willing to sell it to you upfront for $19,990. Therefore, you can actually end up paying $1000-$2000 less if you take out a competitive loan through us.

6. Avoid hidden nasties

Did you know that 80% of people don’t read Product Disclosure Statements?

You can’t exactly blame them. If you read every PDS, T&Cs and Privacy Policy you came across it would literally take you weeks to complete each year.

Instead, by using us we can give you the low down on the important points in the PDS to help you avoid getting stung by hidden nasties.

7. Access to dozens of lenders

We’ve got access to dozens of lenders on the market to help you score a competitive rate. Not only that, we’ve got our fingers on the pulse when it comes to the deals that lenders are offering.

You won’t have access to this many lenders if you deal directly with a bank or car dealership.

8. Get a loan suited to your needs

After finding out a little more about your situation, we’ll be able to get in touch with our panel of lenders to find a loan that’s suited to your personal needs.

This can even include finding a vehicle that’s suited to your family’s needs, if you need us to do so!

9. Got less than perfect credit rating?

If you’ve run into a bit of credit trouble in the past, we can still help you source a line of credit for your vehicle. We’ve got good experience in this department and know which lenders to approach to help you get a loan.

10. Convenience is king

We take all of the legwork out of sourcing car finance. We’ll liaise with lenders on your behalf, compare what they can offer, and come back to you with the options that we believe will suit you.

That will take a big weight off your shoulders as well as a lot of potential stress!

11. Minimise the impact on your credit file

If you apply for finance with more than one lender it can have a detrimental impact on your credit file. However working with a finance broker can allow you to apply with a number of lenders through just the one application.

12. The personal touch

While online (and big bank) options exist, we pride ourselves on our personal touch. If you’ve ever got any queries or concerns about your loan you can pick up the phone and we’ll sort it out for you.

That’s much better than calling up a call centre and being bumped around from anonymous customer service person to anonymous customer service person.

Get the ball rolling now

All too often the process of sourcing car finance is put in the too-hard-basket. But by simply picking up the phone and calling us now we can help you get the ball rolling.

It’s quick and easy, too. We’ll get some initials details from you and get cracking asap.

That way you can get stuck into the other tasks on your to-do-list, or simply kick back and watch Netflix!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

A huge thank you for all your support

What a rollercoaster month it’s been for the mortgage broking industry and our customers. The good news for the both of us is that our service to you will stay exactly the same moving forward, no matter who wins government come May.

The people have spoken and both the government and opposition have listened.

Both sides of the political spectrum have agreed not to change the mortgage broker remuneration model to a user-pays system moving forward.

That’s great news for consumers, who would have had to fork out thousands of extra dollars each time they took out a loan through a mortgage broker.

It’s also great news for us.

The Royal Commission report didn’t exactly paint our industry in a positive light, which was more than a touch unfair considering that less than 1% of consumer credit complaints to the Financial Ombudsman Service have been about mortgage brokers.

Without getting into the politics and policy details of it all, both the Coalition and Labor have agreed to continue with a commission-based structure.

Now, both parties have different viewpoints on how commissions should work moving forward, but the long and short of it is that both proposed policies will ensure it’ll be business as usual for the both of us moving forward.

So, from the bottom of our hearts we’d like to say thank you.

We’ve been completely overwhelmed by all the messages of support we’ve received, as well as all the emails and petition signatures that were sent to local MPs protesting against the proposed changes.

And it definitely has made a difference!

In fact, it’s the only recommendation from the Royal Commission that both parties have ruled out implementing.

Rest assured that no matter what, our first priority will always be you: our customer.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

5 ways to combat current property market conditions

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Australia’s housing market might be on a bit of a downward trajectory, but that doesn’t mean the value of your home can’t buck the trend. Here are five ways you can increase the value of your property, without necessarily increasing your monthly mortgage repayments.

You’ve probably seen a whole bunch of doom and gloom about the property market being in a slump.

First off, rest assured that it’s not the end of the world.

In fact, national dwelling values have simply returned to September 2016 levels, according to recent CoreLogic figures.

The good news is that with a bit of elbow grease and hard yakka you may be able to make that back up.

Here are five affordable suggestions for doing so.

1. Gardening and landscaping

It’s time to get those hands dirty.

One of the fastest ways to instantly increase the ‘wow’ factor of your property is to give it a good manicure.

Trim any overgrown bushes, mow the yard, apply grass seeds where there are bare dirt patches, plant some new flowers and plants in the garden bed, and ensure the fence is looking top notch.

If you don’t have the tools for the job, or you’re simply more of an indoors person, consider hiring a landscaper to help out.

You can opt for a well known local professional out of the Yellow Pages, or save some coin by taking a punt on a young person looking to grow their reputation through Airtasker.

2. Indoor plants and artwork

One of the best ways to make the interior of your house feel fresher and more lively is to decorate each room with a bit of greenery.

Pot plants are fantastic because they’re low maintenance, make your place look great, and are great for your health.

Here’s the real kicker though: rather than leave them behind, like most other things on this list, you can take them with you when you sell your property.

The same goes for artwork. It too can make your place stand out by giving it a bit of character, and it’s not like you have to fork out thousands for an original Rembrandt or anything of the like.

There are thousands of talented local artists selling art at affordable prices – and remember, it’s all subjective. Back yourself to pick out a good artist who appeals to you!

3. New carpet or floor polish

Nothing looks as dated as stained carpet, scuffed floorboards, or old and chipped tiles.

Having a fresh platform for a prospective buyer to stand upon can make a big difference when it comes to their mindset.

If the floor they’re standing on is dirty and dated, they’re very likely to wonder what’s wrong with the aspects of the house that they can’t see.

If it’s within your budget, definitely consider giving this part of your property a makeover before inviting potential buyers inside.

4. Bathroom bonanza

The bathroom will attract about as much scrutiny from a prospective buyer as any other room in the house.

The last thing you want is for some grime, leakage or mould turning off someone who’s happy with every other aspect of your property.

If your bathrooms are moderately new and not too dated, pay some professional cleaners to come in and get the place sparkling.

You don’t need to rip the whole thing out and spend $15,000 on a complete retrofit either. A simple paint job is sometimes enough.

However if your bathroom is looking pretty dated – and your budget allows for it – consider installing just some of the essentials: perhaps install new sinks, updated countertops and cabinets.

Also, ensure the taps and shower head are shiny and not leaking, and the toilet is modern and not flushing money down the drain (indoors, the shower is typically the biggest contributer to water bills at 34%, followed by the toilet at 26%).

5. Your Kitchen Rules

Not far behind the bathroom in terms of scrutiny is the kitchen.

Once again, there’s no need to rip out the whole kitchen and fork out an arm and a leg.

Look at ways you can revitalise it on the cheap: you could replace old cupboards and pantry doors, upgrade the bench tops, and make sure the taps and electrical fittings are in tip top shape.

And don’t forget that the kitchen appliances you have out in the open are also acting as decorations.

If they’re old and outdated, they could bring the rest of the kitchen sagging down with them. Once again, if you have to buy new appliances, at least you can take them with you!

Final word

Remember that property improvement shouldn’t cost you more than the value you’re hoping it will add.

It also helps to think of some of the above ideas as adding to your investment – not an expense.

If you’re unsure where to start, or would like some extra tips, don’t hesitate to get in touch.

We understand precisely what buyers look for in a home and investment property respectively, and would be more than happy to help out.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.