NEWS - Advanced Finance Solutions

October 09

Thu, 01 Oct 2009 00:00:00 -1000

Word About Facebook

Well, keeping in line with modern methods of communication - AFS is now a member of Facebook. If you are facebook fan then do a search on Advanced Finance Solutions and become a fan/make comments/read our posts. If you are not a member of facebook then create a profile and join this wonderful social network - a few of us are self confessed addicts! www.facebook.com

Word from Anita

AFS are proud to announce that Jacqui Williams came 2nd in AUSTRALIA in the Australian Mortgage Awards (AMA) Young Gun of the Year Award category. We are so proud just to have had Jacqui in the finals let alone to have come 2nd - congratulations Jacqui. One of Jacqui's clients (Brad) wants to know if that means she now gets to wear a sash to all of her appointments??

With a lot of talk around at the moment about whether or not customers should fix their interest rates, we created a blog about 2 months ago which has been commented on by a few of our clients - www.advancedfinance.com.au but also the Commonwealth Bank have given us a very basic graph that you may find useful when comparing the benefits of fixing interest rates or not. As you are aware, the question of whether or not you will save on interest over the term of your fixed rate depends on the magnitude and speed of variable interest rate increases, and hopefully this graph may help you make a more informed decision - please email me if you would like a copy of the graph.

I will be on holidays as of tomorrow until Wednesday 7th October but as per usual the Client Liason Team will be here holding the forte so it will be business/contact as per usual.

Jacqui

WOW - what a September! As you all know I was one of the finalist at THE AUSTRALIAN MORTGAGE AWARDS - it is like the OSCARS of the finance world. It was absolutely an amazing experience. It was held at the WESTIN - in Sydney. The food, company and honor of being nominated was a night I will not forget. I want to thank all of my very dear and loyal Clients - because without you I would not have made it that far. And a very big thank you to Anita and the wonderful team at AFS, this nomination is a credit to them all as well. THANK YOU!

I hope everyone has started their spring Cleaning. If not it is probably a good idea, especially after that horrible red dust storm. Have a Great October.

Wayne

My exciting news is that I am taking two weeks off work from next Monday 5th October - my fantastic personal assistant Kathryn will be holding the fort while I am away and the girls in the office of AFS will be handing all of our existing files.

Enjoy October!

Property Market Gears up for bumper season - Sept 2009

The property market is gearing up for a bumper season thanks to an influx of stock and the warmer spring weather encouraging buyers to investigate properties and attend open homes and auctions on the weekend.

The level of real estate agent activity has risen by 17 percent since the start of June and is 31 percent higher than the same time last year, figures from RP Data revealed.

RP Data's director of property research Tim Lawless told Mortgage Business that rental rates have recorded declines in every capital city, except Darwin, over the last three months.

"The recent fall in rental rates can be attributed to an ebb in demand as more renters look to buy, take advantage of low interest rates and the boost to the First Home Owners Grant," Mr Lawless said.

"With vacancy rates across the nation's capital cities generally below 2.5 per cent, it is highly likely the recent fall in weekly rents will be short lived. Such low vacancies will continue to place upwards pressure on rents over the longer term.

"The number of new properties being added to the market place is up 11 per cent since mid-June as the spring selling season starts to ramp up. Over the last month there have been just short of 160,000 individual properties advertised for sale equating to $126 billion of housing stock on the market.

"The number of properties being advertised for sale is actually lower than the same time last year reflecting the buildup of stock last year and the subsequent absorbing of stock throughout the second and third quarters of 2009," he said.

Article from "Mortgage Business" magazine by Jill Fraser for Lending Central

A selection of 10 Golden Rules for managing your finances - Part 1

About 4 years ago, there was an article in the Sydney Morning Herald that described 10 Golden Rules for managing your finances. We came across the article the other day and were struck by how timeless the rules are, particularly in light of the Global Financial Crisis, so we thought that we would share them with you. They are not the only rules that you should apply when you are managing your finances - but they are worth thinking about.

In this edition of Investment News we will describe the first five, and then next week, we will outline the final five.

Manage your debt

The first golden rule is always to pay off your credit card debt first, because it attracts much higher rates of interest than other loans.

A great way to speed up this process is to switch to a better deal. The market for credit cards is very competitive, so it can pay to shop around for a low-rate card. Just be aware that any new spending may be charged at a higher rate than that advertised, and you should exercise some restraint.

You could also consider consolidating your overall debt to reduce your interest payments. Mortgage interest rates are cheaper, compared to those charged on personal loans and credit cards.

But be careful here because consolidating your debts within your mortgage will work only if you are extremely disciplined and work to reduce them. Long-term debt on a lower interest rate can be just as harmful as short-term debt on higher interest rates.

Limit your credit limits

Once you have your credit card debt under control, think about reducing your limit. Not only is the extra credit a temptation to spend what you don't have, but high credit limits are also a liability when you try to apply for finance because the total of these limits are counted as debt, rather than just the amount that you owe.

Make sure that your credit limits are sufficient only for what you need. Let's face it, it's rare to be faced with a $10,000 emergency.

Manage your costs

Limiting the number of transactions on your account can save you quite a lot over time. If you're buying groceries, use the Eftpos facility to pay and take cash out at the same time. First, Eftpos is cheaper than using an ATM and secondly, the two transactions count as one, which brings down the cost further.

Some banks will waive fees on your bank account if you hold a mortgage with them. But if your account does charge fees, make sure that they are competitive.

Bear in mind too that, generally speaking, online savings accounts don't only offer higher interest, but are also fee-free banking.

Find your lost super and then consolidate your superannuation funds

About one in three people have "lost" superannuation accounts. If you have changed employers since compulsory superannuation was introduced, but haven't transferred your accounts, you could be one of them. Multiple funds come with multiple fees and charges, which erode your retirement savings. You may also be paying for insurance cover with more than one fund, for insurance cover that you don't need.

To find your lost super, check out the following ASIC website - http://www.fido.gov.au/fido/fido.nsf.

By finding your lost super and rolling over all of your superannuation accounts into one, you can reduce fees and build up your super faster.

Mortgage or Stock Market

Pay off your mortgage or invest in the stock market? It's not a crime to invest when you have a mortgage, but make sure that your after-tax return is higher than the interest on your mortgage or it won't be cost effective. The reason is that by paying off your mortgage you are effectively earning a tax free return that is equivalent to your interest rate. A highest rate taxpayer would need to earn a guaranteed 11.21% return on an investment for it to equal what's on offer from a mortgage with a 6% interest rate.

Next month, we'll look at another five Golden Rules for managing your finances

(This article provided by La Trobe Financial Services)

Australian Mortgage Arrears

Despite continued economic volatility globally mortgage delinquencies have not worsened and overall Australian residential borrowers have kept up their mortgage repayments.

Credit ratings agency Fitch Ratings' last report, released this week, reveals that delinquencies have continued their downward trend, decreasing between the first three months of this year and the second quarter.

Arrears improved slightly across all sectors except for non?conforming reduced?documentation loans in the 30-59 day bracket, which increased to 4.87% in the second quarter of this year from 4.45% in the first quarter.

General ongoing arrears stability suggests that peak arrears were reached in the last quarter of 2008 and arrears are not likely to reach those levels again for the remainder of 2009.

The unseasonal decrease in arrears from the fourth quarter in 2008 to the first quarter in 2009 suggests households battened down the hatches and were riding out the storm ahead of other economic indicators that have subsequently improved through the second quarter of 2009.

Fitch's view was that the usual spike in arrears from Q408 to Q109, due to Christmas spending and repayment of credit card debt, did not occur because of a combination of lower interest rates and the first bout of government financial support.

Australia has faired better than most other countries during the global financial crisis; however, the influence of contracting global economies further impacting on Australia remains a real possibility.

The combined efforts of expansionary fiscal and monetary policy within Australia appear to have had a positive influence in sheltering Australians from the global storm.

The sixth cut in the official cash rate to 3% in April 2009 by the Reserve Bank of Australia (RBA) has been effective in keeping many borrowers' cost of funds at historical lows. The RBA has indicated in its August 2009 Minutes of the Monetary Policy Board Meeting that it would, in due course, need to adopt a less expansionary policy stance - therefore, the next likely direction in interest rates is up.

The increase in arrears for non?conforming reduced?documentation loans raises concerns for this segment of the market, which is primarily made up of self?employed borrowers.

They are likely to be feeling the full effects of the economic downturn and related slowing and or failure of their business ventures.

Although the increase is relatively large, non?conforming reduced?documentation loans only represents a small segment of the securitised universe captured within the Dinkum Index (Fitch's measure for full documentation loans), being less than 0.10%.

Looking ahead the report says that a number of competing factors will determine borrowers' sentiment as 2009 progresses.

There is no expectation that there will be any further expansionary fiscal policy and/or monetary policy for the remainder of 2009; however, unemployment and further global instability will be the key factors for Australian borrowers and policy makers.

As reported by the Australian Bureau of Statistics (ABS) the unemployment rate increased to 5.7%, seasonally adjusted in June 2009, dropping back slightly from 5.8% in March 2009. Fitch's sovereign analysts have forecast the Australian unemployment rate to rise to 5.8% during 2009, up to 7% in 2010.

Arrears are more likely to increase once interest rates and unemployment both start to increase, which is not expected over the next quarter; however, the risk is there through potentially the latter part of 2009 and into 2010.

The real tests for householders to continue paying their loans depends on interest rates and unemployment trends. The RBA is not expected to lift rates at its next meeting in October but many economists have forecasted rate rises before the year's end.

Kind Regards,

Advanced Finance Solutions

Email - afsmortgage@big pond.com

Managing Director - Anita Marshall Ph 0429810906

Client Liaison Services - Leanne White Ph 0429810906 / Marion Reid Ph 0429810906

Mortgage Broker Contact Details:

Mortgage Planner - Jacqui Williams Ph 0411447017

Mortgage Planner - Tim Jennings Ph 0417263912

Mortgage Planner - Susan Chevis Ph 0413245224

Mortgage Planner - Wayne Dickerson Ph 0411514913

Mortgage Planner - Danni Toshack Ph 0407787597

Mortgage Planner - Ross Lovegrove Ph 0429921096

September 09 News

Tue, 01 Sep 2009 00:00:00 -1000

Anita

Well - it must be the month of nominations for awards for AFS.

Firstly the most exciting is for Jacqui. Jacqui has been nominated and also made it into the finalists of "Young Gun of The Year" in the Australian Mortgage Awards. This is a huge honour. Jacqui was nominated for the award by Chris Slater who is the state manager for AFG (our aggregator who represents over 2500 brokers). Jacqui has been given 2 tickets to attend the awards night by Westpac Bank and will be attending the Westin Hotel in Sydney towards the end of September - we wish her all the very best for the night.

I have also been nominated by a client in the Telstra Business Woman of the Year awards and AFS has been nominated by a client in the AMI Awards for Marketing excellence. What an honour for us to be nominated by our own clients -greatly appreciated too.

Wish us luck!

Just a reminder that I will be in Victoria this Sunday for a few days - if you would like to catch up with me while I am down there (Benalla / Melbourne) please let me know - I still have a few appointment times available!

Enjoy Spring

Anita

Jacqui

Hi everyone. I hope you have all had an enjoyable August and enjoying the beautiful weather we are having. It's a perfect time to get out there in the garden. I just think this time of the year is perfect for gardening - not to hot, not too cold. Another thing that is perfect to do at this time of the year or any (as long as you JUST DO IT), is to invest in property. I found an article in a mortgage magazine, "RIGHT NOW THE FUNDAMENTALS FOR THE PROPERTY INVESTORS HAVE SELDOM LOOKED BETTER. ROCK BOTTOM INTEREST RATES AND SWOLLEN, RENTAL RETURNS ARE A MATCH MADE IN HEAVEN FOR ANY INVESTOR". You can be sure that the shrewd investors are already in the market because Australians are now more than ever looking for safe and sound returns, not quick money making ideas. You can be sure if something seems too good to be true, it usually is. Investing is like anything in life, first time is hard and then it just gets easier and easier. BUT for anyone who would love to start investing, but just not quite sure where to start , we are only to happy to help you with your Finances and staring your investment portfolio. Take care and have a great September!

As forecast.... "Clear Weather Agead!"

One of the largest banks in America, Goldman Sachs, announced a first quarter profit of $3.2billion, which means that, incredibly, they have been able to repay $10billion to the American taxpayer. This compares to the bloodshed of losses the banks experienced in 2008. Our prediction from November 2008 stands correct and now the tide has turned and normal bank profit is starting to be seen. Now, here's the proof!

Now we must watch what happens as the system is flourishing with cash, which will be lent on so banks can again make their money. Cash rich buyers will then go looking for property. As we've been predicting when there are too few bananas in the store - buyers will push up the price. Remember Cyclone Larry and its devastating effect on the agriculture in the area? Banana prices were pushed up from $2.00 per kilo to $17.00 per kilo. The following year saw the normal supply of bananas come into the market and re-establish the normal price.

It won't be quite as radical with property however. We know it takes two to three years to build that rapid growth. We also know that no-one has started building yet to allow a growth spike to start. With no giant influx of property for these buyers we are going to see the biggest jump in property prices that Australia has ever seen in its long history. But be careful, there are many mistakes to be made for the innocent investor.

For example, some investors have been influenced by the recent current affairs shows that highlight ‘the areas of great growth'. These prices have been forced up by the first home buyer buying the wrong type of property in the wrong location based on what they believe is all they can afford. Don't be fooled into buying in these areas based on media commentary. We are still rejecting a lot of properties put to us. The Club's strength is that we "cherry-pick" and we do this for long-term capital growth.

My prediction on the growth of these "cherry-picked" Club properties?

Sydney - over the next three years should see up to 60% price increases for the right product and position.

Melbourne - a 40% price increase and similar in Brisbane.

We are still recommending Darwin, Newcastle and the Gold Coast area but our researchers will have to come up with a much better rent return to compete with Sydney, Melbourne and Brisbane.

Normally, it would be very confusing in the marketplace to determine which alternative to take, but the Club has software to help you. You can compare all properties with our CAP (Cash-flow Analysis Program) which gives you an indication of what your property will cost you weekly and FIDO (Financial Independence Date Organiser) software which gives you an indication on when you will be financially independent as per your individual circumstances. These tools are available to you, as Club Members, completely free of charge. What a great time to be in property.

The Investors Club has seen four consecutive months of our best sales ever. We find our informed Club members are always six to twelve months ahead of the market. We get in and scoop the bargains and then we see the herd come in later and push up the prices of lesser properties thus elevating our buyers to huge price growth. Soon this surge in buyers will be reported in the media and panic will set in as buyers emerge from their winter sleep and chase ever diminishing "for sale" signs.

So go make money! Use CAP and FIDO and lock in the right choice.

Broker Mortgage Trends and Statistics:-

51% of borrowers have used a broker

SA is the most broker-friendly state, with 61% of SA borrowers having used a broker before compared to the national average of 51%.

TAS and VIC borrowers were least likely to have used a mortgage broker before, with 44% and 41% stating this respectively.

Younger borrowers are more open to using brokers, with 58% of Gen Y borrowers having used a broker in the past compared to 54% of Gen X and 46% of Baby Boomers.

Gen Y borrowers are also more likely to approach a broker for a future loan, with 59% stating this compared to 57% of Gen X and 50% of Baby Boomers.

Significantly, the proportion of non-property owners who would not consider using a broker fell from 26% in 2008 to just 3% in 2009. This indicates that the large majority of non-property owners are willing to consider using a broker, driven largely by their belief that brokers can get them a better deal and that their advice would be valuable.

Major banks accounted for 61% of the brokers' share of recommendations, followed by 17% for regional banks and 10% for foreign banks.

WHAT DOES THIS MEAN?

Clearly we are a much sought after commodity with a growing number of Australians preferring to use a broker for general advice and recommendations, whilst seen to be well informed specialists in the mortgage market.

The above information was obtained from the Genworth Financial Mortgage Trends Report July 2009.

Westpac CEO says Australian economy improving

The head of the nation's biggest bank by market value says problems in the economy, including bad debt, still had to be worked through and funding costs for the bank are continuing to rise.

"There's no question we're seeing an improved economic environment," Mrs Kelly said in a presentation for the bank's third-quarter update on Friday.

"A key factor domestically has been the much improved consumer and business confidence and the stronger than expected economic recovery in China is also welcome.

"Having said all that ... we shouldn't underestimate the size and scale of the shocks we've been subject to, and there could be after shocks."

Mrs Kelly said the bad debt cycle was working its way through the economy and it was still difficult to predict when impairments would peak.

Westpac said impairment charges for the three months to June 30 increased to $865 million from $811 million in the preceding quarter.

"I certainly hope to be in a better position to talk to this at our full year results in November, when we have a few more months under the belt," Mrs Kelly said.

The commercial sector, particularly smaller businesses that couldn't access equity or credit markets, was finding it hardest to service debts, she said.

However, consumer bad debt had declined slightly, and Mrs Kelly said consumer spending may underpin the economic recovery.

Demand for fixed rate homeloans increases

Fixed rate loans accounted for 8.0% of the total loans in June, up from 6.2% in May.

More borrowers have locked in interest rates amid speculation that the official cash rate already has bottomed.There are also widespread concerns that local banks will continue to raise their mortgage rates independent of whether the Reserve Bank raises cash rates.

Meanwhile, investment bank JP Morgan says home loan demand will ease in the second half of 2009.
"This should help ease the RBA's concerns," says economist Helen Kevans. "RBA Governor Glenn Stevens recently highlighted the threat of excesses forming in the housing market, suggesting that higher housing demand simply may push up prices, rather than help create new dwellings.

Kevans believes "inflated house prices eventually correct" themselves and "the wealth destruction that would occur in the highly leveraged household sector will be painful".
Not all economists share Ms Kevans' view, with Australian Property Monitors economist Matthew Bell saying there is no house price bubble and a lack of supply of new dwellings will support prices.

August 09 News

Sat, 01 Aug 2009 00:00:00 -1000

August 2009

Anita

The exciting news for August is that my name was annouced as one of the top 50 brokers in Australia for AFG as part of their Smart Campaign. AFG is our aggregator who represent over 2500 brokers . The rankings were worked out on volumes as well as client feedback from the surveys sent out after a loan settles. Thanks so much to all of my wonderful clients who helped me reach this fantastic result. Its thanks to you that I made it into the list! As a reward I was offered a 4 day conference to Cambodia in September. I am unfortunately not able to make this trip so I will be aiming to get into the top 50 again next year and hopefully the destination will be somewhere equally as exciting.

Interest rates - Everyone is asking at the moment about fixing or not fixing rates - its a confusing topic so i have created a blog where you can discuss your views with me/others - please feel free to make a comment/ask a question - www.advancedfinance.com.au/blog or follow this link to a detailed article which lists the pros and cons -http://www.afgonline.com.au/newsletter/winter09/01/. Westpac have announced that they will be increasing their fixed rates this week so if you have loans with them and plan on fixing NOW is the time.

Victoria - I have been invited to attend some workshops in Benalla and Melbourne in early September by the Investors Club. I am looking forward to meeting some of our clients while I am down there. We will be holding a special lunchtime workshop (see events for details) - numbers will be strictly limited so if you would like to attend please let me know as soon as possible.

Enjoy August! - Anita

Jacqui

Well the start of another financial year. I hope everyone is well on the way to doing their tax. I'm very organized and have done ours - I like to get that tax refund back as soon as I can. I am sure all of you with rental properties have done the same.

Work is still very busy - mostly with investors and also clients wanting to fix their loans. This time of the year is also a very good time to do an annual health check on your finances, please feel free to give me a call if you need some help. Also just a reminder that summer, or the hotter weather, is just around the corner, and for those of you who have a boat it might be a good idea to start getting it ready for the boating season. With that in mind, my husband Philip went back to school this month and is now a fully qualified Mercury dealer. Just part of the excellent service they offer @ COVE MARINE.

Well the kids are all back to school after a wonderful holiday and the rat race has begun again for another term. Hope you all had a wonderful July.

2009 Financial Year Health Check Tips

Keep your finances on track by following the 12 AFS Financial Health Check Tips

Tip 1 - August 2009

This months financial health check tip is to:

Ring 1300762207 and get a copy of your credit rating sent to you in the mail.

This is a free service offered by a company called "My Credit File" - if you call the above number they will send you a copy of your credit file within 10 working days completely free of charge -

Obtaining a copy of your credit file will assist you in managing your personal information and also help you to better assess your own credit worthiness.

Please note that you may only request a copy of your own credit file. For security purposes, prior to receiving your credit file you will be asked to verify your identity.

Once you receive your copy check that all the details on there are correct - for more information about what is on your report - www.mycreditfile.com.au

Changes to the First Home Owners Grant Scheme Boost and Government Fees

The Federal Government has extended the First Home Owners Grant Scheme Boost for six months from 1 July 2009 to 31 December 2009. Note: The Federal Government's First Home Owners Grant of $7,000 will continue.

What you need to know:

For established homes, customers must enter into the contract no later than 30 September 2009 to receive the $7,000; customers entering into a contract from 1 October 2009 - 31 December 2009 will receive a $3,500 boost payment

For new homes, customers must enter into the contract no later than 30 September 2009 to receive the $14,000 and customers entering into a contract from 1 October 2009 - 31 December 2009 will receive a $7,000 boost payment.

There are two eligible transactions under the new home scenario:

For construction loans where a building contract has been signed, building must commence within 26 weeks and the construction must be completed within 18 months.

For off the plan purchases the contract must be signed on or before 30 September 2009 to receive the $14,000, on or before 31 December 2009 to receive the $7,000. Construction work must be completed on or before 31 March 2011.

Victoria:
Changes to the Victorian Home Bonus
From 1 July 2009 - 30 June 2010 the Victorian Government funded Home Bonus will reduce from $3,000 to $2,000 for existing homes and will increase from $5,000 to $11,000 for new homes. Eligible transactions will increase from $500,000 to $600,000.

Changes to the Victorian Regional Home Bonus
From 1 July 2009 - 30 June 2010 the Victorian Government funded Regional Home Bonus will increase from $3,000 to $4,500 for eligible customers.

New South Wales:
Extension of the New Home Buyers Supplement

The NSW Government has extended the expiry date of their $3,000 New Home Buyers Supplement from Tuesday 10 November 2009 until Wednesday 30 June 2010.

First home buyers in NSW who qualify for FHOGS and are buying or building a new home are eligible for this Supplement.

Note: A new home is a home which has never been occupied as a place of residence. It must be the first sale of that home

They must enter into a contract to buy or build a new home by Wednesday 30 June 2010.

Summary
Please click here to see the dollar value of FHOGS and Boost on a State by State basis.

Government Fees

VICTORIA
VIC Mortgage Registration fee changes
Effective Wednesday 1 July 2009, the following Victorian registration fees will increase:

Registration of Mortgage fee will be $98.00 (previously $95.10)

Registration of Discharge of Mortgage will be $98.00 (previously $95.10)

Registration of Transfer will be $119.40 (previously $115.90) plus $2.46 for every $1,000 of the transaction. The maximum fee is $1,350.

NEW SOUTH WALES
NSW Mortgage Registration fee changes
Effective Wednesday 1 July 2009, the following NSW registration fees will increase:

Registration of Mortgage fee will be $95.00 (previously $92.10)

Registration of Discharge of Mortgage will be $95.00 (previously $92.10)

Registration of Transfer will be $190.00 (previously $184.00).

NSW Housing Construction Acceleration Plan (HCAP)
Effective Wednesday 1 July 2009, the NSW Government will introduce their Transfer Stamp Duty concession, Housing Construction Acceleration Plan (HCAP).

The concession is only available for customers entering into a contract for the purchase of a new home between Wednesday 1 July 2009 and Thursday 31 December 2009. The concession reduces the Transfer Stamp Duty payable by 50% for transactions up to $600,000 for both new owner occupier and investment properties. The concession is not limited to one transaction.

Note: First home owners cannot claim the concession. A new home is classified as one that has not previously been occupied or sold as a place of residence. The home must be complete and ready for occupation unless it is an off the plan purchase.

WESTERN AUSTRALIA
WA Registration fee changes
Effective Wednesday 1 July 2009, the following WA registration fees will increase:

Registration of Mortgage fee will be $110.00 (previously $105.00)

Registration of Discharge of Mortgage will be $110.00 (previously $105.00)

Registration of Transfer - please refer to the below table

Property Value	Before 1 July 2009	1 July 2009 to 30 June 2010
Does not exceed $85,000	$105	$110
Does not exceed $120,000	$115	$120
Does not exceed $200,000	$135	$140

Note: For transactions over $200,000 the fee is $140 plus $20 for every $100,000 or part thereof.

SOUTH AUSTRALIA
SA Registration Fees
Effective Wednesday 1 July 2009, the following SA Registration fees will increase:

Registration of Mortgage fee will be $117.00 (previously $112.00).

Registration of Discharge of Mortgage will be $117.00 (previously $112.00).

Registration of Transfer - refer to table below:

Property Value	Before 1 July 2009	1 July 2009 to 30 June 2010
Does not exceed $5,000	$112	$117
Does not exceed $20,000	$125	$131
Does not exceed $40,000	$140	$146
Does not exceed $50,000	$201	$209

Plus $65.00 (previously $62.00) for every $10,000 or part thereof above $50,000.

Stamp Duty abolished

Effective Wednesday 1 July 2009, SA Mortgage Stamp Duty will no longer apply for advances made on or after Wednesday 1 July 2009, irrespective of whether the mortgage document is executed before or after this date.

Note: Revenue SA have advised that:

Duty on a "line of credit" loan would be chargeable on the full amount made available to the customer prior to 1 July 2009 regardless of how much was drawn down, as the funds are available to the customer without further approval from the financial institution; and

For construction loans, duty would be chargeable on the full amount available under the facility, when the first progress payment is made before 1 July 2009.

July 09

Wed, 01 Jul 2009 00:00:00 -1000

Newsletter July 09

July 2009

Anita

Wow - isn't the year flying past - July already and where is Winter? I am not sure where you are reading this newsletter from but its 24 degrees here in Port Stephens in July - fantastic (I am touching wood as I speak).

We had a record number of settlements for this year in June. Jacqui personally had a record month, writing almost 5million in loans (mainly for investors snapping up investment properties while the prices and interest rates are both so low). Congratulations to Jacqui and all of the AFS Team on a fantastic month.

Interest rates seem to be the focus of a lot of clients questions lately and I honestly wish I knew the answer to them. I have put in this months newsletter 2 articles (shown below) - one saying interest rates are likely to rise and one saying they expect further cuts. Which one is right? Who knows !!! All I can suggest is that if fear of interest rates rising is stopping you from purchasing property then there are plenty of excellent fixed rate products available to lock in that rate now.

Also, just a reminder that I am speaking at the Investors Club conference this Sunday at Cardiff. There are some very inspiring speakers attending this conference so please ring and confirm your attendance if you are able ot make it along. I hope to see you there!

Jacqui

Well another Financial Year over and what a year. We of course are still as extremely busy as we have been all year. BUT this month I want to thank our wonderful staff: Leanne, Marion, Rhonda and Leigh. Without them I know what I do couldn't be possible. They are the backbone of AFS, they are the ones that chase the lenders to get the approvals over the line and make everything happen. And of course Anita, our fearless leader. She never ceases to amaze me on how she pulls it all together, but as we know she always does. So on that note HAPPY NEW FINANCIAL YEAR. May it be as much fun as it was last year, not so stressful, but very successful.

Ross

I have just joined the AFS team so I thought the easiest way to introduce myself was by giving you a brief resume of myself:-

Name:           Ross Keith Lovegrove
Married:       Wife is Lyn
Children:          3 adult sons, and 3 grandchildren [and one on the way]
Work history: In banking for 23 years, resigned from my Branch Manager position to provide some stability for my young family, [after having worked in about 12 branches and lived in about 20 homes]. I then progressed to more study and went into accounting [20 years now], and for the last five years I combined accounting with mortgage broking. I recently left the firm I was with for 12 years and commenced working for myself doing a reduced amount of accountancy with my main focus on mortgage & finance broking, including being a loan writer for Anita Marshall of Advanced Finance Services. Additionally, I also do Commercial, Equipment, Motor Vehicle and Debtor Finance, Deposit Bonds and Personal Loans. I find that I am able to negotiate rather well with the banks particularly in regards to commercial deals as I can speak their language.

The NSW Treasurer announcements - NSW New Home Buyers Supplement

The Treasurer has announced the NSW New Home Buyers Supplement has been extended to 30 June 2010.

On 11 November 2008 a NSW New Home Buyers Supplement of $3,000 was added to the existing $7,000 grant for eligible First Home Owner Grant applicants building a new home or buying a newly constructed home.

This Supplement is in addition to the $14,000 provided under the Commonwealth's First Home Owner Boost scheme.

This will give eligible First Home Owner Grant applicants building a new home or buying a newly constructed home a total of $24,000.

NSW Housing Construction Acceleration Plan (HCAP)

The Treasurer has announced contracts entered into from 1 July 2009 and before 1 January 2010, will be introduced a housing stimulus to people outside the first home buyer market, which will cut duty by 50 per cent for people buying newly constructed properties with a value not exceeding $600,000.

An off the plan purchase will be eligible only if the agreement states that it must be completed before 30 June 2011 or in any other case, the agreement is completed before 30 June 2011. The Chief Commissioner does have the discretion to allow a later date for completion where the delay is caused by circumstances beyond the control of the parties.

Should you require any further information please do not hesitate to contact us.

This information was kindly provided by

Anne Parnell of Abode Legal

Tel: 02 9984 8788

Fax: 02 9984 8838

anne@abodelegal.com.au

CBA warns of rate hikes

Home loan rates could continue to trend upwards off the back of rising funding costs according to The Commonwealth Bank.

The warning follows the bank's decision to lift its standard variable rate by 10 basis points just over one week ago.

If current conditions in wholesale markets persist, the bank is likely to face extra costs equivalent to 0.6 per cent on its variable mortgage book over the coming 18 months, Ross McEwan, CBA head of retail banking, told the Herald Sun today.

"If wholesale markets stay at current levels then we expect it will add 10 basis points to our funding costs every quarter in some shape or form," he said.

"We will have to take a hit on our margin or pass it on to customers."

Mr McEwan said that relatively cheap medium and long-term funding raised before 2007 was now maturing and had to be replaced by new programs on higher spreads.

Official interest rate more likely to fall

Author: Ross Gittins
Date: June 22, 2009
Publication: Sydney Morning Herald

Not for the first time - and no doubt not for the last - the money market is on the wrong tram in being so sure the next move in the official interest rate is up and that it will happen early next year.

Judging from bank bill futures, the market thinks there's little to no chance of another cut in the official rate this year, and a high chance of one or even two 0.25-percentage-point rate rises in the first few months of next year.

That bet is probably wrong on the first count and definitely wrong on the second.

It springs from excessive optimism about the outlook for growth and unemployment and, on the flip side, excessive pessimism about the early return of inflation pressure.

Just as some people's opinion reflects that of the last person they spoke to, so the money market dealers' opinion about the official interest rate reflects the last economic indicator they saw.

If the last few figures they've seen were good, the next move is up; if the last few were bad, the next move will be down.

It's hard to resist the suspicion that they reach such judgments so casually because the bets they place are done with OPM - other people's money. (Yours and my superannuation savings, if the truth be told.)

It's true that virtually all the indicators we've seen for the past few months have been quite strong considering all the weakness in the rest of the developed world.

That's why it's not possible to strongly assert that the official rate has further to fall. If it turns out we've greatly overestimated the extent to which the global recession will knock us about, the official rate won't be cut any further.

If that does come to pass, much of the credit will go to China and its unexpectedly strong rebound (not to mention the much-derided budgetary stimulus).

However, the greater likelihood is that at present we're in the eye of the storm, with the bad news yet to assert itself.

What bad news? The significant loss of national income caused by the marked reduction in coal and iron ore prices, weak export volumes, plunging business investment spending, the effects of the cash bonuses wearing off before the effects of increased capital works spending kick in, and the effect on consumer confidence as the unemployment rate climbs inexorably towards 8.5 per cent.

If the bad news does come through - still regarded as the main chance - then we can expect another one or two 0.25 percentage point cuts in the official rate this year.

Don't forget, the Reserve Bank's forecast that the underlying inflation rate will slow to 1.5 per cent over the year to June 2011 - that is, outside its 2 or 3 per cent target band - implies it will have to ease policy further to get the rate back between the tracks. Only if subsequent revisions of that forecast in the May or November statements on monetary policy took inflation back into the target range would we be sure the possibility of further cuts in the official rate had disappeared.

But if the present forecast implies further easing, why hasn't it occurred? Why has the official rate been on hold since early April?

Partly because the flow of indicators has been so strong but also because, while the Reserve would like to see a further fall in the interest rates charged to business, it sees no great need for a further fall in mortgage interest rates.

Credit for housing grew by a healthy 7 per cent over the year to April. Apart from the surge in lending to first-home buyers, lending to investors and existing home owners is also picking up. House prices have been rising for the past four months. So housing finance exhibits neither a lack of demand nor a lack of supply.

By contrast, business credit grew by an anaemic 3.5 per cent over the period. As the Reserve's recent analysis of the banks' funding costs indicates, whereas the banks' margin on mortgage loans has narrowed, their margin on business loans has widened significantly.

With the official rate at 3 per cent, the actual interest rates being paid by businesses today are no lower than they were in late 2001, when the official rate was 4.25 per cent.

So were the other banks to follow the Commonwealth in raising their variable mortgage rates, this would be less likely to prompt the Reserve to cut the official rate again than if they were to raise the variable rates charge to business borrowers.

(The recent round of increases in fixed mortgage rates is essentially a red herring. Fixed interest rates run off the long-term bond rate - which is rising globally because of concerns about the heavy additional borrowing of the G7 governments - and are little influenced by the short-term official interest rate. In any case, less than 10 per cent of new housing borrowers take out fixed loans.)

But whether or not the official rate has further to fall, the timing of its next rise is a different matter.

The Reserve will start putting rates back up just as soon as it decides it needs to act to prevent the inflation rate going back over the top of its 2 to 3 per cent target.

But that concern isn't likely to arise any time this year or next. Why not? Because what puts upward pressure on prices is a narrowing of the "output gap" - the gap between the actual growth rate and the "potential" growth rate, which these days is about 3 per cent a year.

Put another way, inflation pressure can't coexist with a high degree of idle production capacity - a key measure of which is the rate of unemployment.

Having risen by 1.5 percentage points to 5.7 per cent over the past year, the unemployment rate has almost another 3 percentage points to rise over the next year or more, according to the Government's own forecast.

We need annual growth of 3 per cent just to stop unemployment rising, and it's likely to be at least a year or two before growth recovers to 3 per cent plus. And even when we do recover to that point, we'll still have plenty of spare capacity, which will limit inflation pressure.

Periods of rising unemployment are invariably periods of slower growth in wage rates, which helps to limit price rises. There's plenty of evidence from the National Australia Bank's business survey and from the Reserve's "liaison" (informal consultations with business groups and larger individual businesses) that wage increases are moderating.

I reckon it will be a long time before the Reserve's chief concern switches from weak growth and rising unemployment to rising inflation pressure.

If so, it will a long time before it contemplates raising the official rate.

NSW New Housing Stamp Duty 50% Reduction

The NSW Treasurer has announced that investors entering into contracts for the purchase of newly constructed property, with a purchase price under $600,000, between 1 July 2009 and 1 January 2010 (6 months) may be eligible for the NSW HCAP (Housing Construction Acceleration Plan), which offers a 50% reduction in Stamp Duty. The definition of a new home is that it must be the first sale of a new property, including apartment and substantially renovated homes, that have never been occupied by a tenant or builder.

Buyers do need to exercise caution though. If the property is leased prior to settlement then the purchaser may miss out on the 50% stamp duty reduction. All vendors and leasing agents need to be aware of this stipulation and should not lease out the property unless the purchaser agrees first.

In other news, the NSW Treasurer also announced an extension to the NSW New Home Owners Supplement until 30 June 2010. Under this scheme first home owners in NSW are eligible for up to $24,000 when buying or building a newly constructed home (comprising $3,000 NSW New Home Buyers Supplement, $7,000 First Home Owners Grant, and $14,000 under the Commonwealth's First Home Owner Boost Scheme). This may be beneficial information for members who are encouraging their children to start building their property portfolio.

Tax and your Investment Property

Property Professor Peter Koulizos

Property Professor Peter Koulizos takes us through the easy A to Z of expenses you can claim an immediate deduction in your tax return.

It is nearing the end of the financial year and time to consider the tax implications of our investment properties.

This article is the first in a series on expenses you may have incurred this financial year, which you can claim an immediate deduction for.

A to I

Advertising for tenants
From time to time, our investment properties become vacant and we need to advertise to find new tenants. The most common place for investors to advertise in is in the classifieds of the daily newspapers. Commonly you will have ads for a period of one to two weeks when you are looking for new tenants. It is important to remember to advertise for market rent as the ATO frowns on people who try and claim 100 per cent of their investment property expenses when the property has not been leased at market rates. This often happens if properties are leased to relatives or friends.

Bank charges
Typically bank charges will include monthly account keeping fees, use of ATM machines, telephone banking, overdrawn charges and an annual fee if you have a professional package. Check all your statements, including the loan account(s), to ensure you claim all the bank charges. Don't include interest charged as this is a separate entry. Dom Cosentino, partner of Kennedy & Co Chartered Accountants notes that it is important to separate bank charges from borrowing costs as borrowing costs (such as mortgage insurance and loan establishment fees) are not deductible immediately but rather are deducted over a five year period.

Body corporate fees
Do you own a unit/townhouse which is part of a strata or community title? If you answered yes, you should have made regular payments to the body corporate which is managing all the properties. Typically these payments cover insurance of the building (not personal contents), gardening, general maintenance and a portion could be channeled into a "sinking fund" to cater for major repairs or maintenance such as replacing the guttering, external painting, landscaping. It is important to note that if body corporate fees are used for capital improvements or held in a sinking fund for such purposes, the fees may not be an outright deduction.

Cleaning
This is generally the responsibility of the tenant whilst they are living in the property. Upon vacating the property, they also need to leave it in a similar state as when they first moved in. This all sounds fine in theory but, in reality, we often find ourselves doing extra cleaning once the tenant has left. Common expenses are purchase of cleaning products and cleaning of the carpets.

Council rates
These are sent out once a year by the local council/shire. In some instances you have the opportunity to pay your council rates over a number of instalments. If this is the case, ensure that you claim all instalments. To encourage rate payers to pay in one lump sum, councils will often offer a small discount to those who wish to make this up-front payment.

Electricity and gas
Commonly the tenant pays for their electricity or gas usage and the owner of the property has nothing to do with these utility charges. However, owners who are renting their property as student accommodation or multi-lets often pay for these charges and try and recover these costs by charging a slightly higher rent.

Gardening and lawn mowing
It is usually the responsibility of the tenant to look after lawns and gardens as this is implied in most residential leases. If from time to time you need to engage a gardener or someone to mow the lawn, you can try and recover these costs from the tenant. If, however, you are doing this in between tenants and you can't recover the costs from the previous tenant, be sure to claim for all expenses, including travel.

Insurance
The tenant should have insurance for their own personal contents and effects but as an owner of property, you should have a variety of insurances on the property. Public liability of $10 to $20 million and building and contents insurance are a minimum. You may wish to consider landlords insurance which can offer cover for a variety of circumstances, including lost and/or default in rent. If you are paying monthly premiums, ensure you include all 12 payments.

Interest
Without a doubt, this will be the biggest expense that you will be claiming on an annual basis (until your property is paid off). Most expenses listed so far are measured in the hundreds of dollars whereas interest is often counted in the tens of thousands. Check your loan account statement and any other related bank statements and include all interest repayments.

Remember that if you have a Principal and Interest loan, your repayments include two components, one is interest and the other is principal. Do not fall into the common mistake of assuming that the amount you repay is the same as your interest bill.

In addition, if an investment loan is increased to fund an expenditure of a private nature (i.e. renovations on your principle place of residence or a holiday), this extra interest payable on the additional loan is not tax deductible.

http://www.realestate.com.au/doc/Resources/Buy/fhbg/peter-koulizos-tax-return-a-to-i.htm?rsf=newsletter_rea

This article was kindly provided for this newsletter by

John Rayner, Branch Manager, The Investors Club

www.tic.com.au/branch17

Skype: ticproperty

P 02 4944 9400, F 02 4017 0056, M 0411 104 817

203 Dudley Road, WHITEBRIDGE NSW 2290

Established 1994

"The Leader in wealth creation through property"

April 09

Tue, 31 Mar 2009 00:00:00 -1000

April 2009

Anita

March was a very quiet month for me socially - most of my plans were cancelled due to health issues which left me rather grounded. I have managed to get through the month of work but do apologise if my brain isnt functioning at normal capacity. Hopefully none of you have noticed thanks to my wonderful team of staff who have picked up the slack for me as well as Mum and Dad who have driven me all over the countryside to various appointments. I will be taking some leave during April from the 9^th-16^th (heading to my favourite hideaway - Myall Shores Resort with a group of friends). The client services team will be available during our normal business hours while I am away.

Workwise - the lenders all announced early this week that they are reducing the % that they will be lending people against property values. Some of the lenders are yet to make their full announcements but it would seem that most lenders are going to prefer loan sizes with a maximum of 90% of a particular property value. If you need a higher % than this for a property purchase then I suggest you make an urgent appointment to see one of our mortgage planners to get your application assessed as soon as possible.

Happy Easter to everyone - hope you enjoy the break.

Jacqui

in March I attended an investors expo in Sydney as well as investors meetings at Cardiff, East Maitland & Raymond Terrace. Investors at the moment are extremely active and although we are complaining about the banks turn-around times, mine are not far behind due to an overload of applications I currently have on the go. My mission for April is to get everyone's loans submitted approved and my paperwork completely up to date. I do apologise for anyone that has been waiting a little longer than normal for my services. Sorry my column is so short this month - too many other things to do...........(as I write this I have just been advised that I currently coming number 8 in Australia on the AFG leaderboard which I am rather pleased with given that they have over 2500 brokers)

Leanne

We have still been absolutely flat out with first home buyers and investors snapping up property at record levels. The lenders are very slowly getting through their overload of applications. Time frames for approvals with lenders at the moment are Westpac - four working days, Commonwealth Bank - 12 working days and hoping to be back to 4 days by Easter (see below for a more detailed updated), St George - 14 working days & the rest are around 7 working days. We suggest that if you have your heart set on a property and wish to exchange before you get formal approval on your loan that you ensure you have a cooling off period written into your contract and make sure that is at least 21 days.

I have this fantastic recipe to share with everyone. In keeping with the finance theme it has ‘economy' and ‘budget' in mind, i.e. time and grocery bill! With soccer season upon us and my 3 kids all signed up and training 2 nights a week each I went searching for some easy meals - the notes by this one said: ‘it looks and tastes like you have spent hours in the kitchen when it takes only minutes" and it's true.

"Cheat's Lasagne" serves 6

1 tbsp olive oil
1 small red onion, thinly sliced
2 large garlic cloves, crushed
3 x 400g cans whole tomatoes, roughly chopped
1 teas white sugar
½ cup basil leaves, roughly chopped
800g fresh beef tortellini
250g mozzarella cheese, thickly sliced
Small basil leaves and basil to serve (optional)

Preheat oven to 210deg C no fan & 200deg C fan-forced. Lightly grease 5cm deep, 22cm x 30cm baking dish

Heat the oil in a saucepan - add onion and garlic, cook 3 mins or until onion is soft. Add tomatoes and sugar and bring to the boil. Cook, stirring occasionally, for 10 minutes until sauce thickens slightly. Stir in the basil and season with salt and pepper.

Meanwhile cook pasta in large saucepan as per pack instructions. Drain and spoon into prepared dish. Spoon over tomato sauce and stir to coat tortellini.

Top with mozzarella, bake uncovered for 20 mins until bubbling around the edges. Sprinkle with extra basil leaves and pepper if desired.

Enjoy!!!

Marion

My brother Ross, and his family had Harrison's 3^rd birthday and he got spoilt by family and friends from the east coast of Aus for a change! We have done plenty of fishing - both beach and off the rocks (locally - great fishing and the kids love it. I even caught a flathead off Stockton beach!)

Work has been REALLY BUSY and very challenging. Have had extra training on the Flex management system we use - hopefully be able to put it to good use.

We are having some valuation issues with properties lately. The valuers seem to be particiularlly conservative at the moment which can cause valuation issues resulting in lower approval amounts. If your property is due to be valued we suggest making it look as attractive as possible on the day. First impressions do count - most valuers are asked to value a property as if it was to be sold "as is" so if your property looks appealing on the day of valuation its likely to be higher than if the lawn needs mowing and the interior looks like a bomb has hit. Every little bit counts.

Housing undersupply to hit 431,000 by 2028

Thursday, 12 March 2009

A government assessment of housing supply has confirmed that Australia is suffering a severe housing shortage that will worsen noticeably should current construction activity not improve.

The National Housing Supply Council's State of Supply Report released yesterday estimates that Australian housing suffered an undersupply of 85,000 dwellings in 2008.

The Council estimates this figure to rise to 203,000 by 2013 and 431,000 by 2028, which would put extreme pressure on house prices already under strain by the current undersupply.

Master Builders Australia CEO Wilhelm Harnisch said reducing taxes such as stamp duties and developer charges, speeding up development applications and increasing land supply would all be critical measures needed to address this shortage.

Housing market poised for growth

BIS Shrapnel
Friday, 13 March 2009

Rising unemployment and the expiry of the increased First Home Owners Grant (FHOG) will not affect strong growth in first home buyer sector, according
to BIS Shrapnel.

Brokers can also expect to see strong growth in investment activity.

Speaking yesterday at BIS Shrapnel's Sydney business forecast conference,
Jason Anderson, BIS Shrapnel senior economist ,said that the fundamentals
are in place for an overall upswing in the property market.

Severe under supply, rising demand and sustained low interest rates would
spark an upswing in construction towards the end of the year, he said.

"Unemployment could rise a lot further than the 7 per cent mark and we'll still have a strong housing market,' he said.

The faltering economy and rising unemployment would not impact this growth; "if anything it would stimulate demand as the low interest rate environment
would continue".

Mr Anderson said that first home buyer activity will remain strong and "only
a small percentage of first home buyers have been active so far".

"We can expect to see around 180,000 first home buyers this year".

First home buyers have recently flooded back into the market following the introduction of beefed-up first home buyer incentives.

ABS data this week showed that 26.5 per cent of all home buyers in January
were first home buyers.

There were around 400,000 25 to 34 year olds currently still living at home,
Mr Anderson said, and low interest rates, pent up demand and the relative cost of renting to buying would see demand from this market segment
continue.

Increased buying activity among first home buyers will then spur a recovery
in other market segments with huge potential for the investment market to fire up.

With sustained low rates and further growth in rental yields forecast
investment activity is tipped to be the next growth market, he said.

"Fixed rates of around 5 per cent will bring a huge number of investors out of the woodwork

Backlog Blitz - 3,121 files assessed in one day

Commonwealth Bank conducted a 'Backlog Blitz' on Saturday 28 March 2009 as part of its strategy to improve turnaround times.

'Backlog Blitz' took place at all our processing centres across the country in Sydney, Brisbane, Melbourne, Adelaide and Perth. Throughout the day more than 160 credit staff decisioned 3,121 files.

The credit staff were supported by Mortgage Services which worked an amazing 4,582 hours over the weekend of Saturday 28 and Sunday 29March and nationally prepared 3,022 mortgage documents and certified 940 customer files. This is a remarkable achievement and has made a significant impact on reducing the amount of work to be actioned in Mortgage Services to a much more sustainable level.

Third Party Banking Relationship Managers also made themselves available to help process files.

Kathy Cummings, Executive General Manager Third Party Banking, said "I am sure many of you will find notifications in your email box and I suggest you log on to the Adviser website to check the status of your loans.

"This was a fantastic demonstration of team spirit and collaboration between Credit, Mortgage Services and Third Party Banking. We have made significant inroads into the number of current loans in progress and with extra efforts and more overtime we are optimistic to return to normal SLAs by Easter."

December 08

Mon, 01 Dec 2008 00:00:00 -1000

December 2008

Update from Anita

Well we have certainly seen a lot of changes since the last newsletter. We had an absolutely HUGE month in November at AFS with a record month of new loans. Most of this was investors returning to the market, snapping up investment properties while the market is still relatively flat. I cannot believe the turnaround in business we experienced for the months of October and November. The downside to this is that the lenders have also become busier which has meant that we have had longer turnaround times in applications to approvals. Most of the lenders are experiencing delays but ANZ in particular are experiencing long delays in their processing times (21 days in some instances).

We also saw most of the lenders withdraw from low documentation 80% loans. There are only a few lenders still doing this type of loan now so if you need to borrow on 80% low documentation loans I suggest you do this sooner rather than later.

I attended 2 investor's club functions in November - one was a lunch meeting in Banks town and the other was a dinner meeting at Kahibah. Both of these were so informative and very enjoyable to attend. I encourage any of you who are thinking of getting into investing or just want to do some networking with likeminded investors to try to get along to one of their meetings in December or the New Year.

Oxfam Cambodia Challenge 2008

A client of mine, Jennifer Tamblyn, and her partner David, will be participating in The Oxfam Cambodia Challenge 2008. Starting on the 1st December, they will be cycling across country from Vietnam to Cambodia and covering a gruelling 480 km over 8 days.

Oxfam works in partnership with many notable Australian and International partners and allies to bring about lasting change. Through its focused efforts on education, community development and emergency response among poverty stricken communities, Oxfam aims to build a fair world in which people control their own lives, their basic rights are achieved and the environment is sustained. Their vision may be simple in principle but it is complex in delivery and this is hopefully where you come in.

As participants in the Oxfam Challenge 2008, Dave and Jen would like to express their gratitude to Advanced Finance Solutions for its fantastic support. With the generosity of AFS, they are well underway to reaching their fundraising target of $11,000 and bringing Oxfam Australia's vision one step closer to realization.

As the Dave and Jen push to close the gap with their fundraising, they are also preparing for two exciting weeks riding from Vietnam to the beautiful Angkor Wat temples in Cambodia. During this adventure, they will experience first-hand the incredible work of Oxfam Australia in assisting local communities in achieving equitable and sustainable futures, whilst pushing themselves over grueling hill, down dusty tracks and through bustling cities and remote towns alike.

Dave and Jen still require additional assistance to reach their goal in supporting the important work of Oxfam Australia and every little bit helps! If you would like more information or would like to make a donation, please check out their exciting travel diary at http://www.daveandjenforoxfam.com or contact Jen on 0419 649 353.

Update from Staff

Jacqui

This month has been extremely busy again with lots of investors buying up big, and it's also thanks to the first home buyers grant - lots of young people buying their first home. As most of our clients would know I love helping people to realise their dream. But I must say there is nothing more exciting and satisfying than helping someone buy their 1st home - I have attended 3 investors club meetings, with great response. John and I had a very productive couple of days in Sydney, apart from the car nearly letting us down . I have been doing a lot of extensive insurance training and I must say I thought I was pretty up to date on this one , but it still amazes me everyday how much I still have to learn ,

On the home front I have been spending my free time on making beautiful gardens inspired by our holiday in Hamilton Island. Not long till Christmas now, so just a few suggestions for gifts:

TO YOUR ENEMY - FORGIVENESS. TO AN OPPONENT - TOLERANCE. TO A FRIEND - YOU'RE HEART. TO A CUSTOMER - SERVICE. TO ALL - CHARITY. TO EVERY CHILD - A GOOD EXAMPLE AND TO YOURSELF - RESPECT.

Have a great December & Merry Christmas

Leanne

My other business, when I am not hounding banks to approve applications, is building tennis courts. We have just completed a contract to build clay courts at the new State Tennis Centre at Brisbane - it has been a huge project constructed by Mirvac - a $77million venture (of which we got a very small portion!). For anyone interested in tennis this new centre will probably eclipse Melbourne as a preferred centre for players - as it has courts representing all grand slam playing surfaces, hard-court, clay and natural grass in the one location, and will host the new ‘Brisbane International' event in early January 2009.

Merry Christmas to all

From Anita & the Staff at AFS

"Enjoy the little things in life, for one day you may look back and realise they were the big things"

Australia's interest rates tipped to hit 3.75%

Interest rates could soon be halves with analysts tipping a 3.75% rate by March so the Government can steer the country away from recession. If the RBA were to cut rates by another 1.5% to 3.75% by March, households with an average-sized mortgage could see close to $300 sliced of their monthly repayments.

As one of Australia's big four banks predicted, more drastic action from the Reserve Bank, the Prime Minister put Australia on a "war" footing on unemployment. Kevin Rudd told Parliament his Government was prepared to spend the surplus to stimulate the economy.

"I regard war on unemployment as the Government's highest priority", Mr Rudd said. "The Government remains determined to take whatever additional action is necessary for the future in order to support the economy, to support growth and support jobs".

Mr Rudd's rally cry came as NAB chief economist Alan Oster slashed the bank's interest rate forecast just a day after the RBA drastically lowered its growth projections. Despite official interest rates dropping 2 percentage points in the past three months, NAB expects the RBA to lower rates by another 0.75 of a percentage point next month to 4.5%. "This will be followed by another cut of 50 basis points in February and a further 25 basis point reduction in March to take the cash rate to 3.75%," Mr Oster said.

Such a steep cut in interest rates from their current level of 5.25% will provide huge relief to households and knock back another $287 off the monthly repayments on a standard variable mortgage of $300,000. It would lower repayments on a $350,000 25 year standard variable mortgage by $334 a month.

While the major banks have resisted passing on the full benefits of recent falls in official rates, a dramatic reduction in the RBA's official rate would see a substantial drop in variable rates. The big four banks - Commonwealth Bank, ANZ, NAB & Westpac - currently charge about 7.73% but the forecast hefty falls could bring the standard variable rate back down to 6.5% or even lower. But Mr Oster warns the reduction of official interest rates is also a sign that the RBA is very worried about how bad things are going to get especially on the global front. This comes as almost $40billion was wiped of the stock market after investors lost faith in the China rebound.

Super to Double within 10 years

Australians superannuation funds have taken a direct hit from the global financial crisis, but should at least double in value in another 10 years. Minister for Superannuation, Nick Sherry, says there's no hiding from the fact super funds had gone into retreat. "Super must now be vying against real estate for the title of the great barbecue stopper of the moment", he says. But he quoted the world's most successful investor, Warren Buffett, "Productivity will increase and stocks with it".

Senator Sherry said he could say "unequivocally" that Australia's superannuation system remained robust and well regulated. Australian's typically spent 30-40 years in the workforce and during that period would experience several investment cycles. The past 35 years had produced excellent returns of close to 5% over and above inflation, and Senator Sherry believed they would continue.

November 2008

Sat, 01 Nov 2008 00:00:00 -1000

NOVEMBER UPDATE FROM ANITA

This month has been a very crazy busy month again but I can definitely see light

at the end of the tunnel as far as loan approvals go - it's starting to get easier again thank goodness especially for property investors . We have managed to get a good handle on what the lenders will and won't approve now after the credit crunch and have formed some strong relationships with some of the major banks which is proving to be very valuable to us and our clients.

On a personal note we are now the proud owners of a "half pipe" skateboard ramp which is now in our backyard. Blake has been dreaming of this for about 18 months so has been saving madly for it all year. It just proves what we can achieve when truly set out to reach our goals (he has gone without treats, junk-food, DVD hire etc for months) - I'm very proud of his determination.

The new FHOG details have been released and I have full information available for anyone interested in the grant. The commonwealth Bank have also released a handy booklet for clients buying a home - we have been given complimentary copies of this so let me know if you would like a copy.

Update from Staff

Jacqui

Work has been hectic as always, we have had a lot of referrals which is great and it's been a busy month working through them and helping existing clients with their current applications. Socially, I had a very fun month with our friend Leigh's Hens party, then a week later her Wedding to Todd and then we joined them (and other friends) in Hamilton Island for holiday which was just brilliant, we are booking again for next year already.

Leanne

My spiel this month is not about me - instead I would like to take the opportunity to wish Anita a belated Boss's Day for October 16 on behalf of all the staff.

We are all very fortunate to have such an easy going fantastic boss who deserves some written acknowledgement for how wonderful she is.

With all the challenges thrown at her over the last few months she never changes with her positive attitude, incredible work ethic, and friendship.

We all look forward to cracking a bottle of bubbly or two ..... to celebrate Anita .... more than just someone nice to work with .... someone nice to know.

John

A lot has been happening.

Work has been very busy and Anita has been guiding me well. It is so good having a boss who is approachable and great to work with. I have built a very good working relationship with many new clients which is working well for us all. Socially we qualified for the regional final of the Holden Scramble in Golf at Cypress Lakes. Unfortunately we just weren't good enough and finished down the field. Maybe next year! Not much else to report except that it s almost Cruise Time. I will be away for the beginning of November, taking a short cruise in the South Pacific with my Son and his girlfriend and 9 other friends. Pacific Dawn here we come........... All in all have a great month and guess what ........It's nearly time the man in the Red Suit.

First Home Buyers News

As you may already be aware, the Government has increased the First Home Buyers Grant to up to

$21,000.

If you are looking to buy an established home you may be eligible for the $7,000 boost benefit in

addition to the $7,000 grant, bringing the total benefit to $14,000.

If you are looking to buy a newly constructed home, or building a new home, you may be eligible for

the $14,000 boost benefit grant in addition to the $7,000 grant, bringing the total to $21,000.

Speak to an AFS member for more details

Self Managed Super Funds

SMSFs, also referred to as do-it-yourself (DIY) funds are established and managed by individuals themselves. SMSFs can only have a small group of individual members (fewer than five people).

Anybody can run a SMSF, but because they often cost several thousand dollars each year, they are mostly suited to people with several hundred thousand dollars in superannuation. The general consensus is that due to the initial set up costs and on-going administrative costs you would need to have approximately $200,000 before setting up your own SMSF becomes economical.

Advantages to having your own SMSF are that it gives you greater control over your investment together with a wide choice of assets in which you can invest. It is important to remember however, that the sole purpose of superannuation is to fund your retirement so you cannot use the assets in your SMSF for your current employment. Running your own SMSF also requires you to have the appropriate skills and time to manage your own fund.

The Australian Tax Office (ATO) has the following general steps involved in setting up a self managed superannuation fund:

Obtain a trust deed & appoint the trustees

Elect to become a regulated fund, and

Obtain a tax file number (TFN) and Australian business number (ABN)

Obtain a trust deed & appoint the trustees

The first thing you need to do is prepare a trust deed. This will require the assistance of a professional such as your accountant or solicitor. Unless your accountant or solicitor holds an Australian Financial Services Licence they will not be able to provide financial advice as to whether setting up a SMSF is the right decision for you. They will only be able to help you establish the SMSF.

The trust deed details the rules of the trust, including the nominated trustees, how they are appointed and the powers they hold to make contributions and pay benefits. You must make sure the trust deed is properly executed and dated.

All SMSFs must have trustees and in turn all members of the fund must be appointed beneficiaries. To be a trustee, you must be over 18 and have not been convicted of an offence involving dishonesty and cannot be an undischarged bankrupt. A corporation can not be permitted to act as a trustee where; a receiver, official manager or provisional liquidator has been appointed to the company or action has commenced to wind up the company.

The trustee is legally responsible for the actions of the SMSF. These responsibilities include the lodging of an annual tax return, member contributions statements and engaging an approved auditor to complete the annual audit.

Elect to become a regulated fund

Electing to become a fund regulated by the Superannuation Industry (Supervision) Act (SISA) allows the fund to receive concessional tax treatment. The trustees have 60 days to lodge the election with the Tax Office by way of an application form to register for the new tax system superannuation entity.

The decision to elect to be a regulated fund cannot be reversed without winding up the fund.

Obtaining a TFN and ABN

Once the application form to register a new tax system superannuation entity has been processed by the ATO, a Tax File Number and an Australian Business Number will be issued.

Once the above processes have been completed, the next step is the implementation of an investment strategy. Establishing an investment strategy involves formulating a plan that takes into account risk, return, diversification, liquidity, cash flow, asset allocation and the ability to discharge existing and prospective liabilities. Seeking the assistance of a licensed Financial Advisor may help you move in the right direction.

As the SMSF is its own separate legal entity it will require its own bank account in its own name. This will keep assets of the SMSF separate from your own personal assets.

The establishment of your own SMSF can be a fulfilling experience but you must remember that running your own self-managed super fund demands great responsibility. There are severe penalties if you fail to meet the requirements set out in the legislation, such as failing to meet the sole purpose test of saving for your retirement.

October 08

Mon, 06 Oct 2008 00:00:00 -1000

October 2008 Update from Anita

This month I had a well deserved holiday to Thredbo with Blake and a very dear friend of mine Marion and her two boys- Jacob and Ryan. I haven't been to the snow since I was a child and it was a wonderful experience. It wasn't anywhere near as cold as I expected - we were lucky and had fantastic weather. I wasn't very good at skiing but enjoyed it anyway. Poor Marion had to put up with my panic attack on the chairlift though which is rather hilarious thinking back on it now. I think I would still be frozen to the chair and my handbag if it wasn't for Marion.

I also had planned another holiday to El Questro/Kununurra for 10 days - unfortunately the Chinaman that I killed last month didn't quite leave my place and I had some unforeseen circumstances come up while I was in Kununurra and had to come home early. What I did see of the area though was absolutely scenic and fantastic. I will go there again next year instead.

September is also a birthday month for my parents - mum's birthday came first and then we celebrated my dad's 70th birthday at Piccolo's Italian Restaurant at Pacific Blue Resort Salamander Bay - the food and service was absolutely brilliant and we enjoyed out night thoroughly. My brother Paul and his girlfriend Suzie also came up the weekend before and we had a family seafood lunch at my parents overlooking the water - very enjoyable.

As for work - it proves to still be very busy with new applications, but getting the approvals through the lenders is rather challenging. The lenders are all being very conservative with their money after the credit crunch and approvals are taking longer, and the information we need to provide is also a lot lengthier than we were experiencing 6 months ago. We have also found that a few of our clients are finding the credit crunch/interest rates a bit harder to handle that they would normally so we have put together a seminar which we will be holding on the 15th October. At the seminar we will be discussing the global economy and how it is impacting on the Australian finance market, tips for handing your mortgage and finances generally, the importance of asset protection, the importance of wills and power of attorney's and also using your mortgage for wealth creation.

Updates from AFS staff:

John

I have been away for most of September at the Gold Coast for my Niece's wedding. We left on the 6^th and returned home on the 18^th. Through the wonders of technology I was still working and was quite busy. Unfortunately I was sick for most of my time away. The wedding went really well and it was great to catch up with family and friends and of course the photos worked out well. Holden won the latest race on the 14^that Phillip Island in Victoria. Go Team Red. Bring on Bathurst. We qualified for the regional final of the Holden Scramble in Golf a couple of weeks ago. This will take place on the 28^th October at Cypress Lakes in Pokolbin. I've been keeping busy otherwise with plenty of new clients to be seen. I have attended and spoke at 3 seminars now and feeling quite comfortable talking about how good AFS really are.

Leanne

September has been very exciting in our household - Lachlan won the Under 10's Soccer Grand Final, Courtney won the "Medowie Idol" singing competition at her school with her own song and at 12 is counting down the days until she is 16 so she can go on Australian Idol. Brianna played in the Under 13's mixed Soccer team and managed to get into the semis but lost in extra time - which was a great effort for her first year playing - and most exciting of all Brett got his first water ski in for the season up at Myall Lakes 2 weeks ago - hopefully a sign of a great boating season ahead .........

Jacqui

I had a very busy month work wise, as Anita has mentioned it's been harder to get approvals thorough but that just makes us more determined. My partner Phillip and I attended the Mortgage Awards Night at Luna Park in Sydney and stayed at Sydney Harbour View Hotel overlooking the harbour bridge and Sydney harbour which was absolutely beautiful. Social wise, I had a trip to Rosehill Races to celebrate my friend Leigh's birthday which was a fantastic weekend, and this long weekend I am looking forward to her Hen's Party. The AFS team also celebrated our John's birthday with a lunch at Anna Bay Tavern.

Advanced Finance Solutions will be speaking at the following Property Investment Seminars

Advanced Finance Solutions will be speaking at the Following Property Investment Seminars. If you are interested in buying an investment property or would like to know more about investment property finance/wealth creation through property then the following meetings are very informative.

They are free (unless otherwise stated) and there is no obligation or high pressure sales.

One of the Advanced Finance Solutions Staff will be speaking at each of the following meetings. If you would like us to speak on finance at one of your meetings or for you and your group of friends please contact us.

Monday13^th October

7.30pm-9.30pm