Negative gearing is one of few remaining pieces in Australian tax law which can still benefit the taxpayer. It also has implications on how much money you can borrow from the bank as banks consider negative gearing when deciding how much to lend you. This post aims to explain what negative gearing is in a…
Summary of banking news this week – Week of 25 Jan 21
Didn’t get time to stay up to date with banking news this week? – here’s a quick round up of some of the things that went on. Some discussion this week on the changes in responsible lending coming in the next couple of months, profitability of the big banks, Fixed Interest rates, CBA’s leadership in…
Summary of banking news this week – Week of 18 Jan 21
Didn’t get time to stay up to date with banking news this week? – here’s a quick round up of what went on. A lot of discussion this week was around another housing boom, possible sale of ME Bank, fintech developments, bank performance, sustainable banking, crime, people movement and other. Housing Boom: There were numerous…
Offset account or redraw? – why you should choose offset
As any home buyer knows, buying a home is just the beginning – the real challenge is paying down the home loan. Deciding how much to pay down can be a bit tricky especially when it comes to budgeting and ensuring there is enough money in case of an emergency or to manage unplanned and…
Fixed and Variable interest rates – what is best?
When you are ready to purchase a property and apply for a home loan, invariably you’ll need to make a decision on whether you want a fixed or variable interest rate for your home loan. In this post, I will explain what the differences between the two are and how you can decide what is…
How do banks work out your borrowing power (Servicing position)?
House prices in major Australian cities are astronomically high and inevitably, most people need to borrow money from a bank in order to fund a housing purchase. It is difficult however, to ascertain how much money the bank will lend you and can feel like a bit of a black box. In this post, I…
What is equity and how do I access it?
You’ve probably often heard of the term ‘Equity’ when it comes to real estate in particular. Some people can find the concept challenging, in this blog I will simplify the meaning of the term Equity and how you can use equity to build wealth. What is equity?Simply put, Equity is the money you would have…
How to reduce the deposit needed to buy a house
When buying a home, the banks generally want you to pay 20% of the property value as a deposit. This can obviously be a lot of money – let’s look at why banks ask for it and how you can reduce it. Why do banks want a 20% deposit? From a Banks point of view,…
How to buy a house
The process to buy a house is fairly simple however the time it takes to get there can be pretty long and it can be pretty expensive. My aim is to make this easier for you and show you ways you can get there faster. Let’s talk about what you need to be able to…