The Dilemma

Pricing is all about supply and demand. Demand can wane after your home is on the market for over 21 days. Of course, there’s nothing stopping you from dropping your price later, but this may require a larger discount if demand continues to wane.

These are the basic components of the process

Factors to consider

A starting point is to work out the value of the land component of your property. Land value is affected by many factors including position, shape, size, slope, topography, and so on.

Next, consider what you think the structures on your property might be worth (e.g. house, unit, pool, garden, garages, etc.).

Get a property evaluation and price estimate

Now it’s time to be a little more commercial and scientific. There are websites that can provide you with a free valuation for your property. This will provide you with a calculated estimate of what your property could be worth, along with available property history and comparable properties in the area.

This can be a great way to help test and refine your price expectations, however, don’t forget that this valuation may not take into account any improvements you’ve made – so use this as a guide only.

You should also arrange for two or three local selling agents to provide a free property appraisal. Not only will they be able to give you some guidance on price setting, but you can also use the occasion as an opportunity to assess their commission costs, selling strategies, and engagement skills – which may help you choose the agent you want to work with.

Pull comparable listings and sales

Look at similar homes that have been listed in the same neighborhood as your property over the last three months. Pay attention to neighborhood dividing lines and physical barriers such as major streets, freeways, or railroads. Identical homes directly across the street from each other can vary by as much as $100,000 in some neighborhoods. Perceptions and desirability have value. Compare similar square footage within a 10 percent variance up or down if possible.

Compare similar ages. One neighborhood might consist of homes built in the 1950s right next to another ring of construction from the 1980s. Values between the two will differ. Make sure you’re comparing apples to apples.

Look at the sold comps

Now compare original list prices to final sale prices to determine price reductions. Compare the final list prices to actual sold prices to determine ratios. It’s common for homes to sell for more than 100 percent of the list price in a seller’s market. Homes generally sell for a list price or less in a buyer’s market.

Adjust pricing for lot size variances, configuration, and amenities or upgrades.

While you’re talking with selling agents, get them to provide you with a list of comparable sold properties going back over the past six months or so. Comparable means they are of a similar size, location, and type. You want these comparisons to be reasonably current, so they better reflect what’s happening in the market today.

You can use these lists to test things like land value, market demand, and of course prices achieved. They should also be compared and contrasted with your property to help assess whether you may need to make any price adjustments.

Withdrawn and expired listings

Pull the history for any expired and withdrawn listings to determine whether any of them were taken off the market and relisted. If so, add those days on market back to these listing time periods to arrive at an actual number of days on market. Look for patterns as to why these homes didn’t sell and note any common factors they might share. Think about the steps you can take to prevent your home from becoming an expired listing based on this information.

Pending sales

The ultimate sales prices of these homes are unknown until the transactions close, but that doesn’t stop you from calling the listing agents and asking them to tell you how much the property is selling for. Again, make a note of the days on the market. This can have a direct bearing on how long it will take before you see an offer. Examine the history of these listings to determine price reductions.

Active listings

Visit these homes so you can see what buyers will see when they visit. Make note of what you like and dislike and the general feeling you got upon entering the homes. Recreate the positive feelings of reception in your own home if possible.

Looking at comparable properties that are currently listed for sale allows you to take into account what’s likely to happen as far as future sales are concerned. Not only will it give you a sense of vendor expectations, but it will also give you some insights into the pricing and sales strategies of your competition.

Square foot cost comparisons

The buyer’s lender will order an appraisal after you receive an offer, so you’ll want to compare homes with similar square footage to come as close to the eventual appraised value as possible.

Market dependent pricing

After you’ve collected all your data, the next step is to analyze that data based on market conditions.

Your sales price might allow some wiggle room for negotiation in a buyer’s market, but you’ll want to be strong enough and close enough to the last comparable sale to entice a buyer to tour your home.

You might want to add 10 percent more to the last comparable sale in a seller’s market. You can ask more than the last comparable sale, and you’ll likely get it if there is little inventory and many buyers.

In a balanced or neutral market, you might want to initially set your price at the last comparable sale and then adjust it for the market trend.

To get a handle on where the market is sitting, read the latest finance and property articles, and talk to local selling agents. This will provide you with useful guidance and insights.

As a final thought, remember that at the end of the day, the market will determine what your property is worth. If you want a successful sale, it is important that you and the market are on the same page. Familiarise yourself with what’s happening in the market!

Contact us on Ph 0407 443 753 to find out whether you are able to sell to upgrade your home.

This publication has been produced by Genworth Financial Mortgage Insurance Pty Ltd (’Genworth’). This publication may include content which is owned by third parties (’third party content owners’) and that has been provided to Genworth for publication. Opinions expressed in this publication are of the writer or contributor and do not necessarily reflect the view of Genworth or its affiliates.
This publication covers a variety of topics including property, insurance and other financial products and services. Although some of the information involves tax, stamp duty, legal, accounting, financial or similar issues, Genworth, its affiliates and the third-party content owners (as to their materials only) (‘we’) are not in the business of offering such advice and nothing in this publication constitutes a personal recommendation or advice. You must consult with your own professional advisers to examine the legal, tax, accounting or investment aspects of any information presented in this publication and how they may affect your particular situation.
The information also does not contain all of the applicable terms, conditions, limitations or exclusions of the products or services described. We expressly disclaim all responsibility and liability for any action or inaction by you in reliance or partial reliance on any material, information, opinion or advice in this publication or referred to in this publication.The information is current as at the date of publication but may change without notice. We are under no obligation to update the information or correct any inaccuracy which may become apparent at a later date. We do not take any responsibility for any reliance on the information contained in this publication or for its reliability, accuracy or completeness. Nothing in this publication is an offer by or on behalf of Genworth or its affiliates to sell, or solicit an offer to buy, any security or financial product.
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All copyright in the contents of this publication belong to Genworth, its affiliates and licensors or to third party content owners. All rights are reserved. To the extent permitted by law, no part of any materials in this publication may be reproduced or transmitted in any form without the express written consent of Genworth. ‘Genworth’, ‘Genworth Financial’ and the ‘Genworth’ logo are service marks / trademarks of Genworth Financial, Inc. and are used pursuant to a licence

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It’s understandable that finance brokers are now the number one choice for consumers who are seeking a home loan or to refinance an existing loan. Businesses are also engaging finance brokers to help them with their financial needs from car and equipment leasing to loans to help their businesses expand.

What can a finance broker do for you?

The leg-work

Finance Brokers already know the industry, the lenders, their products, and their requirements, saving you a lot of time and energy on research. They will also put the time into finding out about your particular credit situation and have a wealth of experience to draw on to help you simplify it.

Translate industry jargon

Finance brokers are able to make sense of what loan documents and lenders are saying – put it into lay-person’s language, so to speak.

Get you what you want

Advisers will determine your borrowing needs and fiscal ability, and choose the only an appropriate product to suit your requirements

Give you a broader choice

Being brokers, finance brokers have to offer a larger selection of loan products. While a bank can only offer you its own products, finance brokers can help you choose from a selection of loans provided by different lenders.

Help you compare apples, oranges, and the whole fruit basket

Finance brokers have the knowledge and tools to compare often hundreds of products and you get a loan suitable for your circumstances and needs

Find you a good deal

Loan providers are always spruiking a special deal or two, and these could make a big difference to your repayments or success rate. A finance broker will know which of the deals on the market at the moment will be appropriate for you.

Act as your advocate

A good finance broker wants the best for you, the client. They will be your cheer squad, middle-man, team player, and coach throughout the process.

They’re in it for the long haul

A finance broker won’t just love you and leave you – they will oversee and manage the loan’s progression right through to the end on your behalf. By the way, ‘the end’ isn’t when you sign the documents and buy your property; you can expect your finance broker to keep track of you and your changing needs, helping you should you need to switch products or wish to purchase another property.

Talk to us today if you would like to discuss your loan options. Call us on Ph 0407 443 753.

Source: MFAA

Reproduced with the permission of the Mortgage and Finance Association of Australia (MFAA)

Important:
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

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Just as governments need to set policy objectives and budget for future spending commitments, households need to feel confident they can meet their current and future financial commitments.

So no matter how much you earn, it’s always a good strategy to check that your spending doesn’t exceed your income. It’s also important to think about how much you need to save today to pay for all the things you want to achieve in the future.

Before we look more closely at your personal finances, it’s worth understanding how you may be affected by the big picture.

Cost of living pressures

The big economic issues for everyone right now, from the federal government and the Reserve Bank to businesses and households, are inflation and interest rates.

While economists talk about inflation, individuals experience this as an increase in their cost of living. Inflation increased by 3.5% in the year to December, with the price of fuel and the cost of buying a new home the biggest contributors. Prices of food, transport, health and insurance are also rising.ⁱ

Rising prices also put pressure on the Reserve Bank to lift interest rates to dampen demand. Lenders respond by increasing interest rates on mortgages and other loan products. While the Reserve Bank recently lifted rates, homeowners and investors need to be prepared for the increase in mortgage repayments.

While higher prices are not a major concern if your income is growing faster than inflation, annual wage growth is lagging inflation at just 2.3 percent. ⁱⁱ In other words, unless you’re lucky enough to secure a big wage rise your finances could be going backward in real (after inflation) terms.

Given these challenges, what can you do to get ahead?

Start at the beginning

Money may not buy you happiness, but having enough to afford the life you want to lead certainly helps. So how much is enough?

A recent survey by Finder found that 25 percent of Australians wouldn’t feel affluent unless they earned at least $500,000 a year.ⁱⁱⁱ Not only is this almost nine times the average income of around $60,000, many of today’s rich listers started out with far less.^iv

There’s nothing wrong with dreaming big but you are more likely to achieve your goals by being realistic and to start with, making the most of what you already have.

Before you can build wealth, you need to understand what’s coming in, where your money’s going and where you could make savings, by following these four steps:

1. Add up your annual income from wages, investments, and government benefits.
2. Add up your spending on essential living expenses including mortgage or rent, groceries, utilities, transport, and insurances; and discretionary spending on the fun stuff like clothes, dining out entertainment, and holidays. If you don’t have receipts, try tracking your spending over three months or so using one of the many free online budgeting apps.
3. Subtract your total spending in step 2 from your total income in step 1. If you spend more than you earn or barely break even, then look for areas where you could save. Things like cutting back on takeaways, impulse spending online, and streaming services you rarely use. Ring your mortgage lender to negotiate a better interest rate and when insurances come up for renewal, shop around.
4. Draw up a budget to track your spending and put a savings plan in place to achieve your goals. Even a simple plan will help with discipline and make regular savings automatic.

Putting it all together

Some of the most popular budget strategies take a bucket approach, with separate money buckets for needs, wants, and savings.^v Most aim to set aside around 20 percent of your income as savings and paying yourself first by setting up regular debits to a savings account. If you have debts or don’t have an emergency fund, then these should be attended to before you direct savings to investments or other goals.

To be successful, a budget needs to be one you can stick to, tailored to your personal goals and financial situation. If you would like us to help plan your personal budget strategy, get in touch on Ph 0407 443 753.

i https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release

ii https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release

iii https://www.finder.com.au/average-aussie-needs-330000-to-feel-rich

iv https://www.abc.net.au/news/2021-06-20/are-you-middle-income-see-how-you-compare/100226488

v https://www.finder.com.au/best-budgeting-strategies

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Although counter-reports came out skeptical of such a price hike, it’s undeniable that Australians are experiencing a creeping rise in expenses across the board. From petrol to groceries to travel, things are feeling more expensive because, well, they are.

So, it’s understandable that the rising cost of living is on the minds of many investors.

In times like these, creating a budget could prove to be an invaluable source of comfort. Not only can it help keep you on track to achieve your long-term goals, but it can also help reduce any feelings of financial anxiety that comes with spending above your means.

Budget basics

A good place to start is setting up a budget that corresponds with your pay cycle. If you get paid fortnightly, then a fortnightly budget will be easiest to manage. From there, you can figure out how much money comes in every fortnight (salary and other income), how much goes out (fixed expenses such as rent and bills and debt expenses such as loan repayments), and ultimately how much of what’s left you can spend, save or invest.

While that’s the crux of a budget, you can also consider these factors to help you find the right balance between spending and saving:

1. Do I have an emergency fund that can cover at least 3 months of living expenses?

An emergency fund is a money set aside to cover the financial surprises life throws your way. These unexpected events (such as job loss, medical emergencies, car troubles, and unexpected home repairs) can be stressful and costly.

Having an emergency fund can keep your stress levels down and give you confidence that you can deal with any unexpected events. It also keeps you from making poor financial decisions in times of stress, such as borrowing funds at high-interest rates or racking up extra fees and penalties for late payments.

2. Am I setting money aside to put towards my larger goals (like houses, cars, education)?

It’s hard to think about saving more when you have other financial priorities competing for your attention. But remember that every bit of money you add to an investment account can go further than you think – your invested assets can benefit from compounding over time.

Factoring into your budget a manageable amount of money to invest each fortnight or month will set you up to reap the many benefits of regular investing.

3. Am I auto-paying for subscriptions that I don’t use?

You might have money disappearing out of your accounts every month for an online game you never play, a magazine you don’t read, or a box-of-the-month club whose boxes are sitting untouched somewhere in your house. Doing some subscription housekeeping can free up more of your money to put toward other goals.

4. Do I spend money out of FOMO – fear of missing out on the newest trend or gadget everyone is talking about?

Sometimes when we read about people camping out for days to get the newest phone or smartwatch, it can create the illusion that we need to have it in our lives because it’s that cool and exclusive. Take the time to make sure you’re making big purchases for the right reasons, and not just to keep up with the Joneses.

5. Do my unplanned purchases fit into my budget?

It’s always a good idea to build room into your budget for some spontaneous spending every month. As long as you’re taking the time to thoughtfully weigh your recreational spending against your long-term goals, you’re looking out for your financial wellness – and that can make a world of difference!

Call us today to talk about your finances. Contact us on Ph 0407 443 753.

Source: Vanguard April 2022

Reproduced with permission of Vanguard Investments Australia Ltd

Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your client’s circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.

© 2022 Vanguard Investments Australia Ltd. All rights reserved.

Important:
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The post The value of having a budget appeared first on Your Finance Choice.

The key to a successful savings goal is to be realistic about what you can afford to buy. Read our advice on how to manage your expectations and buy an affordable home. For most of us, our first house is a step on the property ladder rather than our forever home. But how much do you need to save?

How much do I need for a house deposit?

According to the Australian Bureau of Statistics, the mean house price is now over $600,000, and more in the capital cities. Your house deposit will generally need to be 20% of the purchase price if you want to avoid paying Lenders’ Mortgage Insurance. This could be less if you’re eligible for the First Home Deposit Scheme.

There are steps you can take to save faster. In our case studies, we’re going to look at two sets of aspiring first home buyers. In our first case study, we’ll introduce Alicia who’s looking to buy on her own. In our second case study, we’ll follow Todd and Renima a couple who are saving for their first home deposit together.

Let’s look at some general home deposit-boosting tips.

Analyse what you’re spending, then cut costs

It’s easy to spend money without thinking about it. Daily coffees, taxis, clothes, and subscriptions all add up and affect your ability to save.

The first thing you’ll need to do when you decide to start saving is to analyse exactly where your money is going. To begin with, go through your bank account and make a note of every dollar that you’ve spent in the past month. You can use our budget planner to help you get started.

Here are some changes you can make now to help you save faster.

Move back home or into a share house

If it’s a realistic option for you, sharing a home with family or friends could be a good idea. Living in a share house could help to potentially save some money by cutting down on the cost of rent and bills.

To assist you with your decision speak with us on Ph 0407 443 753.

Get rid of your car

It’s easy to underestimate how much your car costs to run. It’s more than just petrol. Add in insurance, repairs, maintenance, and depreciation. That can add up to thousands of dollars a year. If you’re in a city with decent public transport (and good bike lanes), you could possibly save some cash by going car-free.

If you have no other choice than to drive, read the cost-saving tips for running a car. Or, check out your state or territory’s car club website. For example, the RACV has put together some handy cost guides to help guide you on the real cost of owning a car.

Review your lifestyle

Minor lifestyle changes, like limiting takeaway meals and coffees, can incrementally add up. That might mean drinking instant coffee at work each morning for a while.

Reduce your nights out and entertainment costs. Start finding some cheaper ways to have fun. If you have friends in the same situation, consider taking it in turns to host dinner parties at home, or movie and game nights.

Cut out things you don’t use

A simple way to save is to stop paying for things you don’t use or need. Start looking for discounts and cheaper options on things like memberships, subscriptions, utilities, and insurance. It’s worth taking the time for the longer-term gain.

Set up a savings account and savings plan

Keep track of your finances 

Saving takes dedication and a little planning. Get help with your savings plan by using savings tools. This tool can help you budget, track your spending and set up a realistic savings goal.

Set up a designated account

One great way to ensure you meet your savings goals is to set up a designated ‘house deposit’ account. This is easy to do using budgeting apps. 

Consider a term deposit

You might also want to consider a term deposit as a saving option to help you reach your savings goal. These savings products offer fixed, competitive interest rates and you can choose a term to suit your needs. 

A term deposit is a type of savings account that allows you to lock away your money for a period with a set interest rate. Having the funds locked away for a period could help you save. But, if you need to access the funds you can request early closure with 31 days’ notice. Accessing your funds early may impact the interest you’re eligible for. Call us on Ph 0407 443 753 for more information.

Get all the first home buying assistance you can

First Home Owner Grant

If you’re starting out, you might qualify for a First Home Owner Grant (FHOG). How much you get, and the rules and conditions vary from state to territory and can change from time to time.

We’ve got more information about the FHOG in our First Home Owner Grant story. NAB has a summary of the various schemes (with links to each state/territory’s website).

Most states and territories offer grants for newly built homes now rather than established homes. The grant amounts differ depending on your state or territory but range from $10,000 to $15,000 on average.

As of 2016, only the Northern Territory offers grants over $15,000. You can check your state or territory’s grant eligibility and amounts on their websites.

Stamp duty concessions

If you’re buying your first house, you may also qualify for stamp duty concessions (depending on the state/territory). Since stamp duty can add another 3-5% to the purchase price, this is a real help.

We know that the home loan process can be daunting. When the time comes, don’t feel like you have to do it on your own. Call us on Ph 0407 443 753. 

Source: NAB

Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www.nab.com.au/personal/life-moments/home-property/buy-first-home/deposit-saving

National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances.

© 2022 National Australia Bank Limited (“NAB”). All rights reserved.

Important:
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The post How to save a house deposit: essential Tips appeared first on Your Finance Choice.

Covering your home

Home insurance covers the replacement of your home building and permanent fixtures like plumbing and built-in cabinetry. The most common type is ‘sum-insured’, which will cover an amount that is specified by you when you take out the policy, should you need to repair or rebuild. Some insurers offer ‘total replacement’ cover, which covers the cost to repair or rebuild and replace anything destroyed by the event to the same standard but this is usually much more expensive and so not as popular.

Either way, to avoid being underinsured, you need to work out an accurate rebuild cost. You’ll also need to decide if you want to include extras like accommodation during rebuilding and removing debris from the site.

Most insurers have calculators on their websites. Try to find one based on ‘elemental estimating’. It collects a lot more detail about your home’s construction and location, making it more accurate than the rougher cost-per-square-meter estimates.

It’s often worthwhile checking if an insurer offers an underinsurance buffer. This is when they add up to 30% to your sum-insured amount if your property is a total loss.

Checking exclusions is vitally important, as all household insurance is based around carefully defined events. That means you need to check that a quote’s definitions, especially natural events like ‘flood’ and ‘fire’, work for your location and likely risks.

Calculating contents insurance

Most contents insurance offers the replacement value of your belongings, or ‘new for old’ cover but it is possible to find fixed value or sum-insured policies.

With contents insurance, you need to decide what to include in your cover. You’ll also need to check if an insurer repairs or replaces the damaged items or pays you the amount it would cost to repair or replace them.

To calculate the value of your insurance, you’ll need to make a list of the belongings you want to insure and include how much the items would cost to replace today. You may need to add portable technology like tablets and laptops, specialist items like artwork, or things valued above the payout limit, like a large TV, bikes, or jewellery, under Extras. Accidental Damage, such as a broken vase or stained carpet, is often included as an optional extra here too.

Keeping serial numbers, purchase receipts and photos of items can help with cost assessment if you need to claim. You can find user-friendly calculators on most content insurance websites. Again, check the definition of the events covered by a policy to make sure it meets your needs and to avoid any unpleasant surprises, in the event you need to make claim.

Landlord insurance

Landlord insurance is available for long- and short-term tenancy rentals and can include building, contents, and rental income cover.

Choosing the best quote for you

Try to compare at least three quotes for each type of insurance. They will have Key Fact Sheets and Product Disclosure Statements (PDS) available online.

The main features to compare for any home insurance are;

• premium costs,
• event definitions,
• exclusions,
• extras,
• excess amounts and variations, and
• cover limits.

Also check for discounts on bundling policies, buying online, and any safety measures you have adopted. Some may include additional services like replacing locks after a burglary. And while comparison websites can be useful, please remember that they may promote only paying businesses and will not show your full range of options.

While it’s not something we like to think about, minor mishaps and unexpected disasters can arise, so taking your time to select the most appropriate cover for your circumstances can prove valuable in the unfortunate event you need to make a claim.

Talk to us on Ph 0407 443 753 or an insurance broker if you need help.

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns. Important Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The post Protecting your home. What to look for when comparing policies appeared first on Your Finance Choice.

(Please note for specific taxation advice regarding your situation, please speak to your registered taxation professional)

Full details can be found on the ATO website here

Shortcut method

You can claim a deduction of 80 cents for each hour you work from home due to COVID-19 as long as you are:

• working from home to fulfil your employment duties and not just carrying out minimal tasks such as occasionally checking emails or taking calls,
• incurring additional deductible running expenses as a result of working from home.

You do not have to have a separate or dedicated area of your home set aside for working, such as a private study.

The shortcut method rate covers all deductible running expenses, including:

• electricity for lighting, cooling or heating and running electronic items used for work (for example your computer), and gas heating expenses
• the decline in value and repair of capital items, such as home office furniture and furnishings
• cleaning expenses
• your phone costs, including the decline in value of the handset
• your internet costs
• computer consumables, such as printer ink
• stationery
• the decline in value of a computer, laptop or similar device.

You do not have to incur all of these expenses, but you must have incurred additional expenses in some of those categories as a result of working from home due to COVID-19.

If you use the shortcut method to claim a deduction for your additional running expenses, you cannot claim a further deduction for any of the expenses listed above.

You must keep a record of the number of hours you have worked from home as a result of COVID-19. Examples are timesheets, diary notes or rosters.

If you use the shortcut method to claim a deduction and you lodge your 2019-20 tax return through myGov or a tax agent, you must include the note ‘COVID-hourly rate’ in your tax return.

Records you must keep

If you use the shortcut method, you only need to keep a record of the hours you worked at home, for example timesheets or diary notes.

If you use the other methods, you must also keep a record of the number of hours you worked from home along with records of your expenses. For more information on what those records are see Home office expenses.

More information

For more information, visit ato.gov.au/home or speak to a registered tax professional.

The post ATO shortcut for temporary working from home expenses appeared first on Your Finance Choice.

What is a credit score?

Your credit score is a number based on an analysis of your credit file, at a particular point in time, that helps a lender determine your credit worthiness. It is used by credit providers, such as banks and credit unions, to help them decide whether to lend you money, how much they will lend you and may sometimes influence what interest rate is offered to you.

Comprehensive credit reporting and how it’s changing your credit report

From September 2018, the major banks and various credit providers will be putting additional information about the credit products you hold on your credit report. This will give a more complete picture of your credit history.

The new information will include:

• the type of credit products you have held in the last 2 years
• your usual repayment amount
• how often you make your repayments and if you make them by the due date.

You may find that your credit score has changed as a result. See how to get a good credit score for tips on improving your score. 

How is your credit score calculated?

Credit reporting agencies collect your financial and personal information and document it on your credit report. This information is then used to calculate your credit score, which includes:

• Your personal details (such as age and where you live)
• The type of credit providers you have used (e.g. bank or utility company)
• The amount of credit you have borrowed
• The number of credit applications and enquiries you have made
• Any unpaid or overdue loans or credit
• Any debt agreements or personal insolvency agreements relating to bankruptcy

What does my credit rating mean?

Depending on the credit reporting agency used to calculate your score, it will be a number between zero and 1,200 or zero and 1,000.

The number is rated on a five-point scale (excellent, very good, good, average and below average). The position of your credit score on this scale helps lenders work out how risky it is for them to lend to you: 

• Excellent – you are highly unlikely to have any adverse events harming your credit score in the next 12 months
• Very good – you are unlikely to have an adverse event in the next 12 months
• Good – you are less likely to experience an adverse event on your credit report in the next year
• Average – you are likely to experience an adverse event in the next year
• Below average – you are more likely to have an adverse event being listed on your credit report in the next year

How to find out your credit score for free

You can get a free credit score from a number of online providers. The results may vary depending on which credit reporting agency is used. The following websites offer a free credit rating:

• Creditsavvy (Experian score)
• Credit Simple (illion, formerly know as Dun and Bradstreet score)
• Finder (Experian score)
• Getcreditscore (Equifax score)
• WisrCredit (Equifax and Experian score)

You may need to check with more than one credit score provider to get a consistent and reliable measure of your credit rating.

Your credit score is dynamic, meaning it may change from month to month as your financial circumstances change. 

Protecting your personal information

By obtaining your free credit score you may be agreeing to allow your personal information to be disclosed to third parties for marketing purposes. Ensure you read all terms and conditions and consider whether you want your personal information passed on for marketing purposes. You can opt out or unsubscribe where you do not want these details passed on.

 Checking your credit rating can protect you from fraud

You should check your credit rating and report to ensure your information is correct and that all the enquiries and listings on the report have been made by you. Criminals can steal your identity and take out credit in your name so checking the accuracy of your credit report is important. See credit reports for more information on how to check your credit history. 

Case study: Jessica gets her credit rating

Jessica wanted to be able to negotiate a better deal on her loans and credit card so she decided to find out her credit score. She found two providers offering a free credit rating online. She decided to compare the two and see how she rated with both.

The first website placed Jessica in the ‘very good’ category with a score of 726 out of 1000. The second website placed her in the ‘good’ category with a score of 699 out of 1200.

Jessica did some further research and found that each website used data from a different credit reporting agency to calculate her credit score. She requested a copy of her credit report from each of these agencies to see what the difference was.

It turned out not all her credit history was listed with the reporting agency the first website used so her score came out higher. The scoring system was also different across both sites.

Jessica decided to keep an eye on her credit rating in future to ensure it stayed high.

How to get a good credit score

Your credit score can increase or decrease over time depending on the information contained in your credit report. Your score can change even if your financial habits haven’t. This could be due to a number of factors including:

• applying for a new loan or credit card
• a listing on your credit report expiring
• a change to your credit limit on an existing loan or credit account
• new information from a creditor
• closing a loan or credit card account
• late repayments

Improving your credit rating starts with looking at your current financial situation and looking for ways to improve it. As your financial circumstances improve your credit rating will improve. Getting into a good credit position before you next apply for a loan can help increase the likelihood of you getting approved.

You can improve your credit score by:

• lowering your credit card limits
• consolidating multiple personal loans and/or credit cards
• limiting your applications for credit 
• making your repayments on time
• paying your rent and bills on time
• paying your mortgage and other loans on time
• paying your credit card off in full each month

Credit scores help lenders decide if they should lend money to you. Knowing your credit score can help you to negotiate a better deal with your bank or find an alternative lender that will reward your good credit history.

Please contact us on Ph 0407 443 753 if you seek  further discussion on this topic. 

Source : ASIC’s MoneySmart November 2018 

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://www.moneysmart.gov.au/borrowing-and-credit/borrowing-basics/credit-scores

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.

Important
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The post How to get a good credit score appeared first on Your Finance Choice.

Please contact us on Ph 0407 443 753 for information on participating lenders.

Are you an eligible first home buyer?

The Scheme is open to singles or couples.

Singles

If you are looking to purchase your first home as the only person named as a borrower in your home loan, then you would apply under the Scheme as a single.

Couples

If you are looking to purchase your first home with your spouse or de facto partner, where you are both named as borrowers in your home loan, then you would both apply under the Scheme as a couple.

NHFIC has developed a tool to help first home buyers find out whether they meet the Scheme’s eligibility criteria.

Click here to view the Eligibilty tool.

Property price thresholds

To ensure the Scheme is only available for the purchase of a modest home, or the purchase of land and construction of a modest home, the property price thresholds (maximum property purchase price under the Scheme) will apply in capital cities, large regional centres and regional areas.

NHFIC has also developed a tool to help first home buyers find out the property price threshold for the suburb in which they are looking to purchase a property. Please note that this tool is provided as a guide only and does not mean that you will receive either a guarantee or a loan from a participating lender.

Click here to view the price threshold tool.

Fact Sheets

Please click here to download a Fact Sheet

Please click here to download some FAQs

If you have any questions or require further information please contact us on Ph 0407 443 753.

Source:

The post First Home Loan Deposit Scheme (FHLDS) appeared first on Your Finance Choice.

There is no better time to be getting our kids in the kitchen, with school holidays looking completely different this year as the country grapples with the spread of coronavirus.

The idea of letting kids in the kitchen can be daunting, and you might be wondering ‘why would I now, of all times, want to add that additional stress into my life’. 

However, healthy behaviours and positive relationships with food start at an early age, so it makes sense to get kids started in the kitchen sooner rather than later to promote good health and life skills.

Teaching our children to take control of their health

One of the big barriers to people not cooking with their kids is not having enough time. I get it! It’s not an ideal time to be engaging kids in cooking when you are running in from soccer training after a full day of work knowing that you have 15 minutes to get through the dinner/bath/bed routine. 

However, when seeking any positives of this coronavirus tragedy, one may be that many of us potentially have more time at home, with our kids, than ever before. It’s our time to shine as parents!

By setting aside a few hours each week to teach your kids some simple cooking skills, you will set them up for a life so they can make informed choices about what they eat and take control of their health.

A chance to come together

Cooking brings people together – and cooking with kids is no different. In this time of high stress and change, which unavoidably is also impacting our kids, spending time together doing positive activities doesn’t just get those carrots peeled quicker, it is a chance to talk and to connect. 

It’s not just cooking!

As well as teaching kids important information about food, where it comes from, and how to prepare it, cooking also teaching valuable academic skills:

• Maths: get kids to measure, count or weigh ingredients and work out fractions
• English: get kids to read the recipe, even better design their own and write it down. Read the ingredients and get kids thinking about what words they recognise and what words sound like chemicals. This is a great discussion starter for thinking about what makes up the food we eat, what are ‘real whole foods’ and what ‘foods’ are not food but instead a highly processed chemical cocktail.
• History: why not investigate what foods or meals they ate during the Renaissance!
• Geography: try an international recipe
• Science: cooking is all about chemical reactions. I always love watching what happens when you mix the bicarb of soda with the melted honey and butter when baking a batch of Anzac biscuits
• PDHPE: cooking is an excellent opportunity to discuss how food is medicine and how the food we eat influences our mood, our energy, our growth, our skin, our sleep – our everything!

Start with easy, healthy recipes

You might want to start with a family favourite recipe that you can make together. Or jump online to get some inspiration. 

Here are a few sites to get you started:

Whole Food Simply 

Australian healthy food guide 

Healthy kids NSW

Choose age-appropriate tasks

Children as young as two can start helping – they can start by washing the fruit and veg or breaking up the broccoli. Three-year-olds can mix or shake up dressings. Four-year-olds can mash bananas and set the table. Five-year-olds can measure, and break eggs (if you don’t mind eating a bit of shell).  

Keep it simple – it can be as easy as starting them on spreading some avocado on a rice cracker or adding ingredients to a smoothie or mixing some bliss balls or scrambling some eggs.  

Cooking for confidence and belonging

Yes, it’s probably quicker doing it yourself, but one of the most fabulous skills you can gift your child is the ability to cook. It allows them to feel like a valuable part of the family, helps develop responsibility and builds their confidence.

Source: Emily Connell Nutritional Medicine 

Emily Connell, BHSc Nutritional Medicine, BAppSc Occupational Therapy

Emily is a Nutritional Medicine practitioner, writer, speaker, facilitator and trainer.  Emily combines her passion for Nutritional Medicine with her background in Occupational Therapy, mental health & management to support people to achieve health & inspire wellness.  

Important note: 
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. 

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.

Any links are provided for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The post Kids in the kitchen – entertaining the kids these school holidays appeared first on Your Finance Choice.